Kirloskar Ferrous Key Ratios

The decline in PAT margin from 9.26% in FY2022 to 4.48% in FY2025 indicates decreasing profitability, reducing the overall ROE.Asset turnover showed improvement in FY2023 at 1.189, reflecting effective asset utilization, but has since plateaued around 1.072, suggesting a stabilization in efficiency.The leverage has decreased substantially from 3.016 in FY2022 to 1.845 in FY2025, which implies a more conservative capital structure but also constrains ROE growth.

Inventory days have significantly decreased from 97 days in FY2022 to 60 days in FY2025, illustrating improved inventory management and turnover.Receivable days reduced sharply to 46 in FY2023 but increased slightly in subsequent years, indicating a need to monitor credit policies and customer payments.The cash conversion cycle has improved from 112 days in FY2022 to 62 days in FY2025, suggesting that the company is becoming more efficient in converting its resources into cash.

ROE declined from 18.38% in FY2023 to 8.86% in FY2025, primarily driven by diminishing profit margins and a significant reduction in leverage.ROCE followed a similar declining trend, confirming that while capital efficiency was high in prior years, the reduction in profitability has led to weaker returns.ROA has also decreased, from 8.10% in FY2023 to 4.80% in FY2025, indicating that asset utilization has also suffered, pointing to overall declining operational efficiency.