Jindal Poly Films Key Ratios

The sharp decline in PAT margin from 20.35% in 2022 to 2.06% in 2025 indicates significant profitability challenges, likely due to increasing costs or competitive pressure.Asset turnover has also decreased, reflecting a reduced efficiency in asset usage, dropping from 1.11 in 2022 to 0.52 by 2025, suggesting that sales are not keeping pace with asset growth.While leverage has increased slightly, it has not compensated for the declines in both PAT margin and asset turnover, leading to a decreasing trend in ROE which fell from 36.95% to 2.84% over the same period.

Inventory days have significantly increased from 46.60 in 2022 to 97.78 in 2024, indicating potential issues in inventory management or sales slowdown.Receivable days have also risen from 8.99 to 27.34, signifying slower collection cycles which further strain working capital.The cash conversion cycle has expanded dramatically from 27.38 days to 90.13 days, highlighting deteriorating efficiency, which could impede liquidity and operational agility.

Both ROE and ROCE have plummeted from around 37% and 39% respectively in 2022 to below 7% by 2025, suggesting a systemic decline in equity and capital utilization efficiency.ROA offers a similar narrative, declining from 21.00% in 2022 to just 1.09%, indicating that the company is increasingly less efficient at converting assets into profit.The continuous drop across these return ratios highlights that declining profitability is the primary driver for diminishing returns rather than issues stemming from debt levels.