How has been the historical performance of Uday Jewellery?

Nov 21 2025 10:50 PM IST

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Uday Jewellery has experienced significant growth in net sales and profitability, with net sales rising from INR 91.74 crore in March 2020 to INR 287.20 crore in March 2025, although cash flow management has recently faced challenges. Total assets increased to INR 133.69 crore, while profit after tax grew to INR 10.87 crore in the same period.

Revenue and Profit Growth

Over the seven-year period ending March 2025, Uday Jewellery's net sales surged from ₹73.41 crores in 2019 to ₹287.20 crores in 2025, reflecting a robust compound growth. The total operating income mirrored this trend, rising steadily each year without any contribution from other operating income. Despite fluctuations in raw material costs, which remain the largest expense component, the company managed to expand its operating profit (PBDIT) from ₹4.91 crores in 2019 to ₹16.32 crores in 2025, excluding other income. Including other income, operating profit reached ₹17.19 crores in the latest fiscal year.

Profit after tax (PAT) also showed a positive trend, increasing from ₹3.09 crores in 2019 to ₹10.87 crores in 2025. Earnings per share (EPS) followed suit, rising from ₹1.59 to ₹4.74 over the same period, indicating improved shareholder returns. However, operating profit margins have seen some compression, declining from a peak of nearly 11% in 2020 to 5.68% in 2025, reflecting rising costs and competitive pressures in the jewellery sector.

Balance Sheet and Financial Position

Uday Jewellery’s balance sheet has strengthened considerably, with shareholder’s funds rising from ₹47.01 crores in 2020 to ₹106.71 crores in 2025. This growth is supported by increasing reserves, which more than tripled from ₹24.20 crores to ₹77.80 crores over five years. The company’s total assets expanded from ₹58.73 crores in 2020 to ₹133.69 crores in 2025, reflecting investments in fixed assets and working capital.

Notably, the net block of fixed assets increased significantly, indicating capital expenditure to support business expansion. Inventories and sundry debtors also rose in line with sales growth, with inventories reaching ₹53.21 crores and sundry debtors ₹69.44 crores by March 2025. While this expansion supports revenue growth, it also contributed to working capital pressures.

On the liabilities side, total debt increased from ₹10.21 crores in 2020 to ₹24.63 crores in 2025, with short-term borrowings constituting the majority. Long-term borrowings remained relatively low, suggesting a preference for short-term financing. Trade payables and other current liabilities fluctuated but remained manageable relative to the company’s scale.

Cash Flow and Operational Efficiency

Cash flow analysis reveals some volatility, with operating cash flow turning negative in the latest fiscal year at ₹-17 crores, largely due to significant changes in working capital. This contrasts with positive operating cash flows in prior years, such as ₹11 crores in 2024. Investing activities consistently showed modest outflows, reflecting ongoing capital investments. Financing activities varied, with a notable inflow of ₹18 crores in 2025, likely to support working capital needs.

The net cash position remained low, with closing cash and cash equivalents at ₹1.00 crore in 2025, down from ₹3.00 crores in 2023. This suggests tight liquidity management amid growth. Despite these pressures, the company maintained profitability and expanded its equity base, indicating resilience.

Summary and Outlook

In summary, Uday Jewellery has exhibited strong top-line growth and improved profitability over the past several years, supported by strategic investments and an expanding asset base. While margins have compressed somewhat and working capital demands have increased, the company’s rising earnings per share and shareholder equity reflect solid financial health. The increase in debt, primarily short-term, warrants monitoring, but it has been effectively managed to sustain growth.

Investors should weigh the company’s growth potential against margin pressures and liquidity considerations. The historical performance suggests a business on an upward trajectory, though with challenges typical of the jewellery retail sector. Continued focus on operational efficiency and working capital management will be key to sustaining this momentum.

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