How has been the historical performance of Transport Corp.?

Revenue and Profit Growth

Transport Corp.’s net sales have shown a robust upward trend, rising from ₹2,753.65 crores in March 2019 to ₹4,491.80 crores in March 2025. This represents a compound growth trajectory, with notable acceleration post-March 2021, where sales increased from ₹2,802.39 crores to over ₹4,400 crores in four years. The absence of other operating income throughout this period indicates that the company’s revenue growth is primarily driven by its core operations.

Operating profit before depreciation and interest (PBDIT) excluding other income also improved steadily, reaching ₹461.10 crores in March 2025 from ₹249.52 crores in March 2019. Including other income, operating profit rose to ₹507.80 crores in the latest fiscal year. This growth in operating profit underscores effective cost management despite rising employee and manufacturing expenses.

Profit after tax (PAT) more than doubled from ₹130.29 crores in March 2021 to ₹326.50 crores in March 2025, with consolidated net profit reaching ₹412.50 crores. Earnings per share (EPS) followed suit, climbing from ₹19.08 in March 2021 to ₹53.92 in March 2025, reflecting enhanced shareholder value.

Margins and Expense Analysis

The company’s operating profit margin (excluding other income) has remained relatively stable, fluctuating between 8.85% and 12.55% over the years. The margin peaked at 12.55% in March 2022 before settling at 10.27% in March 2025. Gross profit margin followed a similar pattern, indicating consistent operational efficiency despite rising costs.

Employee costs have increased steadily from ₹140.17 crores in March 2019 to ₹249.70 crores in March 2025, reflecting workforce expansion or wage inflation. Manufacturing expenses, the largest cost component, rose from ₹2,251.52 crores to ₹3,623.80 crores over the same period. Other expenses also increased but at a moderate pace. Despite these rising costs, the company has maintained healthy profitability, signalling effective cost control and pricing power.

Balance Sheet and Financial Position

Transport Corp.’s total assets have grown from ₹1,683.33 crores in March 2020 to ₹2,779.65 crores in March 2025, supported by investments in gross block assets and capital work in progress. The net block of fixed assets increased from ₹748.31 crores to ₹825.18 crores, while capital work in progress surged notably to ₹254.99 crores, indicating ongoing expansion or modernisation efforts.

Shareholders’ funds have strengthened significantly, rising from ₹1,023.88 crores in March 2020 to ₹2,154.75 crores in March 2025. Reserves have nearly doubled in the same period, reflecting retained earnings and accumulated profits. The book value per share has improved from ₹133.27 to ₹281.26, underscoring enhanced net worth per equity share.

On the liabilities side, total debt has been reduced substantially from ₹368.57 crores in March 2020 to ₹155.25 crores in March 2025, signalling a focus on deleveraging. Long-term borrowings have been managed prudently, while short-term borrowings have also declined markedly. This reduction in debt levels improves the company’s financial stability and reduces interest burden, which is evident in the declining interest expenses over the years.

Cash Flow and Liquidity

Cash flow from operating activities has shown a positive trend, increasing from ₹242 crores in March 2020 to ₹359 crores in March 2025. Despite fluctuations in cash flow from investing and financing activities, the company has maintained a generally healthy cash position, with closing cash and cash equivalents at ₹51 crores in March 2025. The net cash outflow in the latest fiscal year reflects investments and debt repayments, consistent with the company’s growth and deleveraging strategy.

Summary and Outlook

Over the past six years, Transport Corp. has exhibited steady growth in sales, profitability, and net worth, supported by disciplined cost management and strategic investments. The company’s ability to improve earnings per share and reduce debt levels enhances its financial resilience. Margins have remained stable despite rising expenses, reflecting operational efficiency and pricing strength.

Investors may find the company’s consistent performance and improving balance sheet metrics encouraging, especially given its focus on expanding asset base and prudent financial management. While cash flow dynamics suggest ongoing investments and debt repayments, the overall financial health remains robust, positioning Transport Corp. favourably for future growth in the transport services sector.

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