Revenue and Operating Performance Trends
Over the past seven years, Unjha Formul.'s net sales have demonstrated notable volatility. The company recorded a peak in total operating income in the fiscal year ending March 2024, followed by a decline in the subsequent year. Earlier years showed moderate growth from fiscal 2019 to 2021, with sales rising from just over ₹11 crores to nearly ₹10 crores, before surging to above ₹18 crores in 2024. However, the latest fiscal year saw a contraction to under ₹14 crores, indicating challenges in sustaining top-line momentum.
Raw material costs have consistently represented the largest expenditure, closely tracking revenue fluctuations. These costs peaked alongside sales in 2024 but decreased in line with the revenue dip in 2025. Employee costs have gradually increased, reflecting possible workforce expansion or wage inflation, while other expenses have remained relatively stable, contributing to a consistent cost structure.
Operating profit margins, excluding other income, have improved steadily, rising from a low of around 1.4% in 2021 to nearly 3.7% in 2025. This margin expansion suggests enhanced operational efficiency or better cost management despite the revenue volatility. The company’s gross profit margin also improved, reaching above 4% in the latest fiscal year, signalling a healthier core profitability.
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Profitability and Earnings Analysis
Profit before tax has shown a positive trend, increasing from approximately ₹0.30 crores in 2019 to over ₹0.50 crores in 2025. Correspondingly, profit after tax has also improved, nearly quadrupling from ₹0.10 crores in 2021 to ₹0.41 crores in 2025. Earnings per share (EPS) have followed this upward trajectory, rising from a low of 0.22 in 2021 to 0.92 in the latest fiscal year, reflecting enhanced shareholder value.
Tax provisions have become more consistent in recent years, with the company paying taxes regularly since 2022, which aligns with its improved profitability. The operating profit margin and PAT margin have both shown marked improvement, with the latter nearly tripling from 1.0% in 2021 to close to 3.0% in 2025, underscoring the company’s strengthening bottom line.
Balance Sheet and Financial Position
Unjha Formul. maintains a conservative capital structure with no long-term or short-term borrowings reported over the analysed period. Shareholder’s funds have steadily increased from ₹1.81 crores in 2020 to ₹3.14 crores in 2025, supported by retained earnings and reserves. The company’s book value per share has improved consistently, rising from ₹4.05 in 2020 to ₹7.01 in 2025, indicating growing net asset value per share.
On the asset side, net block values have remained stable, reflecting limited capital expenditure or asset disposals. Current assets have fluctuated but generally increased, driven by inventories and sundry debtors, which suggests a growing operational scale. Trade payables and other current liabilities have decreased in recent years, contributing to improved net current assets and liquidity.
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Cash Flow and Liquidity Overview
Cash flow data indicates minimal activity, with no significant inflows or outflows reported in recent years. The company recorded a modest cash flow from operating activities in 2024, but otherwise, cash movements have been negligible. This suggests a stable but low liquidity profile, consistent with the absence of debt and limited capital expenditure.
Overall, Unjha Formul. has demonstrated a gradual recovery and strengthening of its financial health, marked by improved profitability margins, rising earnings per share, and a solid balance sheet free of debt. While revenue volatility remains a concern, the company’s operational efficiencies and cost control measures have contributed to a more robust bottom line and enhanced shareholder value over the analysed period.
Conclusion
In summary, Unjha Formul.’s historical performance reflects a microcap company navigating market challenges with a focus on profitability and financial prudence. Investors should note the company’s improved margins and earnings growth alongside its conservative balance sheet. However, the fluctuating revenue trend warrants careful monitoring. The company’s ability to sustain profitability and manage costs effectively will be key to its future prospects in the competitive auto ancillary sector.
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