How has been the historical performance of Hiliks Technolog?

Revenue and Profitability Trends

In the fiscal year ending March 2025, Hiliks Technolog reported net sales of ₹6.98 crores, with total operating income matching this figure due to the absence of other operating income. The company’s operating profit before depreciation and interest (PBDIT) stood at ₹1.51 crores, reflecting an operating profit margin of 21.63%, which indicates efficient cost management relative to revenue. Gross profit margin was slightly lower at 20.34%, while the profit after tax margin was 6.59%, resulting in a consolidated net profit of ₹0.46 crores.

Employee costs were recorded at ₹0.94 crores, and other expenses were notably higher at ₹9.88 crores, which impacted the overall expenditure. Despite these costs, the company maintained a positive operating profit, supported by minimal interest expenses of ₹0.09 crores and depreciation charges of ₹0.78 crores. Earnings per share (EPS) for the year was ₹0.52, with diluted EPS marginally higher at ₹0.53, reflecting stable earnings attributable to shareholders.

Balance Sheet and Capital Structure Evolution

Examining the standalone balance sheet over the past six years reveals a consistent increase in shareholder’s funds, which rose from ₹5.54 crores in March 2020 to ₹20.45 crores in March 2025. This growth was driven by an increase in share capital from ₹5.08 crores to ₹8.82 crores and a significant rise in reserves from ₹0.46 crores to ₹11.63 crores, indicating retained earnings accumulation and capital infusion.

The company’s total liabilities have fluctuated, peaking at ₹17.33 crores in March 2022 before declining to ₹21.93 crores in March 2025. Notably, Hiliks Technolog has effectively reduced its long-term borrowings to zero by March 2025, reflecting a conservative debt profile. Current liabilities also decreased substantially from ₹11.54 crores in March 2022 to ₹1.51 crores in March 2025, improving the company’s liquidity position.

On the asset side, total assets increased from ₹9.40 crores in March 2020 to ₹21.93 crores in March 2025. The net block of fixed assets showed gradual growth, reaching ₹0.76 crores in the latest year. Non-current investments remained stable at ₹1.50 crores since March 2021, while current assets expanded significantly to ₹15.90 crores in March 2025, supported by increases in cash and bank balances, other current assets, and short-term loans and advances.

Cash Flow and Liquidity Considerations

Cash flow data indicates a challenging year in March 2025, with cash flow from operating activities showing an outflow of ₹11.00 crores, primarily due to a ₹12.00 crores increase in working capital requirements. This contrasts with positive operating cash flow of ₹1.00 crore in March 2021. Financing activities provided a cash inflow of ₹12.00 crores in March 2025, which helped offset the operating cash outflow and maintain a neutral net cash position.

The company’s prudent approach to debt is evident, with total debt declining steadily over the years and no short-term borrowings reported. The book value per share has more than doubled from ₹10.91 in March 2020 to ₹23.19 in March 2025, reflecting enhanced shareholder value and capital appreciation.

Summary and Investor Insights

Hiliks Technolog’s historical performance reflects a company that has steadily strengthened its financial foundation through capital growth and improved profitability margins. The absence of long-term debt and a rising book value per share underscore a conservative financial strategy that favours stability. However, the recent operating cash flow challenges highlight the need for careful working capital management going forward.

Investors should note the company’s ability to maintain positive net profits despite rising expenses and the strategic increase in reserves, which may provide a buffer for future growth initiatives. The consistent increase in shareholder funds and controlled liabilities suggest a well-managed balance sheet, positioning Hiliks Technolog favourably within its sector.

Overall, the company’s financial trajectory over the past six years indicates a cautious yet progressive approach, balancing growth with risk management. This historical performance analysis provides a solid foundation for investors seeking to understand Hiliks Technolog’s financial health and long-term prospects.

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