How has been the historical performance of C.E. Info System?

Revenue and Profit Growth

From the fiscal year ending March 2020 to March 2025, C.E. Info System’s net sales surged from ₹148.63 crores to ₹463.25 crores, representing a compound annual growth rate that underscores the company’s expanding market presence. This growth was accompanied by a steady rise in operating profit (PBDIT), which increased from ₹29.35 crores in March 2020 to ₹179.91 crores in March 2025, excluding other income. Including other income, operating profit reached ₹232.35 crores in the latest fiscal year, up from ₹44.20 crores five years prior.

The company’s profit before tax rose significantly, from ₹31.60 crores in March 2020 to ₹209.60 crores in March 2025, while profit after tax climbed from ₹23.20 crores to ₹151.50 crores over the same period. This translated into a consolidated net profit increase from ₹23.20 crores to ₹147.19 crores, reflecting strong bottom-line growth. Earnings per share (EPS) also improved markedly, reaching ₹27.06 in March 2025 compared to ₹1.75 in March 2020, signalling enhanced shareholder returns.

Cost Structure and Margins

The company has managed its cost base effectively despite rising expenses in certain areas. Total expenditure excluding depreciation rose from ₹119.28 crores in March 2020 to ₹283.34 crores in March 2025, reflecting the scale of operations. Notably, selling and distribution expenses increased sharply in recent years, reaching ₹99.73 crores in March 2025 from negligible levels earlier, indicating expanded market outreach efforts.

Operating profit margins, excluding other income, remained strong, averaging around 40% in recent years, though slightly down from a peak of over 43% in March 2022. Gross profit margins have moderated from a high of 62.66% in March 2022 to 49.47% in March 2025, suggesting some pressure on cost efficiencies or pricing. The profit after tax margin stood at a healthy 31.86% in the latest fiscal year, reflecting sustained profitability.

Balance Sheet Strength and Asset Growth

C.E. Info System’s balance sheet has strengthened considerably, with shareholder’s funds rising from ₹297.74 crores in March 2020 to ₹790.74 crores in March 2025. Total reserves have also grown substantially, reaching ₹765.60 crores, supporting the company’s capital base. Total assets expanded from ₹352.59 crores to ₹940.04 crores over the six-year period, driven by increases in both current and non-current assets.

Net block of fixed assets increased significantly, reflecting ongoing investments in infrastructure and capacity, while current assets rose from ₹171.25 crores to ₹558.65 crores, supported by higher cash balances and investments. The company’s total debt remains modest at ₹27.62 crores as of March 2025, indicating a conservative leverage position.

Cash Flow and Liquidity

Operating cash flow has shown a positive trend, increasing from ₹26 crores in March 2020 to ₹113 crores in March 2025, signalling strong cash generation capabilities. Despite sizeable investing outflows related to capital expenditure and acquisitions, the company has maintained a stable cash position, with closing cash and bank balances rising to ₹138.29 crores. Financing activities have generally involved moderate outflows, consistent with debt repayments and shareholder returns.

Summary of Historical Performance

Overall, C.E. Info System has exhibited a commendable financial performance marked by strong revenue growth, expanding profitability, and a solid balance sheet. The company’s ability to increase earnings per share and maintain healthy margins despite rising costs highlights operational efficiency. Its prudent capital management and positive cash flow generation further enhance its financial stability.

Investors may note the company’s increasing investments in fixed assets and marketing, which could support future growth. The relatively low debt levels and growing reserves provide a cushion for expansion and risk mitigation. While margins have seen some compression recently, the overall trend remains positive, reflecting a well-managed business with a clear growth trajectory.

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