How has been the historical performance of Welterman Intl.?

Revenue and Operating Income Trends

Welterman Intl. experienced a notable decline in net sales from ₹5.94 crores in March 2019 to a mere ₹0.60 crores by March 2023, followed by zero reported sales in the subsequent two years ending March 2025. Total operating income mirrored this trend, falling sharply from ₹5.94 crores in 2019 to ₹0.60 crores in 2023, and then to nil in the latest two years. This steep contraction in revenue highlights significant operational difficulties or a possible strategic shift away from core sales activities.

Raw material costs correspondingly decreased, reflecting the reduced scale of operations, dropping from ₹4.22 crores in 2019 to ₹0.60 crores in 2023, and zero thereafter. Employee costs remained relatively stable but low, ranging between ₹0.09 crores and ₹0.19 crores over the years, indicating a lean workforce or cost-cutting measures. Other expenses also declined from ₹1.07 crores in 2019 to ₹0.22 crores in 2025, consistent with the overall contraction in business activity.

Profitability and Margins

Operating profit before other income (PBDIT) showed a sharp decline, turning negative from March 2023 onwards. While the company posted modest positive operating profits in 2019 and 2022, the last three years have seen operating losses, with the figure reaching a negative ₹0.34 crores in March 2025. Other income, which was significant in 2019 and 2022 (over ₹1 crore), has diminished to around ₹0.20 crores in recent years, insufficient to offset operational losses.

Profit before tax and profit after tax followed a similar pattern, with positive profits in 2019 and 2022 but losses in the years following. Earnings per share (EPS) peaked at ₹2.70 in 2019 and ₹3.24 in 2022 but declined sharply to negative values in the last three years, reaching -₹0.34 in March 2025. Operating profit margins excluding other income were positive but modest in 2019 and 2022, at 2.02% and 14.06% respectively, before turning negative in recent years. The PAT margin also reflected this volatility, swinging from a high of 57.83% in 2022 to negative margins thereafter.

Balance Sheet and Financial Position

Welterman Intl.'s balance sheet reveals persistent financial strain. Shareholder's funds have been negative throughout the period, worsening from -₹11.79 crores in 2022 to -₹12.38 crores in 2025, indicating accumulated losses and erosion of net worth. Long-term borrowings have decreased from ₹16.66 crores in 2020 to ₹5.79 crores in 2025, suggesting some deleveraging, though the company still carries significant debt relative to its assets.

Total liabilities have contracted substantially from ₹7.34 crores in 2020 to ₹1.25 crores in 2025, reflecting a shrinking scale of operations. Net block of fixed assets has also declined from ₹2.56 crores in 2020 to ₹0.62 crores in 2025, consistent with asset disposals or depreciation. Current assets have diminished sharply, with net current assets turning negative since 2021, signalling liquidity pressures.

Cash Flow Overview

Cash flow data indicates limited operational cash generation in recent years. While there was a positive cash flow from operating activities of ₹3 crores in 2021, subsequent years show negligible or zero cash inflows from operations. Investing activities yielded some inflows in 2022 and 2023, but financing activities reflected outflows, particularly in 2022, indicating repayments or reductions in borrowings. The closing cash and cash equivalents have been minimal, underscoring tight liquidity conditions.

Summary and Outlook

In summary, Welterman Intl. has faced a challenging financial journey over the past six years, characterised by a steep decline in sales and operating income, fluctuating profitability with recent losses, and a weakened balance sheet with negative net worth. The company’s shrinking asset base and limited cash flow generation further highlight operational and financial constraints. While there were brief periods of profitability and positive margins, the overall trend points to significant headwinds that investors should carefully consider.

Given these factors, potential investors are advised to weigh the risks associated with the company’s financial health against any strategic initiatives or market developments that may alter its trajectory in the future.

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