How has been the historical performance of Anzen IYEP Trust?

Dec 01 2025 11:38 PM IST

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Anzen IYEP Trust has shown increasing net sales and operating income, with net sales rising to 265.83 Cr in March 2025 from 99.67 Cr in March 2023. Despite this growth, the company continues to report losses, with a profit after tax of -16.23 Cr in March 2025.

Revenue and Operating Performance

The Trust's net sales have shown a robust increase, rising from ₹99.67 crores in March 2023 to ₹265.83 crores by March 2025. This more than twofold growth in top-line revenue underscores a strong expansion in business operations. Total operating income mirrored this trend, with no other operating income reported during the period. Despite the surge in revenue, the company maintained a remarkably high operating profit margin, consistently above 90%, indicating efficient control over operating expenses excluding depreciation. Operating profit (PBDIT) rose substantially from ₹85.22 crores in March 2023 to ₹233.61 crores in March 2025, reflecting improved operational leverage.

Cost Structure and Profitability Challenges

While operating expenses excluding depreciation increased moderately from ₹14.70 crores in March 2023 to ₹34.11 crores in March 2025, the company managed to sustain strong gross profit margins, although there was a slight decline from 65.54% in March 2024 to 61.71% in March 2025. Interest expenses, however, rose significantly from ₹43.92 crores in March 2023 to ₹75.12 crores in March 2025, reflecting increased borrowing costs. Depreciation charges also escalated, reaching ₹174.03 crores in March 2025. These factors contributed to continued net losses, with profit after tax improving from a loss of ₹31.92 crores in March 2023 to a reduced loss of ₹16.23 crores in March 2025. Earnings per share followed a similar pattern, improving from a negative ₹2.04 to negative ₹0.83 over the same period.

Balance Sheet and Financial Position

The Trust's total assets expanded significantly from ₹2,325.62 crores in March 2023 to ₹3,551.57 crores in March 2025, driven largely by increases in gross block and net block assets. Gross block rose from ₹2,174.68 crores to ₹3,683.72 crores, while accumulated depreciation also increased, reflecting ongoing capital investments and asset utilisation. Shareholder's funds showed some volatility, decreasing from ₹1,510.96 crores in March 2023 to ₹1,326.86 crores in March 2024 before recovering to ₹1,550.45 crores in March 2025. Notably, reserves remained negative throughout, indicating accumulated losses.

Long-term borrowings doubled from approximately ₹741.62 crores in March 2023 to ₹1,434.06 crores in March 2025, with short-term borrowings introduced at ₹461.85 crores in the latest fiscal year. This increase in debt contributed to a rise in total liabilities from ₹2,325.62 crores to ₹3,551.57 crores. The book value per share declined from ₹96.7 in March 2023 to ₹79.22 in March 2025, reflecting the impact of losses and equity dilution.

Cash Flow and Liquidity

Cash flow from operating activities showed a positive trend, increasing from ₹88 crores in March 2023 to ₹240 crores in March 2025, signalling improved cash generation despite net losses. However, cash flow from investing activities remained negative, with substantial outflows of ₹1,492 crores and ₹1,527 crores in March 2023 and March 2025 respectively, indicating ongoing capital expenditure. Financing activities fluctuated, with a large inflow of ₹1,410 crores in March 2023, a negative outflow in March 2024, and a significant inflow of ₹1,325 crores in March 2025, reflecting active debt management and capital raising efforts. Closing cash and bank balances improved markedly from ₹6 crores in March 2023 to ₹106.48 crores in March 2025, enhancing liquidity buffers.

Summary and Outlook

In summary, Anzen IYEP Trust has experienced strong revenue growth and maintained high operating margins over the last three years, reflecting operational efficiency and business expansion. Nevertheless, the company has struggled with net profitability due to rising interest and depreciation expenses, alongside a growing debt burden. The balance sheet shows increased leverage and negative reserves, which may warrant cautious monitoring by investors. Positive cash flow from operations and improved liquidity provide some comfort, but the ongoing capital expenditure and financing activities suggest a focus on growth and asset development. Investors should weigh these factors carefully when considering the Trust's historical performance and future prospects.

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