Revenue and Income Trends
Examining White Organic's consolidated net sales from the fiscal year ending March 2015 through March 2021, the company witnessed a remarkable surge in sales between 2016 and 2019. Starting from a modest ₹3.98 crores in March 2015, net sales escalated sharply to ₹338.02 crores by March 2019. However, this peak was followed by a notable decline, with sales dropping to ₹190.32 crores in March 2020 and further to ₹139.56 crores in March 2021. Other operating income remained negligible throughout this period, contributing minimally to total operating income.
Total operating income mirrored the sales trend, peaking in 2019 before contracting in subsequent years. The company's expenditure profile shows that purchase of finished goods constituted the largest cost component, closely tracking revenue movements. Manufacturing expenses and employee costs remained relatively stable, while other expenses fluctuated slightly but did not significantly impact overall expenditure.
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Profitability Analysis
White Organic's operating profit before depreciation, interest, and tax (PBDIT) excluding other income showed a positive trend until 2019, reaching ₹5.27 crores, before turning negative in the two subsequent years. Including other income, operating profit peaked at ₹13.51 crores in March 2018 and declined to marginal positive figures by March 2021. The company maintained minimal interest expenses and depreciation charges throughout the period.
Profit before tax followed a similar trajectory, with a high of ₹13.37 crores in 2018, declining to just over half a crore in 2021. After accounting for taxes and minority interest, consolidated net profit dropped from ₹9.78 crores in 2018 to ₹0.29 crores in 2021. Earnings per share (EPS) reflected this pattern, peaking at 2.8 in 2018 and falling to 0.08 by 2021. Operating profit margins and PAT margins also contracted significantly, indicating pressure on profitability in recent years.
Balance Sheet and Financial Position
On the balance sheet front, shareholder's funds increased steadily from ₹25.39 crores in 2016 to ₹64.96 crores in 2021, supported by equity capital infusions and reserves. Total liabilities rose from ₹26.48 crores in 2016 to ₹123.18 crores in 2021, with a notable increase in long-term borrowings in the latest year. The company’s total assets expanded correspondingly, reaching ₹123.18 crores by March 2021.
Non-current investments remained a significant asset component, fluctuating between ₹20.58 crores and ₹27.62 crores over the years. Current assets, including sundry debtors and short-term loans and advances, showed growth but also volatility. The net current assets improved from ₹3.71 crores in 2017 to ₹44.13 crores in 2021, indicating better short-term liquidity management.
Cash Flow Overview
Cash flow from operating activities was negative in recent years, with outflows of ₹8 crores in 2021 and ₹3 crores in 2020, reflecting working capital pressures and operational challenges. Investing activities generated positive cash flow in 2018 and 2019 but were negative in earlier years. Financing activities provided inflows in 2018, 2019, and 2021, supporting the company’s liquidity. Overall, net cash outflows were recorded in 2020 and 2021, with closing cash and cash equivalents declining to ₹1 crore in 2021 from ₹5 crores in 2020.
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Summary of Historical Performance
White Organic's historical performance illustrates a company that experienced rapid growth in revenue and profitability up to 2018-2019, followed by a period of contraction and margin pressure. Despite the decline in sales and profits in recent years, the company has maintained a solid equity base and improved net current assets, suggesting resilience in its financial structure. However, the negative operating cash flows and increased borrowings in the latest fiscal year highlight challenges that require close monitoring.
Investors analysing White Organic should consider both its past growth trajectory and recent financial pressures, weighing the company's ability to stabilise and return to growth against sector dynamics and broader market conditions.
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