Elofic Industries Growth

The company has been able to realise consistent growth in revenue over the past years. Revenue in FY21 grew by 15%, mostly contributed by the sales of its products in India, despite lower revenue expenditure in FY21 compared with revenue expenditure in FY20. It must be noted that Elofic has achieved economies of scale with the aid of continuous R&D in the company, which made Elofic a market leader in its segment and the largest exporter of filters and lubricants in India.

The company has realised a total net profit of Rs. 24 Cr in FY21 against Rs. 17 Cr in FY20. In FY21 the company's total revenue per unit of expenses has increased from Rs. 2.41 to Rs. 2.79 in FY21 from FY20 due to better management of resources and economies of scale. In FY21, despite a total of Rs. 32 Cr increase in total revenue in FY21, the total expense has declined by Rs. 24 lakhs, which was primarily due to changes in inventories of the company, which has been the reason for increase in the net profit growth of the company. 

The company's EPS increased from Rs. 69 in FY20 to Rs. 99 in FY21. The reason for the increase in EPS is the same as the reason for the increase in the company's net profit, as the company did not make any changes to its number of shares.

The book value of the company grew by 20% in FY21 from FY20. This book value growth was brought about by the increase in the general reserves of the company, which grew from Rs. 9 Cr to Rs. 12 Cr, and the surplus in profit and loss, which was a result of the increase in the net profits of the company in FY21. 

The company has witnessed a 36% increase in its EBITDA in FY21 compared to FY20. EBITDA has been growing consistently over the last few years. EBITDA in FY21 has been a result of economies of scale and a conservative approach towards cost-related expenses. 

The company's operating profit increased by 51% in FY21 compared to FY20.EBIT in FY20 has declined sharply due to lower total revenue generated by the company. However, in FY21, the company has sufficiently reduced its expenses by following a cost-conservative approach, which has evidently improved the EBIT of the company. The company also reduced its fixed assets, which led to a lower depreciation amount, improving the EBIT altogether. 

In FY21, the total assets of the company grew by 21%, the current assets of the company grew by 37%, whilst non-current assets fell by 7%. This fall in non-current assets is explained by the COVID-19 impact, when the market conditions were not adequate to expand fixed assets to promote future growth. The company has made deductions on their property, plant, and equipment, which also made the best time for investments, which can be seen on their balance sheet. On the other hand, the company has substantially increased its cash and cash equivalent to cover unforesable risk during COVID-19. 

The cash flow from operations has increased by 42%, which was brought about by the increase in profit before tax, secondly, the company has increased its trade payable and even with higher income tax paid the cash flow from operations still witnessed increase in cash flow from operations by Rs. 12 Cr.