How has been the historical performance of the Arman Financial?

Jun 06 2025 11:01 PM IST
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Arman Financial has experienced significant revenue growth, with net sales increasing from Rs 138.91 crore in Mar'19 to Rs 730.04 crore in Mar'25. However, profitability has declined recently, with profit after tax dropping from Rs 173.57 crore in Mar'24 to Rs 52.07 crore in Mar'25, alongside negative cash flow from operations.
Answer:
The historical performance of Arman Financial shows significant growth in net sales and profits over the years, with net sales increasing from Rs 138.91 crore in Mar'19 to Rs 730.04 crore in Mar'25. The total operating income has mirrored this upward trend, reaching Rs 730.04 crore in Mar'25, up from Rs 138.91 crore in Mar'19. However, total expenditure has also risen, from Rs 44.53 crore in Mar'19 to Rs 419.80 crore in Mar'25. Operating profit, excluding other income, peaked at Rs 494.91 crore in Mar'24 but fell to Rs 310.24 crore in Mar'25. Profit before tax followed a similar pattern, reaching Rs 228.09 crore in Mar'24 and declining to Rs 69.09 crore in Mar'25. The profit after tax also saw a decrease from Rs 173.57 crore in Mar'24 to Rs 52.07 crore in Mar'25. The company's net profit has fluctuated over the years, with a notable high of Rs 173.57 crore in Mar'24 and a drop to Rs 52.07 crore in Mar'25. The earnings per share (EPS) also reflected this trend, decreasing from Rs 165.62 in Mar'24 to Rs 49.64 in Mar'25.

In terms of balance sheet performance, total liabilities increased from Rs 750.92 crore in Mar'19 to Rs 2,615.90 crore in Mar'24, while total assets also grew significantly, reaching Rs 2,615.90 crore in Mar'24. Cash flow from operating activities has been negative in recent years, indicating challenges in generating cash from core operations, with a cash flow of -Rs 302 crore in Mar'24. Despite these challenges, cash and cash equivalents improved from Rs 26 crore in Mar'23 to Rs 118 crore in Mar'24, suggesting some liquidity improvement. Overall, while Arman Financial has shown strong revenue growth, recent declines in profitability and cash flow present areas of concern for future performance.

Breakdown:
Arman Financial has demonstrated robust growth in net sales, which rose from Rs 138.91 crore in Mar'19 to Rs 730.04 crore in Mar'25, reflecting a consistent upward trajectory. Total operating income followed suit, reaching Rs 730.04 crore in Mar'25. However, total expenditure also increased significantly, from Rs 44.53 crore in Mar'19 to Rs 419.80 crore in Mar'25, impacting profitability. Operating profit peaked at Rs 494.91 crore in Mar'24 but fell to Rs 310.24 crore in Mar'25, while profit before tax decreased from Rs 228.09 crore in Mar'24 to Rs 69.09 crore in Mar'25. Profit after tax mirrored this decline, dropping from Rs 173.57 crore in Mar'24 to Rs 52.07 crore in Mar'25. The company's EPS also reflected this trend, decreasing from Rs 165.62 in Mar'24 to Rs 49.64 in Mar'25. On the balance sheet, total liabilities surged from Rs 750.92 crore in Mar'19 to Rs 2,615.90 crore in Mar'24, with total assets matching this growth. Cash flow from operating activities has been negative, indicating challenges in cash generation, although cash and cash equivalents improved from Rs 26 crore in Mar'23 to Rs 118 crore in Mar'24, suggesting some liquidity enhancement. Overall, while revenue growth is strong, the decline in profitability and cash flow raises concerns for the company's future financial health.
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