Revenue and Profitability Trends
The company’s net sales demonstrated a remarkable recovery after a subdued base in March 2022, when sales were minimal. From ₹0.79 crore in March 2022, net sales surged to ₹62.28 crore in March 2023 and peaked at ₹72.01 crore in March 2024 before retreating to ₹35.63 crore in March 2025. This fluctuation indicates a period of rapid growth followed by a contraction in the latest fiscal year.
Operating profit margins, excluding other income, were deeply negative in March 2022, reflecting operational challenges with a margin of -482.28%. However, the company turned profitable in subsequent years, achieving margins of 47.43% in March 2023 and 53.55% in March 2024, before easing to 39.77% in March 2025. This improvement underscores enhanced operational efficiency despite the recent dip.
Profit after tax (PAT) followed a similar pattern, with a loss of ₹10.76 crore in March 2022 turning into profits of ₹21.16 crore and ₹27.79 crore in March 2023 and March 2024 respectively, before declining to ₹11.04 crore in March 2025. Correspondingly, the PAT margin improved from a deeply negative -1362.03% in 2022 to a positive 30.99% in 2025, signalling a stabilisation of profitability.
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Cost Structure and Expenses
Raw material costs scaled in line with sales, rising from zero in March 2022 to ₹23.94 crore in March 2023 and ₹28.37 crore in March 2024, before dropping to ₹16.30 crore in March 2025. Employee costs remained relatively stable, fluctuating between ₹1.04 crore and ₹2.12 crore over the period. Other expenses showed a declining trend from ₹6.68 crore in March 2023 to ₹3.80 crore in March 2025, reflecting tighter cost control.
Interest expenses have steadily decreased from ₹3.92 crore in March 2022 to ₹0.13 crore in March 2025, indicating improved debt servicing or reduced borrowing costs. Depreciation charges remained modest, rising slightly from ₹0.23 crore to ₹0.44 crore over the four years.
Balance Sheet and Financial Position
Suratwwala Busi.’s total assets expanded from ₹111.24 crore in March 2022 to ₹185.15 crore in March 2025, driven by increases in both current and non-current assets. Inventories grew substantially from ₹70.89 crore to ₹131.65 crore, signalling either stockpiling or expansion in operations. Current investments also rose, reaching ₹11.04 crore by March 2025.
Shareholders’ funds improved markedly, turning from a negative ₹10.11 crore in March 2022 to a positive ₹68.74 crore in March 2025, supported by a turnaround in reserves from negative to positive territory. The book value per share adjusted accordingly, moving from a negative ₹5.83 to ₹3.96 over the period.
However, the company’s debt profile shows a mixed picture. Total debt decreased from ₹43.09 crore in March 2022 to ₹31.38 crore in March 2023 but then surged to ₹72.61 crore in March 2025, largely due to a sharp increase in long-term borrowings. Short-term borrowings, conversely, declined from ₹30.41 crore to ₹8.04 crore, indicating a shift in debt maturity structure.
Cash Flow and Liquidity
Cash flow from operating activities remained under pressure, with negative cash flows recorded in three of the four years, including ₹-4 crore in March 2025. Investing activities showed significant outflows in the latest year, reflecting capital expenditure or investments, while financing activities provided inflows to support these outlays. The closing cash and cash equivalents stood at ₹1 crore in March 2025, down from ₹5 crore the previous year, highlighting tight liquidity conditions.
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Summary and Outlook
Overall, Suratwwala Busi. has demonstrated a significant recovery from losses in 2022 to profitability in subsequent years, supported by improved operational margins and a stronger balance sheet. Despite a recent dip in sales and profits in the fiscal year ending March 2025, the company maintains a positive net worth and manageable interest costs. The increase in long-term borrowings suggests ongoing investment or expansion plans, though cash flow constraints warrant close monitoring.
Investors should weigh the company’s historical volatility against its demonstrated ability to rebound and generate profits. The evolving debt profile and liquidity position will be critical factors to watch in assessing future performance and sustainability.
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