How has been the historical performance of Asit C Mehta Fin?

Dec 01 2025 10:55 PM IST

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Asit C Mehta Fin has shown significant sales growth from 29.21 Cr in Mar'23 to 72.64 Cr in Mar'25, but continues to face profitability challenges, with a net loss of -2.76 Cr in Mar'25 despite improved operating profit. Total assets increased to 196.73 Cr, while cash flow from operations remained negative at -6.00 Cr.

Revenue and Operating Income Trends

The company’s net sales have shown a mixed pattern over the past seven years. After a peak in fiscal year ending March 2019, with net sales exceeding ₹43 crores, revenues declined in subsequent years before rebounding sharply to ₹72.64 crores in March 2025. This recent surge represents a substantial increase compared to the previous fiscal year’s ₹42.40 crores, signalling a strong recovery in top-line performance. Notably, Asit C Mehta Fin does not report other operating income, so total operating income aligns directly with net sales figures.

Cost Structure and Profitability

Examining the cost components, employee expenses have steadily risen from ₹7.83 crores in March 2021 to ₹19.66 crores in March 2025, reflecting possible expansion or increased operational scale. Other expenses have also escalated, reaching ₹48.84 crores in the latest fiscal year. Despite these rising costs, the company managed to improve its operating profit before depreciation, interest, and tax (PBDIT) to ₹9.36 crores in March 2025, a significant turnaround from losses recorded in the two preceding years.

However, interest expenses remain a considerable burden, consistently around ₹10 crores annually, which has contributed to negative gross profit before depreciation and tax in recent years. Consequently, the company reported a loss before tax of ₹2.74 crores in March 2025, continuing a trend of negative profitability since March 2023. The net loss after tax stood at ₹2.76 crores, though this is an improvement compared to the deeper losses in prior years.

Balance Sheet and Asset Position

On the balance sheet front, shareholder’s funds have fluctuated notably, dipping into negative territory in March 2023 before recovering to ₹25.54 crores by March 2025. The company maintains no long-term or short-term borrowings, which suggests a debt-free capital structure. Total liabilities have increased moderately to ₹196.73 crores in the latest fiscal year, with current liabilities constituting the majority.

Asset-wise, the company’s total assets have grown from ₹159.20 crores in March 2021 to ₹196.73 crores in March 2025. Non-current investments remain a significant component, though they have declined from ₹66.95 crores in March 2020 to ₹61.35 crores in March 2025. Cash and bank balances have improved steadily, reaching ₹47.09 crores, providing liquidity support amid operational challenges.

Cash Flow and Liquidity

Cash flow analysis reveals volatility, with operating cash flows turning negative in recent years, including a ₹6 crore outflow in March 2025. Investing activities have been inconsistent, with no cash outflow in the latest year but significant outflows in prior years. Financing activities have provided positive inflows recently, notably ₹14 crores in March 2025, which has helped the company maintain a positive net cash inflow and improve closing cash balances to ₹17 crores.

Summary of Historical Performance

Overall, Asit C Mehta Fin’s historical performance has been characterised by significant fluctuations in revenue and profitability. The company experienced strong revenue growth in the latest fiscal year, reversing a multi-year decline. Despite this, persistent high interest costs and rising expenses have constrained net profitability, resulting in losses in recent years. The balance sheet shows resilience with no debt and improving shareholder funds after a period of negative equity. Liquidity remains supported by healthy cash reserves and positive financing cash flows.

Investors should note the volatility in earnings per share, which swung from positive figures in earlier years to negative values recently, reflecting the company’s challenging profitability environment. The operating profit margin has also varied widely, underscoring the need for cautious analysis of future earnings potential.

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