This document analyzes various financial ratios of Triveni Engineering over a 10-year period from 2005-2015. It provides line charts and data for key ratios such as operating profit per share, operating profit margin, gross profit margin, cash profit margin, current ratio, quick ratio, interest coverage ratio, total debt to owners' fund, inventory turnover ratio, total assets turnover ratio, and material cost composition. The analysis shows most of these ratios trending downward over the 10-year period, with declining profitability, liquidity, and efficiency. The average inventory turnover ratio of 3.45 indicates inventory is not sold quickly.

1. Financial Statement Analysis Of Triveni
Engineering
Presented by
Viral M Meghpara

2. Ratio And Trend Analysis
A] Investment Valuation Ratio
1] Operating Profit Per Share
This chart clearly show that company operating profit per share from 2005 to 2015,
which is very flexible in term of its profit. In 2005 it is 16.31% which comes down
to 8.02% in next year’s which again raises up to two years but after it continuously
showing A downward trend from 8.75% to 6.25% to 2.49% and finally at one point
of time it reaches even negative that is -0.70%.
Operating Profit 167.99 206.81 163.5 290.73 428.7 225.63 161.19 177.66 64.31 -18.08
Shares in issue (lakhs) 1,030.2
0
2,578.8
0
2,578.8
0
2,578.8
0
2,578.8
0
2,578.8
8
2,578.8
0
2,578.8
0
2,579.0
0
2,579.4
5
Operating Profit Per Share
(Rs)
16.31 8.02 6.34 11.27 16.62 8.75 6.25 6.89 2.49 -0.70
Industry comparison 21.09 22.29 17.40 18.29 25.98 20.62 29.22 17.62 9.42 6.67

3. B] Profitability Ratios
1] Operating Profit Margin(%)
This line chart clearly indicate that the company overall operating profit margin
throughout the period of ten years is falling from 17.41% from 2005 to 8.47 % in
the year 2007 which is again going up for the another two years and at one point it
has achieved the highest operating profit that is 22.26% which is highest among the
entire ten year period, but thenafter, it came down to 10% and it continuously fell
down and finally it end with A negative figure of -0.88 %.
1] Operating Profit 167.99 206.81 163.5 290.73 428.7 225.63 161.19 177.66 64.31 -18.08
Net Sales 964.64 1,191.9
8
1,929.4
6
1,611.9
7
1,925.8
3
2,256.6
6
1,707.7
6
1,859.4
5
3,153.3
6
2,061.0
1
Operating Profit
Margin(%)
17.41 17.35 8.47 18.04 22.26 10.00 9.44 9.55 2.04 -0.88
Industry comparison 10.53 7.96 7.93 8.15 14.69 -2.06 -31.05 4.50 7.24 6.37

4. 2] Gross Profit Margin(%)
This line chart show that the gross profit of triveni engineering in the year 2005
which is 16.13% is goes up to all time highest that is 18.91% in the year 2006 but
then it fell down to 4.24% in 2007 and it again went up to 12.85% and 18.03%
respectively in the year 2008 and 2009 and in 2009 it has achieved second highest
gross profit. But soon after in next three years its gross profit margin fell down to
6.28% in the year 2010 followed by 4.68 and 5.16 % in the year 2011 and 2012. To
make even worst its gross profit further fell to -1.72 and -3.75% in the year 2014 and
2015 respectively.
2] Gross profit 155.6 225.4 81.81 207.14 347.22 141.72 79.92 95.94 -54.23 -77.28
Net Sales 964.64 1,191.9
8
1,929.4
6
1,611.9
7
1,925.8
3
2,256.6
6
1,707.7
6
1,859.4
5
3,153.3
6
2,061.0
1
Gross profit Margin(%) 16.13 18.91 4.24 12.85 18.03 6.28 4.68 5.16 -1.72 -3.75
Industry comparison 12.09 9.38 7.98 10.06 13.33 -6.57 -24.37 -25.37 -10.07 1.39

5. This line chart indicate that the company is facing problem in maintaining its cash
profit margin from the last two year which is showing negative figure in the year
2015 and 2014 with -4.44 and -1.94% respectively. When we compare it with its
previous year we can say that the company has achieved some of the highest cash
profit margin that is 18.54%, followed by 12.78%, 12.12% and 11.63% in the years
2006, 2009, 2005 and 2008.
3] Cash Profit Margin(%)
3] Cash+cash equivalents 27.01 47.35 22 50.89 83.11 31.16 26.66 23.84 -21.07 -38.3
Current Liabilities 222.92 255.42 462.36 437.58 650.32 541.93 416.52 414.6 1,085.8
9
862.51
Cash Profit Margin(%) 12.12 18.54 4.76 11.63 12.78 5.75 6.40 5.75 -1.94 -4.44
Industry comparison 4.95 7.40 7.13 0.77 11.40 9.24 15.87 11.70 5.30 4.44

6. C] Liquidity And Solvency Ratios
1] Current Ratio
This line chart clearly indicate that the company had made A consistency when it
come to current ratio starting from 2.15 in 2005 to 2.02 followed by 2.21,2.04,2.32
and 2.09 throughout the period of ten years of its operations
1] Total CA, Loans & Advances 594.24 619.82 878.54 1,152.2
1
1,187.1
0
1,258.8
3
1,107.9
9
1,222.4
5
1,999.0
2
1,984.8
0
Total CL & Provisions 276.63 306.92 513.92 522.12 747.73 618.49 478.15 472.36 1,166.8
1
950.63
Current Ratio 2.15 2.02 1.71 2.21 1.59 2.04 2.32 2.59 1.71 2.09
Industry comparison 2.49 1.71 1.77 2.33 4.79 7.21 1.45 7.39 1.97 2.08

7. 2] Quick Ratio
This chart clearly shows that the acid test ratio of this company is quite flexible.
When we look at different years like 2012, 2011, 2010 and 2008, it is above
satisfactory level, that is (1:1) which is considered satisfactory as A firm can easily
meet all current claims. But when we explicit these years and look at other years,
we can see that it is below satisfactory level, which indicate that A large part of the
current asset is tied up in slow moving and unsalable inventories and slow paying
debts.
2] Total CA, Loans &
Advances
594.24 619.82 878.54 1,152.2
1
1,187.1
0
1,258.8
3
1,107.9
9
1,222.4
5
1,999.0
2
1,984.8
0
Inventories 435.45 406.18 425.42 547.48 459.65 491.16 393.62 538.3 1,402.0
6
1,234.3
4
Total CL & Provisions 276.63 306.92 513.92 522.12 747.73 618.49 478.15 472.36 1,166.8
1
950.63
Quick Ratio 0.57 0.70 0.88 1.16 0.97 1.24 1.49 1.45 0.51 0.79
Industry comparison 1.33 0.98 1.12 1.69 4.19 6.42 4.85 6.42 0.71 0.69

8. D] Debt Coverage Ratio
1] Interest Cover
This line chart clearly indicate that in the initial year of 2005, the company interest
coverage ratio was 5.35 which goes up to all time highest that is 9.28 which indicate
that how easily A company can pay interest on outstanding debt. After 2006 the
entire scenario change and it start falling from 9.28 to 1.15 in the year 2007. It
slightly increases in the next couple of years with 2.33 and 3.07 respectively. But
thenafter, it went down to 1.19 in 2011 followed by O.41, -0.3 and -0.39 in the year
2012, 2014 and 2015.
1] PBDIT 171.81 237.18 165.77 310.46 430.38 263.65 193.94 131.53 113.78 11.68
Depreciation 12.35 23.65 81.53 80.02 76.15 83.81 81.25 81.55 118.78 59.22
Interest 29.83 23 73.34 98.96 115.47 84.6 94.81 122.77 185.23 122.08
Interest Cover 5.35 9.28 1.15 2.33 3.07 2.13 1.19 0.41 -0.03 -0.39
Industry comparison 12.11 12.92 21.45 24.46 15.59 8.59 10.09 6.21 3.98 4.95

9. 2] Total Debt To Owners Fund
This line chart clearly indicate that throughout the phase of 10 years, the
company has an ability to pay its debt when we compare it with its owner fund
which gives the assurity to shareholders that its money is in safe even if the
company get bankrupt.
2] Total Debt 450.09 402.61 999.5 1,168.7
6
833.83 934.16 696.33 856.4 1,013.4
0
1,350.1
0
Networth 192.9 552.38 689.66 792.12 936.3 983.5 1056.0
8
1000.7
9
824.28 658.51
Total Debt to Owners
Fund
2.33 0.73 1.45 1.48 0.89 0.95 0.66 0.86 1.23 2.05
Industry comparison 0.93 1.57 2.18 1.93 1.53 1.82 2.08 1.62 -0.44 1.03

10. E] Management Efficiency Ratio
1] Inventory Turnover Ratio
This line chart clearly indicate that the average inventory turnover ratio for the
last ten years is 3.45, which clearly indicate that A company is not able to sell its
inventory fast and stay on the shelf or in the warehouse for A long time. This
will create A huge impact on company quick ratio where its liquidity position
will affect.
1] Sales Turnover 1,024.8
8
1,270.2
4
2,074.2
8
1,728.7
2
1,985.7
0
2,345.4
1
1,707.7
6
1,859.4
5
3,256.9
4
2,128.0
2
Inventories 435.45 406.18 425.42 547.48 459.65 491.16 393.62 538.3 1,402.0
6
1,234.3
4
Inventory Turnover Ratio 2.35 3.13 4.88 3.16 4.32 4.78 4.34 3.45 2.32 1.72
Industry comparison 1.80 2.52 5.60 3.32 2.46 2.32 2.11 1.49 2.23 2.75

11. 4] Total Assets Turnover Ratio
This line chart clearly indicate that the company total asset turnover in the period
of ten years shows A consistent rate where at an average it is more than the ratio
1:1 which indicates that every one rupee of net sales company has more than one
rupee of total asset which gives the assureity to the creditors that the company is
liable to pay all its debts.
4] Net Sales 964.64 1,191.9
8
1,929.4
6
1,611.9
7
1,925.8
3
2,256.6
6
1,707.7
6
1,859.4
5
3,153.3
6
2,061.0
1
Total Assets 643 954.99 1,689.1
5
1,960.8
7
1,770.1
2
1,917.6
5
1,752.4
0
1,857.2
1
1,837.6
9
2,008.9
1
Total Assets Turnover
Ratio
1.61 1.49 1.46 0.88 1.03 1.22 0.93 1.03 1.71 1.07
Industry comparison 1.12 0.85 0.83 0.74 0.84 0.93 0.89 0.80 0.79 0.91

12. F] Profit & Loss Account Ratios
Material Cost Composition
Here we can see that the company has very less flexibility throughout the period
of ten year when it comes to material cost composition which indicate that every
100 rupees of company income, on an average 73.18 rupees are used in purchase
of raw material
Raw Materials 603.76 762.07 1,434.0
7
1,157.9
2
979.75 1,870.7
9
1,212.5
4
1,465.3
8
3,252.1
8
1,492.4
1
Net Sales 964.64 1,191.9
8
1,929.4
6
1,611.9
7
1,925.8
3
2,256.6
6
1,707.7
6
1,859.4
5
3,153.3
6
2,061.0
1
Material Cost Composition 62.59 63.93 74.32 71.83 50.87 82.90 71.00 78.81 103.13 72.41
Industry comparison 53.52 52.12 73.11 69.46 58.56 84.26 67.53 92.62 93.34 77.95

13. G] Cash Flow Indicator Ratios
1] Dividend Payout Ratio Net Profit
This chart clearly see that the company has retain most of his earnings for
reinvestment purpose and they provide only less dividend to their shareholder
throughout the tenure of five years, only in the year 2010 and 2011 they give some
extra portion of his earnings in the form of dividend.
1] Equity Dividend 8.32 12.89 15.47 15.47 25.79 19.34 5.16 2.58 0
Reported Net Profit 99.46 154.86 68 121.98 174.36 69.75 22.22 -52.29 -
176.33
-
152.06
Dividend Payout Ratio Net
Profit
8.37 8.32 22.75 12.68 14.79 27.73 23.22 -4.93 0 0
Industry comparison 7.08 5.87 3.85 9.66 10.60 11.06 -18.51 5.00 1.63 27.03

14. 2] Earning Retention Ratio
This line chart clearly indicates that from the beginning itself it kept back
almost more than 75% in the business as retained earnings. The retention ratio
refers to the percentage of net income that is retained to grow the business,
rather than being paid out as dividends.
2] Reported Net Profit 99.46 154.86 68 121.98 174.36 69.75 22.22 -52.29 -176.33 -152.06
Equity Dividend 8.32 12.89 15.47 15.47 25.79 19.34 5.16 2.58 0 0
91.14 141.97 52.53 106.51 148.57 50.41 17.06 -54.87 -176.33 -152.06
Reported Net Profit 99.46 154.86 68 121.98 174.36 69.75 22.22 -52.29 -176.33 -152.06
Earning retention ratio 91.63 91.68 77.25 87.32 85.21 72.27 76.78 104.93 100 100
Industry comparison 55.51 69.56 65.05 68.58 70.55 66.43 94.74 75.99 71.79 39.62

15. India's sugar sector is running from bad phase where almost all other companies
is making losses from the last three years.
The biggest problem for the industry is the strict state control on every aspect of
the business, right from the purchase price of sugarcane to how much each mill
can sell in the open market.
The company profitability ratio shows a huge negativity which is a warning sign
for the company that they have to make thing work out before it get worse.
The company is facing difficulties in selling their finished goods which directly
shows its impact on its management efficiency ratio.
CONCLUSION
I