How has been the historical performance of NB Footwear?

Revenue and Profitability Trends

Over the past seven financial years ending March 2025, NB Footwear has reported zero net sales and other operating income, indicating no recorded revenue from its core business activities. Consequently, total operating income has remained at nil throughout this period. Despite the lack of revenue, the company has incurred operating expenses, primarily employee costs and other miscellaneous expenses, which have gradually increased from ₹0.10 crore in March 2019 to ₹0.23 crore in March 2025.

This expenditure pattern has resulted in continuous operating losses, with the operating profit before depreciation and interest (PBDIT) consistently negative. The losses have ranged from ₹0.10 crore in March 2019 to ₹0.23 crore in March 2025, reflecting an ongoing erosion of profitability. The absence of other income and interest expenses further underscores the company's lack of operational and financial income streams.

Balance Sheet and Financial Position

NB Footwear's balance sheet reflects a challenging financial position. The company's equity capital has remained stable at ₹14.50 crore over recent years, but reserves have been negative and deteriorating, moving from -₹14.70 crore in March 2019 to -₹16.09 crore in March 2025. This has resulted in negative shareholder funds, which stood at -₹1.59 crore as of March 2025, indicating that liabilities exceed assets.

The company has no long-term or short-term borrowings, which suggests an absence of debt financing. However, it carries other long-term liabilities, which have appeared since March 2024 and amounted to ₹1.52 crore by March 2025. Current liabilities have fluctuated but remain minimal, with a slight increase to ₹0.07 crore in March 2025.

On the asset side, NB Footwear reports negligible non-current and current assets, with total assets effectively at zero in recent years. The lack of tangible or intangible assets and minimal cash and bank balances highlight the company's limited operational capacity and asset base.

Cash Flow and Earnings Per Share

Cash flow data corroborates the company's stagnant operational status. There have been no cash inflows from operating, investing, or financing activities in recent years, with net cash flow remaining at zero since March 2019. Earlier years showed minor negative cash flows, but these have since stabilised at nil.

Earnings per share (EPS) have been negative throughout, reflecting the company's losses. EPS declined from -₹0.07 in March 2019 to -₹0.17 in March 2025, signalling persistent unprofitability and shareholder value erosion. The book value per share has also deteriorated, moving from -₹1.09 in March 2020 to -₹1.92 in March 2025, further emphasising the negative net worth situation.

Summary and Investor Considerations

NB Footwear's historical financial performance is characterised by an absence of revenue generation and sustained operating losses over multiple years. The company's balance sheet reveals negative net worth and minimal asset holdings, while cash flow statements indicate no operational cash inflows. These factors collectively point to significant operational challenges and limited financial health.

For investors, the lack of sales and persistent losses suggest that NB Footwear has not been able to establish a viable business model or generate shareholder value in recent years. The negative reserves and shareholder funds further highlight the risks associated with the company's financial position. Prospective investors should carefully weigh these factors against market conditions and alternative opportunities before considering exposure to NB Footwear.

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