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. The company reported net sales of 52.26 crore, with total operating income matching this figure. However, total expenditure, excluding depreciation, was higher at 53.25 crore, leading to an operating profit (PBDIT) of -0.99 crore. After accounting for other income, the operating profit stood at 1.02 crore, but interest expenses of 2.50 crore contributed to a gross profit before tax of -1.48 crore. Consequently, the profit before tax was -3.29 crore, resulting in an equivalent profit after tax. The company had a negative earnings per share of -6.93 and a PAT margin of -6.3%. On the balance sheet, the equity capital remained stable at 4.75 crore, while reserves were negative at -14.25 crore. The total liabilities were reported at 76.57 crore, with total assets also at 76.57 crore, indicating a balanced sheet position.

Breakdown:
In the fiscal year ending March 2022, Khaitan (India) faced significant financial difficulties, reflected in its negative operating profit margin of -1.89% and a gross profit margin of -2.83%. The company's total operating income was 52.26 crore, but its total expenditure exceeded this, leading to a loss before tax of -3.29 crore. The company's equity capital remained unchanged at 4.75 crore, while its reserves showed a concerning decline to -14.25 crore. Over the years, total liabilities peaked at 76.57 crore, matching total assets, indicating a precarious financial position. The company’s cash flow from operating activities was positive at 4.00 crore in March 2025, a notable recovery from previous years, but it still faced challenges with cash flow from financing activities being negative. Overall, the historical performance illustrates a company grappling with profitability and financial stability issues.