How has been the historical performance of Mid East Port.?

Revenue and Profitability Overview

Throughout the period from March 2019 to March 2025, Mid East Port. reported no net sales or other operating income, resulting in a total operating income consistently at zero. This absence of revenue from core operations is notable, indicating the company has not generated sales from its principal business activities during these years.

Despite the lack of operating income, the company incurred minimal operating expenses, primarily employee costs and other expenses, which remained low but persistent. Employee costs fluctuated slightly, with figures around ₹0.02 crore in recent years, while other expenses ranged from ₹0.06 crore to ₹0.14 crore in earlier years.

Operating profit before other income (PBDIT excl. other income) was negative across all years, reflecting operating losses due to the absence of revenue. However, the inclusion of other income, which rose notably to ₹0.51 crore in March 2025 from ₹0.14 crore in prior years, turned the operating profit positive. Consequently, the company reported a positive operating profit (PBDIT) of ₹0.41 crore in March 2025, a significant improvement from losses in earlier years.

Profit before tax and profit after tax followed a similar pattern, with the company moving from losses in 2019 to modest profits in recent years, culminating in a profit after tax of ₹0.42 crore in March 2025. Earnings per share (EPS) mirrored this trend, improving from a negative ₹0.37 in 2019 to ₹0.83 in 2025, signalling a turnaround in profitability despite the lack of operating revenue.

Balance Sheet and Financial Position

Mid East Port.'s balance sheet reveals a stable equity base with share capital increasing from ₹2.96 crore in 2019 to ₹5.03 crore by 2025. However, reserves have remained negative throughout, though the deficit has narrowed slightly from -₹1.97 crore in 2019 to -₹1.40 crore in 2025. Shareholders' funds have shown a gradual increase, reaching ₹3.63 crore in 2025, reflecting the accumulation of profits over time.

The company maintains a debt-free status, with no long-term or short-term borrowings reported in any year. This absence of debt reduces financial risk and interest burden, contributing to the modest profitability observed.

Asset composition is minimal, with net block assets consistently at ₹0.01 crore and no significant capital work in progress or intangible assets. Non-current assets primarily consist of long-term loans and advances, stable at around ₹1.70 crore. Current assets are low, with cash and bank balances fluctuating between ₹0.03 crore and ₹0.15 crore in recent years, indicating limited liquidity but no significant cash flow pressures.

Liabilities are minimal, with other long-term liabilities and current liabilities remaining negligible. Total liabilities have remained steady around ₹3.65 crore in 2025, closely matching shareholders' funds, which suggests a balanced capital structure.

Cash Flow and Operational Insights

Cash flow statements for the period show no reported cash inflows or outflows from operating, investing, or financing activities, indicating either a lack of significant cash transactions or unreported cash flow movements. Opening and closing cash and cash equivalents are consistently reported as zero, which may reflect the company's limited operational activity or accounting presentation.

Despite the absence of operating revenues and cash flow activity, Mid East Port. has managed to sustain itself through other income sources and controlled expenses, resulting in a gradual improvement in profitability and net worth.

Conclusion

In summary, Mid East Port.'s historical performance is characterised by an absence of operating revenue but a steady stream of other income that has enabled the company to report modest profits in recent years. The company has maintained a clean balance sheet with no debt and a gradually improving net worth, despite negative reserves. Cash flow data suggests limited operational activity, yet the firm has controlled expenses effectively to sustain profitability.

Investors analysing Mid East Port. should consider the unique nature of its financials, where profitability is not driven by core business operations but by other income sources. The company's financial stability and absence of debt are positives, but the lack of operating revenue warrants cautious evaluation in the context of long-term growth prospects.

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