Despite a revenue surge to $36.3M in 2023Q4, the company continues to struggle with profitability, evidenced by a negative operating margin of -10.2%.
| Sales/Revenue | 123.47M | 74.35M | 72.52M | 69.03M | 54.44M | 48.09M | 47.78M |
| Revenue Growth % | - | 2.52% | 5.07% | 26.79% | 13.21% | 0.65% | - |
| Cost of Goods Sold | 115.48M | 56.82M | 59.91M | 58.41M | 44.6M | 35.67M | 42.2M |
| COGS % of Revenue | - | 76.43% | 82.61% | 84.62% | 81.92% | 74.17% | 88.33% |
| Gross Profit | 7.99M | 17.53M | 12.61M | 10.62M | 9.84M | 12.42M | 5.57M |
| Gross Margin % | 6.47% | 23.57% | 17.39% | 15.38% | 18.08% | 25.83% | 11.67% |
| Gross Profit Growth % | - | 39% | 18.78% | 7.85% | -20.74% | 122.82% | - |
| Operating Expenses | 18.91M | 18.21M | 15.39M | 12.31M | 10.57M | 6.63M | 4.72M |
| OpEx % of Revenue | - | 24.49% | 21.22% | 17.84% | 19.42% | 13.8% | 9.88% |
| Selling, General & Admin | 18.91M | 15.11M | 12.45M | 9.88M | 8.79M | 6.68M | 4.81M |
| SG&A % of Revenue | - | 20.33% | 17.16% | 14.31% | 16.15% | 13.89% | 10.07% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 3.1M | 2.94M | 0 | 0 | 0 | 0 |
| Operating Income | -10.92M | -684K | -2.78M | -2.1M | -1.22M | 5.78M | 730.34K |
| Operating Margin % | -8.85% | -0.92% | -3.84% | -3.05% | -2.25% | 12.03% | 1.53% |
| Operating Income Growth % | - | 75.41% | -32.16% | -72.15% | -121.14% | 692.09% | - |
| EBITDA | -4.2M | 3.3M | 1.09M | 1.55M | 1.85M | 8.45M | 2.61M |
| EBITDA Margin % | -3.4% | 4.43% | 1.5% | 2.25% | 3.39% | 17.57% | 5.46% |
| EBITDA Growth % | - | 202.48% | -29.72% | -15.97% | -78.15% | 223.88% | - |
| D&A (Non-Cash Add-back) | 6.72M | 3.98M | 3.87M | 3.66M | 3.07M | 2.66M | 1.88M |
| EBIT | -2.56M | -975K | -2.57M | -1.83M | -729.67K | 5.78M | 730.34K |
| Net Interest Income | -1.09M | -789K | -1.15M | -723K | -369.22K | -202.52K | -234.78K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.09M | 789K | 1.15M | 723.3K | 369.22K | 202.52K | 234.78K |
| Other Income/Expense | 7.27M | -1.08M | -934K | -452.06K | 123.85K | -158.43K | -234.78K |
| Pretax Income | -3.66M | -1.76M | -3.72M | -2.56M | -1.1M | 5.58M | 495.56K |
| Pretax Margin % | -2.96% | -2.37% | -5.12% | -3.7% | -2.02% | 11.61% | 1.04% |
| Income Tax | 154.14K | 456K | -493K | -10.13K | 164.27K | 219.32K | 185.79K |
| Effective Tax Rate % | -4.22% | -25.85% | 13.27% | 0.4% | -14.95% | 3.93% | 37.49% |
| Net Income | -3.77M | -1.94M | -3.24M | -2.53M | -1.24M | 5.36M | 309.76K |
| Net Margin % | -3.05% | -2.61% | -4.47% | -3.67% | -2.28% | 11.15% | 0.65% |
| Net Income Growth % | - | 40.04% | -27.93% | -104.32% | -123.11% | 1631.34% | - |
| Net Income (Continuing) | -3.81M | -2.22M | -3.22M | -2.55M | -1.26M | 5.36M | 309.76K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 51.83K | -210K | 68K | 51.83K | 66.89K | 0 | 0 |
| EPS (Diluted) | -0.12 | -0.05 | -0.10 | -0.07 | -0.03 | 0.15 | 0.01 |
| EPS Growth % | - | 45.03% | -34.13% | -104.01% | -123.27% | - | - |
| EPS (Basic) | - | -0.05 | -0.10 | -0.07 | -0.03 | 0.15 | 0.01 |
| Diluted Shares Outstanding | 32.5M | 36.96M | 33.93M | 35.55M | 35.55M | 35.55M | 35.55M |
| Basic Shares Outstanding | 32.5M | 36.96M | 33.93M | 35.55M | 35.55M | 35.55M | 35.55M |
| Dividend Payout Ratio | - | - | - | - | - | 8.21% | 5.17% |
Labor cost inflation exposure
According to the provided quarterly income statements, Primech Holdings experienced a revenue surge to $36.3M in 2023Q4, yet the underlying trend remains inconsistent, as the company struggles to maintain organic expansion beyond its core Singaporean public sector contract base despite recent top-line volatility.
The jump in revenue during the final quarter of 2023 suggests potential success in securing new service mandates, but the lack of consistent sequential growth indicates a reliance on lumpy, project-based wins. Investors should monitor whether this revenue trajectory can be sustained without further eroding the already thin margins inherent in the facilities management sector.
As reported in financial statements, Primech Holdings' gross margin fluctuated significantly, reaching a low of -0.1% in 2021Q4 before recovering to 5.8% in 2023Q4, highlighting the extreme sensitivity of the firm's cost structure to labor-intensive service delivery and competitive pricing pressures in the Singaporean market.
The inability to consistently maintain positive gross margins suggests that the company lacks significant pricing power against larger, more diversified competitors. This volatility implies that the firm's operational model is highly vulnerable to mandatory wage increases and the rising costs of specialized cleaning supplies.
Based on the reported figures, Primech Holdings continues to struggle with negative operating margins, which reached -10.2% in 2023Q4, indicating that the company has failed to achieve the necessary scale to cover its administrative overhead and corporate infrastructure costs effectively.
The persistent gap between gross profit and operating income suggests that SG&A expenses are disproportionately high relative to the company's revenue base. This lack of operating leverage warrants further investigation into whether the current corporate structure is optimized for the firm's existing contract volume.
Data from recent filings reveals that Primech Holdings has consistently reported negative net income in three of the last five periods, raising significant questions regarding the long-term viability of its current business model in the face of rising regulatory labor costs and intense industry competition.
Short-sellers would likely focus on the company's inability to generate consistent bottom-line profitability despite its revenue growth. The reliance on non-operating items to occasionally offset operating losses suggests that the core business may be fundamentally under-earning its cost of capital.
Quick answers to the most common questions about buying PMEC stock.
For fiscal year 2025, Primech Holdings Ltd. Ordinary Shares (PMEC) reported total revenue of $74.3M. This represents a 55.6% increase compared to $47.8M in 2020.
Primech Holdings Ltd. Ordinary Shares (PMEC) reported a net loss of $1.9M for the fiscal year ending 2025.
Primech Holdings Ltd. Ordinary Shares (PMEC) reported an operating income of $-0.7M, resulting in an operating profit margin of -0.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Primech Holdings Ltd. Ordinary Shares (PMEC) generated $17.5M in gross profit for the year, representing a gross profit margin of 23.6%. This demonstrates the company's core pricing power and production efficiency.