Manali Petrochemicals Key Ratios

The steep decline in ROE from 44.56% in FY2022 to 2.72% in FY2025 indicates a significant drop in profitability, with PAT margin collapsing from 22.79% to 3.27%.Asset turnover also declined markedly, highlighting inefficiencies in revenue generation relative to total assets, dropping from 1.54 to 0.67.Leverage has remained relatively stable, suggesting that the company's declining returns were primarily driven by deteriorating profitability and asset utilization rather than changes in its capital structure.

Inventory days have increased dramatically from 17.13 days in FY2022 to 61.13 days in FY2025, indicating potential overstocking or slow-moving inventory.Receivable days have also risen, from 35.78 days to 47.85 days, suggesting challenges in collecting payments efficiently.The cash conversion cycle is substantially longer, moving from 17.60 days to 58.75 days, indicating deteriorating working capital management, which could strain liquidity.

ROE collapsed from 44.56% in FY2022 to 2.72% in FY2025, primarily driven by plummeting profitability as indicated by diminishing PAT margins.Despite weaker profitability, ROCE and ROA also show negative trends, reflecting a general decline in capital and asset efficiency, indicative of poor operational management.The decline across equity returns, overall capital efficiency, and overall asset returns suggests that all facets of return generation are under significant pressure.