Revenue and Operating Performance Trends
Over the six-year period ending March 2025, Tips Films' net sales demonstrated notable volatility. The company recorded peak sales of approximately ₹91 crores in fiscal years 2020 and 2021, followed by a decline to around ₹61 crores in 2023. The latest fiscal year saw a modest recovery to ₹74 crores, though still below earlier highs. Other operating income remained negligible throughout, indicating primary reliance on core sales activities.
Cost structures have shifted significantly, with raw material costs surging to over ₹107 crores in the latest year, a sharp increase from ₹29 crores in 2023. Employee expenses have steadily decreased from ₹8 crores in 2021 to under ₹4 crores in 2025, reflecting possible operational restructuring or workforce optimisation. Other expenses also declined markedly from a high of ₹85 crores in 2020 to just over ₹7 crores in 2025.
These cost fluctuations have heavily impacted operating profitability. The company posted a strong operating profit margin of nearly 61% in 2021, but this contracted sharply in subsequent years, culminating in a negative margin of almost 60% in 2025. Operating profit (PBDIT) swung from a peak of ₹60 crores in 2021 to a loss exceeding ₹42 crores in the latest fiscal year, signalling significant operational challenges.
Quarter after quarter, this Small Cap from the Lifestyle sector delivers without fail! Just added to our Reliable Performers with proven staying power. Stability meets growth here beautifully.
- - Consistent quarterly delivery
- - Proven staying power
- - Stability with growth
See the Consistent Performer →
Profitability and Earnings Analysis
Profit before tax mirrored operating trends, peaking at ₹59 crores in 2021 before declining to a loss of nearly ₹45 crores in 2025. Tax provisions fluctuated, with some years showing negative tax adjustments, reflecting deferred tax assets or losses carried forward. Consequently, net profit after tax followed a similar pattern, with a high of ₹43 crores in 2021 and a significant loss of ₹45 crores in the latest year.
Earnings per share (EPS) reflected these swings vividly, reaching a peak of over ₹56 in 2023 before plunging to a negative ₹105 in 2025. This volatility underscores the company's recent financial instability and the challenges it faces in sustaining profitability.
Balance Sheet and Financial Position
On the balance sheet front, shareholder funds declined from nearly ₹92 crores in 2023 to ₹45 crores in 2025, indicating erosion of net worth. Total liabilities surged to ₹271 crores in 2025, driven largely by a sharp increase in short-term borrowings to ₹190 crores, compared to negligible borrowings in prior years. This rise in debt levels raises concerns about financial leverage and liquidity risks.
Assets grew substantially, with total assets reaching ₹271 crores in 2025, up from ₹104 crores in 2024. This growth was largely due to a significant increase in current assets, particularly short-term loans and advances, which ballooned to ₹212 crores in 2025. Non-current assets remained relatively stable around ₹38 crores.
Cash Flow and Liquidity
Cash flow patterns reveal operational difficulties, with cash flow from operating activities turning negative at ₹179 crores in 2025, a stark contrast to positive inflows in previous years. Changes in working capital contributed heavily to this outflow, reflecting possible challenges in managing receivables and payables. However, financing activities provided a substantial inflow of ₹188 crores in 2025, likely linked to increased borrowings, which helped maintain a positive net cash inflow of ₹11 crores and a closing cash balance of ₹17 crores.
Holding Tips Films from Media & Entertainment? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Summary of Historical Performance
In summary, Tips Films has experienced a turbulent financial journey over the past six years. While the company achieved strong revenue and profitability peaks around 2020-2021, subsequent years have seen declines in sales, sharp increases in costs, and deteriorating profit margins. The balance sheet reflects increased leverage and liquidity pressures, with rising short-term debt and negative operating cash flows in the latest fiscal year. These factors collectively highlight the challenges the company faces in stabilising its financial performance and sustaining growth in a competitive media and entertainment landscape.
Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →
