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The decrease in ROE from 6.83% to 3.18% in 2024 highlights a sharp decline in net profit margin, influenced by lower sales profitability.The asset turnover ratio decreased in 2024, indicating less efficiency in using assets to generate sales, but improved slightly in 2025, partially aiding the recovery in ROE.Leverage remained relatively stable, suggesting that changes in ROE are primarily due to fluctuations in profitability rather than through increased debt usage.
| Metric | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| ROE | 6.83% | 3.18% | 4.78% |
| PAT margin | 4.36% | 2.45% | 3.32% |
| Asset Turnover | 1.28x | 1.05x | 1.16x |
| Leverage | 1.23x | 1.23x | 1.25x |
Inventory days increased significantly from 42.87 in 2023 to 53.63 in 2024, reflecting a potential build-up of unsold goods which impacts cash flow negatively.Receivable days varied, improving in 2025, indicating better collection efficiency after a decline in 2024, which could enhance liquidity moving forward.The cash conversion cycle deteriorated in 2024 but improved in 2025, showing a potential recovery towards more effective working capital management.
| Metric | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Inventory Days | 42.9 | 53.6 | 53.3 |
| Receivable Days | 38.2 | 43.3 | 33.9 |
| Payable Days | 28.4 | 37.6 | 41.6 |
| Cash Conversion Cycle | 52.7 | 59.4 | 45.6 |
ROE and ROCE both significantly dropped in 2024, primarily due to declining profitability, impacting equity efficiency the most.ROA also decreased but improved in 2025, indicating that asset efficiency is becoming a relative bright spot compared to equity returns.Overall, the decline in returns across both equity and capital suggests a need for the company to re-evaluate its profitability strategies as debt contributions alone are not supporting returns.
| Metric | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| ROE | 6.83% | 3.18% | 4.78% |
| ROCE | 8.66% | 4.49% | 6.74% |
| ROA | 5.57% | 2.59% | 3.84% |