How has been the historical performance of Bodhtree Consul.?

Revenue and Operating Income Trends

Over the seven-year period ending March 2023, Bodhtree Consul. saw its net sales peak in the fiscal year ending March 2021 at ₹145.60 crores, followed by a gradual decline to ₹39.34 crores by March 2023. Total operating income mirrored this trend, with no other operating income reported throughout the period. The sharp drop in revenue in the latest fiscal year represents a significant contraction compared to the previous years, indicating challenges in maintaining sales momentum.

Cost Structure and Profitability

The company's expenditure profile reveals a consistent absence of raw material and finished goods purchase costs, suggesting a service-oriented business model. Employee costs have steadily decreased from ₹16.03 crores in March 2018 to ₹1.32 crores in March 2023, reflecting possible downsizing or operational restructuring. Manufacturing expenses, however, remain substantial, peaking at ₹125.60 crores in March 2021 before declining to ₹58.37 crores in the latest year.

Operating profit before other income (PBDIT excl. OI) has been volatile, reaching a high of ₹19.01 crores in March 2019 but turning sharply negative to -₹28.28 crores in March 2023. Including other income, operating profit (PBDIT) followed a similar pattern, with a peak of ₹21.52 crores in March 2021 and a loss of ₹24.83 crores in the most recent year. This downturn is further reflected in the operating profit margin, which swung from a positive 16.34% in March 2019 to a negative 71.89% in March 2023.

Profitability and Earnings

Profit before tax (PBT) and profit after tax (PAT) have followed a similar trajectory, with positive results in earlier years turning into losses recently. PAT peaked at ₹12.72 crores in March 2021 but declined to a loss of ₹26.61 crores by March 2023. Earnings per share (EPS) reflect this volatility, reaching a high of ₹6.37 in March 2021 before dropping to a negative ₹8.65 in the latest fiscal year. The PAT margin also declined sharply from 6.74% in March 2019 to -67.64% in March 2023, signalling deteriorating profitability.

Balance Sheet and Financial Position

Bodhtree Consul.'s shareholder funds have decreased from ₹68.15 crores in March 2022 to ₹41.56 crores in March 2023, indicating erosion of net worth. The company’s long-term borrowings increased to ₹4.43 crores in March 2023 from ₹1.65 crores the previous year, while short-term borrowings declined to ₹8.06 crores. Total liabilities have reduced from ₹141.08 crores in March 2022 to ₹116.08 crores in March 2023, reflecting some deleveraging.

On the asset side, net block value has fallen significantly from ₹7.77 crores in March 2021 to ₹2.54 crores in March 2023, while intangible assets under development have nearly doubled since March 2019, reaching ₹25.83 crores. Current assets have also declined from ₹112.15 crores in March 2022 to ₹87.60 crores in March 2023, with sundry debtors remaining a major component.

Cash Flow Analysis

Cash flow from operating activities has been inconsistent, with a positive ₹7 crores in March 2023 following a negative ₹3 crores in the previous year. Investing activities have been largely neutral recently, while financing activities showed a modest inflow of ₹1 crore in the latest year after previous outflows. The net cash inflow of ₹9 crores in March 2023 contrasts with a net outflow of ₹7 crores in March 2022. Despite these fluctuations, the company’s closing cash and cash equivalents remain negative at ₹-3 crores, indicating liquidity pressures.

Summary of Historical Performance

In summary, Bodhtree Consul. has experienced a challenging period marked by declining revenues and profitability since its peak in 2021. The company’s operating and net profit margins have deteriorated sharply, culminating in significant losses in the latest fiscal year. While the balance sheet shows some reduction in liabilities, net worth has contracted, and liquidity remains a concern with negative cash balances. The increase in intangible assets suggests ongoing investment in development, but the overall financial health indicates the need for strategic realignment to restore growth and profitability.

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