How has been the historical performance of Cubex Tubings?

Nov 24 2025 11:19 PM IST
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Cubex Tubings has shown significant growth in net sales and profitability, with net sales rising from 59.89 Cr in Mar'20 to 267.12 Cr in Mar'25, and profit after tax increasing from 3.99 Cr to 6.66 Cr in the same period. The company's earnings per share also improved from 2.80 to 4.67, reflecting enhanced shareholder value.




Revenue and Profit Growth


Over the seven-year period ending March 2025, Cubex Tubings’ net sales have surged markedly, rising from ₹74.85 crores in 2019 to ₹267.12 crores in 2025. This represents a compound growth that underscores the company’s expanding market presence and operational scale. Total operating income, which includes other operating income, followed a similar pattern, reaching ₹267.12 crores in the latest fiscal year.


Operating profit before other income (PBDIT) has also shown steady improvement, climbing from a modest ₹0.56 crores in 2019 to ₹9.70 crores in 2025. When factoring in other income, the operating profit rose to ₹11.77 crores in 2025, reflecting enhanced operational efficiency and income diversification. Profit before tax increased from ₹0.70 crores in 2019 to ₹8.08 crores in 2025, while profit after tax (PAT) grew from ₹0.66 crores to ₹6.66 crores over the same period.



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Margins and Earnings Per Share


Despite the rapid revenue growth, Cubex Tubings’ operating profit margin (excluding other income) has remained relatively stable, fluctuating between 3.63% and 5.59% during the period. The margin peaked in 2021 at 5.59% but moderated to 3.63% in 2025, indicating some pressure on cost control or pricing. Gross profit margins have similarly hovered around the 3% mark in recent years.


The PAT margin improved from below 1% in 2019 to 2.49% in 2025, signalling better bottom-line conversion of revenues. Earnings per share (EPS) have more than doubled from ₹0.46 in 2019 to ₹4.67 in 2025, reflecting both profit growth and stable equity capital of ₹14.26 crores with a face value of ₹10 per share.


Balance Sheet Strength and Debt Profile


Cubex Tubings’ shareholder funds have expanded steadily from ₹58.30 crores in 2020 to ₹75.85 crores in 2025, supported by rising reserves. The company’s total liabilities have increased in line with business growth, reaching ₹139.99 crores in 2025 from ₹78.83 crores in 2020. Notably, total debt has risen significantly, with short-term borrowings increasing to ₹29.49 crores in 2025 from ₹1.23 crores in 2021, and long-term borrowings also rising to ₹3.96 crores.


Net block of fixed assets has slightly declined from ₹16.59 crores in 2020 to ₹13.56 crores in 2025, suggesting limited new capital expenditure or asset disposals. Meanwhile, current assets have grown substantially, reaching ₹103.52 crores in 2025, driven by increases in inventories and sundry debtors, which may reflect higher sales volumes and working capital requirements.


Cash Flow and Liquidity


Cash flow from operating activities has been inconsistent, with zero cash flow reported in 2025 despite strong profits, largely due to adverse changes in working capital. The company’s net cash position has fluctuated, closing at ₹1 crore in 2025, down from ₹3 crores in 2024. Investing activities have seen modest outflows, while financing activities have contributed small inflows, indicating ongoing capital management efforts.



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Summary of Historical Performance


In summary, Cubex Tubings has exhibited robust growth in revenue and profitability over the past several years, supported by expanding shareholder equity and a growing asset base. While margins have remained modest, the company has steadily improved its earnings per share and profit after tax. The rising debt levels and working capital demands highlight areas for cautious monitoring, particularly regarding liquidity and financial leverage. Overall, Cubex Tubings’ historical performance reflects a company scaling its operations with improving financial metrics, though investors should weigh the balance between growth and capital structure prudence.





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