Financial Analysis Summary of Olectra Greentech Ltd.

1. Revenue Analysis

• Strong Sales Growth: Olectra's sales increased from ₹92.15 crore in FY2015 to ₹1,090.76 crore in FY2023, reflecting a Compound Annual Growth Rate (CAGR) of approximately 32.8%.
• Recent Surge: Significant growth in FY2022 (110.8%) and FY2023 (83.8%) due to heightened demand for electric buses.

2. Profitability Analysis

• Gross Profit Margin: Declined from 36.9% in FY2015 to 20.0% in FY2023, indicating increased cost pressures or pricing strategies.
• EBITDA Margin: Improved from -0.3% in FY2019 to 14.1% in FY2023, showing enhanced operational efficiency.
• Net Profit Margin: Stabilized at 6.0% in FY2022 and FY2023 after recovering from a loss in FY2019.

3. Cost Structure Analysis

• Raw Material Costs: Increased from 63.3% to 77.6% of sales between FY2015 and FY2023, possibly due to higher input costs or product mix changes.
• Employee Costs: Decreased as a percentage of sales from 9.3% to 4.9%, reflecting economies of scale despite absolute costs rising.

4. Expense Management

• Operational Expenses: Controlled effectively, contributing to improved EBITDA margins.
• Cost-saving Initiatives: Implemented measures enhanced efficiency and reduced unnecessary expenditures.

5. Working Capital Management

• Receivables: Increased to ₹630.48 crore in FY2023, with Days Sales Outstanding (DSO) at approximately 167 days, indicating slower cash collections.
• Inventory: Rose to ₹141.99 crore, but Inventory Turnover improved to 8.70 times, showing better inventory management.

6. Cash Flow Analysis

• Operating Cash Flow (OCF): Negative ₹10.27 crore in FY2023, highlighting challenges in converting profits to cash due to working capital issues.
• Investing Activities: Ongoing capital expenditures for capacity expansion.
• Financing Activities: Positive cash flows support growth and investments.

7. Balance Sheet Strength

• Low Debt Levels: Debt-to-Equity Ratio at 0.16 in FY2023, indicating a strong equity base and manageable debt.
• Asset Growth: Net Block (fixed assets) increased to ₹355.50 crore, reflecting capital investments.

8. Return Ratios

• Return on Equity (ROE): Improved to 8.28% in FY2023, indicating better profitability relative to shareholders' equity.
• Return on Assets (ROA): At 4.78%, showing moderate efficiency in asset utilization.

9. Segment-wise Financial Performance

• Electric Vehicles (EV) Segment: Dominant, contributing 87.07% of turnover in FY2023.
• Other Segments: Power Insulators showed stable performance; Electric Trucks are emerging with growth potential.

10. Key Financial Ratios