How has been the historical performance of Guj. Lease Fin.?

Nov 24 2025 11:12 PM IST

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Guj. Lease Fin. has historically shown minimal revenue generation and consistent losses, with net sales peaking at 0.04 Cr in March 2015 and falling to 0.00 Cr by March 2018, while reporting negative operating profits and net profits throughout the years. The company's financial performance indicates a challenging operational environment with persistent losses.

Revenue and Operating Income Trends

Over the seven-year period ending March 2018, Guj. Lease Fin.'s net sales remained negligible, with figures consistently close to zero. The company recorded a modest ₹0.04 crore in net sales only in the fiscal year ending March 2015, while other years showed no significant sales revenue. Correspondingly, total operating income mirrored this trend, remaining effectively flat and registering only minor amounts in select years. The absence of substantial revenue generation indicates limited business activity or a focus on non-traditional income streams.

Cost Structure and Profitability

Despite the low revenue base, the company incurred steady operating expenses. Employee costs gradually increased from ₹0.02 crore in 2012 to ₹0.09 crore in 2018, while manufacturing expenses, although modest, remained consistent around ₹0.09 to ₹0.18 crore annually. Other expenses also rose over time, reaching ₹0.19 crore by 2018. Total expenditure excluding depreciation hovered between ₹0.15 crore and ₹0.51 crore, consistently exceeding operating income.

This cost structure contributed to persistent operating losses. The operating profit before other income (PBDIT) was negative throughout the period, with the largest deficit recorded in 2016 at approximately ₹0.51 crore. Although other income provided some relief, it was insufficient to offset operating losses fully. Consequently, the company reported negative operating profits in most years, except for a marginal positive figure in 2014.

Profitability and Earnings Per Share

Profit before tax remained negative for most years, with losses widening to ₹0.32 crore in 2018. The company reported a small profit before tax in 2014, but this was an exception in an otherwise loss-making trend. Profit after tax followed a similar pattern, with losses deepening to ₹0.32 crore in 2018. Earnings per share (EPS) were negative in all years except 2014, where a marginal positive EPS of ₹0.02 was recorded. The consistent negative EPS reflects ongoing challenges in generating shareholder value.

Cash Flow and Liquidity Position

Cash flow from operating activities was negative in most years, indicating that the company struggled to generate cash internally. The largest outflow occurred in 2016, with a cash burn of approximately ₹0.36 crore. However, cash flow from investing activities showed some positive inflows in recent years, notably ₹0.49 crore in 2018, which helped improve the net cash position. The closing cash and cash equivalents increased from ₹0.53 crore in 2013 to ₹0.18 crore in 2018, reflecting some recovery in liquidity despite operational losses.

Equity and Reserves

Throughout the period, the company's equity capital remained stable at ₹27.13 crore with a face value of ₹10 per share. However, reserves were deeply negative, worsening from approximately -₹48.76 crore in 2012 to -₹34.45 crore in 2018. This negative reserve position underscores accumulated losses and financial strain over the years.

Summary of Historical Performance

In summary, Guj. Lease Fin. has faced persistent operational and financial challenges over the past seven years. The company’s revenue generation has been minimal, with total operating income close to zero in most years. Operating expenses consistently exceeded income, resulting in ongoing losses and negative profitability metrics. Despite some positive cash inflows from investing activities, the firm’s cash flow from operations remained negative, reflecting difficulties in sustaining core business activities. The negative reserves and consistent losses highlight the need for strategic reassessment to improve financial health and shareholder returns.

Investors analysing Guj. Lease Fin. should consider these historical trends carefully, weighing the company’s limited revenue base and ongoing losses against any potential turnaround strategies or market developments.

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