How has been the historical performance of Ishan Dyes?

Revenue and Profitability Trends

Over the past seven years, Ishan Dyes' net sales have shown a notable increase, rising from ₹66.81 crores in March 2019 to ₹101.47 crores by March 2025. This growth, however, has not been linear; the company experienced a dip in sales in March 2023 to ₹64.71 crores before rebounding strongly in subsequent years. Operating profit margins have mirrored this volatility, peaking at 21.52% in March 2021 before declining sharply to 6.62% in March 2025. The operating profit (PBDIT) excluding other income also reflected this trend, with a high of ₹17.59 crores in March 2021 dropping to ₹6.72 crores in March 2025.

Profit after tax (PAT) has been particularly variable, with a peak of ₹12.81 crores in March 2021, followed by a loss in March 2023, and a modest recovery to ₹1.09 crores in March 2025. Correspondingly, the PAT margin declined from 15.67% in March 2021 to just over 1% in March 2025. Earnings per share (EPS) followed a similar pattern, reaching ₹8.02 in March 2021 before falling to ₹0.52 in March 2025.

Cost Structure and Expenses

The company’s raw material costs have increased substantially, from ₹41.10 crores in March 2019 to ₹69.13 crores in March 2025, reflecting both higher input prices and increased production volumes. Employee costs and power costs have also risen steadily, with power costs increasing from ₹8.42 crores in March 2019 to ₹14.17 crores in March 2025. Other expenses have remained relatively stable, fluctuating around ₹7 to ₹9 crores annually. The company has not reported any purchase of finished goods or selling and distribution expenses, indicating a focus on in-house manufacturing and possibly direct sales.

Balance Sheet and Financial Position

Ishan Dyes’ total assets have grown significantly, from ₹66.53 crores in March 2020 to ₹221.90 crores in March 2025. This expansion is largely driven by increases in gross block and capital work in progress, which surged to ₹70.97 crores in March 2025 from negligible levels in earlier years. Shareholder’s funds have also increased steadily, reaching ₹103.87 crores in March 2025, supported by rising reserves. However, the company’s debt levels have escalated sharply, with total debt rising from ₹2.07 crores in March 2020 to ₹92.09 crores in March 2025, indicating increased leverage to finance expansion.

Cash Flow and Liquidity

Cash flow from operating activities has been inconsistent, with positive inflows of ₹11 crores in March 2025 but negative cash flows in March 2024. Investing activities have consistently shown outflows, reflecting ongoing capital expenditure. Financing activities have provided significant inflows, particularly in recent years, supporting the company’s increased borrowing and capital investments. Despite these movements, the company’s cash and bank balances have remained minimal, suggesting tight liquidity management.

Summary of Historical Performance

In summary, Ishan Dyes has demonstrated robust growth in sales and asset base over the last several years, supported by increased capital expenditure and shareholder equity. However, profitability has been uneven, with margins contracting significantly in recent years amid rising costs and interest expenses. The company’s leverage has increased markedly, which may pose risks if earnings do not stabilise. Cash flow patterns indicate ongoing investment and financing activity, with operating cash flows recovering after a period of negative inflows. Investors should weigh the company’s growth potential against its recent profitability challenges and elevated debt levels when considering its historical performance.

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