(1)Operating Profit Margin :

Old:21.23%
New: 21.70%
 The increase in operating profit margin can directly be devoted
to huge increase in sales i.e. Rs.8774.41 crore to Rs.9783.29
crore
 Other operating revenues have also been increased from Rs.231
crore to Rs.529 crore
 Though operating expenses are increased in current year, the
proportion of increase in operating expenses is less than that of
sales revenue.

(2)Net profit margin :

Old: 8.18%
New: 9.17%
 There is a huge increase in PBDIT in the current year i.e. Rs.344
crore to Rs.1813 crore. This is also again the effect of increase in
sales. Though interest expenses are increased in CY, their
increment is proportionately less than increase in PBDIT.
 The tax factor is also important here. Taxation of CY is reduced.
The company's finance department has become efficient enough
to decrease the tax expenses, may be by the way of maximum
use of tax exemptions.
 (3)Current Ratio :
Old: 1.74:1
New: 1.82:1
 There is increase in both current assets and current liabilities.
But proportionate increase in current assets is more than
current liabilities.
 The increased current Ratio of the company suggests that the
company is having more working capital which further indicates
that the future day to day operations of the company will be
handled more smoothly.
 It also suggests a good sign for short term creditors. So, the
company will be able to buy raw material and other inputs for
production easily on credit than that of earlier.
 The ideal ratio suggests that company's C.A. should be double
than its C.L. That suggests that the company is not having the
ideal ratio. But still, a slight increment in C.R. is a good sign for
the company.

(4)Debtors Turnover Ratio :

Old:. 3.52 times
New: 3.48 times
 It can be seen that there is a slight decrease in Debtors Turnover
ratio i.e. 0.04 times. So there remains two possibilities: Either
net credit sales (numerator) is decreased or average debtors
(denominator) are increased.
 Here, it can be seen in balance sheet that trade receivables are
decreased to the extent of Rs.239.97 crore.

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  But, net credit sales is drastically reduced. In conclusion, we can
say that reduction in net credit sales is far more than reduction
in average debtors.
 Another reason may be the lack of efficiency of collection
department. They are too flexible on giving credit to customers.

(5)Total Assets Turnover Ratio:

Old:. 0.63 times
New: 0.60 times
 Both, net sales and total assets of the company are increased,
but increment in total assets of the company is proportionately
more than that of net sales. So, TAT ratio came down.

(6)Debt-Equity Ratio:
Old: 0.26 : 1
New: 0.24 : 1
 The reason behind decrease in Debt-Equity Ratio is increment in
shareholders' fund by Rs.521 crore and decrease in Non-current
liabilities by Rs.312.09 crore.
 The company is using capital structure in which there is Rs.0.24
debt against Re.1 of equity. This may be because of the
management doesn't want to interfere creditors in functioning
of business or it may also happen that raising of debt funds is
more expensive than that of equity i.e. cost of capital of debt
funds is more.

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 (7)Interest coverage Ratio:
Old: 9.56 times
New: 10.05 times
 The main factor behind increase in ICR is increase in EBIT and
decrease in fixed interest bearing funds.
 The increased ratio will help the bankers and lenders to take
decision whether to lend funds or not.
 The ideal ratio is 6 to 7 times. Since the company is having better
ratio, it can be said that the company is sound enough to cover
its interest expenses.

(8)Inventory Turnover Ratio:

Old: 3.85 times
New: 3.69 times
 The rotation speed of inventory is decreased.
 This is due to huge increase in inventory i.e. by Rs.656.98 crore
 This also indicates that inventories are taking more days to be
converted into sales.