How has been the historical performance of IFCI?

Nov 24 2025 11:09 PM IST

Share Via

IFCI's historical performance shows a decline in net sales from 2,873.90 Cr in Mar'20 to 1,876.10 Cr in Mar'25, but profitability has improved significantly, with profit before tax rising from a loss of 2,084.79 Cr in Mar'21 to a profit of 749.03 Cr in Mar'25. Total assets increased from 20,802.87 Cr to 25,723.77 Cr, although cash flow from operating activities was negative at -983.00 Cr in Mar'25.

Revenue and Operating Performance Trends

IFCI's net sales have experienced a downward trend from a peak of nearly ₹2,874 crores in March 2020 to ₹1,876 crores in March 2025. This decline reflects a challenging operating environment, with total operating income following a similar trajectory. Despite this, the company has managed to maintain a robust operating profit margin, which stood at an impressive 63.0% in the latest fiscal year, a marked improvement from negative margins recorded in 2021 and 2022. Operating profit (PBDIT) excluding other income rose to over ₹1,182 crores in March 2025, signalling operational efficiency gains.

Profitability and Earnings

IFCI's profitability has been volatile, with the company posting losses in the years ending March 2021 and 2022, including a significant net loss exceeding ₹1,900 crores in 2021. However, the fiscal years 2024 and 2025 marked a turnaround, with consolidated net profits of ₹104 crores and ₹171 crores respectively. Earnings per share (EPS) mirrored this recovery, improving from negative values in prior years to a positive ₹0.63 in March 2025. The profit after tax margin also rebounded to 18.6% in the latest year, underscoring a healthier bottom line.

Balance Sheet and Financial Position

IFCI's balance sheet has strengthened considerably over the past few years. Shareholder's funds nearly doubled from ₹4,534 crores in March 2024 to ₹8,691 crores in March 2025, supported by a substantial increase in reserves to nearly ₹6,000 crores. The company’s total assets expanded to ₹25,724 crores by March 2025, up from ₹18,918 crores the previous year. Notably, total debt has been reduced from over ₹5,367 crores in 2024 to ₹3,714 crores in 2025, reflecting a focus on deleveraging. The book value per share also improved significantly to ₹32.26 in March 2025, indicating enhanced net asset value for shareholders.

Cash Flow and Liquidity

Cash flow from operating activities showed a negative trend in the latest fiscal year, with an outflow of ₹983 crores, contrasting with a positive inflow of ₹11 crores in the previous year. This was influenced by a sharp increase in working capital requirements. Despite this, the company maintained a healthy cash and bank balance of over ₹5,515 crores as of March 2025, up from ₹5,046 crores a year earlier. Financing activities contributed positively with ₹415 crores inflow, aiding liquidity management.

Summary of Historical Performance

Overall, IFCI's historical performance reflects a period of financial stress followed by gradual recovery. The company faced significant losses and negative margins in 2021 and 2022, but has since improved operational profitability and returned to net profit in the last two fiscal years. The balance sheet has been bolstered by increased reserves and reduced debt, enhancing financial stability. While cash flow from operations remains a concern, the strong cash reserves provide a buffer. Investors should note the volatility in earnings and the ongoing need for working capital management as key considerations.

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 →

{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)

MOJO SCORE