How has been the historical performance of Credent Global?

Revenue and Profitability Trends

Credent Global's net sales demonstrated a notable rise from ₹1.70 crore in March 2022 to a peak of ₹19.47 crore in March 2023, before declining to ₹14.65 crore in March 2025. This volatility suggests a period of rapid expansion followed by a contraction in sales. Operating profit margins have mirrored this trend, with an exceptionally high margin of over 1000% in March 2023, driven by a relatively low expenditure base that year. However, by March 2025, the company reported a significant operating loss, with margins turning negative at approximately -73.4%, indicating rising costs or reduced operational efficiency.

Profit after tax (PAT) followed a similar pattern, peaking at ₹7.01 crore in March 2023 before slipping to a loss of ₹6.74 crore in March 2025. Earnings per share (EPS) also reflected this swing, from a high of 9.42 in March 2023 to a negative 1.31 in the latest fiscal year. The PAT margin, which was an impressive 586% in March 2023, deteriorated sharply to nearly -84% by March 2025, underscoring the recent profitability challenges.

Cost Structure and Expenses

Throughout the period, Credent Global maintained zero raw material and manufacturing costs, indicating a business model not reliant on physical inventory or production. Employee costs rose steadily from ₹0.23 crore in March 2022 to ₹3.99 crore in March 2025, reflecting possible workforce expansion or wage inflation. Other expenses surged notably to ₹16.55 crore in the latest year, a sharp increase from under ₹5 crore in previous years, contributing heavily to the overall expenditure rise. Total expenditure excluding depreciation escalated from ₹0.42 crore in 2022 to ₹20.54 crore in 2025, outpacing revenue growth and pressuring margins.

Balance Sheet and Financial Position

Credent Global's shareholder funds expanded significantly from ₹7.23 crore in March 2022 to ₹74.74 crore in March 2025, supported by rising reserves which grew from ₹1.68 crore to ₹64.45 crore over the same period. The company maintained no long-term borrowings, but short-term borrowings remained substantial, though declining from ₹38.37 crore in 2023 to ₹19.68 crore in 2025. Total liabilities increased in line with assets, reaching ₹111.79 crore by March 2025. The book value per share adjusted for face value changes showed a marked increase, indicating enhanced net asset value despite recent profit setbacks.

Cash Flow Dynamics

Operating cash flows have been consistently negative, with ₹-11 crore in March 2025, reflecting ongoing working capital pressures and operational losses. Investing activities showed a positive inflow of ₹15 crore in the latest year, contrasting with outflows in prior years, possibly due to asset sales or investment realisations. Financing cash flows turned negative in 2025 after strong inflows in earlier years, signalling reduced external funding or debt repayments. Overall, net cash position improved slightly to ₹2 crore by March 2025, providing some liquidity cushion.

Summary and Outlook

Credent Global's historical performance reflects a company that experienced rapid growth in revenue and profitability up to March 2023, followed by a period of contraction and losses in the subsequent two years. The sharp increase in expenses, particularly other operating costs, has weighed heavily on margins and net profits. Despite these challenges, the company has strengthened its equity base and maintained a manageable debt profile, which could provide a foundation for recovery. Investors should closely monitor operational efficiencies and cost controls going forward, as well as cash flow trends, to assess the sustainability of future performance.

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