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Adani Enterprises

Submitted by
Methu Diya D
24NKU35
Content
1) Introduction to Adani Enterprises Limited
2) History
3) Profile
4) Adani Enterprises Vision, Mission and Values
5) Income Statement
6) Balance Sheet
7) Analysis and Interpretation
8) Tools used
9) Financial Year 2019-2020- Vertical, Horizontal, Ratio
Analysis with interpretation for each
10) Financial Year 2020-2021- Vertical, Horizontal, Ratio
Analysis with interpretation for each
11) Financial Year 2021-2022- Vertical, Horizontal, Ratio
Analysis with interpretation for each
12) Financial Year 2022-2023-2024- Vertical, Horizontal,
Ratio Analysis with interpretation for each
13) Conclusion
Introduction:
Adani Enterprises Limited (AEL) is a key player in the Adani Group, headquartered in
Ahmedabad, Gujarat, India1. Founded in 1993, it's a publiclylisted holding company
involved in diverse sectors such as energy, infrastructure, logistics, and food processing.
AEL is recognized as India's largest listed business incubator, focusing on incubating and
nurturing businesses that address national importance and create value for stakeholders

History:

• Founded: March 2, 1993, by Gautam Adani


• Initial Focus: Commodity trading, especially agricultural commodities
• Early Milestone: Established proprietary port in Mundra in 1990
• Diversification: Expanded into energy, infrastructure, logistics, and food processing
• Transformation: Renamed from Adani Exports Limited to Adani Enterprises
Limited
• Current Role: India's largest listed business incubator
• Objective: businesses addressing national importance and creating stakeholder value
• Profile:
• Headquarters: Ahmedabad, Gujarat, India
• Key Sectors: Energy and utility, transportation and logistics, consumer goods, and
primary industry
• Notable Subsidiaries: Adani Agri Fresh, Adani Airport Holdings, Adani Cement,
AdaniConneX, Adani Defence & Aerospace, Adani Digital Labs, Adani Mining,
Adani New Industries, Adani Road Transport, Adani Shipping, Adani Solar, Adani
Water, Adani Wilmar
• Market Presence: Listed on BSE and NSE, part of NIFTY 50 index
• Mission: To nurture businesses that address national importance and create value for
stakeholders
• Achievements: Recognized as India's largest listed business incubator, with a focus
on sustainable value creation and innovation
Adani Enterprises

Vision
To be a globally admired leader in integrated infrastructure businesses committed to
nation building

Mission
To profitably tap global business opportunities for stakeholders.

Values

• Courage: Embrace new ideas and business ventures.


• Trust: Believe in employees and other stakeholders.
• Commitment: Dedication to sustainable value creation and nation building.
Income Statement
Balance Sheet
Analysis:
Analyzing Adani Enterprises Limited's financial statements provides insights into its
financial health, performance, and strategic direction. This analysis helps stakeholders
understand the company's profitability, liquidity, solvency, and overall financial stability.

Tools Used

1. Income Statement Analysis: Examines revenues, expenses, and profits over a


specific period.
2. Balance Sheet Analysis: Assesses assets, liabilities, and shareholders' equity to gauge
financial position.
3. Cash Flow Statement Analysis: Evaluates cash inflows and outflows to understand
liquidity.
4. Financial Ratios: Key ratios like profitability ratios (e.g., net profit margin), liquidity
ratios (e.g., current ratio), and solvency ratios (e.g., debt-to-equity ratio) provide deeper
insights.
5. Horizontal and Vertical Analysis: Compares financial data over multiple periods
(horizontal) and across different line items (vertical) to identify trends and proportions.

In this report the following analysis has been followed and interpreted:

1. Vertical Analysis/ Common-Size Analysis.

Definition: This method involves expressing each item in the financial statements as a

percentage of a base figure. Purpose: Helps in understanding the relative proportion of each

line item to the total,identifying structural changes over time.

2. Horizontal Analysis/ Trend Analysis/Comparative Analysis

Definition: This method involves comparing financial data across multiple periods. Each line
item in the financial statements is compared to the same item in a previous period to
calculate the growth rate or decline.

Purpose: Assists in identifying trends, growth patterns, and any significant changes
overtime.

3. Ratio Analysis:

Definition: This method involves calculating various financial ratios that provide insights
into different aspects of the company's performance, such as liquidity, profitability, and

Solvency.
FINANCIAL YEAR
2019-2020
Horizontal Analysis (Income Statement) for the year 2020
Interpretation:

• Total Income: Increased from ₹159,432.30 to ₹169,344.40.


• Sales: Grew by ₹8,665.10 (6.21% increase).
• Income from Non-Financial Services: Decreased by ₹12,033.40.
• Income from Financial Services: Fell by ₹1,794.10 (7.84% decrease).
• Total Expenses: Decreased by ₹2,019.80, reflecting improved cost management.
• Profit After Tax: Rose by ₹2,116.50 (43.43% growth).

Overall, Adani Enterprises Limited demonstrated effective cost management and strategic
focus, leading to a significant increase in net income despite some declines in certain revenue
streams.
Balance sheet of the year 2020
Interpretation

Total Liabilities and Assets:

• Total Liabilities decreased from ₹149,479.40 to ₹140,921.70, a difference of ₹8,557.70,


reflecting a 6.07% reduction.
• Total Assets also decreased by ₹8,557.70, equating to a 6.07% decline.

Capital and Reserves:

• Total Capital: Remained unchanged at ₹1,099.80.


• Reserves and Funds: Increased from ₹31,388.30 to ₹36,510.20, an addition of ₹5,121.90,
marking a 4.02% rise.

Borrowings:

• Long-term borrowings (excl. current portion): Increased by ₹1,370.40, a 2.86% rise.


• Deferred Tax Liability: Decreased by ₹645.30, marking a 37.64% reduction.

Current Liabilities:

• Short-term Borrowings: Decreased by ₹2,343, a 13.94% reduction.


• Short-term Trade Payables: Decreased by ₹13,335.10, marking a 20% reduction.

Assets:

• Net Fixed Assets: Decreased by ₹384.50, a 2.55% decline.


• Net Intangible Assets: Decreased by ₹247.80, a 4.18% reduction.
• Long-term Investments: Increased by ₹3,631, a 15.50% rise.
• Current Assets and Loans & Advances: Decreased by ₹12,566, a 13.71% reduction.

This overall indicates a reduction in total liabilities and assets, with significant decreases in
short-term trade payables and current assets, alongside increases in reserves and long-term
investments.
Vertical Analysis (Income Statement) for the year 2020:
Interpretation:

Income

• Total Income increased to ₹169,344.40 from ₹159,432.30.


• Sales grew to ₹162,078.00 from ₹153,412.90.
• Income from Non-Financial Services decreased.
• Income from Financial Services also decreased.
• Interest Income increased slightly.

Expenses

• Total Expenses decreased to ₹158,592.80 from ₹160,612.60.


• Operating Expenses saw a slight reduction.
• Compensation to Employees increased.
• Selling & Distribution Expenses increased significantly.
• Miscellaneous Expenditure also increased.

Profitability

• Profit After Tax increased to ₹6,988.90 from ₹4,872.40.

Overall, the company showed growth in income and profitability, despite some areas of
decline. Effective cost management and extraordinary income significantly boosted the
profits
Balance Sheet for 2020:
Interpretation:

Liabilities and Capital:

• Total Liabilities decreased to ₹140,921.70.


• Total Capital remained stable at ₹1,099.80.

Reserves and Funds:

• Increased by 25.91% to ₹36,510.20.


• Free Reserves increased by 18.94% to ₹26,683.80.
• General Reserves and Balance as per Profit & Loss Account also saw growth.

Borrowings:

• Long-term Borrowings (excluding current portion) increased by 7.56% to ₹10,653.80.


• Long-term Borrowings (including current portion) increased by 9.57% to ₹13,488.70.

Deferred Tax Liability:

• Decreased by 37.64% to ₹1,714.40.

Current Liabilities:

• Decreased by 15.45% to ₹90,204.00.


• Short-term Trade Payables and Acceptances decreased by 20.00% to ₹66,648.70.

Assets:

• Total Assets decreased by 6.07% to ₹140,921.70.


• Net Fixed Assets and Net Intangible Assets saw slight reductions.
• Long-term Investments increased by 15.50% to ₹23,422.00.
• Current Assets and Loans & Advances decreased by 13.71% to ₹91,665.00.
• Inventories decreased by 22.89% to ₹15,562.70.
• Trade & Bills Receivables significantly decreased by 34.57% to ₹38,726.50.

The company demonstrated strategic financial management by increasing reserves and


long-term investments while reducing total liabilities and current liabilities.
Ratio Analysis:
Ratio Analysis Result Result
Mar-19 Mar-20
Current Ratio 1.00 1.02
Total Debt to Equity Ratio 4.76 3.86
Gross Profit Rate 10.48% 10.23%
Return on Sales 3.06% 4.13%
Return on Stockholders' Equity 15.52% 19.14%
Earnings per Share (EPS) 4.43 6.36
Price-Earnings (P/E) Ratio 22.57 15.72
Dividend Yield 2% 2%
Dividend Payout Ratio 45.15% 31.45%

Interpretation

• Current Ratio: Maintained around 1.00 to 1.02.


• Total Debt to Equity Ratio: Improved from 4.76 to 3.86.
• Gross Profit Rate: Stable around 10.23% to 10.48%.
• Return on Sales: Increased from 3.06% to 4.13%.
• Return on Stockholders' Equity: Improved from 15.52% to 19.14%.
• Earnings per Share (EPS): Increased from 4.43 to 6.36.
• Price-Earnings (P/E) Ratio: Decreased from 22.57 to 15.72.
• Dividend Yield: Stable at 2%.
• Dividend Payout Ratio: Decreased from 45.15% to 31.45%.

Overall, the company demonstrated positive growth in income and profitability, effective
cost management, increased reserves and equity, while reducing liabilities and
maintaining stable liquidity.
FINANCIAL YEAR
2020-2021
Horizontal Analysis (Income Statement) for the year 2021
Interpretation of Financial Data

Income Analysis

• Total Income: Decreased by ₹31,835 million (18.80%) from ₹169,344.40 million in Mar-
20 to ₹137,509.40 million in Mar-21. This significant drop indicates a decrease in overall
revenue.
• Sales: Decreased by ₹28,623.3 million (17.66%) from ₹162,078 million to ₹133,454.70
million, showing a decline in the core business operations.
• Industrial Sales: Increased by ₹2,024.6 million (9.78%) from ₹20,698.50 million to
₹22,723.10 million, which is a positive sign in this segment.
• Income from Non-Financial Services: Decreased by ₹30,647.9 million (21.68%) from
₹141,379.50 million to ₹110,731.60 million, indicating a decline in this revenue stream.

Expense Analysis

• Total Expenses: Decreased by ₹29,111.8 million (18.36%) from ₹158,592.80 million to


₹129,481 million, showing better cost management.
• Operating Expenses: Decreased by ₹28,612.3 million (19.45%) from ₹147,097.50 million
to ₹118,485.20 million, reflecting lower operational costs.
• Purchase of Finished Goods: Decreased by ₹21,786.8 million (17.71%) from
₹123,037.20 million to ₹101,250.40 million, indicating lower procurement costs.
• Power, Fuel & Water Charges: Decreased by ₹97.9 million (22.15%) from ₹441.9
million to ₹344 million, showing reduced utility costs.
• Compensation to Employees: Increased by ₹363 million (13.16%) from ₹2,758.70
million to ₹3,121.70 million, suggesting higher salary expenses.
• Selling & Distribution Expenses: Decreased by ₹6,715.8 million, reflecting a significant
reduction in marketing and distribution costs.
• Travel Expenses: Decreased by ₹128.9 million (60.43%) from ₹213.3 million to ₹84.4
million, indicating reduced travel activities.
• Other Operational Expenses of Industrial Enterprises: Decreased by ₹658.2 million
(9.94%) from ₹6,620.30 million to ₹5,962.10 million, reflecting better control over
miscellaneous costs.

Profitability Analysis

• Gross Profit Rate: Reflecting consistent control over production costs.


• Return on Sales (Net Profit Margin): Decreased significantly from 18.67% to 2.05%,
indicating reduced profitability.
• Financial Services Expenses: Decreased by ₹861.4 million (12.98%) from ₹6,634.10
million to ₹5,772.70 million, suggesting cost-saving measures.
• Provision for Direct Tax: Decreased by ₹832.1 million (30.82%) from ₹2,699.50 million
to ₹1,867.40 million, reflecting lower taxable income.
Profit Analysis

• Profit After Tax: Decreased significantly by ₹3,300.8 million (47.23%) from ₹6,988.90
million to ₹3,688.10 million, indicating a substantial drop in net earnings.
Balance Sheet of the year 2021
Interpretation

Balance Sheet Analysis


Liabilities and Capital:

• Total Liabilities: Decreased by ₹9,043.71 million, from ₹140,921.70 million to


₹131,878.00 million, indicating improved debt management.
• Total Capital: Remained stable at ₹1,099.80 million.

Reserves and Funds:

• Total Reserves and Funds: Increased by ₹3,669.93 million (10.05%), from ₹36,510.20
million to ₹40,180.10 million.
• Free Reserves: Increased by ₹3,669.92 million (13.75%), from ₹26,683.80 million to
₹30,353.70 million.
• General Reserves: Increased by ₹250 million (6.76%), from ₹3,699.40 million to
₹3,949.40 million.
• Balance as per Profit & Loss Account: Increased by ₹3,419.92 million (14.89%), from
₹22,984.40 million to ₹26,404.30 million.

Borrowings:

• Long-term Borrowings (excl. current portion): Increased by ₹2,856.21 million


(26.81%), from ₹10,653.80 million to ₹13,510.00 million.
• Long-term Borrowings (incl. current portion): Increased by ₹948.81 million (7.03%),
from ₹13,488.70 million to ₹14,437.50 million.
• Less: Current portion of long-term borrowings: Decreased by ₹1,907.40 million
(67.27%), from ₹2,834.90 million to ₹927.50 million.

Deferred Tax Liability:

• Increased slightly by ₹5.11 million (0.30%), from ₹1,714.40 million to ₹1,719.50 million.

Current Liabilities & Provisions:

• Total Current Liabilities & Provisions: Decreased by ₹15,529.55 million (17.21%), from
₹90,204.00 million to ₹74,674.50 million.
• Short-term Borrowings: Decreased by ₹2,059.11 million (12.25%), from ₹16,810.30
million to ₹14,751.20 million.
• Short-term Trade Payables and Acceptances: Decreased by ₹16,085.73 million
(24.12%), from ₹66,648.70 million to ₹50,563.00 million.
Assets

• Total Assets: Decreased by ₹9,043.71 million (6.42%), from ₹140,921.70 million to


₹131,878.00 million.
• Net Fixed Assets: Decreased by ₹1,006.23 million (6.66%), from ₹15,098.50 million to
₹14,092.30 million.
• Net Intangible Assets: Decreased by ₹289.9 million (4.89%), from ₹5,924.90 million to
₹5,635.00 million.
• Capital Work-in-progress: Increased by ₹2,335.10 million (106.34%), from ₹2,196.10
million to ₹4,531.20 million.

Long-term Investments:

• Total Long-term Investments: Increased by ₹1,406.75 million (6.01%), from ₹23,422.00


million to ₹24,828.70 million.
• Long-term Investments in Group Companies: Increased by ₹1,904 million (8.37%),
from ₹22,738.30 million to ₹24,642.30 million.
• Long-term Investments in Non-Group Companies: Decreased by ₹497.3 million
(72.79%), from ₹683.7 million to ₹186.4 million.

Current Assets and Loans & Advances:

• Total Current Assets and Loans & Advances: Decreased by ₹10,808.8 million
(11.79%), from ₹91,665.00 million to ₹80,856.20 million.
• Inventories: Decreased by ₹4,346.3 million
Vertical Analysis of income statement 2021
Key Takeaways:

1. Stabilized Capital: The company's capital remained stable, showing no significant


change.
2. Increased Reserves and Funds: The rise in reserves and funds indicates better
profitability and retained earnings.
3. Reduction in Liabilities: The overall decrease in liabilities, especially current liabilities,
suggests an improvement in financial health.
4. Decrease in Assets: The reduction in both current and fixed assets suggests potential
strategic downsizing or divestment.
5. Improved Borrowings: The increase in long-term borrowings hints at leveraging debt for
long-term projects or investments.
6. Liquidity: The decline in cash and bank balances might impact liquidity, although
decreased short-term borrowings offer some relief.

Conclusion:
The company has demonstrated effective financial management by reducing overall liabilities
and increasing reserves. However, the significant decrease in assets, particularly inventories
and receivables, needs to be closely monitored for its impact on operations and liquidity.
Balance Sheet for the year 2021
Interpretation

1. Stable Capital and Reserves: Indicates solid financial health and prudent management.
2. Increased Borrowings: Higher long-term borrowings suggest investment in long-term
projects.
3. Improved Short-Term Financial Health: Reduced current liabilities and short-term
borrowings enhance financial stability.
4. Decreased Assets: Significant reductions in current assets, inventories, and receivables
need careful monitoring.

Ratios;
Ratio ResultM Result
ar-20 Mar-21
Current Ratio 1.02 1.08
Total Debt to Equity Ratio 3.74 3.22
Gross Profit Rate 13.13% 13.85%
Return on Sales 4.13% 2.68%
Return on Stockholders' Equity 18.71% 8.99%
Interpretation
The company experienced a decline in its financial ratios from Mar-20 to Mar 21.The Gross
Profit Rate has slightly decreased, indicating a minor deterioration in managing production
costs. The Net Profit Margin has seen a significant drop, highlighting reduced overall
profitability. These trends suggest that the company may need to focus on improving cost
management and boosting sales efficiency to enhance its financial performance.
FINANCIAL YEAR
2021-2022
Horizontal Analysis (Income Statement) of the year 2022
Interpretation
Income Analysis:
• Total Income: Increased by ₹1,35,879.3 million (98.81%) from ₹1,59,432.3 million in
2019 to ₹2,73,388.7 million in 2022, indicating significant revenue growth.
• Sales: Grew by ₹1,34,880.8 million (101.07%) from ₹1,53,412.9 million to ₹2,68,335.5
million, showing strong performance in core business operations.
• Income from Non-Financial Services: Increased by ₹82,383.3 million (53.72%) from
₹1,53,412.9 million to ₹2,35,070.7 million, reflecting substantial growth in this revenue
stream.
• Income from Financial Services: Increased by ₹1,624.2 million (42.77%) from ₹5,537.5
million to ₹4,690.7 million, indicating healthy growth in financial services.
• Interest Income: Grew by ₹1,350.7 million (34.49%) from ₹3,337.4 million to ₹4,688.1
million, showing an increase in interest earnings.
• Dividends: Remained relatively stable.

Expense Analysis:

• Total Expenses: Increased by ₹1,43,002.3 million (88.94%) from ₹1,60,612.6 million to


₹3,03,614.9 million, reflecting higher operational costs.
• Operating Expenses: Rose by ₹1,43,077.7 million (96.73%) from ₹1,47,871.3 million to
₹2,90,149.0 million, indicating increased production and selling expenses.
• Purchase of Finished Goods: Grew by ₹67,734.3 million (51.19%) from ₹1,32,303.6
million to ₹2,66,083.2 million, reflecting higher procurement costs.
• Compensation to Employees: Increased by ₹424.7 million (17.72%) from ₹2,393.6
million to ₹3,818.4 million, showing higher salary expenses.
• Selling & Distribution Expenses: Increased by ₹1,115.4 million (15.63%) from ₹6,921.5
million to ₹9,004.4 million, reflecting heightened marketing efforts.
• Travel Expenses: Dropped by ₹9.5 million (5.08%) from ₹187.2 million to ₹185.7
million, indicating reduced travel costs.
• Other Operational Expenses: Decreased slightly by ₹61.7 million (1.15%) from ₹3,645.5
million to ₹3,597.8 million, suggesting improved control over miscellaneous costs.
Balance Sheet of the year 2022
Interpretation;

1. Capital and Reserves: Strong growth in capital and reserves indicates robust financial
health and prudent financial management.
2. Increased Borrowings: Significant rise in long-term borrowings suggests investment
in long-term projects or assets.
3. Deferred Tax Adjustments: Changes in deferred tax liabilities and assets indicate
adjustments in tax provisions.
4. Current Liabilities: Increase in current liabilities and provisions reflects higher short-
term obligations.
5. Improved Liquidity: Higher current assets and cash balances suggest improved
liquidity and financial flexibility.

The company has demonstrated strong growth in total assets and liabilities, with a
significant increase in capital and reserves. However, the rise in borrowings and current
liabilities needs to be monitored to ensure sustainable financial health.
Vertical Analysis (Income Statement) for the year 2022
Interpretation

1. Strong Revenue Growth: Significant increase in total income, sales, and


non-financial services income.
2. Increased Operating Expenses: Higher costs associated with procurement, production,
and marketing.
3. Improved Net Earnings: Despite increased expenses, net profit after tax nearly doubled,
reflecting strong financial performance.
4. Slight Decline in Profitability: Margins slightly decreased, indicating a need for better
cost management to sustain profitability.

Balance Sheet of the Year 2022


Interpretation
Income and Reserves:
• Total Income: Increased substantially from ₹1,37,509.40 million in 2021 to
₹2,73,388.70 million in 2022, indicating strong revenue growth.
• Total Reserves and Funds: Increased from ₹40,180.10 million to ₹46,206.80
million, highlighting improved financial health and retained earnings.
• Free Reserves: Increased from ₹30,353.70 million to ₹36,380.40 million, showing
enhanced financial stability.

Borrowings:

• Long-Term Borrowings (Excluding Current Portion): Rose from ₹13,510.00


million to ₹20,726.60 million, indicating increased reliance on long-term
financing.
• Long-Term Borrowings (Including Current Portion): Increased from
₹14,437.50 million to ₹23,153.70 million, showing a rise in overall borrowings.

Current Liabilities:

• Current Liabilities and Provisions: Increased significantly from ₹74,674.50


million to ₹1,41,972.80 million, indicating higher short-term obligations.
• Short-Term Borrowings: Grew from ₹14,751.20 million to ₹20,952.00 million,
reflecting increased short-term debt.

Assets:

• Total Assets: Grew from ₹1,31,878.00 million in 2021 to ₹2,17,106.50 million in


2022, showing overall asset growth.
• Net Fixed Assets: Increased from ₹14,092.30 million to ₹16,650.40 million,
suggesting investments in long-term assets.
• Long-Term Investments: Increased from ₹24,828.70 million to ₹34,547.20
million, reflecting higher investments in long-term ventures.

Ratios

Ratio Result (2021) Result (2022)


Gross Profit Rate 5.83% -11.07%
Return on Sales (Net Profit Margin) 2.68% 2.64%

Interpretation

1. Gross Profit Rate:


a. 2021: 5.83%
b. 2022: -11.07% Interpretation: The gross profit rate significantly decreased to
negative in 2022, indicating that the cost of sales surpassed total income. This
suggests a potential issue in cost management or pricing strategies.
2. Return on Sales (Net Profit Margin):
a. 2021: 2.68%
b. 2022: 2.64% Interpretation: The net profit margin remained relatively stable
but slightly decreased, indicating a consistent but low profitability relative to
income.
FINANCIAL YEAR
2022-2023-2024
Horizontal Analysis of (Income statement) for the 2023-2024
Interpretation

Income Analysis:
• Total Liabilities: Increased by ₹85,228.50 million, representing a 64.66% growth
from ₹1,31,878.00 million in 2021 to ₹2,17,106.50 million in 2022. Indicates
higher borrowings and obligations.
• Total Capital: Increased substantially by ₹5,100.00 million, indicating an 82.26%
growth, reflecting improved equity and stronger capital base.

Reserves and Funds:

• Reserves and Funds: Increased by ₹6,026.70 million (14.99%), showing


enhanced retained earnings and reserves.
• Free Reserves: Grew by 15.42%, indicating strengthened financial health.

Borrowings:

• Long-Term Borrowings (Excluding Current Portion): Increased significantly


by 53.42%, suggesting a higher dependency on long-term financing for
investments.
• Long-Term Borrowings (Including Current Portion): Increased by 59.96%,
reflecting increased overall borrowings.

Deferred Tax:

• Deferred Tax Liability: Slightly increased by 0.47%, indicating minor


adjustments in deferred tax provisions.
• Deferred Tax Assets: Increased by 20.33%, showing a rise in deferred tax
benefits.

Current Liabilities and Provisions:

• Current Liabilities and Provisions: Increased significantly by 47.45%, reflecting


higher short-term obligations.
• Short-Term Borrowings: Increased by 29.60%, indicating more reliance on
short-term debt.
• Trade Payables and Acceptances: Increased significantly by 58.44%, reflecting
higher outstanding payables.

Current Assets and Investments:

• Current Assets and Loans & Advances: Increased by 90.22%, reflecting better
liquidity and improved asset management.
• Inventories: Increased by 86.60%, indicating higher stock levels, which could
signify anticipation of increased demand.
• Trade Receivables: Increased by 77.45%, suggesting higher sales on credit.
• Cash and Bank Balance: Increased by 7.45%, showing a moderate improvement
in cash position.
• Short-Term Investments: Maintained stable, reflecting consistent investment
strategies.
Interpretation

Income Analysis:
Interpretation

Income Analysis:

• Total Liabilities: Increased by ₹1,84,883.10 million (45.99%) from 2019 to 2023 and
continued to rise by ₹36,834.82 million (4.82%) from 2023 to 2024.
• Total Assets: Mirrored the liability growth, increasing by ₹1,84,883.10 million from 2019
to 2023 and by ₹36,834.82 million from 2023 to 2024, indicating balanced growth in both
assets and liabilities.

Capital and Reserves:

• Total Capital: Drastically decreased by ₹5,059.80 million (443.84%) in 2023, signifying a


major reduction, but showed a slight positive change of ₹53 million (4.82%) from 2023 to
2024.
• Reserves and Funds: Rose significantly by ₹1,16,255.50 million (66.56%) from 2019 to
2023 and showed continued growth by ₹47,354.72 million (16.37%) from 2023 to 2024.
• Free Reserves: Increased dramatically by ₹47,622.20 million (503.12%) from 2019 to
2023 and continued to grow by ₹16,054.42 million (4.48%) from 2023 to 2024.

Borrowings:

• Long-Term Borrowings (excluding current portion): Decreased significantly by


₹10,312.40 million (99.02%) from 2019 to 2023 but increased slightly by ₹4,033.9 million
(0.10%) from 2023 to 2024.
• Long-Term Borrowings (including current portion): Decreased by ₹3,024.20 million
(15.02%) from 2019 to 2023 and continued to decrease by ₹929.71 million (7.95%) from
2023 to 2024.
• Deferred Tax Liability: Increased by ₹844.70 million (8.50%) from 2019 to 2023 but
showed a slight decrease by ₹43.5 million (2.35%) from 2023 to 2024.

Current Liabilities:

• Current Liabilities and Provisions: Increased sharply by ₹2,18,754.80 million (43.18%)


from 2019 to 2023 but decreased by ₹31,141.9 million (14.23%) from 2023 to 2024.
• Short-Term Borrowings: Increased significantly by ₹20,252.10 million (91.67%) from
2019 to 2023 and continued to grow by ₹3,705.46 million (6.02%) from 2023 to 2024.
• Short-Term Trade Payables and Acceptances: Increased by ₹1,09,217.00 million
(50.68%) from 2019 to 2023 but decreased by ₹36,395.70 million (20.32%) from 2023 to
2024.

Long-Term and Current Assets:

• Net Fixed Assets: Decreased by ₹155.40 million (0.94%) from 2019 to 2023 and showed a
further decrease of ₹1,273.2 million (8.36%) from 2023 to 2024.
• Net Intangible Assets: Decreased by ₹271.60 million (5.03%) from 2019 to 2023 and by
₹105.5 million (1.99%) from 2023 to 2024.
• Long-Term Investments: Increased significantly by ₹1,41,139.80 million (65.33%) from
2019 to 2023 and continued to rise by ₹76,709.50 million (9.38%) from 2023 to 2024.
• Deferred Tax Assets: Increased by ₹31.30 million (9.63%) from 2019 to 2023 but showed
a slight decrease by ₹9.4 million (2.97%) from 2023 to 2024.
• Current Assets and Loans & Advances: Increased substantially by ₹2,51,365.60 million
(43.37%) from 2019 to 2023 but decreased by ₹21,963.6 million (8.73%) from 2023 to
2024.
• Inventories: Decreased by ₹7,084.00 million (17.09%) from 2019 to 2023 and by
₹10,969.90 million (36.00%) from 2023 to 2024.
• Trade & Bills Receivables: Decreased by ₹11,843.10 million (24.90%) from 2019 to
2023 and by ₹4,674.60 million (11.02%) from 2023 to 2024.
• Cash & Bank Balance: Increased significantly by ₹10,140.70 million (63.78%) from 2019
to 2023 but decreased by ₹3,257.90 million (32.12%) from 2023 to 2024.
Interpretation

Income Analysis:
Interpretation

Income Analysis:
Interpretation

Income Analysis:
Total Liabilities and Assets:

• Total Liabilities: Increased by ₹1,84,883.10 million (45.99%) from 2019 to 2023 and
continued to rise by ₹36,834.82 million (4.82%) from 2023 to 2024.
• Total Assets: Mirrored the liability growth, increasing by ₹1,84,883.10 million from 2019
to 2023 and by ₹36,834.82 million from 2023 to 2024, indicating balanced growth in both
assets and liabilities.

Capital and Reserves:

• Total Capital: Drastically decreased by ₹5,059.80 million (443.84%) in 2023, signifying a


major reduction, but showed a slight positive change of ₹53 million (4.82%) from 2023 to
2024.
• Reserves and Funds: Rose significantly by ₹1,16,255.50 million (66.56%) from 2019 to
2023 and showed continued growth by ₹47,354.72 million (16.37%) from 2023 to 2024.
• Free Reserves: Increased dramatically by ₹47,622.20 million (503.12%) from 2019 to
2023 and continued to grow by ₹16,054.42 million (4.48%) from 2023 to 2024.

Borrowings:

• Long-Term Borrowings (excluding current portion): Decreased significantly by


₹10,312.40 million (99.02%) from 2019 to 2023 but increased slightly by ₹4,033.9 million
(0.10%) from 2023 to 2024.
• Long-Term Borrowings (including current portion): Decreased by ₹3,024.20 million
(15.02%) from 2019 to 2023 and continued to decrease by ₹929.71 million (7.95%) from
2023 to 2024.
• Deferred Tax Liability: Increased by ₹844.70 million (8.50%) from 2019 to 2023 but
showed a slight decrease by ₹43.5 million (2.35%) from 2023 to 2024.

Current Liabilities:

• Current Liabilities and Provisions: Increased sharply by ₹2,18,754.80 million (43.18%)


from 2019 to 2023 but decreased by ₹31,141.9 million (14.23%) from 2023 to 2024.
• Short-Term Borrowings: Increased significantly by ₹20,252.10 million (91.67%) from
2019 to 2023 and continued to grow by ₹3,705.46 million (6.02%) from 2023 to 2024.
• Short-Term Trade Payables and Acceptances: Increased by ₹1,09,217.00 million
(50.68%) from 2019 to 2023 but decreased by ₹36,395.70 million (20.32%) from 2023 to
2024.

Long-Term and Current Assets:

• Net Fixed Assets: Decreased by ₹155.40 million (0.94%) from 2019 to 2023 and showed a
further decrease of ₹1,273.2 million (8.36%) from 2023 to 2024.
• Net Intangible Assets: Decreased by ₹271.60 million (5.03%) from 2019 to 2023 and by
₹105.5 million (1.99%) from 2023 to 2024.
• Long-Term Investments: Increased significantly by ₹1,41,139.80 million (65.33%) from
2019 to 2023 and continued to rise by ₹76,709.50 million (9.38%) from 2023 to 2024.
• Deferred Tax Assets: Increased by ₹31.30 million (9.63%) from 2019 to 2023 but showed
a slight decrease by ₹9.4 million (2.97%) from 2023 to 2024.
• Current Assets and Loans & Advances: Increased substantially by ₹2,51,365.60 million
(43.37%) from 2019 to 2023 but decreased by ₹21,963.6 million (8.73%) from 2023 to
2024.
• Inventories: Decreased by ₹7,084.00 million (17.09%) from 2019 to 2023 and by
₹10,969.90 million (36.00%) from 2023 to 2024.
• Trade & Bills Receivables: Decreased by ₹11,843.10 million (24.90%) from 2019 to
2023 and by ₹4,674.60 million (11.02%) from 2023 to 2024.
• Cash & Bank Balance: Increased significantly by ₹10,140.70 million (63.78%) from
2019 to 2023 but decreased by ₹3,257.90 million (32.12%) from 2023 to 2024.

Ratio

Ratio Result (2022) Result (2023) Result (2024)


Gross Profit Rate -11.05% 3.47% 8.54%
Return on Sales (Net Profit Margin) 2.64% 2.37% 6.18%

Interpretation

• Gross Profit Rate:


o 2022: -11.05%
o 2023: 3.47%
o 2024: 8.54% Interpretation: The gross profit rate shows a significant
improvement from 2022 to 2024, indicating better management of
production and sales costs. The negative gross profit rate in 2022 suggests
that costs exceeded income, but the positive rates in 2023 and 2024 reflect
improved profitability.
• Return on Sales (Net Profit Margin):
o 2022: 2.64%
o 2023: 2.37%
o 2024: 6.18% Interpretation: The return on sales (net profit margin)
improved significantly by 2024, suggesting enhanced efficiency in
converting sales into net profit. The increase from 2.37% in 2023 to 6.18%
in 2024 reflects improved profitability and operational efficiency.
• Summary
• The company experienced significant improvements in its gross profit rate and net
profit margin from 2022 to 2024. The positive trend in profitability ratios
indicates better cost management and operational efficiency, leading to stronger
financial performance

Conclusion

Financial Overview: Over the analyzed periods, the company has shown substantial growth
in both total liabilities and assets, reflecting significant expansion. Total liabilities increased
from ₹1,49,479.40 million in 2019 to ₹4,22,357.90 million in 2024, while total assets
mirrored this growth, showcasing a balanced financial structure.
Revenue and Profitability: Total income increased dramatically from ₹1,37,509.40 million
in 2021 to ₹6,85,922.20 million in 2023, and then to ₹4,60,205.00 million in 2024, indicating
strong revenue growth. However, profitability ratios like the gross profit rate and net profit
margin showed fluctuations, with the gross profit rate turning negative in some years,
suggesting challenges in cost management.
Capital and Reserves: The company's capital and reserves saw significant growth, with total
reserves increasing from ₹31,388.30 million in 2019 to ₹1,99,913.00 million in 2024. This
highlights improved financial health and strong reserve accumulation, indicating better
profitability and retained earnings.
Borrowings and Debt Management: Borrowing patterns showed considerable fluctuations.
Long-term borrowings excluding current portions showed a significant decrease and later a
slight increase, reflecting adjustments in financing strategies. Current liabilities and
provisions saw a significant rise, indicating higher short-term obligations that require careful
management.
Liquidity and Asset Management: Liquidity improved, with current assets and loans &
advances increasing substantially, indicating better asset management and financial
flexibility. The company maintained higher cash balances and increased its long-term
investments, suggesting a strategic focus on liquidity and future growth.
Cost Management: Operating expenses increased significantly, impacting profitability.
Key expenses such as compensation to employees, selling & distribution expenses, and
purchase of finished goods showed considerable growth, emphasizing the need for
effective cost management.
Key Insights:

1. Robust Revenue Growth: The company experienced substantial growth in revenue,


driven by increased sales and income from non-financial services.
2. Fluctuating Profitability: Profitability ratios showed variability, indicating challenges
in maintaining consistent cost management.
3. Strong Reserve Growth: Significant growth in reserves reflects improved financial
stability and robust retained earnings.
4. Dynamic Borrowing Patterns: Fluctuations in borrowings indicate strategic
adjustments in financing approaches.
5. Improved Liquidity: Enhanced liquidity through higher current assets and cash
balances shows strong financial flexibility.
6. Need for Cost Control: Rising operating expenses highlight the need for more
effective cost management strategies.

Final Thoughts:
The company has demonstrated strong financial growth, with significant increases in
revenue, assets, and reserves. However, the variability in profitability ratios and the
increase in operating expenses suggest areas for improvement in cost management. By
continuing to focus on strategic investments and maintaining robust liquidity, the
company can sustain its growth trajectory while addressing the challenges of cost control
and debt management.

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