How has been the historical performance of Mac Charles(I)?

Revenue and Profitability Trends

Mac Charles(I)'s net sales have seen a marked decline from ₹30.85 crores in March 2019 to ₹9.83 crores in March 2025. The peak revenue was recorded in the 2019-20 fiscal year, after which a steady downward trend is evident. Total operating income mirrored this pattern, falling sharply after March 2020. Notably, the company reported zero other operating income throughout this period.

Operating profit before depreciation, interest, and tax (PBDIT) excluding other income showed a positive trend until March 2020, peaking at ₹12.40 crores, but turned negative in subsequent years, reaching a low of -₹28.47 crores in March 2025. However, other income provided some cushion, with figures as high as ₹93.84 crores in March 2022, which helped the operating profit (PBDIT) remain positive until March 2024 before turning negative again in the latest fiscal year.

Interest expenses have surged dramatically, rising from ₹15.77 crores in March 2019 to ₹95.90 crores in March 2025, severely impacting gross profit and net profitability. Consequently, the company reported a net loss after tax of ₹105.78 crores in March 2025, a sharp reversal from the profit of ₹28.12 crores in March 2019. Earnings per share have followed this trajectory, swinging from a positive ₹21.47 in 2019 to a negative ₹80.75 in 2025.

Balance Sheet and Financial Position

The company’s total liabilities have expanded significantly, rising from ₹224.76 crores in March 2020 to ₹1,176.97 crores in March 2025. This increase is largely driven by a steep rise in long-term borrowings, which escalated from ₹117.92 crores in 2020 to over ₹1,044 crores in 2025. Shareholder’s funds have fluctuated, peaking at ₹241.13 crores in March 2023 before declining to ₹102.47 crores in March 2025.

On the asset side, total assets have grown from ₹224.76 crores in 2020 to ₹1,176.97 crores in 2025, reflecting increased investments and current assets. Non-current investments have notably increased, reaching ₹873.24 crores in March 2025, up from ₹124.06 crores in 2020. Cash and bank balances have also varied widely, with a high of ₹342.48 crores in 2024 but settling at ₹83.83 crores in 2025.

Book value per share has declined from ₹184.05 in March 2023 to ₹78.22 in March 2025, indicating erosion in net asset value per share over recent years.

Cash Flow Analysis

Cash flow from operating activities has been under pressure, with negative figures in recent years, including a significant outflow of ₹112 crores in March 2025. Investing activities have fluctuated, with a large outflow of ₹386 crores in 2023 but a positive inflow of ₹40 crores in 2025. Financing activities have generally provided inflows, supporting the company’s liquidity needs, with ₹77 crores raised in 2025.

Despite these challenges, the company managed a slight net cash inflow of ₹4 crores in the latest fiscal year, following a series of negative cash flow years.

Summary and Outlook

Mac Charles(I) has faced a challenging period characterised by declining revenues, escalating interest costs, and significant net losses in the last two fiscal years. The company’s leverage has increased substantially, with long-term borrowings rising nearly ninefold since 2020. While other income has historically bolstered operating profits, it has not been sufficient to offset the rising costs and shrinking sales.

The erosion in earnings per share and book value per share highlights the financial strain the company is under. Cash flow pressures from operations further complicate the outlook, despite some relief from financing activities. Investors should carefully weigh these factors when considering Mac Charles(I), especially in light of its recent financial volatility and increased debt burden.

Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →