Revenue and Operating Income Trends
Examining the standalone annual results, Svarnim Trade Ud recorded its highest net sales of ₹11.93 crores in the fiscal year ending March 2018. However, this figure has sharply declined over the years, dropping to ₹7.95 crores in March 2019 and further plummeting to ₹0.89 crores by March 2021. Notably, from March 2022 through March 2025, the company reported zero net sales, indicating a cessation or significant reduction in core business activities. Other operating income has remained consistently nil throughout this period, resulting in total operating income mirroring net sales figures.
Cost Structure and Expenditure
The cost of raw materials closely tracked the revenue trend, with ₹11.78 crores in March 2018 reducing to ₹7.83 crores in March 2019 and ₹0.67 crores in March 2021, before dropping to zero in subsequent years. Employee costs have remained minimal but steady, fluctuating between ₹0.06 crores and ₹0.12 crores in earlier years, with a slight increase to ₹0.10 crores in March 2025. Manufacturing expenses were negligible, while other expenses surged notably to ₹3.70 crores in March 2021, contributing to the overall expenditure. Total expenditure excluding depreciation closely matched or exceeded operating income in most years, culminating in operating losses.
Profitability and Margins
Svarnim Trade Ud's operating profit before depreciation and interest (PBDIT) has been negative for the majority of the period under review. While a marginal positive operating profit of ₹0.03 crores was recorded in March 2018, the company slipped into losses from March 2019 onwards, with a significant operating loss of ₹3.60 crores in March 2021. The operating profit margin, excluding other income, reflected this downturn, plunging to -404.49% in March 2021. Profit after tax followed a similar trajectory, with losses recorded in all years except a marginal profit in 2018. Earnings per share (EPS) also declined sharply, reaching a negative ₹0.58 in March 2025, signalling sustained unprofitability.
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Cash Flow and Capital Position
Cash flow data indicates that Svarnim Trade Ud experienced negative cash flow from operating activities in March 2021, amounting to a ₹3.00 crore outflow. This was preceded by positive cash flows of ₹3.00 crores in both March 2019 and March 2020. Investing activities showed a ₹3.00 crore inflow in March 2021, contrasting with a ₹3.00 crore outflow in the previous year. Financing activities remained flat throughout the period. The company maintained an equity capital base of ₹2.43 crores consistently, with reserves turning negative from March 2022 onwards, reflecting accumulated losses. Cash and cash equivalents stood at zero from March 2021 through March 2025, underscoring liquidity challenges.
Overall Financial Health and Outlook
Over the years, Svarnim Trade Ud has witnessed a marked deterioration in its financial performance, characterised by declining revenues, mounting losses, and diminishing reserves. The absence of sales and operating income in recent years raises concerns about the company’s operational viability. Despite these challenges, the company’s equity capital has remained stable, and there are signs of potential recovery as indicated by recent cash flow improvements and efforts to control expenses.
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Investor Considerations
Investors analysing Svarnim Trade Ud should weigh the company’s historical decline in sales and profitability against any strategic initiatives aimed at revival. The persistent negative margins and erosion of reserves highlight the risks involved. However, the stable equity base and recent cash flow movements may offer a foundation for turnaround if operational activities resume effectively. Close monitoring of future financial disclosures and market developments will be essential for assessing the company’s prospects.
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