Fiberweb (India) Ltd

Fiberweb (India) Ltd. shows a concerning trend in its financial performance and growth metrics. Compounded Sales Growth has been declining over the past few years. The 3-year compounded sales growth is -22%, and the TTM sales growth is also -22%, indicating a significant downturn in revenue expansion. Similarly, compounded profit growth shows a decline, with a 3-year growth rate of -23% and a TTM growth rate of -48%. This suggests that the company is facing challenges in maintaining and growing its profitability. The quarterly results further highlight the volatility in sales and profit growth, with YOY Sales Growth % and YOY Profit Growth % fluctuating significantly. The Operating Profit Margin (OPM) % also shows variability, indicating inconsistency in operational efficiency.

Fiberweb (India) Ltd. demonstrates weak capital efficiency and returns. The Return on Capital Employed (ROCE) has been unstable, with a current ROCE of 5.17%. Historical ROCE values also show fluctuations, indicating inconsistent capital productivity. Similarly, the Return on Equity (ROE) is low at 4.61%, suggesting that shareholder funds are not yielding strong returns. These metrics collectively indicate that the company is not effectively utilizing its capital to generate profits. Furthermore, the Cash Conversion Cycle is high, with the latest available data showing CCC at 272.57 days, indicating inefficient working capital management. This prolonged cycle means that the company takes a long time to convert its investments in inventory and receivables into cash, which can strain its liquidity and operational efficiency.

Fiberweb (India) Ltd. exhibits an average financial health and prudence. The company's debt management appears to be under control, as evidenced by low borrowings and a manageable debt-to-equity ratio. The dividend payout policy has been inconsistent, with dividend payout percentages varying over the years. The company did not pay any dividend in 2017, 2021, 2022, and TTM, indicating a fluctuating approach to sharing profits with shareholders.

Fiberweb (India) Ltd. shows weak strategic and operational indicators. The working capital management is inefficient, as indicated by high debtor days, inventory days, and cash conversion cycle. The debtor days have been increasing over the years, reaching 158.51 days in Mar 2022, suggesting challenges in collecting receivables. Similarly, inventory days are also high at 151.67 days, indicating slow inventory turnover. The payables days are relatively low, further contributing to the high cash conversion cycle and working capital days. These factors collectively point to operational inefficiencies and potential liquidity issues.

There is no specific data available to quantify off-balance sheet exposures for Fiberweb (India) Ltd.

There is no specific data available to evaluate contingent liabilities for Fiberweb (India) Ltd.

The provided data does not raise any significant accounting quality red flags for Fiberweb (India) Ltd.