How has been the historical performance of Hitech Corp.?

Nov 24 2025 11:13 PM IST

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Hitech Corp. has shown steady growth in net sales, increasing from 261.92 Cr in Mar'10 to 561.43 Cr in Mar'25, while total operating income also rose to 561.43 Cr. However, profit metrics like profit before tax and profit after tax declined, despite a significant increase in reserves from 54.41 Cr to 253.52 Cr during the same period.

Revenue and Operating Income Growth

Over the last ten years, Hitech Corp.'s net sales have shown a robust upward trend, rising from ₹261.92 crores in March 2010 to ₹561.43 crores by March 2025. This represents a compound growth that underscores the company's expanding market presence and product demand. Total operating income, which includes other operating income, has similarly increased from ₹263.58 crores in 2010 to ₹561.43 crores in 2025, reflecting the company’s ability to scale its core business activities effectively.

Raw material costs have naturally increased in line with sales, moving from ₹159.58 crores in 2010 to ₹343.87 crores in 2025, indicating higher production volumes. Employee costs have also risen steadily, reaching ₹44.08 crores in the latest fiscal year, consistent with the company's growth and workforce expansion. Manufacturing expenses, which were significant in earlier years, appear to have been reclassified or reduced to zero in recent years, possibly reflecting operational efficiencies or accounting changes.

Profitability and Margins

Operating profit before depreciation and interest (PBDIT) excluding other income has generally trended upwards, reaching ₹61.73 crores in March 2025 from ₹41.09 crores in 2010. Including other income, operating profit rose to ₹65.23 crores in 2025. However, interest expenses have also increased, from ₹8.55 crores in 2010 to ₹16.15 crores in 2025, which has impacted net profitability.

Profit before tax has declined from ₹23.57 crores in 2010 to ₹11.83 crores in 2025, reflecting higher depreciation and interest costs. Correspondingly, profit after tax has decreased from ₹15.73 crores in 2010 to ₹8.94 crores in 2025. Earnings per share (EPS) have followed a similar pattern, falling from 11.34 in 2010 to 5.2 in 2025, indicating some pressure on shareholder returns despite revenue growth.

Operating profit margins have narrowed over the years, from 15.59% in 2010 to 11.0% in 2025, while the PAT margin has contracted from 5.97% to 1.59% in the same period. These margin compressions suggest rising costs and competitive pressures affecting profitability.

Cash Flow and Financial Position

Hitech Corp. has maintained positive cash flow from operating activities, with ₹48 crores generated in 2025, up from ₹20.65 crores in 2010. Despite significant investing outflows, notably ₹60 crores in 2025, the company has managed to sustain liquidity, closing with ₹2 crores in cash and cash equivalents. Financing activities have fluctuated, with a positive inflow of ₹14 crores in 2025, indicating possible capital raising or debt management efforts.

Reserves have grown substantially, from ₹54.41 crores in 2010 to ₹253.52 crores in 2025, reflecting accumulated retained earnings and strengthening the company’s equity base. Equity capital has also increased modestly, supporting the company’s expansion and financial stability.

Summary of Historical Performance

In summary, Hitech Corp. has exhibited consistent revenue growth and expanding operating income over the past decade and a half. However, profitability margins have been under pressure due to rising costs, interest expenses, and depreciation. The company’s ability to generate positive operating cash flow and build reserves indicates sound financial management despite these challenges. Investors should weigh the steady top-line growth against margin compression and consider the company’s evolving cost structure when analysing its historical performance.

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