How has been the historical performance of Elango Industrie?

Revenue and Operating Income Trends

Examining Elango Industrie’s net sales from fiscal year ending March 2019 through March 2025, the company has experienced significant volatility. Sales peaked at ₹2.58 crores in March 2024 but fell sharply to ₹0.96 crores in March 2025. Earlier years showed modest sales figures, with ₹0.55 crores in March 2022 and a low of ₹0.15 crores in March 2020. The absence of other operating income throughout this period indicates reliance solely on core sales activities for revenue generation.

The total operating income mirrored these sales trends, with a notable zero figure in March 2023, suggesting operational disruptions or reporting anomalies. The purchase of finished goods constituted the major component of costs, particularly in recent years, indicating a business model reliant on procurement rather than raw material processing.

Profitability and Margins

Profitability has been a persistent concern for Elango Industrie. Operating profit before depreciation and interest (PBDIT) excluding other income remained negative in most years, including a loss of ₹0.19 crores in March 2025 and ₹0.12 crores in March 2024. The company recorded a marginal positive operating profit in March 2021 and 2020, but these were exceptions rather than the norm.

Operating profit margins have been predominantly negative, with a steep decline to nearly -98.18% in March 2022 and a recovery to -19.79% in March 2025. Similarly, profit after tax margins have reflected this volatility, swinging from a positive 26.67% in March 2020 to a negative 22.92% in March 2025. Earnings per share have followed suit, with losses reported in recent years, including an EPS of -₹0.58 in March 2025, highlighting ongoing challenges in generating shareholder value.

Balance Sheet and Asset Position

Elango Industrie’s balance sheet reflects a stable equity base with share capital consistently at ₹3.82 crores over the years. However, reserves have declined from ₹0.91 crores in March 2021 to a negative ₹0.05 crores in March 2025, indicating accumulated losses impacting net worth. Shareholders’ funds have correspondingly decreased from ₹4.73 crores in March 2021 to ₹3.77 crores in March 2025.

The company maintains a debt-free status, with no long-term or short-term borrowings reported, which may provide some financial flexibility. Total liabilities have remained relatively stable around ₹4.7 crores in recent years. On the asset side, net block values have increased modestly to ₹0.11 crores in March 2025, while total assets have decreased from ₹6.54 crores in March 2023 to ₹4.71 crores in March 2025, reflecting asset base contraction.

Cash Flow and Liquidity

Cash flow analysis reveals mixed trends. Operating cash flows were positive in March 2022 at ₹2 crores but turned negative in subsequent years, with a cash outflow of ₹1 crore in March 2024 and 2023. The company has not engaged in investing or financing activities during this period, maintaining a conservative cash management approach. Closing cash and cash equivalents have fluctuated, with ₹2 crores reported in March 2022 but falling to zero in March 2024 and 2025, signalling liquidity constraints.

Summary of Historical Performance

Overall, Elango Industrie’s historical performance has been characterised by fluctuating sales, persistent operating losses, and declining reserves. The company’s reliance on purchasing finished goods rather than raw materials suggests a specific operational model that may limit margin expansion. Despite maintaining a debt-free balance sheet, the erosion of reserves and negative earnings per share highlight ongoing profitability challenges.

Investors should note the volatility in operating and net margins, as well as the inconsistent cash flow generation, which may impact the company’s ability to sustain growth or invest in expansion. The stable equity capital base provides some cushion, but the negative reserves and shrinking asset base warrant cautious analysis.

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