SEPC Ltd

SEPC Ltd. shows fluctuating sales growth. The compounded sales growth rates are positive for 3 years (22%) and TTM (7%), but negative for the 5-year period (-13%). Quarterly sales have varied significantly, with YOY sales growth ranging from -20.31% to 32.37%. Operating Profit Margin (OPM) has shown improvement in recent quarters, but historical performance has been inconsistent. The company's net profit has also been volatile, with periods of losses followed by gains. Overall, financial performance has been inconsistent.

SEPC Ltd.'s capital efficiency and returns are generally weak. The ROCE % is 4.73%, and the ROE % is 1.98%. Return on Equity has been negative over the past 10, 5 and 3 Years. The cash conversion cycle has fluctuated and remains extended. These metrics indicate that SEPC Ltd. is not efficiently utilizing its capital to generate returns for shareholders.

SEPC Ltd.'s debt management shows a decreasing Borrowings. The borrowings have decreased from ₹ 2,023 Cr. in Mar 2014 to ₹ 358 Cr. in Mar 2025. The company has not been paying dividends, as the Dividend Payout % is 0. The interest coverage ratio cannot be reliably assessed due to fluctuating operating profits. Overall, financial health shows some improvement in debt management.

The shareholding pattern of SEPC Ltd. shows fluctuations. Promoter holding has changed over the last few quarters. Institutional holding (FIIs and DIIs) has seen some decrease. The public shareholding has increased significantly, suggesting a shift in ownership towards retail investors.

The quarterly results of SEPC Ltd. indicate volatility in sales growth and profitability. The YOY Sales Growth % has fluctuated significantly, ranging from -20.31% to 141.86% in recent quarters. Operating Profit Margin (OPM %) also shows considerable variation, with values ranging from -148% to 14%. This variability indicates potential risks in maintaining consistent financial performance.

The quarterly results show exceptional items that significantly impact net profit. In Mar 2022, the exceptional items were -63.61, while in Sep 2022, they were 135.30. These large fluctuations due to exceptional items could indicate potential accounting quality concerns.

Working capital management at SEPC Ltd. is inefficient. The cash conversion cycle has been significantly negative and highly volatile (-142 in 2014 to -1,280 in 2016). High debtor days also contribute to the inefficiency. This suggests difficulties in managing receivables and payables, impacting liquidity and operational efficiency.

Interest expenses remain a notable factor. The interest paid has decreased from 231 in Mar 2014 to 45 in Mar 2025. This decrease could indicate reduced financial leverage or better interest rate management.