From Deep in Debt to Debt-Free: The company has undergone a remarkable transformation, reducing its debt-to-equity ratio from an all-time high of 9x in FY22 to a much healthier 0.6x in FY23. This impressive deleveraging was achieved on the back of strong profitability.
Increased Efficiency: Asset Turnover Rises Despite Cash Conversion Lag: Despite a negative cash flow from operations in FY23 due to rising receivables, revenue has grown significantly over the past two years, boasting a 46% compound annual growth rate (CAGR). Asset turnover has also improved, reaching 1.35. However, cash conversion days edged slightly higher to 22 days.
Profitability Beyond Leverage: The New Engine of ROE: Historically, return on equity (ROE) was primarily driven by debt, resulting in lower profit after tax (PAT) due to high financial costs. Now, with decreasing debt levels, efficient asset utilization has become the primary driver of growth.
Capitalizing on Booming Markets: The company's expertise as an EPC provider positions it to capitalize on the surging demand in the renewable energy sector. Additionally, the company's electric scooter division holds significant promise for future growth, contributing to a positive outlook for the coming years.
Akhilesh Kumar Jain, aged 63 years, is an Independent Director of the Company. He has been a Director of the
Company since October 16, 2023. He holds a bachelors’ degree in engineering from University of Rajasthan,
doctorate in Business Administration from Commonwealth University, Belize City and a diploma in Marketing
and Sales from Bhartiya Vidya Bhavan, Jaipur. Previously, he was associated with Rajasthan Electronics &
Instruments Limited as managing director.
Mahendra Kumar Singh, aged 61 years, is an Independent Director of the Company. He holds a bachelors’
degree in engineering (Electrical) from Nagpur University. He has been associated with our Company since
October 16, 2023. Previously, he was associated with Bihar Grid Company Limited and Power Grid Corporation
of India Limited.