How has been the historical performance of Toyam Sports?

Revenue and Operating Performance Trends

Toyam Sports’ net sales have shown significant variability, peaking notably in the fiscal year ending March 2024 before contracting sharply in the subsequent year. The company recorded its highest consolidated net sales at nearly ₹28 crores in March 2024, a substantial increase from the modest ₹0.92 crore reported in March 2021. However, this growth was not sustained, with sales declining to under ₹7 crores by March 2025. Other operating income remained negligible throughout the period, indicating reliance primarily on core sales activities.

Operating expenses have consistently outpaced revenues, with total expenditure excluding depreciation ranging from ₹1.52 crore in March 2022 to over ₹20 crores in March 2024. Employee costs and manufacturing expenses constitute the bulk of these outlays, with manufacturing expenses peaking at ₹15 crores in the 2024 fiscal year. This imbalance has contributed to persistent operating losses in most years, except for a brief profitable phase in March 2024 when the company reported an operating profit (PBDIT) of ₹8.58 crores.

Profitability and Margins

The company’s profitability has been erratic, with consolidated net profit swinging from a loss of nearly ₹49 crores in March 2025 to a profit of ₹4.85 crores in March 2024. Earnings per share (EPS) reflect this volatility, ranging from a negative ₹0.85 in the latest fiscal year to a positive ₹0.09 in 2024. Operating profit margins have been deeply negative in most years, except for the fiscal year 2024 when the margin stood at a healthy 27.9%. The sharp decline in profitability in March 2025 was exacerbated by exceptional items amounting to a loss of over ₹36 crores, severely impacting the bottom line.

Gross profit margins have mirrored this trend, with a peak of 45.27% in March 2022 and a drastic fall to negative territory in the latest year. The profit after tax (PAT) margin similarly fluctuated, reaching over 44% in 2022 but plunging to nearly -691% in 2025, underscoring the challenges faced by the company in maintaining consistent earnings.

Balance Sheet and Financial Position

Toyam Sports’ balance sheet reveals a steady increase in shareholder’s funds, rising from approximately ₹14 crores in March 2021 to nearly ₹293 crores by March 2025. This growth is supported by a rise in equity capital and reserves, although reserves have seen some contraction in the latest year. The company maintains a debt-free position in recent years, with no long-term or short-term borrowings reported since March 2022, which is a positive indicator of financial stability.

On the asset side, total assets expanded from ₹14 crores in 2021 to over ₹312 crores in 2025, driven largely by non-current assets and current assets such as sundry debtors and short-term loans and advances. The book value per share has improved steadily, reaching ₹3.8 in March 2025 from ₹0.66 in 2021, reflecting enhanced net asset value per share for investors.

Cash Flow and Liquidity

Cash flow from operating activities has been predominantly negative in recent years, with outflows peaking at ₹68 crores in March 2024. This reflects the company’s ongoing challenges in generating positive cash from core operations. Investing activities have been largely neutral, while financing activities showed significant inflows in 2023 and 2024, indicating capital injections or borrowings to support operations. The net cash inflow/outflow figures confirm a modest cash depletion in the latest fiscal year.

Despite these cash flow pressures, the company’s closing cash and cash equivalents stood at ₹4 crores in March 2024 but dropped to zero in the following year, signalling tighter liquidity conditions. Working capital management remains an area of concern, with substantial negative changes in working capital in prior years.

Outlook and Considerations

Toyam Sports’ historical performance highlights a company grappling with inconsistent revenue growth and profitability, compounded by significant exceptional losses in the latest fiscal year. While the balance sheet shows strengthening equity and a debt-free status, operational cash flow challenges and volatile margins suggest caution. Investors should closely monitor the company’s ability to stabilise revenues and control costs to return to sustainable profitability.

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