Revenue and Profitability Trends
Over the past seven years, Eldeco Housing’s net sales have shown variability, peaking at ₹168.19 crores in March 2019 before experiencing a decline and subsequent recovery phases. The fiscal year ending March 2021 marked a high point with net sales of ₹159.42 crores, followed by a dip to ₹112.70 crores in March 2024. The latest figures for March 2025 indicate a rebound to ₹133.94 crores, signalling a moderate recovery in top-line performance.
Operating profit margins, excluding other income, have mirrored this volatility. The margin reached a peak of 47.01% in March 2022 but contracted to 19.33% by March 2025. Despite this, the company maintained positive operating profits throughout, supported by other income which has steadily increased, contributing to a total operating profit of ₹35.65 crores in the latest fiscal year.
Profit after tax (PAT) has followed a similar trajectory, with a high of ₹54.22 crores in March 2021, declining to ₹21.51 crores by March 2025. Correspondingly, the PAT margin decreased from 34.01% in 2021 to 16.06% in 2025, reflecting pressures on profitability possibly due to rising costs and market conditions.
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Balance Sheet and Financial Position
Eldeco Housing’s balance sheet has strengthened over the years, with shareholder’s funds rising from ₹210.71 crores in March 2020 to ₹384.18 crores in March 2025. This growth is underpinned by increasing reserves, which have nearly doubled from ₹208.74 crores to ₹382.21 crores in the same period, indicating retained earnings and capital accumulation.
The company’s total liabilities have also expanded, reaching ₹821.30 crores in March 2025 from ₹454.38 crores in March 2020. Notably, long-term borrowings have increased significantly, from negligible levels prior to 2023 to ₹98.25 crores in 2025, reflecting a strategic rise in secured loans to possibly fund expansion or working capital needs.
Current liabilities have similarly increased, with trade payables and other current liabilities rising, which may suggest higher operational activity or delayed payments. However, the company’s current assets have grown robustly to ₹730.07 crores in March 2025, supporting liquidity and operational flexibility.
Cash Flow and Operational Efficiency
Cash flow from operating activities has been inconsistent, with a negative outflow of ₹6 crores in March 2025 following a significant outflow of ₹127 crores in March 2024. Earlier years showed positive cash flows, indicating fluctuating working capital requirements and operational cash generation. Investing activities have consistently generated positive cash inflows, while financing activities have varied, with a notable inflow of ₹19 crores in the latest year after a large inflow of ₹70 crores in 2024.
The net cash inflow of ₹21 crores in March 2025, coupled with a closing cash and bank balance of ₹119 crores, suggests a stable liquidity position despite operational challenges. This liquidity buffer is crucial for navigating the cyclical nature of the real estate market.
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Summary and Outlook
In summary, Eldeco Housing’s historical performance reflects a company that has experienced cyclical fluctuations in revenue and profitability, common in the real estate sector. While net sales and profit margins have contracted in recent years, the company has maintained positive earnings and strengthened its balance sheet with growing reserves and shareholder equity.
The increase in borrowings and current liabilities indicates a more leveraged position, which may pose risks but also provides capital for growth opportunities. Cash flow volatility highlights the importance of efficient working capital management going forward.
Investors should weigh these factors carefully, considering the company’s capacity to navigate market cycles and capitalise on recovery phases. The current liquidity position and asset base provide a foundation for potential stability and growth, but ongoing monitoring of profitability trends and debt levels remains essential.
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