Gross block and debt
Gross block increased 11.32% over
2012-13; it grew at 15.34% CAGR
(5 years) as the Company expanded its
manufacturing base in West and South
India, increased capacity in North India
and invested in improvement and
modernisation across all units. In the
last five years, the Company invested
`
5,612 million in its gross block.
One would imagine that these
sizeable investments would have
significantly increased the Company’s
debt burden or the reserves would
have been depleted. The reality was
the opposite. Debt as a percentage of
capital employed reduced from 52% in
2009-10 to 41% in 2012-13 and 27%
in 2013-14. Debt-equity ratio stood at
0.41x as on March 31, 2014 against
1.39x as on March 31, 2010, largely
due to the healthy cash flow, working
capital reduction and equity infusion
As debt declined, interest liability
dropped – interest, which was 4.89%
of turnover in 2009-10 stood at only
2.02% of turnover in 2013-14. The
interest cover (showcases the strength
to repay interest liability) strengthened
to 5.88x in 2013-14 from 2.37x in
2009-10.
The Company’s reserves and surplus
stood at
`
5140 million as on March
31, 2014 – 48.50% higher than the
balance as on March 31, 2013 and a
growth of 28.39% (CAGR) over the
balance as on March 31, 2010.
Gross block
(
`
million)
2009-10
2010-11
2011-12
2012-13
2013-14
5,435
7,178
7,827
9,195
10,235
Debt-equity
(x)
2009-10
2010-11
2011-12
2012-13
2013-14
1.39
1.28
0.96
0.82
0.41
27
Annual Report 2013-14
