Income statement analysis:
Revenue growth for the years:
2020: ₹9,417.89 million 2021: ₹10,367.36 million 2022: ₹12,470.50 million2023: ₹12,743.91 million
2024: ₹15,483.88 million
Analysis- the revenue has increased steadily from 2020-24 and the rate of increase has accelerated in 2024,
reflecting an increase in market demand
Administrative and Operating Costs:
Administrative expenses have increased by Rs.329.93million from 2020 to 2024.
While this rise in costs is reflective of the corresponding increase in revenue, the company has to analyse if
it is proportional to the revenue growth and accordingly optimise the costs.
Consumables and raw materials have increased from ₹676.11 million in 2020 to ₹1,419.70 million in 2024,
this is reflective of higher production costs, driven by increased operations or higher input costs.
Employee benefit expenses remained stable; however it increased in 2024 reflecting controlled labour
costs.
Profitability:
Operating Profit (EBIT) improved from ₹371.81 million in 2020 to ₹506.05 million in 2024, this indicates an
increase in operational efficiency
There was a growth in EBITDA from ₹424.34 million in 2020 to ₹619.82 million in 2024, this suggests that
the cash flow generation was healthy.
The net profit has remained positive throughout the period of 5 years. This is reflective of profit
sustainability despite the increase in expenses and the pandemic years
4. Financial Expenses:
The company has seen relatively stable financial expenses from 2020 to 2024. However, a slight increase
of the same in 2024 indicates higher interests paid or borrowing.
5. Net Profit:
The net profit after taxes have decreased from 2022 to 2024. As explained above, the drop in 2024 can be
attributed to the subsequent increase in raw material costs, financial and administrative expenses in 2024.
6. Tax and Other Items:
The tax payable fluctuated throughout these years, ranging from ₹82.54 million in 2021 to ₹86.29 million
in 2024. However, the company’s stable tax management efforts are indicated by the relatively steady tax
liability.
Analysis of Balance Sheet
Total Assets:
2024: ₹4,094.98 million
2020: ₹2,482.80 million
The total assets from 2020 to 2024 have consistently grown by 64.91%. This indicates the active
expansion of the company though investments in long term assets.
Non-Current Assets:
2024: ₹1,952.18 million
2020: ₹939.31 million
In the 5 years, the non-current assets grew by 107.83%, reflecting investments in plant, property and
equipment. (PPE) from ₹729.54 million in 2020 to ₹1,693.53 million in 2024, this increase in fixed
assets is likely to increase operational capabilities.
Goodwill and intangible assets however gradually decreased from ₹ between 2020 and 2024
reflecting the company’s heightened interest in tangible investments.
Current Assets:
2024: ₹1,873.22 million
2020: ₹1,272.79 million
From 2020 to 2024 the current assets grew by 47.14% .
Inventories: Increase in inventories reflects the inventory buildup and higher production
levels, which is likely to have been driven by increasing demand post the pandemic.
Receivables: Their increase can reflect either the increase in sales or the delay in collections.
Cash and equivalents: Saw fluctuations, that peaked at ₹131.29 million in 2023 but dropped
to ₹100.62 million in 2024. This is indicative of the company’s re-investing activities.
4. Net Current Assets:
2024: ₹269.59 million
2020: ₹270.70 million
From 2020 to 2024, there has been a slight decline in net current assets. This shows that the current
liabilities have been Higer than the current assets. So, to avoid liquidity issues, the management
shout ensures efficient management of their current liabilities.
Total Equity:
2024: ₹2,439.62 million
2020: ₹1,542.94 million
There has been a 57.99% growth in total equity. This indicates that the company has reinvested the
profits and reflects the good financial performance.
Other reserves: the growth in this component indicate retained earnings.
7. Total Liabilities:
2024: ₹1,655.37 million
2020: ₹939.86 million
This has more than doubled in the last 5 years. This signifies the company’s reliance on debt to fund
its growth.
a. Non-Current Liabilities:
2024: ₹381.94 million
2020: ₹80 million
This sharp rise has been driven by borrowings and non-current loans (₹290 million in 2024). This is
indicative of financing the company’s capital expenditures via long term debt.
b. Current Liabilities:
2024: ₹1,273.43 million
2020: ₹859.86 million
This has grown by 48.13% in the last 5 years. Components:
Loans and borrowings increased from ₹184.84 million in 2020 to ₹447.09 million in 2024
Trade and other payables have been relatively stable, indicating a consistent relationship
with the suppliers.
Other current liabilities: there has been significant increase in obligations such as taxes
payable and accrued expenses.
Analysis of Cash flow statements
Net Cash Flow from Operating Activities:
2024: 182.87
2020: 59.69
2020- 20203 saw a steady increase in net cashflow, peaking in 2021. However, 2024 shows a decline
as compared to 2023 However the value in 2024 is significantly higher than 2020. There has been
healthy cash generation from core operations.
Adjustments:
2024: -165.60
2020: -213
This indicates large outflow in 2020 and 2024, with a major decline in 2024 compared to 2023.
Net Cash Flow from Investing Activities:
2024: -242.39
2020: -68.48
2023 shows a large negative cashflow, this indicates significant investing activities, and that was
subsequently reduced in 2024. The spending from investing activities has been more or less
consistent over the 5 years. The large outflow in 2023 may indicate major acquisitions or capital
expenditures.
Net Cash Flow from Financing Activities:
2024: 23.70
2020: 43.71
There was a sharp increase in net cash flow from financing activities in 2023. However, 2024 saw a
significant drop in this figure, reflecting either reduced borrowing or repayment of earlier financing.
Net Increase (Decrease) in Cash and Cash Equivalents:
2024: -35.82
2020: 34.91
2022 and 2024 saw a net decrease in cash, this reflects greater outflows despite positive operating
activities. 2023 saw a slight increase, but 2024 again saw a decline cas.
Cash at the Beginning and End of the Period:
2024: Cash at beginning: 122.07, Cash at end: 86.25
2020: Cash at beginning: -235.57, Cash at end: 10.10
There was a constant buildup in cash from 2020 to 2023, reflecting good liquidity management. But
at the end of the period in 2024, cash dropped.
So, from 2020 to 2023 the overall cash inflow has increased, but the slight decline in 2024 could be
due to decreased cash inflows and increase outflows through investments.
