How has been the historical performance of Elitecon Inter.?

Dec 04 2025 10:51 PM IST
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Elitecon Inter. has experienced substantial growth from Mar'15 to Mar'25, with net sales rising from 1.30 Cr to 548.76 Cr and a turnaround in profitability, achieving a net profit of 69.64 Cr by Mar'25, alongside significant asset growth. Total assets increased from 3.76 Cr to 250.73 Cr during the same period.




Revenue and Profit Growth Trajectory


Elitecon Inter. recorded net sales of ₹548.76 crores in the fiscal year ending March 2025, a striking increase from just ₹0.75 crores in March 2016 and ₹1.30 crores in March 2015. This exponential growth in top-line revenue underscores the company’s successful expansion and market penetration over the years. The total operating income mirrored this trend, rising sharply to ₹548.76 crores in 2025 from under ₹1 crore a decade earlier.


Operating profit before depreciation, interest, and tax (PBDIT) excluding other income surged to ₹69.01 crores in 2025, compared to a negligible ₹0.05 crores in 2016 and ₹0.03 crores in 2015. Including other income, operating profit reached ₹71.62 crores in 2025, reflecting improved operational efficiency and income diversification. The profit before tax stood at ₹69.57 crores in 2025, a significant turnaround from marginal losses and near breakeven in earlier years.


Profit after tax (PAT) followed suit, registering ₹69.65 crores in 2025, compared to a loss of ₹0.07 crores in 2015 and a minimal profit of ₹0.03 crores in 2016. The PAT margin improved substantially to 12.69% in 2025 from negative margins in 2015 and a modest 3.37% in 2016, indicating enhanced profitability and cost management.



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Cost Structure and Margins


The company’s expenditure profile evolved alongside its growth. Raw material costs and purchases of finished goods accounted for the bulk of expenses in 2025, with ₹227.55 crores and ₹243.42 crores respectively. Other expenses, including employee costs and manufacturing expenses, remained relatively low, reflecting operational discipline. Total expenditure excluding depreciation rose to ₹479.75 crores in 2025 from under ₹1.3 crores in 2015.


Elitecon Inter.’s operating profit margin excluding other income improved markedly to 12.58% in 2025, up from 2.07% in 2015 and 4.8% in 2016. Gross profit margin also turned positive at 13.01% in 2025, reversing a negative margin of -3.84% in 2015. These margin expansions highlight the company’s ability to scale efficiently and enhance profitability.


Balance Sheet and Financial Position


The company’s balance sheet expanded significantly, with total assets rising to ₹250.73 crores in 2025 from just ₹3.76 crores in 2015. Shareholder’s funds increased to ₹160.23 crores in 2025, reflecting equity infusion and retained earnings growth. The equity capital also saw a substantial increase to ₹159.85 crores in 2025 from ₹1.06 crores in 2015 and 2016, indicating capital restructuring and expansion.


Long-term borrowings appeared modest at ₹0.44 crores in 2025, while short-term borrowings stood at ₹1.56 crores, suggesting a conservative approach to debt financing. Trade payables and other current liabilities increased in line with business scale, with current liabilities reaching ₹89.89 crores in 2025. The company’s net block of fixed assets was ₹9 crores, supplemented by capital work in progress of ₹8.45 crores, signalling ongoing investments in capacity or infrastructure.


Cash Flow and Liquidity


Cash flow from operating activities remained neutral in 2025, following negative cash flows in prior years. The company invested ₹20 crores in investing activities in 2025, balanced by an equivalent inflow from financing activities, indicating active capital deployment and funding. Closing cash and cash equivalents improved to ₹2 crores in 2025 from ₹0.26 crores in 2016 and ₹0.62 crores in 2015, reflecting better liquidity management.



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Key Financial Ratios and Shareholder Returns


Earnings per share (EPS) showed a recovery trajectory, moving from a loss of ₹0.67 per share in 2015 to a positive ₹0.31 in 2016, and stabilising at ₹0.04 in 2025 on a face value adjustment basis. The diluted EPS in 2025 was ₹0.17, indicating some dilution effects but overall positive earnings generation. Book value per share adjusted declined to ₹1.002 in 2025 from ₹28.35 in 2015, reflecting the impact of equity restructuring and capital increases.


Public shareholding and pledged promoter holdings remained at zero throughout the period, suggesting a closely held ownership structure. The company’s contingent liabilities rose sharply to ₹411.69 crores in 2025, a factor investors should monitor closely for potential risk exposure.


Conclusion


Elitecon Inter. has exhibited a dramatic turnaround and growth over the last decade, transforming from a near negligible revenue and profit base to a sizeable enterprise with robust sales and profitability. The company’s expanding asset base, improved margins, and positive cash flow dynamics reflect a successful scaling strategy. However, investors should remain cautious about the sizeable contingent liabilities and closely monitor future capital expenditure and debt levels. Overall, Elitecon Inter.’s historical performance presents a compelling case of growth and operational improvement within its sector.





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