Profitability ratios are key financial metrics that assess a company’s ability to generate earnings relative to its revenue, assets, equity, or capital. These ratios provide insights into how efficiently a company converts its operations into profits and are crucial for evaluating financial performance over time.
This article delves into a comparative analysis of profitability ratios of Shilchar Technologies Limited and Transformers and Rectifiers (India) Limited as of Q4 FY25 and FY25, providing insights into their financial health and operational efficiency.
Price Movement
Shares of Shilchar Technologies Limited moved up by nearly 1.5 percent on BSE to Rs. 6,599 on Monday, with a market cap of Rs. 5,003 crores. The stock has delivered positive returns of over 18 percent in one year, as well as about 46 percent returns in one month.
Meanwhile, with a market cap of Rs. 14,640.6 crores, the shares of Transformers & Rectifiers (India) Limited surged nearly 1 percent on BSE to Rs. 499.4 on Monday. The stock has delivered positive returns of more than 61 percent in one year, as well as about 4 percent returns in one month.
Profit After Tax (PAT) Growth
Shilchar Technologies showcased an impressive PAT of Rs. 55.4 crores in Q4 FY25, marking a substantial quarter-on-quarter (QoQ) growth of nearly 60 percent from Rs. 34.7 crores in Q3 FY25. On a year-on-year basis, this represents a staggering 121.6 percent increase from Rs. 25 crores in Q4 FY24.
In comparison, TARIL posted a higher PAT of Rs. 94.2 crores in Q4 FY25, reflecting a robust QoQ growth of 70 percent from Rs. 55.5 crores in Q3 FY25 and a 124 percent YoY surge from Rs. 42 crores in Q4 FY24.
Profit After Tax (PAT) Margin
In terms of profitability margins, Shilchar maintained a strong PAT margin of 23 percent in Q4 FY25, slightly improving from 22 percent in Q3 FY25, though marginally lower than the 24 percent recorded in Q4 FY24.
TARIL, on the other hand, achieved a PAT margin of 13.78 percent in Q4 FY25, significantly up from 9.77 percent in Q3 FY25 and 8.16 percent in Q4 FY24, showing a notable improvement in its margin profile.
EBITDA growth
Shilchar Technologies reported a remarkable YoY growth in EBITDA, reaching Rs. 71.2 crores in Q4 FY25, a significant jump of approximately 127 percent from Rs. 31.4 crores in Q4 FY24. Meanwhile, TARIL also demonstrated healthy growth, with EBITDA rising to Rs. 138.2 crores in Q4 FY25 from Rs. 73 crores in Q4 FY24, registering a YoY increase of around 47 percent.
EBITDA margin
On the operational efficiency front, Shilchar posted a robust EBITDA margin of 30.7 percent in Q4 FY25 and maintained a strong annual margin of 29.6 percent in FY25. TARIL, though lower in comparison, recorded an EBITDA margin of 20.22 percent in Q4 FY25 and 17.51 percent for the full fiscal year.
Return on Equity (ROE)
Shilchar Technologies delivered an exceptional ROE of 42.34 percent in FY25, slightly down from 43.84 percent in FY24 but still reflecting superior shareholder returns. TARIL also improved its ROE significantly, rising to 17.11 percent in FY25 from 8.02 percent in FY24, indicating a positive turnaround in equity efficiency.
Return on Capital Employed (ROCE)
Shilchar continued to lead in capital efficiency with an ROCE of 56.38 percent in FY25, marginally lower than 58.01 percent in FY24. In comparison, TARIL showed considerable improvement, registering an ROCE of 24 percent in FY25 against 18.31 percent in the previous fiscal year.
Return on Assets (ROA)
In terms of asset utilization, Shilchar achieved a strong ROA of 29.97 percent in FY25, slightly declining from 31.41 percent in FY24. TARIL also saw a significant improvement, increasing its ROA to 9.8 percent in FY25 from 3.8 percent in FY24.
Earnings Per Share (EPS)
Reflecting its profitability per share, Shilchar reported an EPS of Rs. 72.59 for Q4 FY25 and Rs. 192.55 for FY25. In contrast, TARIL registered an EPS of Rs. 3.17 in Q4 FY25 and Rs. 7.21 for the full year, highlighting a considerable gap in earnings performance between the two companies.
About the Companies
Shilchar Technologies Limited is engaged in the business of manufacturing “distribution & power transformers” as well as “electronics & telecommunication transformers.”
Transformers & Rectifiers (India) Limited (TARIL) is engaged in the manufacturing of power, furnace, and rectifier transformers. It offers a wide range of transformers: power transformers, distribution transformers, furnace transformers, rectifier transformers and shunt reactors, which have applications in the power transmission and distribution sector, and other industrial sectors.
Written by Shivani Singh
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