How has been the historical performance of Shalibhadra Fin.?

Revenue and Profit Growth

Over the past seven years, Shalibhadra Fin. has seen its net sales rise from ₹22.22 crores in March 2019 to ₹36.49 crores in March 2025, reflecting a robust compound growth trend. This steady increase in operating income underscores the company’s ability to expand its business despite market fluctuations. Operating profit before depreciation and interest (PBDIT) has also shown a marked improvement, climbing from ₹9.01 crores in 2019 to ₹20.70 crores in 2025, indicating enhanced operational efficiency.

The operating profit margin has improved significantly, reaching 56.73% in March 2025 compared to 40.55% in 2019. This margin expansion highlights effective cost control, particularly in employee and selling expenses, which have been managed prudently despite the company’s growth. Profit after tax (PAT) has followed a similar upward path, increasing from ₹6.40 crores in 2019 to ₹16.00 crores in 2025, with the PAT margin rising to 43.85% in the latest fiscal year.

Balance Sheet Strength and Debt Management

Shalibhadra Fin.’s balance sheet reveals a solid foundation with shareholder’s funds increasing from ₹41.73 crores in 2020 to ₹154.25 crores in 2025. This growth is supported by rising reserves, which have more than tripled over the same period, reflecting retained earnings and capital accumulation. The company has maintained a debt-free position in terms of long-term borrowings, while short-term borrowings have reduced from ₹75.93 crores in 2020 to ₹37.46 crores in 2025, signalling improved liquidity and reduced financial risk.

Despite the reduction in short-term debt, total liabilities have increased moderately, driven by current liabilities and provisions. The company’s total assets have expanded from ₹111.96 crores in 2021 to ₹195.35 crores in 2025, indicating asset base growth aligned with business expansion. Book value per share has also seen a positive trend, rising to ₹49.94 in 2025 from ₹34.58 in 2024, although it was notably higher in 2023 due to changes in equity capital.

Cash Flow and Operational Efficiency

Cash flow analysis shows some volatility, with operating cash flow turning negative in the latest fiscal year at ₹-26 crores, primarily due to significant changes in working capital. This contrasts with positive cash flows in previous years, suggesting the company is investing in growth or managing receivables and payables more aggressively. Investing activities have consistently been cash outflows, reflecting ongoing capital expenditure or investments, while financing activities have provided inflows, supporting the company’s funding needs.

Despite the recent cash flow challenges, the company’s profitability and margin improvements indicate strong underlying business performance. Earnings per share (EPS) have fluctuated, with a peak in 2024 at ₹17.10 before settling at ₹5.18 in 2025, reflecting changes in equity capital and profit distribution.

Summary of Historical Performance

In summary, Shalibhadra Fin. has exhibited a commendable growth pattern over recent years, with rising revenues, expanding profit margins, and strengthening equity. The company’s ability to reduce short-term debt while growing its asset base and reserves points to prudent financial management. Although recent cash flow from operations has been negative, this appears to be a temporary effect of working capital adjustments rather than a fundamental weakness.

Investors may note the fluctuations in earnings per share and the recent dip in cash reserves, but the overall trajectory remains positive. The company’s focus on operational efficiency and cost control has translated into improved profitability, making it a noteworthy player in its sector. Continued monitoring of cash flow trends and debt levels will be important to assess sustainability going forward.

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