Revenue and Operating Income Trends
Incon Engineers’ net sales have shown considerable variability, peaking notably in the fiscal year ending March 2021 at ₹2.46 crores before declining sharply in subsequent years. The total operating income mirrored this pattern, with a high of ₹2.46 crores in 2021 and a steep drop to ₹0.21 crores by March 2025. The absence of other operating income throughout this period indicates the company’s reliance solely on core sales activities for revenue generation.
Raw material costs have generally tracked the revenue trend, with a significant cost burden in 2021 amounting to ₹1.04 crores, reflecting the higher sales volume that year. Employee costs remained relatively stable, fluctuating modestly between ₹0.26 crores and ₹0.36 crores, suggesting consistent staffing levels despite revenue swings. Other expenses also maintained a steady range around ₹0.30 to ₹0.48 crores, indicating fixed operational overheads.
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Profitability and Margins
The company’s operating profit before depreciation and interest (PBDIT) excluding other income has been predominantly negative in recent years, with losses widening to nearly ₹0.48 crores in the latest fiscal year. However, a notable exception occurred in 2021 when Incon Engineers reported a positive operating profit of ₹0.73 crores, supported by a gross profit margin exceeding 32%. This year also marked the only profitable period in the last seven years, with a profit after tax of ₹0.79 crores and an earnings per share (EPS) of ₹1.82.
Subsequent years saw a return to losses, with the PAT margin deteriorating to nearly -195% by March 2025. Interest expenses, although relatively low, have increased slightly in recent years, adding to the financial strain. Depreciation charges remained consistent at ₹0.02 crores annually, reflecting stable asset utilisation.
Balance Sheet and Financial Position
Incon Engineers’ balance sheet reveals a shrinking asset base, with total assets declining from ₹4.03 crores in 2021 to under ₹1 crore by 2025. Shareholders’ funds have turned negative in the latest fiscal year, indicating accumulated losses have eroded net worth. The company’s borrowings have fluctuated, with long-term debt rising to ₹0.85 crores in 2025 and short-term borrowings emerging only recently, suggesting increased reliance on external financing.
Net block of fixed assets has remained relatively stable around ₹0.5 crores, while current assets have diminished significantly from ₹3.47 crores in 2021 to ₹0.46 crores in 2025. The negative net current assets position in the latest year highlights liquidity challenges. Contingent liabilities have remained modest and stable, around ₹0.12 to ₹0.13 crores.
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Cash Flow and Operational Efficiency
Cash flow data indicates limited operational cash generation, with positive cash flow from operations recorded only in 2022 at ₹1 crore, offset by negative cash flows in the preceding year. Investing activities have been neutral, reflecting no significant capital expenditure or asset sales. Financing activities show a pattern of debt repayment and raising, with a net neutral cash flow impact over the analysed period.
Overall, Incon Engineers has struggled to maintain consistent profitability and growth, with a sharp decline in sales and recurring losses in recent years. The company’s financial position has weakened, as evidenced by negative net worth and increasing debt levels. Investors should carefully consider these factors when evaluating the company’s prospects.
Summary
Incon Engineers’ historical performance is characterised by volatility and financial challenges. While the company achieved a profitable year in 2021, this was not sustained, with subsequent years marked by declining revenues, negative margins, and deteriorating balance sheet health. The firm’s reliance on borrowings and shrinking asset base further underscore the need for strategic reassessment to restore financial stability and growth momentum.
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