How has been the historical performance of Challani Capital?
Challani Capital has shown significant improvement in financial performance from Mar'22 to Mar'25, with net sales rising to 2.51 Cr and a turnaround from losses to profits in operating profit and profit before tax. However, the company still faces challenges with negative reserves and stagnant cash flow.
Answer:The historical performance of Challani Capital shows significant fluctuations over the years, particularly in revenue and profitability.Breakdown:
Challani Capital's net sales have shown a notable increase from Mar'22, where they reported no sales, to Mar'25, where they reached 2.51 Cr. The total operating income followed a similar trend, rising from 0.00 Cr in Mar'22 to 2.51 Cr in Mar'25. Operating profit (PBDIT) also improved significantly, moving from a loss of 2.30 Cr in Mar'22 to a profit of 1.86 Cr in Mar'25. The profit before tax mirrored this positive trend, increasing from a loss of 8.92 Cr in Mar'22 to a profit of 1.86 Cr in Mar'25. Profit after tax followed suit, climbing from a loss of 8.92 Cr in Mar'22 to a profit of 1.86 Cr in Mar'25. Despite these improvements, the company's reserves remained negative at -7.48 Cr in Mar'25, although this was an improvement from -9.34 Cr in Mar'24. The total assets of the company increased from 4.22 Cr in Mar'22 to 8.43 Cr in Mar'25, while total liabilities also rose from 4.22 Cr in Mar'22 to 8.43 Cr in Mar'25. Cash flow from operating activities remained stagnant at 0.00 Cr in Mar'25, indicating challenges in cash generation despite the increase in profits. Overall, Challani Capital has shown a recovery in sales and profitability, but it still faces issues with reserves and cash flow management.
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