Revenue Trends and Operating Performance
Over the past seven years, Creative Eye's net sales have exhibited a steep decline from ₹28.93 crores in March 2019 to ₹2.61 crores in March 2025. This downward trajectory highlights significant contraction in the company's core business activities. The total operating income mirrors this trend, with no other operating income reported during this period, underscoring reliance solely on sales revenue.
Operating expenses have consistently outpaced revenues, with total expenditure excluding depreciation remaining substantially higher than sales. For instance, in the latest fiscal year ending March 2025, expenditure stood at ₹3.23 crores against operating income of ₹2.61 crores. This imbalance has resulted in negative operating profit margins for most years, although the company recorded a slight positive operating profit of ₹0.26 crores in March 2025, aided by other income of ₹0.88 crores.
Despite this marginal operating profit, Creative Eye has struggled with interest expenses rising steadily to ₹0.90 crores in the latest year, which, combined with depreciation charges, has led to a negative profit before tax of ₹0.72 crores and a corresponding net loss after tax of the same amount. Earnings per share have remained negative throughout, reflecting ongoing unprofitability.
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Balance Sheet and Asset Quality
Creative Eye's balance sheet reflects a gradual reduction in total assets from ₹35.77 crores in March 2020 to ₹27.51 crores in March 2025. Shareholders' funds have also declined from ₹23.74 crores to ₹19.99 crores over the same period, indicating erosion of net worth due to accumulated losses. The company maintains a consistent equity capital base of ₹10.03 crores with a face value of ₹5 per share.
Non-current assets remain modest, with net block values decreasing from ₹1.38 crores in 2020 to ₹0.95 crores in 2025, while non-current investments and loans have fluctuated but generally remained low. Current assets have also diminished, with cash and bank balances falling from ₹12.22 crores in 2020 to ₹9.15 crores in 2025, though inventories have remained relatively stable around ₹12.78 crores.
On the liabilities side, total debt has increased slightly from ₹4.72 crores in 2020 to ₹5.75 crores in 2025, primarily in the form of short-term borrowings. Trade payables and other current liabilities have decreased, reflecting some reduction in operational obligations. The company carries contingent liabilities consistently at ₹14.11 crores, which may pose potential risks.
Cash Flow and Liquidity Position
Cash flow statements indicate ongoing challenges in generating positive operating cash flows. The company recorded negative cash flow from operations in recent years, including a ₹1 crore outflow in March 2025. Investing activities have occasionally contributed positive cash inflows, notably ₹2 crores in the latest year, while financing activities have generally resulted in outflows, reflecting repayments or reductions in borrowings.
Closing cash and cash equivalents have declined from ₹12 crores in 2020 to ₹9 crores in 2025, signalling tightening liquidity. The company’s ability to manage working capital efficiently remains critical given the negative operating margins and persistent losses.
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Summary of Historical Performance
In summary, Creative Eye has experienced a significant contraction in revenue over the last seven years, accompanied by persistent operating losses and negative profit margins. While the company has shown some improvement in operating profit in the latest fiscal year, net losses continue to weigh on earnings per share and shareholder equity. The balance sheet reveals a shrinking asset base and modest debt levels, but liquidity pressures remain evident from declining cash reserves and negative operating cash flows.
Investors should weigh these financial challenges against any potential turnaround signals, considering the company's ability to stabilise revenues and improve profitability in a competitive environment. The consistent negative margins and erosion of reserves highlight the need for cautious analysis before committing capital.
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