Williamson Magor & Company Ltd

Williamson Magor & Company Ltd. demonstrates poor financial performance and growth. The company's revenue has been declining, with a 3-year compounded sales growth of -52%. The operating profit margin is significantly negative at -9,588% TTM, indicating substantial operational inefficiencies. The inconsistent sales and profit fluctuations highlight instability in financial performance.

The quarterly results also emphasize this volatility. For instance, the OPM% fluctuates wildly, from positive values in early 2022 to extremely negative figures in later periods, such as -54,264% in June 2024. Net profit also shows significant fluctuations, with large losses reported in several quarters. This inconsistent performance raises concerns about the company's ability to generate sustainable profits.

Capital efficiency and returns for Williamson Magor & Company Ltd. are poor. The Return on Capital Employed (ROCE) is significantly negative at -54% for the latest year, indicating ineffective capital utilization. Return on Equity (ROE) is 0, suggesting that shareholder funds are not yielding returns. The negative ROCE reflects the company's struggles to generate profits from its capital investments.

| Metric | Mar 2023 | Mar 2024 | Mar 2025 | |---|---|---| |ROCE (%)|-7%|-7%|-54%|

This sustained negative trend suggests that the company is not effectively deploying its resources to generate profits. The absence of positive returns on both capital employed and equity underscores challenges in the company's ability to create value for its investors.

Williamson Magor & Company Ltd. demonstrates weak financial health and prudence. The company carries significant debt, with total borrowings of ₹555 Cr as of March 2025. The negative book value of ₹-238 further indicates financial distress. This level of debt, coupled with negative equity, raises concerns about the company's solvency and financial stability.

| Metric | Mar 2023 | Mar 2024 | Mar 2025 | |---|---|---| |Borrowings (₹ Cr)|574|595|555| |Reserves (₹ Cr)|-138|-80|-238|

The high debt levels increase the company's financial risk, making it vulnerable to economic downturns and interest rate fluctuations. The negative book value suggests that the company's liabilities exceed its assets, which is a critical indicator of financial instability.

Strategic and operational indicators for Williamson Magor & Company Ltd. reveal weaknesses. The debtor days have increased significantly, reaching 1,149 days in March 2025, indicating poor working capital management. The gross block has decreased substantially over the years, from ₹73.22 Cr in 2011-2013 to ₹0.94 Cr in 2014-2016, and further down to ₹0.05 Cr in 2023-2025, indicating a lack of strategic asset investment.

| Metric | Mar 2023 | Mar 2024 | Mar 2025 | |---|---|---| |Debtor Days|562|882|1,149|

The increasing debtor days suggest difficulties in collecting receivables, tying up working capital and potentially leading to liquidity issues. The declining gross block indicates a lack of investment in fixed assets, which may hinder future growth and operational capabilities.

Inconsistent financial reporting and significant fluctuations in key metrics raise concerns about accounting quality.

Significant fluctuations in sales and profit margins across different quarters highlight segment performance volatility. For example, the OPM% varies widely, from positive values in early 2022 to extremely negative figures later, such as -54,264% in June 2024.