Page 15 - Kolte Patil AR 2019-20
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Net profit^        RoCE^                 Net Debt             Gearing^             Debt cost
            (C Crore)          (%)                   (C Crore)            (x)                  (%)

              87.2  121.5  122.3  137.5  14.5  18.4  15.6  12.8  455  288  517  434  0.53  0.29  0.47  0.35  12.1  10.4  10.4  10.5

             FY17  FY18  FY19  FY20  FY17  FY18  FY19  FY20  FY17  FY18  FY19  FY20  FY17  FY18  FY19  FY20  FY17  FY18  FY19  FY20

            Definition         Definition           Definition            Definition           Definition
            Profit earned during   This financial   The quantum of debt   This ratio measures   This is derived through
            the year after     number measures the   after deducting the cash   net debt to net worth   the calculation of the
            deducting all expenses   efficiency with which   on the Company’s books.   (less revaluation   average cost of the
            and provisions     capital is employed in   Net debt for FY20 does   reserves).    consolidated debt on
                               the business.        not include C196 Crore                     the Company’s books.
            Why we measure                          towards OCD, CCD,     Why we measure
            It highlights the   Why we measure      OCRPS and Zero Coupon   This is one of the   Why we measure
            strength of the    ROCE is a useful     NCD subscribed by PE   defining measures of   This indicates our
            business model in   metric for comparing   investors.         a Company’s financial   ability in convincing
            enhancing value for   profitability across                    health, indicating the   bankers and other
            shareholders.      companies based on   Why we measure        ability of the Company   debt providers of
                               the amount of capital   This number provides a   to remunerate   the robustness of
            Performance        they use - especially   true and fair picture of   shareholders over debt   our business model,
            The Company’s net   in capital-intensive   the company’s intrinsic   providers (the lower   translating into a
            profit grew every   sectors.            profitability.        the gearing the better).  progressively lower
            single year through                                                                debt cost (potentially
            the last few years.   Performance       Performance           Performance          leading to higher
            The Company        The Company          The Company’s net debt   The Company’s     margins).
            reported a 12.2%   reported 12.8% ROCE   declined from C517 Crore   gearing decreased
            increase in net profit   in FY 20, prudently   in FY 19 to C434 Crore in   from 0.47 in FY19   Performance
            in FY20, reflecting   investing every rupee   FY 20, an achievement   to 0.35 in FY 20. We   The Company’s debt
            the resilience of   in profitable projects   considering that the year   recommend that   cost progressively
            the business model   to generate attractive   under review was marked   this ratio be read in   declined from 12.1% in
            in a challenging   returns.             by sluggish sectorial   conjunction with net   FY17 to 10.5% in FY20,
            downtrend.                              offtake and liquidity   debt/operating profit.  indicating a superior
                                                    crunch.                                    credit-rating.
            Note: ^The Company adopted IND AS 115 (Completion Contract Method – CCM) effective from 1 April, 2018 and opted for the modified retrospective method; To
            facilitate a like-to-like comparison, the figures shown above are based on the previously applicable Percentage of Completion Method (POCM).
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