How has been the historical performance of SBI Cards?
SBI Cards has shown significant growth in net sales and total operating income from Mar'19 to Mar'25, but profitability has fluctuated, with a decline in profit after tax and earnings per share in Mar'25. The company faces challenges in managing rising liabilities and negative cash flow from operating activities.
Answer:The historical performance of SBI Cards shows a steady growth in net sales and profitability over the years, with some fluctuations in operating and net profit margins.Breakdown:
SBI Cards has demonstrated significant growth in net sales, increasing from 6,999.11 crore in Mar'19 to 18,072.22 crore in Mar'25. The total operating income has followed a similar trend, reaching 18,072.22 crore in Mar'25, up from 6,999.11 crore in Mar'19. However, total expenditure has also risen, from 5,896.55 crore in Mar'19 to 15,909.65 crore in Mar'25, impacting operating profit, which was 2,162.57 crore in Mar'25 compared to 1,102.56 crore in Mar'19. The profit before tax peaked at 3,231.80 crore in Mar'24 but decreased to 2,580.68 crore in Mar'25, while profit after tax was 1,916.41 crore in Mar'25, down from 2,407.88 crore in Mar'24. The earnings per share (EPS) decreased from 25.32 in Mar'24 to 20.14 in Mar'25. The total assets of SBI Cards increased from 19,982.91 crore in Mar'19 to 57,816.62 crore in Mar'24, reflecting a robust growth in the company's financial position. However, total liabilities also rose significantly, from 19,982.91 crore in Mar'19 to 57,816.62 crore in Mar'24, indicating increased borrowing, particularly in short-term borrowings which reached 39,891.08 crore in Mar'24. Cash flow from operating activities has been negative in recent years, with -5,451.00 crore in Mar'24, although net cash inflow improved to 1,492.00 crore in the same year. Overall, while SBI Cards has shown strong revenue growth, it faces challenges in maintaining profitability and managing its liabilities.
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