Mafatlal Industries Key Ratios

Mafatlal Industries' ROE exhibited significant growth in FY 2024, driven primarily by an increase in PAT margin from 2.71% to 4.75%, which indicates enhanced profitability due to stronger net sales.The asset turnover ratio showed a strong upward trend, increasing from 1.0441 in FY 2023 to 1.6631 in FY 2025, indicating improved efficiency in generating revenue from assets.Although leverage has been relatively stable, the slight increase in assets-to-equity ratio suggests a moderate rise in debt usage, contributing to ROE but not as significantly as profitability and asset efficiency.

Inventory days peaked in FY 2023 but sharply declined to 11.51 days in FY 2025, indicating improved inventory management and faster turnover.Receivable days decreased overall, highlighting better collections and cash flow efficiency but with some fluctuation indicative of varying sales environments.The consistent reduction in payable days suggests more timely payments to suppliers, which might enhance supplier relationships but could impact cash flow if not well managed.

The growth in ROE from 4.98% to 13.86% in FY 2024 underscores a remarkable improvement in equity returns, predominantly driven by increased profitability and asset efficiency.ROCE followed a similar trend, with increases indicating effective capital utilization including debt, thereby demonstrating rising operational efficiency.ROA also improved significantly, suggesting that the company is effectively utilizing its total assets to generate higher returns, with the most noteworthy gains shown over the last two years.