Revenue and Operating Performance Trends
Over the seven-year period ending March 2025, Hittco Tools’ net sales have shown a mixed trajectory. The company recorded its highest sales in fiscal 2019 at ₹7.13 crore, followed by a decline and subsequent recovery phases. Sales dipped to ₹5.49 crore in 2021, reflecting a challenging period, but rebounded to ₹6.95 crore by March 2025. The total operating income mirrored this pattern, with no other operating income reported throughout the period.
Cost management has been a critical factor influencing profitability. Raw material costs fluctuated, peaking at ₹2.78 crore in 2023 before easing to ₹2.29 crore in 2025. Notably, the purchase of finished goods was introduced in 2025 at ₹0.79 crore, indicating a strategic shift in procurement or inventory management. Employee costs remained relatively stable, averaging around ₹1.6 crore annually, while other expenses increased significantly to ₹2.21 crore in 2025 from ₹1.23 crore in 2024.
Operating profit before depreciation and interest (PBDIT) excluding other income peaked at ₹1.57 crore in 2023 and 2022 but declined sharply to ₹0.43 crore in 2025. Including other income, operating profit stood at ₹0.86 crore in 2025, down from ₹1.61 crore in the prior two years. This decline in operating profitability is reflected in the operating profit margin, which contracted from over 23% in 2022 to just above 6% in 2025.
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Profitability and Earnings Analysis
Hittco Tools’ profit before tax (PBT) has been volatile, with losses recorded in fiscal years 2020 and 2021, followed by a recovery to ₹0.74 crore in 2022 and a decline to ₹0.08 crore in 2025. The company reported a marginal loss after tax (PAT) of ₹0.01 crore in 2025, contrasting with a PAT of ₹0.74 crore in 2022. Earnings per share (EPS) followed a similar pattern, peaking at ₹1.23 in 2022 before turning negative at ₹-0.02 in 2025.
Margins have reflected these earnings fluctuations. The PAT margin improved from a negative 15.07% in 2020 to a positive 11.26% in 2022, before slipping to a slight negative margin in 2025. Gross profit margins also declined from over 20% in 2022 to under 10% in 2025, signalling margin pressure likely due to rising costs and subdued sales growth.
Balance Sheet and Financial Position
The company’s balance sheet reveals a gradual increase in total assets from ₹6.92 crore in 2020 to ₹10.15 crore in 2025. Shareholders’ funds have grown steadily, reaching ₹3.41 crore in 2025, supported by stable equity capital of ₹6.32 crore. However, reserves remain negative, though improving from a low of ₹-4.46 crore in 2021 to ₹-2.91 crore in 2025, indicating accumulated losses over time.
Long-term borrowings have increased notably, rising from ₹3.34 crore in 2020 to ₹4.64 crore in 2025, with unsecured loans introduced in 2025 amounting to ₹4.57 crore. Current liabilities have also increased moderately, while net current assets improved to ₹3.00 crore in 2025. The net block of fixed assets has fluctuated but stood at ₹3.93 crore in 2025, reflecting ongoing capital investment and depreciation.
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Cash Flow and Liquidity Overview
Cash flow data for Hittco Tools indicates limited activity in recent years. Operating cash flow was positive at ₹1 crore in 2022 but nil in other years. Investing activities showed outflows of ₹1 crore in 2025 and ₹2 crore in 2022, suggesting capital expenditure or asset purchases. Financing activities contributed ₹1 crore inflow in 2025, likely reflecting new borrowings. Overall, net cash inflows and outflows have been minimal, with closing cash and cash equivalents reported as zero consistently, indicating tight liquidity management.
Summary of Historical Performance
In summary, Hittco Tools has experienced a challenging but evolving financial performance over the past seven years. The company’s sales have fluctuated without a clear upward trend, while profitability has been inconsistent, with losses in some years and modest profits in others. Margins have contracted recently, reflecting cost pressures and subdued revenue growth. The balance sheet shows increased leverage and negative reserves, though shareholders’ funds have improved gradually. Cash flow remains constrained, with limited liquidity buffers.
Investors analysing Hittco Tools should weigh these factors carefully, considering the company’s recent operational challenges alongside its potential for recovery and strategic shifts in procurement and financing.
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