KCP Sugar & Industries Corporation Ltd

KCP Sugar's financial performance shows a mixed trend. Sales growth has been inconsistent, and profit growth has declined recently. The operating profit margin (OPM) also exhibits significant fluctuations.

The compounded sales growth shows a concerning trend with a 10-year CAGR of -3%, a 5-year CAGR of -5%, and a 3-year CAGR of -1%. The TTM sales growth is -10%. Although sales increased in 2024, they declined again in 2025. Compounded profit growth presents a more positive picture in the medium term, with a 5-year CAGR of 31% and a 3-year CAGR of 68%. However, the 10-year CAGR is 10%, and the TTM profit growth is -79%, indicating a sharp recent decline.

The capital efficiency and returns for KCP Sugar are at an average level. The current ROCE stands at 14.99%, but historical ROCE values have fluctuated, indicating inconsistent capital utilization. ROE is 16.42%.

Analyzing the Return on Capital Employed (ROCE), the average ROCE from 2014-2016 was approximately 4.33%, increasing to 11.33% for 2017-2019, before declining to 4.33% for 2020-2022. The ROCE for 2023 was 5%, for 2024 it was 14%, and for 2025, it declined to 6%. This indicates volatility in capital efficiency, with a recent drop.

KCP Sugar's financial health and prudence reflect a mixed scenario. Debt levels have decreased in recent years, but dividend payout has been inconsistent.

Borrowings have generally decreased from an average of 97.67 Cr between 2014 and 2016 to 189.67 Cr between 2017 and 2019, then to 218 Cr between 2020 and 2022, and further reducing to 184 Cr in 2023, 147 Cr in 2024, and 99 Cr in 2025. This indicates improved debt management. The dividend payout percentage has been inconsistent. In 2024, it was at 3%, and in 2025, it increased to 8%.

KCP Sugar's strategic and operational indicators suggest areas of concern. The cash conversion cycle is extended. Working capital management also shows inefficiencies, with increased working capital days.

The cash conversion cycle has been extended, with an average of 246 days between 2014 and 2016, increasing to 302.67 days between 2017 and 2019, and 371 days between 2020 and 2022. In 2023, it was 432 days, decreasing to 309 days in 2024 and 259 days in 2025. Increased working capital days indicates operational inefficiencies, averaging 163.33 days between 2014 and 2016, 178.67 days between 2017 and 2019, and 265.33 days between 2020 and 2022. For 2023, it was 270 days, 203 days in 2024 and increasing to 273 days in 2025.

There is no significant off-balance sheet exposure identified in the provided data.

There is no specific data available on contingent liabilities.

The quarterly results show considerable volatility in sales and profit growth. YOY Sales Growth % and YOY Profit Growth % fluctuate significantly across quarters, indicating inconsistent segment performance.