How has been the historical performance of NBI Indl. Fin.?

Revenue and Profitability Trends

For the year ended 31 March 2025, NBI Indl. Fin. reported total operating income of ₹13.93 crores, entirely derived from net sales, as other operating income remained nil. The company maintained a lean cost structure with total expenditure excluding depreciation amounting to ₹3.13 crores. This resulted in an operating profit before depreciation, interest, and tax (PBDIT) of ₹10.86 crores, translating into an impressive operating profit margin of 77.53%.

Profit before tax stood at ₹10.86 crores, with a tax expense of ₹2.37 crores, culminating in a consolidated net profit of ₹8.48 crores. This equates to a profit after tax margin of 60.88%, underscoring the company’s ability to convert a substantial portion of its revenue into net earnings. Earnings per share (EPS) were reported at ₹28.65, indicating strong returns for shareholders based on the equity capital of ₹1.48 crores with a face value of ₹5 per share.

Cost Efficiency and Margins

The company’s cost profile is notably efficient, with zero raw material costs, purchase of finished goods, power costs, manufacturing expenses, and selling and distribution expenses reported for the year. Employee costs and other expenses were modest at ₹2.04 crores and ₹1.09 crores respectively. This disciplined expenditure management has contributed to a gross profit margin of 77.96%, reflecting strong operational leverage.

Notably, the company reported no interest expenses or depreciation charges, which further bolsters its profitability metrics. The absence of exceptional items or extraordinary expenses indicates a stable earnings base without one-off distortions.

Cash Flow and Financial Stability

Examining the cash flow statements over the past decade reveals a marked improvement in the company’s liquidity and operational cash generation. For the fiscal year ending March 2025, cash flow from operating activities was positive at ₹4.00 crores, a significant turnaround from negative operating cash flows of ₹-3.04 crores and ₹-0.96 crores in March 2016 and March 2015 respectively.

Cash flow after changes in working capital was also positive at ₹10.00 crores in 2025, compared to negative figures in earlier years. Investing activities reflected an outflow of ₹4.00 crores in the latest year, consistent with reinvestment into the business, while financing activities remained neutral. The net cash inflow/outflow was balanced at zero, with opening and closing cash and cash equivalents at nil for the latest year, indicating a tightly managed cash position.

Long-Term Performance Context

Comparing profit before tax figures over the last decade highlights a steady upward trajectory. The company’s PBT rose from ₹4.30 crores in March 2015 and ₹3.32 crores in March 2016 to ₹10.00 crores in March 2025, signalling consistent growth in earnings capacity. Adjustments and working capital changes have stabilised, supporting improved cash flow generation and operational resilience.

Reserves have accumulated to ₹3,306.59 crores as of March 2025, reflecting strong retained earnings and a solid equity base. Public shareholding and pledged promoter holdings remain at zero, indicating concentrated ownership and potentially limited market float.

Overall, NBI Indl. Fin. has exhibited a commendable historical performance characterised by strong profitability, efficient cost management, and improving cash flow dynamics. These factors position the company favourably within the NBFC sector, offering investors a stable and growing financial profile to consider.

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