How has been the historical performance of Shish Industries?

Revenue and Profit Growth

Over the five-year period ending March 2025, Shish Industries’ net sales surged from ₹28.28 crores in March 2021 to ₹116.25 crores in March 2025, reflecting a compounded growth that underscores the company’s expanding market presence. Total operating income mirrored this trend, rising steadily each year without any contribution from other operating income, which remained nil throughout.

Operating profit before depreciation and interest (PBDIT) excluding other income increased from ₹2.23 crores in March 2021 to ₹11.43 crores in March 2025. When factoring in other income, operating profit rose to ₹15.03 crores by March 2025, up from ₹3.03 crores in March 2021. Despite a rise in interest expenses from ₹0.30 crores to ₹2.54 crores over the same period, the company maintained a positive gross profit before depreciation and tax, reaching ₹12.49 crores in the latest fiscal year.

Profitability Margins and Earnings

Shish Industries’ operating profit margin, excluding other income, peaked at 13.1% in March 2023 before moderating to 9.83% in March 2025. Gross profit margin followed a similar pattern, reaching nearly 15% in 2023 and settling at 10.74% in the latest year. The profit after tax (PAT) margin also reflected this trend, with a high of 9.89% in March 2023 and a decline to 5.14% by March 2025.

Consolidated net profit rose from ₹1.34 crores in March 2021 to ₹8.74 crores in March 2025, despite a dip in profit before tax in the latest year compared to the previous fiscal. Earnings per share (EPS) showed volatility, influenced by changes in equity capital and face value adjustments, with an EPS of ₹0.23 in March 2025, consistent with the prior year.

Balance Sheet Expansion and Debt Profile

The company’s total assets expanded markedly from ₹17.08 crores in March 2021 to ₹149.19 crores in March 2025, driven by growth in both non-current and current assets. Net block of fixed assets increased substantially, indicating ongoing capital investment, while capital work in progress also rose, signalling expansion initiatives.

Shareholders’ funds nearly doubled from ₹11.72 crores in March 2021 to ₹105.77 crores in March 2025, supported by a significant increase in reserves. However, total debt also rose from ₹1.04 crores to ₹31.86 crores over the same period, with both long-term and short-term borrowings increasing to support the company’s growth and capital expenditure.

Cash Flow Dynamics

Cash flow from operating activities has been under pressure in recent years, with negative cash flows recorded in March 2024 and March 2025, reflecting increased working capital requirements and operational investments. Investing activities consistently showed cash outflows, aligned with the company’s capital expansion strategy. Financing activities provided substantial inflows, particularly in the latest fiscal year, indicating reliance on external funding to support growth.

Summary of Historical Performance

In summary, Shish Industries has exhibited strong revenue growth and expanding profitability over the last five years, supported by significant capital investment and an increasing asset base. While profitability margins have moderated slightly in the most recent year, the company’s consolidated net profit and shareholder equity have grown substantially. The rising debt levels and negative operating cash flows in recent years highlight the importance of monitoring the company’s financial leverage and liquidity as it pursues its expansion plans.

Investors should weigh these factors carefully, considering both the company’s growth potential and the financial risks associated with its capital structure and cash flow profile.

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