How has been the historical performance of Southern Infocon?

Nov 24 2025 11:18 PM IST

Share Via

Southern Infocon's historical performance shows a decline in net sales from 21.87 Cr in March 2019 to 13.05 Cr in March 2025, although profitability has improved, with profit after tax rising to 0.27 Cr in March 2025. Despite some recovery in profits, the company faces challenges with declining sales and negative cash flow.

Revenue and Operating Performance Trends

Examining Southern Infocon's consolidated net sales from March 2019 through March 2025, the company experienced a peak of ₹21.87 crores in March 2019, followed by a general downward trend with intermittent recoveries. Notably, sales declined to ₹10.64 crores in March 2023 before rebounding to ₹13.05 crores in March 2025. This volatility in top-line performance underscores the challenges faced in maintaining consistent growth.

Operating income mirrored this pattern, with total operating income aligning closely with net sales figures, as other operating income remained nil throughout the period. The purchase of finished goods constituted the largest expenditure component, consistently accounting for the majority of operating costs, ranging from ₹21.70 crores in 2019 to ₹11.93 crores in 2025. Employee costs and other expenses remained relatively modest but showed slight increases in recent years.

Despite fluctuating revenues, Southern Infocon managed to improve its operating profit (PBDIT) excluding other income from negative territory in earlier years to a positive ₹0.29 crores in March 2025. When factoring in other income, operating profit rose to ₹0.58 crores in the latest fiscal year, marking a significant improvement from previous years where operating profits were often marginal or negative.

Profitability and Margins

Southern Infocon's profit before tax steadily improved from ₹0.06 crores in March 2019 to ₹0.46 crores in March 2025. Correspondingly, profit after tax rose from a slight loss in 2019 to ₹0.27 crores in 2025. The consolidated net profit followed a similar trajectory, reaching ₹0.26 crores in the latest fiscal year.

Margins have shown encouraging signs of recovery. The operating profit margin excluding other income improved to 2.22% in March 2025 from negative margins in earlier years. Gross profit margin also expanded to 4.44% in 2025, reflecting better cost management and operational efficiency. The profit after tax margin increased to 2.07% in 2025, up from a negative margin in 2019, signalling enhanced bottom-line strength.

Earnings per share (EPS) demonstrated growth, rising from a negligible ₹0.02 in 2019 to ₹0.52 in 2025, indicating improved returns for shareholders. Book value per share also increased steadily, reaching ₹11.87 in 2025 from ₹10.33 in 2020, highlighting a strengthening equity base.

Balance Sheet and Asset Position

Southern Infocon's total assets expanded from ₹22.39 crores in 2021 to ₹33.32 crores in 2025, driven primarily by growth in current assets. Notably, inventories surged to ₹14.38 crores in 2025 from negligible levels in prior years, while sundry debtors decreased from ₹21.32 crores in 2020 to ₹9.57 crores in 2025, suggesting improved receivables management.

Non-current assets declined from ₹5.60 crores in 2021 to ₹3.41 crores in 2025, reflecting a shift in asset composition. The company maintained a debt-free position throughout the period, with no long-term or short-term borrowings reported, underscoring a conservative capital structure.

Shareholders' funds increased steadily, reaching ₹5.96 crores in 2025 from ₹5.26 crores in 2021, supported by rising reserves. Deferred tax assets also showed a modest increase, contributing positively to the net asset position.

Cash Flow and Liquidity

Cash flow from operating activities showed variability, with a positive inflow of ₹3.00 crores in March 2024 followed by an outflow of ₹2.00 crores in March 2025. Changes in working capital contributed significantly to these fluctuations, with a negative impact of ₹3.00 crores in 2025. The company reported no cash flow from investing or financing activities during the period, indicating limited capital expenditure and no new borrowings or equity issuances.

Closing cash and cash equivalents stood at zero in March 2025, down from ₹2.00 crores the previous year, suggesting tighter liquidity conditions. However, the absence of debt and a growing equity base provide a stable financial foundation.

Outlook and Summary

Southern Infocon's historical performance reflects a company navigating through fluctuating revenues and modest profitability improvements. The gradual enhancement in operating and net margins, alongside a strengthening balance sheet and debt-free status, indicates a cautious but positive financial trajectory. Investors should consider these trends in the context of the company's sector dynamics and market conditions when evaluating its future prospects.

Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →

{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)

MOJO SCORE