Hindalco Key Ratios

In 2022, ROE was driven significantly by a high PAT margin of 7.04%, but declined to 4.52% in 2023 due to increased net sales without a commensurate increase in profit, indicating possible price pressures or increased costs.Asset turnover was relatively stable, peaking at 1.0024 in 2023, suggesting efficient asset usage, although the subsequent small dip reflects reduced operational embedding post-2023.Leverage decreased consistently from 2.8338 in 2022 to 2.1488 in 2025, indicating a prudent reduction in debt which contributes positively to overall financial health and ROE stabilization toward the end of the period.

Inventory days showed slight variation, with a decrease to 68.57 days in 2025 from 71.50 days in 2023, indicating improved inventory management and lesser holding costs.Receivable days consistently improved, falling from 31.84 to 27.73 days, suggesting a strengthening of credit controls and more rapid collections.Payable days decreased from 108.09 to 92.53 days, indicating reduced reliance on supplier credit, which could strain cash flow even as the cash conversion cycle slightly improved overall.

ROE exhibited sharp fluctuations, peaking at 19.60% in 2022 before dropping to a low of 10.08% in 2024, reflecting a transition from high profitability to tighter margins and operational challenges.ROCE mirrored the trend of ROE, significantly impacted by net profit changes, suggesting that effective capital utilization is under pressure, especially during 2023 and 2024.ROA mirrored ROE's decline, pointing to diminishing returns on assets, which were compounded by operational inefficiencies, but saw moderate recovery in 2025, indicating potential improvement in the asset utilization.