Grasim Industries Key Ratios

The decline in PAT margin from 7.89% in 2022 to 2.50% in 2025 indicates decreasing profitability, significantly impacting ROE.Asset turnover improved initially from 0.3721 to 0.4045 but declined to 0.3608 in 2025, suggesting a less efficient use of assets over time.Leverage increased substantially with assets to equity rising from 3.96 in 2022 to 4.93 in 2025, which has somewhat offset the declines in profitability and efficiency.

Inventory days increased from 27.73 to 32.34, indicating slower inventory movement which could strain liquidity if trends continue.Receivable days have fluctuated but remained around 16-18 days, indicating stable collections but a testing period might arise in future periods.Payable days dropped significantly from 186.46 to 154.05, improving cash flow, compensating somewhat for rising inventory days.

ROE has been decreasing from 15.21% in 2022 to 8.39% in 2025, driven primarily by declining PAT margin rather than leverage or asset utilization.ROCE has also decreased, indicating diminishing returns from capital employed, thereby reflecting a consistent challenge in operational efficiency.ROA shows substantial decline from 3.84% to 1.70%, highlighting an issue at the asset utilization front, which is a critical area for operational improvement.