Company Name: Escorts India Limited

31-Mar-19 31-Mar-20 31-Mar-21

ASSETS
Non-current assets
Property, plant and equipment 1593.11 1613.23 1654.78
Capital work-in-progress 56.55 104.42 41.20
Investment property 23.09 22.94 69.86
Right-of-use assets 0.00 33.46 42.76
Intangible assets 31.03 32.78 28.83
Intangible assets under development 23.41 20.24 23.49
Investments accounted for using equity
method 85.15 144.58 259.84
Financial assets
Investments (other than investment
accounted using equity method) 1.97 1.87 13.11
Loans 9.01 13.64 7.06
Other financial assets 0.00 0.80 11.49
Deferred tax assets (net) 1.22 1.44 0.00
Income tax assets (net) 17.38 17.76 5.83
Other non current assets 96.31 97.31 85.77
Total non-current assets 1938.23 2104.47 2244.02
Current assets
Inventories 857.42 883.36 718.16
Financial assets
Investments 403.67 650.91 1665.07
Trade receivables 931.05 731.86 657.58
Cash and cash equivalents 93.05 168.89 105.74
Bank balances other than above 150.25 155.99 1216.02
Loans 5.63 17.10 10.53
Other financial assets 14.95 21.46 21.97
Other current assets## 300.02 267.44 190.21
Total current assets 2756.04 2897.01 4585.28
Assets held for sale 13.92 13.92 48.87
Total assets 4708.19 5015.40 6878.17
EQUITY AND LIABILITIES
EQUITY
Equity share capital 122.58 122.58 134.83
Other equity 2550.91 2994.82 4891.30
Total of Equity (for shareholders of
parent) 2673.49 3117.40 5026.13
Non-controlling interests 5.64 5.10 -0.91
Total equity 2679.13 3122.50 5025.22
LIABILITIES
Non-current liabilities
Financial liabilities
Borrowings 3.53 2.69 1.72
Lease liabilities 0.00 21.78 47.63
Other financial liabilities 17.46 20.10 23.97
Provisions 25.72 30.51 49.11
Deferred tax liabilities (net) 52.87 30.71 23.30
Other non-current liabilities 10.80 11.65 12.13
Total non-current liabilities 110.38 117.44 157.86
Current liabilities
Financial liabilities
Borrowings 269.23 16.51 0.00
Trade payables
(a) Total outstanding dues of micro
enterprises and small enterprises 32.98 80.25 104.23
(b) Total outstanding dues of creditors
other than micro enterprises and small
enterprises 1215.76 1212.67 1091.19
Lease liabilities 0.00 5.94 10.44
Other financial liabilities 148.60 137.32 141.48
Other current liabilities 131.97 196.91 205.11
Provisions 120.04 125.75 101.68
Current tax liabilities 0.10 0.11 24.66
Total current liabilities 1918.68 1775.46 1678.79
Total equity and liabilities 4708.19 5015.40 6878.17

total debt 272.76 19.20 1.72

total equity 2679.13 3122.50 5025.22

AVG debt 145.98 10.46

AVG equity 2900.815 4073.86
avg total assets 4861.795 5946.785

number of shares outstanding 122576878 122576878 134834566

12.2576878 12.2576878 13.4834566
other current assets - break up ##
Refund asset 2.03 4.6
advances to supplier 19.05 27.4 16.1
prepaid expenses 4.88 10.33 8.3
balances with statutory authorities 275.43 227.17 159.97
other advances 0.66 0.51 1.24
300.02 267.44 190.21
Assuming that the balances with statutory authorities are non refundable or in nature of advance tax payments etc..

Average debtors
average inventory
average creditors
Average total assets
dvance tax payments etc..
Company Name: Escorts India Ltd
31-Mar-19 31-Mar-20 31-Mar-21
Income
Revenue from operations 6,262.02 5,810.09 7,014.42
Other income 92.4 97.6 160.38
Total income 6,354.42 5,907.69 7,174.80
Expenses
Cost of materials consumed 4,077.48 3,476.31 4,073.07 cogs
Purchases of stock-in-trade 403.99 370.37 441.65 cogs
Changes in inventories of finished goods,
stock-in -trade and work-in-progress -204.54 -5.58 129.92 cogs
Employee benefits expense 484.73 520.51 546.91 ?cogs
Finance costs 19.54 17.23 13.34
Depreciation and amortisation expense 87.21 107.22 118.28 cogs
Other expenses 775.83 786.08 696.11 sga
Total expenses 5,644.24 5,272.14 6,019.28
Profit before exceptional items, share of
net profit of investment accounted for
using equity method and tax 710.18 635.55 1,155.52

Share of loss of equity accounted

investments -1.96 -1.08 -0.74
Profit before exceptional items and tax 708.22 634.47 1,154.78
Exceptional items 5.56 -9.22 0
Profit before tax from continuing
operations 713.78 625.25 1,154.78
Tax expense:
Current tax 198.63 174.45 287.14
Deferred tax (credit)/charge 38.48 -20.92 -3.99
Total tax expense 237.11 153.53 283.15
Profit for the year from continuing
operations 476.67 471.72 871.63

EBITDA 816.93 760 1287.14

EBIT 729.72 652.78 1168.86
COGS 4,848.87 4,468.83 5,309.83
Company Name: Escorts India Limited
31-Mar-19 31-Mar-20 31-Mar-21
A Cash flow from operating activities
Profit before tax from 713.78 625.25 1,154.78
Continuing operations 1.89
Discontinued operations 715.67 625.25 1,154.78
Profit before tax including discontinued
operations
Adjustments for:
Depreciation and amortisation expense 87.21 107.22 118.28
Provisions written back net of provisions
recognised during the year -20.75 -28.42 -46.22
Finance costs (other than finance and bank
charges) 15.84 14.34 10.31
Interest income -35.36 -44.43 -80.19

Share of loss of equity accounted investments 1.96 1.08 0.74

Gain on disposal of property, plant and
equipment (net) -1.53 -1.39 -3.72
Loss on discard of capital work-in-progress and
property, plant and equipment - 3.61 0.08

Gain on fair valuation and sale of investments

carried at fair value through profit or loss (net) -34.24 -37.35 -58.66
Exceptional items (related to investing
activities) -5.56 - -
Share based payment to employees 4.03 3.4 16.36
Unrealised foreign exchange loss/(gain) -0.13 1.44 -2.61
Operating profit before working capital
changes 727.14 644.75 1,109.15
Movement in working capital
Inventories -286.3 -25.94 165.2
Trade receivable -330.05 189.73 56.03
Other financial assets 8.65 -23.76 9.61
Other assets -157.85 32.01 76.01
Trade payables 26.17 78.09 -34.83
Other financial liabilities -6.34 9.89 13.06
Other liabilities 0.86 67.19 -10.28
Cash generated from/(used in) operating
activities post working capital changes -17.72 971.96 1,383.95
Income tax paid (net) -216.59 -174.8 -252.69
Net cash generated from/(used in) operating
activities (A) -234.31 797.16 1,131.26
B Cash flows from investing activities
Purchase of property, plant and equipment
(including capital advances) -147.05 -182.21 -115.72
Sale of property, plant and equipment 9.13 5.27 7.43
Purchase of intangible assets -16.9 -13.21 -9.87
Sale of intangible assets 1.88 - -11.06
Proceeds from sale of non current investment 50.08 - -116.22
Investment in joint ventures and equity shares
of other companies -91.8 -60 -25.82
Proceeds from/(investment in) current
investment (net) 129.31 -209.88 -940.61
Bank deposit (having original maturity of more
than 3 months) 20.02 3.68 -1,021.77
Margin/bank deposits -8.24 -9.75 -7.78
Interest received 36.22 44.86 47.87
Net cash used in investing activities (B) -17.35 -421.24 -2,193.55
C Cash flows from financing activities (refer
note 20 (iii))
Proceeds from shares (including ESOP) issued
during the year 2.8 - 1,057.58
Repayment of long term borrowings -42.45 -8.17 -0.9
Repayment of lease liabilities 4.08 -3.19 -5.09
(Repayment) /proceedsof short term
borrowings (net) 269.23 -253.07 -16.1
Interest paid -13.83 -10 -7.63
Dividend and tax thereon paid -28.94 -26.02 -24.52
Net cash (used in)/flow from financing
activities (C) 190.89 -300.45 1,003.34 190.89
Increase/(decrease) in cash and cash
equivalents (A+B+C) -60.77 75.47 -58.95
Cash and cash equivalents at the beginning of
the year (refer note 14) 154.13 93.05 168.89
Cash and cash equivalent classified as asset
held for sale 0- -3.94
Exchange difference on translation of foreign
currency cash and cash equivalents -0.31 0.37 -0.26
Cash and cash equivalents at the end of the
year (refer note 14) 93.05 168.89 105.74

Repayment of debt 212.95 -271.24 -24.63

Company Name:
31-Mar-19 31-Mar-20 31-Mar-21 Formula
Profitability ratio
return on sales
GP margin (operating profit margin) (sales - COGS)/sales
EBITDA margin ebtida/total income
EBIT margin ebit/total income
PAT margin pat/total income
return on investment
return on capital employed ebit/avg(debt+pref capt +equity)
return on networth pat/ avg networth where networth = sh
return on assets EBIT/avg total asset
average = (op + cl) /2

Liquidity ratios - ability of a company to meet its short term obligations on time
Current ratio current assets/current liabilities
Quick ratio current assets - inventory- prepaid expe

Asset utilisation ratio - productivity of assets sales/costs

Inventory turnover (TIMES) COGS/AVERAGE INVEN
Debtors turnover SALES/AVG DEBTORS
Creditors turnover PURCHASES/AVG CRS
Asset turnover SALES/AVG TOTAL ASSETS

Inventory days - days of inventory on hand average inventory/average daily cogs

Debtors days - days of sales receivable Average debtors /average daily sales
Creditors days- days of purchases payable average creditors/average daily purcha
Gross operating cycle
Cash cycle

Solvency ratios - long term debts ability to service

 Debt to Assets ratio
Debt to capital employed
Debt to equity ratio
Interest coverage
DSCR
total debt/total assets
total debt/(debt+shareholders funds)
total debt/shareholders funds
ebit/interest
Operating cash flow/interest+debt repa

Investors ratio (performance and wealth)

EPS EATOS/number of outstanding shares
DPS total dividends/number of outstanding
Dividend payout raio DPS/EPS
Retention ratio
bt+pref capt +equity)
worth where networth = shareholders funds

ets/current liabilities
ets - inventory- prepaid expenses-advances to suppliers/current liablities

LARGER THE NUMBER -GOOD

LARGE NUMBER GOOD
NUMBER INCREASING UNHAPPY
TOTAL ASSETS

entory/average daily cogs

btors /average daily sales
ditors/average daily purchases
debt+shareholders funds)
hareholders funds

ash flow/interest+debt repayment

ber of outstanding shares

nds/number of outstanding shares
Company Name:
31-Mar-19 31-Mar-20 31-Mar-21 Formula
Profitability ratio
return on sales
GP margin (operating profit margin) 22.57% 23.09% 24.30% (sales - COGS)/sales
EBITDA margin 12.86% 12.86% 17.94% ebtida/total income
EBIT margin 11.48% 11.05% 16.29% ebit/total income
PAT margin 7.50% 7.98% 12.15% pat/total income
return on investment
return on capital employed 21.43% 28.62% ebit/avg(debt+pref capt +equity)
return on networth 16.26% 21.40% pat/ avg networth where networth = shar
return on assets 13.43% 19.66% EBIT/avg total asset
average = (op + cl) /2

Escorts has made higher EBITDA and PAT margins in 2021 because of savings in raw material costs and other expenses (W
This has translated into higher return on investments CE.. We also see that the company has repaid debt in 2021.

Liquidity ratios - ability of a company to meet its short term obligations on time
Current ratio current assets/current liabilities
Quick ratio current assets - inventory- prepaid expens
current ratio … 4, Qr = 3.8 not good ad adity - not good
current ratio = 2 QR = 1.3 good gau industry and understand…
current ratio = .8 QR = .5 not good ad under stock and over stock -gau
current ratio = .5 Qr = .5 not good ad

CA < CL
Manufacturing enterprises… initiatives production, productivity efficiency operation reduce cost
JIT, TQM, Kaizen, - daily operation efficiency
production - output
productivity = output/input
efficiency = output/ best output.
tatamotors, ITC, Hero honda, tata steel…..
Current assets - reduce…
inventory - fall
DEBTORS - collected..26 days fall
cash… non productive asset.. Loses value time. No point keeping format cash..
excess treasury.. Generating interest income.. Fall
Will I pay my creditors…liabilities … level is same as before..
CA< CL
negative working capital
moving around the negative.. + -ve…

Asset utilisation ratio - productivity of assets sales/costs

Inventory turnover (TIMES) COGS/AVG INVENTORY
Asset turnover SALES/AVERAGE TOTAL ASSETS
Debtors turnover 6.98785863 times sales/avg drs
 Creditors turnover PURCHASES/AVG CREDITORS

larger … more times.. Efficiently

Solvency ratios - long term debts ability to service

debt … long term obligation.. Long term loans… total debt/equity
total debt/capital employed (debt +equity+hybrid)
interest coverage ebit/interest
nopat/interest
DSCR operating cash flows/(principal+interest)

example ebit 15
interest 10 1.5

ebit 15
less interest 10
profit before tax 5
tax at 35% 1.75 13.25
pat 3.25

Investors ratio (performance and wealth)

EPS
DPS
Dividend payout raio
bt+pref capt +equity)
worth where networth = shareholders funds

al costs and other expenses (WFH)

s repaid debt in 2021.

ets/current liabilities
ets - inventory- prepaid expenses-advances to suppliers/current liablities

LARGER THE NUMBER -GOOD

LARGE NUMBER GOOD
LARGE NUMBER GOOD
 NUMBER INCREASING UNHAPPY

smaller the number better

min - 2
Net operating profit after tax before interest
ncipal+interest) 1.33

safe margin…??

EATOS/number of outstanding shares

total dividends/number of outstanding shares
DPS/EPS