Common Size and Horizontal Analysis of P&L

Profit & Loss Horizontal Analysis Vertical Analysis

Year 2019 2020 2019 2020
Revenue From Operations (Net) 11% 1% 100% 100%
COGS 11% -1% 47% 46%
Gross Profit 10.8% 3.6% 53.0% 54.1%
Operating Expenses 6% 1% 32% 32%
Operating Profit 19.3% 6.8% 21.2% 22.3%
Other Income 17% 10% 2% 2%
Profit Before Interest & Tax (PBIT) 19.1% 7.0% 23.0% 24.2%
Finance Cost 40% 279% 0% 0%
Profit Before Exceptional Items 19% 6% 23% 24%
Exceptional Items Before Tax 266% -13% -1% -1%
Profit Before Tax (PBT) 17.0% 6.7% 22.3% 23.4%
Tax Expenses 21% -5% 7% 6%
Profit After Tax (PAT) 15.3% 11.6% 15.8% 17.4%
         
Horizontal Analysis
- Revenue as well as overall profitability increased significantly during FY'19 driven by increased
demand across all business divisions, however, during FY'20 the revenue as well as profitability
remained relatively muted, this was mainly due to downward push in demand by the economic
slowdown as well as the logistic issues faced by the company in last quarter of FY'20 due the
covid pandemic.
- The Finance Cost appears to be increasing significantly YoY for the past 2 years, however, when
we evaluate it on an absolute basis, given the size of the company, the interest expense is
negligible and the company is still relatively debt free
Vertical Analysis
- The major components of the Income Statement have remained fairly stable for the past 2 years
when analysed relative to the Revenue. The proportion of COGS and Tax Expense to Revenue has
decreased in FY'20 leading to a slight improvement in the Profit Margins.
Common Size and Horizontal Analysis – Balance Sheet

alance Sheet Horizontal Analysis Vertical Analysis

Year 2019 2020 2019 2020

4.2% 9.7% 100.0% 100.0%

Total Assets
8.0% 18.5% 36.3% 39.3%
Total Non-Current Assets
Fixed Assets 3.1% 18.1% 26.4% 28.4%

Financial Assets -0.5% 6.8% 3.7% 3.6%

Other Non-current Assets 44.0% 27.4% 6.2% 7.2%

2.1% 4.7% 63.7% 60.7%

Total Current Assets
2.7% 8.8% 13.6% 13.4%
Inventories
4.8% 1.4% 48.1% 44.5%
Financial Assets
-37.3% 51.9% 2.0% 2.7%
Other Current Assets
1.3% 13.4% 57.1% 59.0%
Total Liabilities
28.9% 33.1% 10.4% 12.6%
Total Non-Current Liabilities
213.0% 136.9% 2.0% 4.4%
Financial Liabilities
35.9% 14.2% 5.9% 6.1%
Provisions
-19.4% -6.3% 2.5% 2.1%
Other Non-Current Liabilities
-3.3% 9.0% 46.8% 46.4%
Total Current Liabilities
4.3% 9.9% 42.1% 42.2%
Financial Liabilities
-23.0% -16.6% 2.8% 2.1%
Provisions
-57.6% 28.2% 1.8% 2.1%
Other Current Liabilities
8.3% 4.9% 42.9% 41.0%
Total Stockholders’ Equity
4.2% 9.7% 100.0% 100.0%
Total Equity and Liabilities

         
Horizontal Analysis
- Total Assets have increased by 14.3% between FY'18 & FY'20. This is due to the addition of leased
assets worth ~INR 800 Cr under PP&E account based on the adoption of the Ind AS 116. Current
Assets have remained fairly stable over the past 2 years.
- Total Liabilities have increased by 14.8% over thw 2 year period. This was due to addition of
Curren and Non-Current Financial Liabilities (lease liabilities worth INR 775 Cr) as well as an
increase in Provisions over the years.
- Total Shareholder's Equity has increased by 13.5% over the 2 year period mainly due to increase
in Retained Earnings over the years.

Vertical Analysis
- Total Non-Current Assets have increased as a proportion of Total Assets due to increase in Fixed
Assets (leased assets) as observed in the Horizontal Analysis. Similarly the Non-Current Liabiolities