Revenue and Profitability Trends
Examining the net sales figures, Wealth First Por experienced a substantial peak in fiscal year ending March 2020, with sales reaching ₹398.20 crores. However, this was followed by a sharp decline in subsequent years, with net sales stabilising around ₹53 crores in the latest fiscal year ending March 2025. This steep drop post-2020 suggests a significant business restructuring or market shift.
Despite the decline in sales, the company has managed to maintain robust profitability margins. Operating profit (PBDIT) excluding other income rose from a modest ₹1.71 crore in March 2020 to ₹40.17 crores in March 2025, reflecting improved operational efficiency. The operating profit margin has consistently remained strong above 65%, peaking at 79.5% in March 2024 and settling at 75.56% in the latest year.
Profit after tax (PAT) also shows a positive trajectory, increasing from ₹1.28 crore in March 2020 to ₹34.15 crores in March 2025. The PAT margin has improved significantly, reaching 64.24% in the latest fiscal year, indicating effective cost management and a focus on high-margin operations. Earnings per share (EPS) followed a similar pattern, rising from ₹1.19 in 2020 to ₹32.04 in 2025, underscoring enhanced shareholder value.
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Balance Sheet and Asset Quality
Wealth First Por’s balance sheet reflects steady growth in shareholder funds, which increased from ₹34.47 crores in March 2020 to ₹128.52 crores in March 2025. This growth is supported by rising reserves, which have more than quadrupled over the same period, indicating retained earnings and capital accumulation.
The company maintains a debt-free status, with no long-term or short-term borrowings reported in recent years. This conservative capital structure reduces financial risk and provides flexibility for future investments.
On the asset side, total assets have grown from ₹39.73 crores in 2020 to ₹136.05 crores in 2025. Notably, current assets have expanded significantly, driven by increases in inventories and current investments, which rose to ₹71.45 crores and ₹31.21 crores respectively in the latest fiscal year. The net block of fixed assets remains modest, reflecting a lean asset base.
Cash Flow and Liquidity Position
Cash flow analysis reveals a mixed picture. Operating cash flow has improved from a negative ₹8 crores in 2020 to a positive ₹10 crores in 2025, signalling better cash generation from core operations. However, cash flow after changes in working capital shows volatility, with a decline to ₹21 crores in 2025 from ₹27 crores in previous years, largely due to increased working capital requirements.
Investing activities have fluctuated, with cash outflows in recent years reflecting investments in non-current assets and securities. Financing cash flows have been predominantly negative, indicating repayments or dividend distributions rather than fresh capital infusion.
Closing cash and cash equivalents have decreased to ₹2 crores in March 2025 from ₹4 crores the previous year, but remain sufficient given the company’s low debt levels and strong liquidity.
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Summary and Investor Considerations
Overall, Wealth First Por’s historical performance reflects a company that has navigated a significant revenue contraction since 2020 but has successfully enhanced profitability and strengthened its financial position. The absence of debt and growing reserves provide a solid foundation for future growth, while improving operating margins and EPS highlight operational improvements.
Investors should note the sharp decline in sales post-2020 and assess the sustainability of current profit levels in light of this. The company’s ability to maintain strong margins despite lower turnover is encouraging, but future revenue growth will be critical to sustaining long-term value creation.
Liquidity remains adequate, though cash flow volatility suggests careful monitoring of working capital management is warranted. The company’s conservative capital structure and increasing book value per share, which has risen from ₹32.35 in 2020 to ₹120.61 in 2025, further support a positive outlook.
In conclusion, Wealth First Por presents a compelling turnaround story with improving profitability and financial strength, though investors should weigh the challenges of revenue recovery against the company’s operational efficiencies and balance sheet robustness.
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