How has been the historical performance of Lykis?

Revenue and Operating Performance Trends

Examining Lykis's consolidated net sales from fiscal year ending March 2019 through March 2025 reveals a mixed trajectory. The company’s revenue surged from ₹147.32 crores in March 2019 to a peak of ₹453.75 crores in March 2023, reflecting a period of robust expansion. However, this growth was not sustained, with sales declining to ₹297.37 crores by March 2025. This contraction indicates challenges in maintaining top-line momentum in recent years.

Operating profit margins have mirrored this volatility. The operating profit margin excluding other income improved significantly to 5.46% in March 2023, up from negligible or negative margins in earlier years. Yet, by March 2025, this margin narrowed to 2.49%, signalling pressure on operational efficiency or cost structures. The gross profit margin followed a similar pattern, peaking at 4.69% in 2023 before easing to 1.66% in 2025.

Despite these fluctuations, Lykis has managed to maintain positive operating profits in recent years, with operating profit (PBDIT) rising to ₹11.44 crores in March 2025, albeit down from ₹27.64 crores in 2023. This suggests the company has been able to generate earnings before interest, depreciation, and taxes, though at a reduced scale compared to its peak.

Profitability and Earnings Analysis

Lykis’s profit before tax (PBT) and profit after tax (PAT) figures highlight the company’s fluctuating bottom-line performance. After posting losses in fiscal years 2019 through 2021, the company returned to profitability with a PBT of ₹19.54 crores and PAT of ₹15.75 crores in March 2023. However, these profits declined sharply in subsequent years, with PAT falling to ₹2.62 crores in March 2025.

The earnings per share (EPS) reflect this trend, peaking at ₹8.12 in 2023 before dropping to ₹1.35 in 2025. The PAT margin similarly contracted from 3.47% in 2023 to below 1% in 2025, indicating tighter net profitability. These figures suggest that while Lykis has demonstrated the ability to generate profits, sustaining them remains a challenge amid market or operational pressures.

Balance Sheet and Financial Position

On the balance sheet front, shareholder’s funds have grown steadily from ₹9.61 crores in 2021 to ₹34.07 crores in 2025, reflecting accumulated reserves and retained earnings. The company’s reserves improved from negative territory in 2021 to positive ₹14.14 crores by 2025, signalling a strengthening equity base.

However, Lykis carries a significant debt burden, with total debt reducing from ₹138.55 crores in 2023 to ₹39.75 crores in 2025. This reduction in debt is a positive development, potentially easing interest costs and financial risk. Interest expenses, though still notable, have decreased accordingly.

Current assets have also declined from ₹177.76 crores in 2023 to ₹84.99 crores in 2025, while net current assets remain positive and have improved slightly, indicating better short-term liquidity management. The company’s net block of fixed assets has decreased substantially over the years, which may reflect asset sales or depreciation.

Cash Flow and Operational Efficiency

Cash flow from operating activities has shown marked improvement, turning positive in recent years after negative cash flows in 2022 and 2021. The company generated ₹56 crores in operating cash flow in March 2025, up from negative ₹23 crores in 2023. This improvement suggests better working capital management and operational cash generation.

Investing activities have generally involved modest outflows, while financing activities reflect significant debt repayments, consistent with the reduction in total debt. The net cash position has remained relatively stable, with closing cash and cash equivalents increasing slightly to ₹7 crores in 2025.

Overall, Lykis’s historical performance reveals a company that has experienced rapid growth and profitability swings, followed by a phase of consolidation and debt reduction. While recent years have seen declines in revenue and profit margins, improvements in cash flow and balance sheet strength provide a foundation for potential recovery.

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