How has been the historical performance of Hexa Tradex?

Revenue and Profitability Trends

Hexa Tradex's net sales have exhibited considerable variability, with a notable peak in the fiscal year ending March 2024, where sales surged to ₹133.23 crores from a modest ₹1.06 crore in the previous year. However, this spike was followed by a sharp decline to ₹4.56 crores in March 2025. Such fluctuations suggest episodic revenue recognition or one-off transactions impacting the top line.

Operating profit excluding other income mirrored this volatility, swinging from a robust ₹142.28 crores in March 2024 to a negative ₹1.86 crores in March 2025. The inclusion of other income, which was significant in certain years such as ₹16.92 crores in March 2022 and ₹7.89 crores in March 2025, helped offset operating losses, resulting in a positive operating profit of ₹6.03 crores in the latest fiscal year.

Despite these operational swings, the company faced challenges in net profitability. Profit after tax (PAT) plummeted from a healthy ₹92.29 crores in March 2024 to a loss of ₹24.95 crores in March 2025. Earnings per share (EPS) followed a similar pattern, peaking at ₹16.7 in March 2024 before turning negative to -₹4.52 in the latest year. The PAT margin also reflected this instability, swinging from a positive 69.27% to a negative 547.15% over the same period.

Cost Structure and Expenses

Examining the cost components, Hexa Tradex reported no raw material or finished goods purchase costs, indicating a business model not reliant on traditional manufacturing inputs. Employee costs remained relatively stable, hovering around ₹1.5 to ₹2.1 crores annually. Other expenses, however, showed erratic behaviour, with negative values in some years such as -₹11.12 crores in March 2024 and positive spikes like ₹23.21 crores in March 2020, contributing to the overall expenditure volatility.

Interest expenses were substantial in certain years, notably ₹61.56 crores in March 2023 and ₹46.28 crores in March 2022, before declining to ₹3.91 crores in March 2025. This reduction in interest burden may reflect deleveraging or refinancing efforts.

Balance Sheet and Asset Base

Hexa Tradex's total assets expanded significantly from ₹246.26 crores in March 2020 to ₹5,174.50 crores in March 2025. This growth was largely driven by non-current and current investments, which rose to over ₹5,171 crores by March 2025. The company's shareholder funds also increased substantially, reaching ₹4,478.73 crores in the latest fiscal year, supported by rising reserves.

Notably, the company reported zero long-term and short-term borrowings in recent years, indicating a debt-free position as of March 2025. Deferred tax assets stood at ₹672.70 crores, contributing to the non-current liabilities total of ₹694.58 crores.

Cash Flow and Liquidity

Cash flow from operating activities showed positive trends in recent years, with ₹22 crores generated in March 2025 and ₹96 crores in March 2024, despite negative cash flows in earlier years. Investing activities fluctuated, with a significant inflow of ₹456 crores in March 2024 and a smaller inflow of ₹5 crores in March 2025. Financing activities reflected outflows in the latest years, including ₹27 crores in March 2025, consistent with the company's reduced debt levels.

Overall, the company maintained a stable cash and bank balance, albeit at modest levels, with ₹0.04 crores reported in March 2025.

Summary and Investor Considerations

Hexa Tradex's historical financial performance is characterised by pronounced volatility in revenue and profitability, with a peak in fiscal 2024 followed by a sharp downturn in 2025. The company's asset base has grown substantially, primarily through investments, while debt levels have been eliminated in recent years, enhancing financial stability.

Investors should note the erratic nature of operating income and expenses, alongside fluctuating profit margins and earnings per share. The company's cash flow position has improved, signalling better operational liquidity. However, the sharp swings in financial metrics warrant cautious analysis, especially given the significant impact of other income and investment valuations on overall results.

In conclusion, while Hexa Tradex shows potential through its expanding asset base and improved cash flows, its inconsistent earnings and revenue patterns suggest a need for careful scrutiny before investment decisions.

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