How has been the historical performance of S I Cap. & Fin.?

Revenue and Profitability Trends

Over the past seven years, S I Cap. & Fin. has seen its net sales increase steadily from ₹0.33 crore in March 2019 to ₹2.56 crore in March 2025. This represents a significant growth trajectory, with the most notable jump occurring between March 2023 and March 2025, where sales nearly tripled. Despite this revenue growth, the company faced operational challenges for several years, reflected in negative operating profits from March 2019 through March 2024.

Operating profit margins, excluding other income, were deeply negative for much of this period, reaching a low of -100% in March 2021. However, the latest fiscal year marked a turnaround with a positive operating margin of 7.03%. Correspondingly, the company reported a profit after tax of ₹0.17 crore in March 2025, reversing losses recorded in previous years, including a substantial loss of ₹0.72 crore in March 2024. Earnings per share followed a similar pattern, improving from negative values to a positive ₹0.35 in the latest year.

Cost Structure and Expenses

The company’s expenditure profile reveals that employee costs have risen in line with revenue growth, increasing from ₹0.14 crore in March 2019 to ₹0.88 crore in March 2025. Other expenses also escalated, reaching ₹1.35 crore in the latest year. Manufacturing expenses, while relatively minor, showed a gradual increase as well. Despite rising costs, the company managed to improve its operating profit, indicating better control over expenses relative to income.

Balance Sheet and Financial Position

S I Cap. & Fin.’s balance sheet expanded considerably, with total assets growing from ₹2.82 crore in March 2019 to ₹10.13 crore by March 2024. This growth was largely driven by an increase in long-term loans and advances, which rose from ₹0.47 crore to ₹9.10 crore over the same period. Shareholder’s funds fluctuated but remained positive, with a slight dip in reserves turning positive in the latest year. The company’s equity capital also increased, reflecting possible capital infusion or share issuance.

Notably, the company’s debt profile changed significantly, with total debt rising from zero in March 2019 to ₹6.80 crore by March 2024, primarily in short-term borrowings. This increase in leverage may have supported the company’s expansion but also contributed to higher interest expenses, which climbed from negligible amounts to ₹0.74 crore in March 2025.

Cash Flow and Liquidity

Cash flow statements indicate that the company experienced negative cash flows from operating activities in recent years, with outflows of ₹4 crore in March 2024 and ₹2 crore in March 2023. Financing activities provided positive cash inflows, matching the outflows from operations, suggesting reliance on external funding to sustain operations. Cash and bank balances declined from ₹1.53 crore in March 2019 to ₹0.61 crore in March 2024, reflecting tighter liquidity conditions.

Summary and Outlook

In summary, S I Cap. & Fin. has shown a clear upward trajectory in revenue and has recently returned to profitability after several years of losses. The company’s balance sheet has expanded, supported by increased borrowings and capital, while cash flow management remains a challenge due to operational outflows. Investors should weigh the recent positive earnings and margin improvements against the elevated debt levels and historical volatility in profits.

Given the company’s turnaround in the latest fiscal year, it will be important to monitor whether this momentum can be sustained and if cash flow generation improves to reduce reliance on external financing. The evolving cost structure and interest burden will also be key factors influencing future performance.

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