How has been the historical performance of Mold-Tek Pack.?

Revenue and Profit Growth Trajectory

Over the six-year period ending March 2022, Mold-Tek Pack. has seen its net sales rise from ₹338.47 crores in 2017 to ₹631.47 crores in 2022, reflecting a robust compound annual growth rate. This upward trend underscores the company's expanding market presence and demand for its packaging solutions. Operating profit before depreciation and interest (PBDIT) also followed a positive trajectory, increasing from ₹50.39 crores in 2017 to ₹120.69 crores in 2022, indicating improved operational efficiency despite rising raw material costs.

The company maintained a relatively stable operating profit margin, hovering around 19% in recent years, which is a commendable performance in the packaging sector. Profit after tax (PAT) grew from ₹24.17 crores in 2017 to ₹63.65 crores in 2022, with the PAT margin improving from 7.14% to just over 10%, signalling enhanced profitability and effective cost management.

Cost Structure and Margins

Raw material costs, the largest expense component, rose from ₹187.96 crores in 2017 to ₹384.82 crores in 2022, in line with revenue growth. Despite this, the company managed to keep other expenses, such as employee costs and other operating expenses, under control. Employee costs increased moderately from ₹28.64 crores to ₹38.68 crores over the period, reflecting workforce expansion and inflationary pressures.

Other expenses showed a significant rise, particularly in the latest fiscal year, which may warrant closer monitoring. Nevertheless, the company’s ability to sustain gross profit margins around 17-18% and improve net profitability margins highlights effective cost management and pricing strategies.

Balance Sheet Strength and Asset Growth

Mold-Tek Pack.’s total assets expanded from ₹246.06 crores in 2017 to ₹574.16 crores in 2022, driven by investments in fixed assets and working capital. The net block of assets increased substantially, indicating ongoing capital expenditure to support growth. Shareholders’ funds nearly tripled from ₹152.67 crores to ₹457.11 crores, reflecting retained earnings accumulation and equity infusion.

Long-term borrowings rose moderately, but total debt decreased significantly from ₹108.14 crores in 2021 to ₹44.02 crores in 2022, suggesting a strategic deleveraging effort. The company’s book value per share improved from ₹55.13 in 2017 to ₹140.20 in 2022, signalling enhanced shareholder value.

Cash Flow and Liquidity Position

Cash flow from operating activities has fluctuated over the years, with a notable dip to ₹1 crore in 2022 from ₹60 crores in 2021. This was influenced by significant changes in working capital, which saw a sharp increase in utilisation in the latest year. Investing activities consistently reflected capital expenditure, with outflows rising to ₹54 crores in 2022, supporting asset growth.

Financing activities showed a positive inflow of ₹56 crores in 2022, contrasting with outflows in prior years, indicating fresh capital raising or debt restructuring. The company maintained a modest cash and bank balance, closing at ₹16.31 crores in 2022, which supports operational liquidity.

Summary of Historical Performance

Overall, Mold-Tek Pack. has exhibited strong historical performance characterised by steady revenue and profit growth, improving margins, and a strengthening balance sheet. The company’s strategic investments in assets and prudent financial management have enhanced shareholder value and reduced leverage. While recent cash flow dynamics suggest increased working capital demands, the firm’s fundamentals remain solid, positioning it well for continued expansion in the packaging industry.

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