How has been the historical performance of CSL Finance?

Answer:The historical performance of CSL Finance shows significant growth in net sales and profits over the years, with net sales increasing from 61.67 Cr in Mar'21 to 215.06 Cr in Mar'25. The total operating income followed a similar upward trend, reaching 215.06 Cr in Mar'25 from 61.67 Cr in Mar'21. Operating profit, excluding other income, also rose from 39.78 Cr in Mar'21 to 97.62 Cr in Mar'25, indicating improved operational efficiency. Profit before tax increased from 39.36 Cr in Mar'21 to 96.88 Cr in Mar'25, while profit after tax grew from 27.53 Cr to 72.09 Cr in the same period. The earnings per share (EPS) reflected this growth, rising from 14.97 in Mar'21 to 32.1 in Mar'25. However, the operating profit margin and profit after tax margin showed a decline, with the operating profit margin decreasing from 64.5% in Mar'21 to 45.39% in Mar'25, and the PAT margin dropping from 44.64% to 33.52%.

In terms of balance sheet performance, total liabilities increased from 346.70 Cr in Mar'21 to 984.28 Cr in Mar'24, driven by a rise in short-term borrowings from 82.60 Cr to 503.22 Cr. Total assets also grew significantly, from 346.70 Cr in Mar'21 to 984.28 Cr in Mar'24, primarily due to an increase in non-current investments. Cash flow analysis indicates a negative cash flow from operating activities, which worsened from -16 Cr in Mar'21 to -127 Cr in Mar'24, despite a positive net cash inflow in the latter year. Overall, CSL Finance has demonstrated strong revenue growth and profitability, although it faces challenges in maintaining margins and managing cash flow effectively.