Financial Analysis Report
1. Historical Financial Performance
1.1 Revenue Analysis
| Year |
Sales
(INR Crores) |
Growth Rate (%) |
| Mar-15 |
11,345.44 |
- |
| Mar-16 |
13,790.10 |
21.54% |
| Mar-17 |
14,394.29 |
4.38% |
| Mar-18 |
15,155.71 |
5.29% |
| Mar-19 |
16,362.41 |
7.96% |
| Mar-20 |
17,131.99 |
4.70% |
| Mar-21 |
19,159.59 |
11.84% |
| Mar-22 |
21,763.34 |
13.59% |
| Mar-23 |
22,753.12 |
4.55% |
| Mar-24 |
25,774.09 |
13.28% |
1.2 Profitability Analysis
- Net Profit Margin Trends:
| Year |
Net Profit
(INR Crores) |
Net Profit Margin (%) |
| Mar-15 |
1,180.77 |
10.41% |
| Mar-16 |
1,359.99 |
9.86% |
| Mar-17 |
1,006.39 |
6.99% |
| Mar-18 |
1,410.53 |
9.31% |
| Mar-19 |
1,527.70 |
9.33% |
| Mar-20 |
1,546.52 |
9.03% |
| Mar-21 |
2,404.87 |
12.55% |
| Mar-22 |
2,516.75 |
11.56% |
| Mar-23 |
2,801.91 |
12.31% |
| Mar-24 |
4,121.55 |
15.99% |
1.3 Cost Structure Analysis
- Raw Material Costs: Increased from INR 4,533.92 Cr in Mar-15 to INR 8,756.54 Cr in Mar-24.
- Employee Costs: Increased from INR 1,973.86 Cr in Mar-15 to INR 4,325.76 Cr in Mar-24.
- Other Operating Expenses: Steady increase over the years.
1.4 Working Capital Management
- Receivables Analysis: Receivables grew from INR 1,997.72 Cr in Mar-15 to INR 4,770.66 Cr in
Mar-24.
- Inventory Management: Inventory levels increased, indicating potential for optimization.
- Payables Analysis: Not specified in provided data.
1.5 Cash Flow Analysis
- Operating Cash Flow Trends: Positive and increasing, from INR 1,173.43 Cr in Mar-15 to INR
4,133.91 Cr in Mar-24.
- Investing Cash Flow Trends: Fluctuating due to capital expenditures and investments.
- Financing Cash Flow Trends: Reflects debt repayment and dividend payouts.
1.6 Balance Sheet Strength
- Asset Composition: Total assets increased from INR 15,670.42 Cr in Mar-15 to INR 32,532.53
Cr in Mar-24.
- Debt Levels: Decreased from INR 1,703.33 Cr in Mar-15 to INR 559.41 Cr in Mar-24.
- Debt-to-Equity Ratio: Improved to 0.02 in Mar-24, indicating strong solvency.
1.7 Return Ratios
- Return on Equity (ROE): 15.44% in Mar-24, showing efficient utilization of shareholders'
equity.
- Return on Assets (ROA): Not computed due to insufficient data.
- Return on Capital Employed (ROCE): Positive trend observed.
2. Segment-wise Financial Performance
No segment-wise data provided.
3. Key Financial Ratios
3.1 Liquidity Ratios
- Current Ratio: 2.07 in Mar-24, indicating good short-term liquidity.
- Quick Ratio: 1.07 in Mar-24, showing adequate ability to meet short-term obligations
without relying on inventory sales.
3.2 Solvency Ratios
- Debt-to-Equity Ratio: 0.02 in Mar-24, reflecting low financial leverage.
- Interest Coverage Ratio: 76.12 in Mar-24, indicating strong ability to meet interest
obligations.
3.3 Efficiency Ratios
- Inventory Turnover Ratio: 2.00 times in Mar-24, suggesting room for improving inventory
management.
- Receivables Turnover Ratio: 5.84 times in Mar-24, indicating efficient collection of
receivables.
3.4 Valuation Ratios
- Price-to-Earnings (P/E) Ratio: 31.83, which may suggest the stock is priced at a premium.
- Enterprise Value to EBITDA (EV/EBITDA): 19.13, indicating market valuation relative to
earnings.