Revenue and Operating Performance
Over the seven-year period ending March 2025, Tirupati Foam’s net sales have shown a generally upward trend, rising from ₹103.15 crores in 2019 to ₹106.03 crores in 2025. Notably, the company experienced a dip in sales during 2020 and 2021, with figures dropping to ₹79.85 crores and ₹73.58 crores respectively, likely reflecting broader economic disruptions. However, the recovery since then has been steady, with sales surpassing the ₹100 crore mark consistently from 2022 onwards.
Operating profit margins, excluding other income, have seen a gradual contraction from 11.73% in 2020 to 7.72% in 2025. This decline suggests rising cost pressures, particularly in raw material expenses which have remained substantial, hovering around ₹83 crores in the latest fiscal year. Despite this, the company has maintained positive operating profits, with PBDIT (profit before depreciation, interest, and tax) remaining above ₹8 crores in recent years.
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Profitability and Earnings
Profit after tax (PAT) has fluctuated over the years, peaking at ₹2.65 crores in 2019 before dipping to ₹1.09 crores in 2021. The company has since improved its bottom line, reporting a PAT of ₹2.14 crores in 2025. Correspondingly, earnings per share (EPS) have mirrored this pattern, with a low of 2.48 in 2021 and a recovery to 4.85 in 2025. The PAT margin has remained modest, around 2.02% in the latest fiscal year, reflecting the competitive and cost-sensitive nature of the industry.
Interest expenses have been a consistent burden, averaging around ₹4.5 crores annually, which has constrained net profitability. Depreciation charges have also remained steady, indicating ongoing asset utilisation without significant new capital expenditure.
Balance Sheet and Financial Position
Tirupati Foam’s shareholder funds have grown steadily from ₹24.67 crores in 2020 to ₹32.49 crores in 2025, supported by increasing reserves. The company’s total liabilities have decreased slightly from ₹94.97 crores in 2021 to ₹87.75 crores in 2025, signalling some deleveraging efforts. Long-term borrowings have notably declined from ₹24.45 crores in 2021 to ₹10.52 crores in 2025, while short-term borrowings remain elevated at ₹26.79 crores.
Asset-wise, the net block of fixed assets has remained relatively stable, around ₹31.88 crores in 2025, with accumulated depreciation increasing in line with asset ageing. Current assets have increased to ₹53.06 crores, driven by higher inventories and sundry debtors, which may reflect inventory build-up and credit sales expansion.
Cash Flow Trends
Operating cash flows have been positive throughout the period, with ₹6 crores generated in 2025, though this is lower than the peak of ₹15 crores seen in 2022. Investing activities have been modest, with minor inflows and outflows, indicating limited capital expenditure or asset sales. Financing cash flows have generally been negative, reflecting debt repayments and possibly dividend payments, with a net cash inflow of ₹2 crores in 2025 after accounting for all activities.
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Summary and Investor Considerations
Overall, Tirupati Foam has exhibited a stable financial profile with consistent revenue generation and moderate profitability. The company’s ability to maintain operating profits despite margin pressures and interest costs is noteworthy. Its balance sheet shows gradual strengthening of equity and reduction in long-term debt, which may enhance financial flexibility going forward.
Investors should weigh the company’s steady earnings recovery and cash flow generation against the relatively low profit margins and ongoing debt servicing costs. The stable EPS growth and book value appreciation suggest value creation, but the competitive environment and cost structure remain key factors to monitor.
Given these dynamics, Tirupati Foam presents a case of steady operational performance with cautious optimism warranted for future growth prospects.
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