MUMBAI: Signpost India's shareholders will have mixed feelings after the Mumbai-based advertising agency delivered a tale of two halves for the year ended March 31st, 2025. Whilst revenue from operations climbed a respectable 17 per cent to Rs 453.2 crore, net profit took a detour in the wrong direction, falling 23 per cent to Rs 33.7 crore from Rs 44 crore the previous year—suggesting this signpost may need recalibrating.

The numbers paint a picture of growth without the corresponding profit punch. Total income, including other revenues, reached Rs 458.4 crore, up from Rs 395.5 crore the previous year. However, the company's profit margins compressed, with costs rising faster than revenues—a classic case of losing one's way despite knowing the destination.

Managing director Shailesh Ashtekar and his team appear to have hit some speed bumps in their cost management. Total expenses surged 25 per cent to Rs 413 crore, outpacing the revenue growth. Employee benefit expenses climbed to Rs 42.7 crore from Rs 33.5 crore, reflecting both expansion and India's competitive talent market—though the returns on this investment remain to be seen.

The balance sheet still shows a company with solid foundations. Total assets grew to Rs 555 crore from Rs 475.6 crore, whilst shareholders' equity reached Rs 223.4 crore. Cash and equivalents stood at Rs 22.2 crore, providing reasonable liquidity though down from previous levels.

In a curious show of optimism despite the profit decline, the board has recommended maintaining a dividend of Rs 0.50 per share—a gesture that suggests confidence in weathering current headwinds. With earnings per share falling to Rs 6.34 from Rs 8.24 the previous year, Signpost will need to find its bearings quickly to restore investor confidence.

The advertising industry's fortunes often mirror broader economic sentiment, and whilst Signpost's revenue growth suggests Indian businesses are still spending on marketing, the margin compression indicates fiercer competition and rising costs. For a company whose business revolves around pointing others in the right direction, Signpost India appears to have lost its way somewhat—though management clearly believes this detour is temporary.