Our business excellence and solid foundation are a result of our prudent financial management practices. Our efforts around efficient working capital management, optimising costs and maximising cash flow generation and continually improving our business mix, position us for sustainable growth and long-term value creation.
Our sharp focus on effective management and ongoing monitoring has resulted in sustained improvement in working capital position. As on March 31, 2024, it stood at a negative ₹ 1,951 million, which ensured efficient operations and improved cash flows. Our focus on high‑value engineering alongside remaining asset-light ensures more effective use of assets, contributing to an increase in asset turnover from 3.22x in FY 20 to 5.82x in FY 24.
Our focus on operational efficiency and effectively managing cash ensures sustained high cash flow generation.
In FY 24, our free cash flows stood at ₹ 2,368 million, which was ~88% of the net profit for the year.
Our cash position including investments as on March 31, 2024, stood at ₹ 8,831 million giving us enough headroom for investing in growth initiatives.
We maintain a sharp focus on effectively managing costs. Through ongoing value engineering and supply chain initiatives, we have optimised raw material costs despite rise in input costs. Our focus on improving manpower productivity along with digital initiatives and automation helped optimise employee costs, despite a substantial increase in headcount. Employee costs as a percent of sales declined from 12.4% in FY 20 to 9.8% in FY 24.
With our internationalisation strategy and focus on providing aftermarket services to customers, we have significantly diversified and improved our business mix over the years.
