How has been the historical performance of Indo-City Info.?

Revenue and Operating Income Trends

Over the past seven years, Indo-City Info.'s net sales have exhibited significant volatility. Starting at ₹3.03 crores in March 2019, sales declined to ₹1.54 crores by March 2020 before gradually increasing to a peak of ₹20.71 crores in March 2024. However, the latest fiscal year ending March 2025 saw a sharp contraction to ₹7.96 crores. The absence of other operating income throughout this period indicates the company’s reliance solely on core sales activities for revenue generation.

Despite the growth in sales during certain years, total operating income mirrored this volatility, reflecting the same pattern as net sales. The purchase of finished goods consistently represented the largest expenditure component, closely tracking revenue fluctuations. For instance, purchases peaked at ₹19.51 crores in March 2024, aligning with the highest sales figure, before dropping to ₹9.68 crores in March 2025.

Profitability and Margins

Indo-City Info. has struggled to maintain consistent profitability. Operating profit before other income (PBDIT) was negative in most years, with the exception of March 2024 when it reached a modest positive ₹0.88 crores. The operating profit margin excluding other income reflected this trend, swinging from a low of -62.99% in March 2020 to a positive 4.25% in March 2024, before declining again to -18.47% in March 2025.

Other income contributed marginally to operating profit, but was insufficient to offset operating losses in most years. Profit before tax and profit after tax followed a similar pattern, with losses recorded in five of the seven years analysed. The earnings per share (EPS) also reflected this volatility, ranging from a positive ₹0.02 in March 2019 to a negative ₹1.20 in March 2025.

Tax provisions were generally minimal or negative, indicating limited taxable profits. The company did not report any extraordinary or prior period expenses during this period, suggesting that the losses were primarily operational rather than due to one-off events.

Balance Sheet and Financial Position

The company’s equity capital remained stable at ₹10.40 crores throughout the period, with reserves fluctuating and declining to zero by March 2025. Shareholders’ funds decreased from ₹12.64 crores in March 2024 to ₹11.38 crores in March 2025, reflecting accumulated losses. Notably, Indo-City Info. maintained a very low debt profile, with total debt close to zero except for a minor short-term borrowing of ₹0.25 crores in the latest year.

Asset composition showed a gradual increase in net block from ₹0.61 crores in March 2020 to ₹1.19 crores in March 2025, indicating some capital investment. Current assets, including inventories and cash, varied significantly, with cash and bank balances declining from ₹3.28 crores in March 2024 to ₹2.17 crores in March 2025. Inventories increased notably in the latest year, suggesting stock accumulation amid declining sales.

Cash Flow Analysis

Cash flow from operating activities has been inconsistent, with a positive inflow of ₹2.00 crores in March 2023 but a negative outflow of ₹1.00 crore in March 2025. There were no reported cash flows from investing or financing activities during the period, indicating limited external capital movements or asset acquisitions financed through cash. The closing cash and cash equivalents declined from ₹3.00 crores in March 2024 to ₹2.00 crores in March 2025, reflecting the operational cash outflows.

Overall, Indo-City Info.’s historical performance reveals a company facing challenges in sustaining revenue growth and profitability, with fluctuating sales and persistent operating losses. Its conservative capital structure and low debt levels provide some financial stability, but the recent decline in sales and margins warrants cautious monitoring by investors.

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