Saksoft Ltd

Saksoft exhibits strong financial performance driven by impressive sales and profit growth. Compounded Sales Growth shows consistent expansion across different time frames:

Compounded Profit Growth also demonstrates robust performance:

However, the Operating Profit Margin (OPM) shows a recent decline, with quarterly OPM fluctuating between 15% and 19% and annual OPM declining from 18% in Mar 2024 to 17% in Mar 2025. This decline in OPM may indicate increasing operational costs or pricing pressures. The company's ability to sustain high growth rates while maintaining profitability will be crucial. Other income contributes marginally to the net profit, indicating that the profit is primarily from core operations.

Saksoft demonstrates good capital efficiency, as indicated by its Return on Capital Employed (ROCE) and Return on Equity (ROE). The current ROCE stands at 25%, indicating effective utilization of capital. Historical ROCE values are:

The Return on Equity (ROE) is 16.64%, reflecting the returns generated from shareholder funds. These metrics suggest that Saksoft is utilizing its capital and equity efficiently to generate profits. Asset turnover data is not available and Cash conversion cycle is increasing year by year.

Saksoft's financial health presents a mixed assessment. The company's debt management shows an increase in borrowings, with total borrowings rising from ₹14 Cr in Mar 2023 to ₹75 Cr in Mar 2025. The debt-to-equity ratio has also increased. Here is a summary of borrowings:

The interest coverage ratio, calculated as Operating Profit / Interest, indicates the company's ability to cover its interest obligations. While specific values are not provided, the increase in interest payments from ₹2 Cr in Mar 2023 to ₹8 Cr in Mar 2025, coupled with a relatively stable operating profit, suggests a potential strain on interest coverage. The company has consistently shared profits through dividends, with a dividend payout percentage ranging from 8% to 17% over the years. The EV vs. Market Cap + Debt analysis is not possible due to lack of sufficient data.

Saksoft's strategic and operational indicators provide insights into its business diversification, working capital management, and fixed asset management. The company's "About," "Key Points," and "Product Segments" information (not provided) would offer insights into its business diversification and new initiatives. However, the company's working capital management shows some inefficiencies. Debtor days have increased from 64 days in Mar 2023 to 80 days in Mar 2025, indicating a longer time to collect receivables.

Inventory days and payable days data are not available. Fixed asset management involves analyzing Gross Block, CWIP, and Depreciation. CWIP is ₹0 from 2014 to 2025. The increasing fixed assets from ₹218 Cr in Mar 2023 to ₹520 Cr in Mar 2025 may indicate strategic investments for future growth.

There is no specific data available on off-balance sheet exposure quantification.

There is no specific data available on contingent liability evaluation.

Segment performance volatility is not quantified in the provided data.