Revenue and Profitability Trends
Over the fiscal years ending March 2023 to March 2025, Travels & Rent. has seen its net sales rise substantially from ₹5.67 crores to ₹11.45 crores, reflecting a compound growth that underscores expanding business operations. Total operating income mirrored this growth, with no other operating income reported during this period. The company’s operating profit before depreciation, interest, and tax (PBDIT) excluding other income surged from ₹2.38 crores in March 2023 to ₹7.60 crores in March 2025, indicating improved operational efficiency and cost management.
Despite the increase in employee costs and other expenses, total expenditure excluding depreciation remained relatively stable, rising modestly from ₹3.29 crores to ₹3.85 crores. Other income contributed marginally to operating profit, which reached ₹8.20 crores in March 2025, up from ₹2.50 crores two years prior.
However, interest expenses escalated sharply, from ₹0.29 crores in March 2023 to ₹3.78 crores in March 2025, reflecting increased borrowing. This rise in interest cost tempered the gross profit before depreciation and tax (PBDT), which grew more modestly to ₹4.42 crores in the latest fiscal year. Profit before tax (PBT) showed steady improvement, reaching ₹4.37 crores in March 2025, while profit after tax (PAT) more than doubled from ₹1.51 crores in March 2023 to ₹3.22 crores in March 2025.
Margins reveal a mixed picture: operating profit margin excluding other income improved significantly to 66.38% in March 2025 from 41.98% in March 2023, signalling better core profitability. Conversely, the gross profit margin declined from 38.98% to 38.6% over the same period, and PAT margin fluctuated, peaking at 39.44% in March 2024 before settling at 28.12% in March 2025.
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Balance Sheet and Financial Position
Travels & Rent. has strengthened its balance sheet considerably over the last three years. Share capital expanded from ₹2.01 crores in March 2023 to ₹11.20 crores in March 2025, while reserves grew from ₹5.40 crores to ₹17.04 crores, resulting in shareholder’s funds rising to ₹28.24 crores. This reflects successful capital raising and retained earnings accumulation.
On the liabilities side, total debt increased markedly from ₹5.61 crores in March 2023 to ₹19.81 crores in March 2025, driven primarily by a rise in long-term borrowings. Non-current liabilities more than quadrupled, signalling greater leverage which may have contributed to the higher interest expenses observed. Current liabilities also increased but at a more moderate pace.
Asset growth was robust, with total assets climbing from ₹16.43 crores to ₹52.57 crores. Non-current assets nearly doubled, supported by increased long-term loans and advances, while current assets more than tripled, largely due to a sharp rise in sundry debtors and short-term loans and advances. The net block of fixed assets declined slightly, indicating limited capital expenditure on tangible assets.
Book value per share showed volatility, peaking at ₹36.86 in March 2023 before adjusting to ₹25.21 in March 2025, reflecting the impact of equity dilution and profit retention dynamics.
Cash Flow Analysis
Cash flow from operating activities turned negative in the latest fiscal year, with a significant outflow of ₹21 crores, primarily due to a large increase in working capital requirements. This contrasts with positive operating cash flow in March 2023. Financing activities provided a corresponding inflow of ₹21 crores, indicating reliance on external funding to support operations and growth. Investing activities remained neutral throughout the period.
The company maintained a stable cash and bank balance, closing at ₹1 crore in March 2025, up from negligible amounts in previous years.
Summary
In summary, Travels & Rent. has exhibited strong revenue growth and improved operating profitability over the past three years, albeit with rising interest costs and working capital pressures. The company’s balance sheet has expanded significantly, supported by equity infusion and increased borrowings. While profitability margins have shown some fluctuations, the overall trend points to a growing enterprise with enhanced operational scale and financial resources. Investors should weigh the benefits of growth against the risks associated with higher leverage and cash flow volatility when considering this company’s prospects.
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