Kirloskar Industries Key Ratios

The decline in PAT margin from 5.12% in FY22 to 2.26% in FY25 indicates deteriorating profitability, adversely affecting ROE.Asset turnover has fluctuated but shows a decreasing trend from 0.76 to 0.62, suggesting less efficient utilization of assets over time.Leverage has decreased from an assets-to-equity ratio of 2.48 to 1.91, implying a reduced reliance on debt, which, while reducing risk, may also limit ROE enhancement.

Inventory days have improved slightly from 61.59 to 59.48, indicating better management of stock.Receivable days reduced significantly from 56.43 to 54.04, showing faster collection periods, although it rose sharply in FY24.Payable days increased from 38.80 to 52.27, indicating a longer period to settle debts, which could strain supplier relationships while improving cash flow.

ROE has seen a dramatic decline from 15.71% in FY22 to 5.49% in FY25, primarily driven by falling profitability.ROCE has also decreased from 21.52% to 8.59%, indicating reduced efficiency in generating returns from total capital employed.ROA reflects similar downward pressure, falling from 6.34% to 2.87%, suggesting that overall asset utilization is lesser compared to prior years.