How has been the historical performance of Indergiri Fin.?

Revenue and Profitability Trends

Indergiri Fin.'s net sales have shown a gradual increase over the past seven years, rising from ₹0.45 crore in March 2019 to ₹2.23 crore in March 2025. This growth, however, has not translated into consistent profitability. Operating profit margins have deteriorated sharply, with the company reporting negative operating margins of -99.1% in the latest fiscal year, a steep decline from a positive 8.89% margin in 2019. The operating profit (PBDIT) excluding other income swung from a modest profit in earlier years to a significant loss of ₹2.21 crore in March 2025.

Profit after tax (PAT) has mirrored this trend, with the company posting losses in recent years, including a loss of ₹1.57 crore in the latest fiscal year. Earnings per share (EPS) have also turned negative, declining from a positive 0.06 in 2019 to -3.1 in 2025, reflecting the company's struggle to generate shareholder value consistently.

Cost Structure and Expenses

The company’s total expenditure excluding depreciation has increased substantially, from ₹0.41 crore in 2019 to ₹4.44 crore in 2025. Employee costs have risen steadily, reaching ₹0.93 crore in the latest year, while other expenses surged to ₹3.51 crore. Notably, the company has not reported any raw material or manufacturing costs, indicating a business model possibly focused on financial services or advisory rather than production.

Interest expenses have also increased, from negligible amounts in earlier years to ₹0.75 crore in 2025, contributing to the overall negative profitability. Despite some other income, it has been insufficient to offset the rising costs and losses.

Balance Sheet and Financial Position

Indergiri Fin.’s total assets have expanded significantly from ₹5.21 crore in 2020 to ₹20.12 crore in 2025. This growth is largely driven by an increase in long-term loans and advances, which rose from ₹4.95 crore in 2020 to ₹19.51 crore in 2025. However, the company’s shareholder funds have declined from ₹5.14 crore in 2021 to ₹2.76 crore in 2025, reflecting accumulated losses and negative reserves.

The company’s debt profile has changed markedly, with total debt increasing from zero in 2023 to ₹16.93 crore in 2025, primarily short-term borrowings. This rise in debt has increased financial risk and interest burden, impacting profitability further. The book value per share has also declined from ₹10.15 in 2021 to ₹5.45 in 2025, signalling erosion of net asset value.

Cash Flow Analysis

Cash flow from operating activities has been negative in recent years, with a significant outflow of ₹12 crore in 2025. This is largely due to adverse changes in working capital, which saw a ₹13 crore increase in cash requirements. Financing activities have provided inflows matching the operating cash outflows, indicating reliance on external funding to sustain operations. Investing activities have remained neutral, with no significant cash movements reported.

Summary and Outlook

Overall, Indergiri Fin. has demonstrated modest revenue growth but has struggled with profitability and cost control over the past several years. The company’s increasing debt levels and negative reserves raise concerns about financial stability and sustainability. While the asset base has expanded, largely through loans and advances, the erosion of shareholder funds and negative cash flows from operations suggest challenges ahead.

Investors should carefully consider these factors alongside market conditions and sector dynamics before making investment decisions related to Indergiri Fin. The company’s financial history underscores the importance of monitoring profitability trends, debt management, and cash flow health in assessing its future prospects.

Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →