How has been the historical performance of Time Technoplast?

Revenue and Profit Growth

Over the seven-year period ending March 2025, Time Technoplast’s net sales have shown a robust upward trend, increasing from ₹3,563.74 crores in 2019 to ₹5,457.04 crores in 2025. This represents a compound growth trajectory, with notable acceleration post-2021. The total operating income mirrors this growth, reflecting the company’s expanding market presence and sales volume.

Operating profit (PBDIT) excluding other income rose steadily from ₹523.51 crores in 2019 to ₹784.95 crores in 2025, indicating improved operational efficiency and cost management. The operating profit margin has remained relatively stable, fluctuating between 12.88% and 14.69%, with a slight improvement to 14.38% in the latest fiscal year.

Profit before tax surged from ₹281.93 crores in 2019 to ₹529.02 crores in 2025, while profit after tax increased from ₹208.51 crores to ₹394.44 crores over the same period. The consolidated net profit followed a similar pattern, rising from ₹202.74 crores in 2019 to ₹387.94 crores in 2025. This growth in profitability is complemented by an improvement in the PAT margin, which expanded from 5.85% in 2019 to 7.23% in 2025, underscoring enhanced bottom-line performance.

Cost Structure and Margins

The company’s raw material costs have increased in line with sales, rising from ₹2,561.02 crores in 2019 to ₹3,888.78 crores in 2025. Despite this, the company has managed to maintain a stable gross profit margin, which improved from 12.01% in 2019 to 12.8% in 2025. Employee costs have also risen steadily, reflecting workforce expansion and inflationary pressures, but remain well controlled relative to revenue growth.

Other expenses have increased moderately, from ₹365.02 crores in 2019 to ₹520.93 crores in 2025, consistent with the company’s scaling operations. Interest expenses have declined from ₹98.65 crores in 2019 to ₹91.53 crores in 2025, indicating effective debt management despite a sizeable total debt of ₹646.51 crores as of March 2025.

Balance Sheet Strength and Asset Base

Time Technoplast’s total assets have expanded from ₹3,364.33 crores in 2020 to ₹4,398.75 crores in 2025, driven by growth in both current and non-current assets. Net block values have remained stable around ₹1,280 crores, while capital work in progress has fluctuated, reflecting ongoing investments in capacity expansion.

Shareholders’ funds have grown significantly from ₹1,815.08 crores in 2020 to ₹2,892.14 crores in 2025, supported by rising reserves. The book value per share has appreciated from ₹80.01 in 2020 to ₹127.45 in 2025, signalling enhanced shareholder value. The company’s total liabilities have increased moderately, but the debt levels have been managed prudently, with a reduction in long-term borrowings from ₹331.46 crores in 2020 to ₹147.06 crores in 2025.

Cash Flow and Liquidity

Operating cash flow has shown a positive trend, increasing from ₹301 crores in 2020 to ₹430 crores in 2025, reflecting strong cash generation from core operations. Despite significant investments, cash flow from investing activities remains negative, consistent with the company’s growth strategy. Financing activities have seen net outflows, indicating debt repayments and shareholder returns.

Closing cash and cash equivalents have improved from ₹82 crores in 2020 to ₹177.87 crores in 2025, enhancing liquidity buffers. The company’s net cash inflow has been positive in recent years, supporting operational and strategic flexibility.

Summary and Outlook

Time Technoplast’s historical performance reflects a company on a steady growth path, with expanding revenues, improving profitability, and a strengthening balance sheet. The consistent rise in net sales and operating profits, coupled with stable margins, indicates effective operational management. The company’s ability to generate healthy cash flows while investing in growth initiatives bodes well for its future prospects.

While the company has managed to reduce its long-term borrowings, total debt remains a factor to monitor, especially in the context of ongoing capital expenditure. Nonetheless, the rising book value per share and improved liquidity position provide comfort to investors. Overall, Time Technoplast’s financial track record over the past several years demonstrates resilience and growth potential within its sector.

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