How has been the historical performance of Khaitan (India)?

Answer:The historical performance of Khaitan (India) shows a challenging financial trajectory, particularly in the fiscal year ending March 2022, where the company reported a net sales figure of 52.26 crore and total operating income of the same amount. However, the total expenditure exceeded this, reaching 53.25 crore, resulting in an operating profit (PBDIT) of 1.02 crore, which was offset by interest expenses of 2.50 crore, leading to a profit before tax of -3.29 crore. Consequently, the profit after tax also stood at -3.29 crore, reflecting a negative net profit margin of -6.3%. The company's earnings per share (EPS) was reported at -6.93. On the balance sheet side, total liabilities decreased from 100.91 crore in March 2019 to 69.83 crore in March 2024, while total assets also declined from 100.91 crore to 69.83 crore over the same period. Shareholder's funds showed a decrease from 35.10 crore in March 2019 to 20.24 crore in March 2024. The cash flow statements indicate a net cash outflow in recent years, with cash flow from operating activities remaining at zero in March 2024.

Breakdown:
Khaitan (India) has faced significant financial difficulties over the years, particularly evident in its performance for the year ending March 2022, where it recorded a net profit of -3.29 crore, resulting in a negative profit before tax and a negative EPS of -6.93. The company's total operating income was matched by total expenditure, leading to a slim operating profit of 1.02 crore. Over the years, total liabilities have decreased significantly, from 100.91 crore in March 2019 to 69.83 crore in March 2024, while total assets have similarly declined, indicating a shrinking balance sheet. Shareholder's funds have also diminished, reflecting a downward trend in financial health. The cash flow analysis reveals a concerning trend, with cash flow from operating activities at zero in March 2024, suggesting ongoing operational challenges.