How has been the historical performance of Haryana Capfin?

Revenue and Profit Growth

Over the past six years, Haryana Capfin’s net sales have shown a robust increase, rising from ₹1.75 crores in March 2021 to ₹7.53 crores by March 2025. This more than fourfold growth underscores the company’s expanding market presence and operational scale. The total operating income mirrors this trend, reflecting the absence of other operating income and a focus on core business activities.

Operating profit before depreciation and interest (PBDIT) has also surged impressively, climbing from ₹1.15 crores in March 2021 to ₹6.93 crores in March 2025. This growth is accompanied by a remarkable improvement in operating profit margin, which expanded from 65.7% to over 92% during the same period, signalling enhanced cost management and operational leverage.

Profit after tax (PAT) has followed a similar upward path, increasing from ₹0.84 crores in March 2021 to ₹5.22 crores in March 2025. The PAT margin has consistently remained strong, exceeding 69% in the latest fiscal year, which is indicative of the company’s ability to convert revenue into net earnings efficiently.

Cost Structure and Efficiency

Haryana Capfin’s expenditure profile reveals a lean cost structure, with employee costs remaining relatively stable around ₹0.5 crores annually. Other expenses have marginally decreased from ₹0.13 crores in earlier years to ₹0.08 crores in the latest fiscal year, contributing to the improved profitability margins. Notably, the company reports no raw material costs, power costs, or selling and distribution expenses, which aligns with its business model.

The absence of interest expenses and depreciation further enhances the company’s profitability, allowing it to retain a larger share of its operating income as net profit. This financial discipline is reflected in the steady increase in earnings per share (EPS), which rose from ₹1.61 in March 2021 to ₹10.02 in March 2025, highlighting substantial value creation for shareholders.

Balance Sheet Strength and Asset Quality

On the balance sheet front, Haryana Capfin maintains a strong equity base with shareholder’s funds growing from ₹90.34 crores in March 2021 to ₹337.41 crores in March 2025. The company operates without any long-term or short-term borrowings, indicating a debt-free status that reduces financial risk and interest burden.

Reserves have expanded significantly, reaching ₹332.18 crores in the latest fiscal year, which supports the company’s growth and provides a cushion against potential market fluctuations. Total liabilities have increased in line with business expansion but remain manageable at ₹433.74 crores as of March 2025.

Current investments form a substantial portion of the company’s assets, amounting to ₹431.71 crores, which reflects a strong liquidity position. Cash and bank balances, though modest, have shown a slight increase, supporting operational needs. The book value per share has also appreciated markedly, from ₹173.44 in March 2021 to ₹647.78 in March 2025, underscoring the company’s growing net asset value.

Cash Flow and Financial Stability

Examining cash flow trends, Haryana Capfin experienced a notable spike in cash flow from operating activities in March 2023, amounting to ₹44 crores, which was offset by investing activities in the same period. However, in the subsequent years, operating cash flow turned slightly negative, reflecting changes in working capital and investment patterns. Despite this, the company has maintained a stable net cash position with no debt obligations, reinforcing its financial stability.

The company’s consistent profitability, strong margins, and robust equity position suggest a well-managed financial structure capable of supporting future growth initiatives. The absence of contingent liabilities and pledged promoter holdings further enhances investor confidence in the company’s governance and risk profile.

Conclusion

In summary, Haryana Capfin’s historical performance reveals a company on a strong growth path, characterised by rising revenues, expanding profit margins, and a solid balance sheet free from debt. Its efficient cost management and increasing shareholder value metrics make it a noteworthy player in its sector. Investors seeking a financially disciplined and steadily growing enterprise may find Haryana Capfin’s track record compelling.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →