Synopsis:
Several major Indian companies have significantly improved their balance sheets by reducing debt levels by more than 80 percent over the last three years. This trend reflects strong cash flows, better capital management, and improved financial discipline. The following list highlights five such companies, along with their business profiles and financial metrics.
In the past three years, several companies have made remarkable progress in reducing their debt burdens. These debt cuts, ranging from around 79 percent to nearly 98 percent, not only strengthen their financial position but also reflect their ability to generate healthy operating cash flows.
1. Chambal Fertilisers & Chemicals Ltd (NSE: CHAMBLFERT)
Chambal Fertilisers & Chemicals Ltd manufactures urea from its own facilities and also markets other fertilisers and agricultural inputs. The company has a joint venture in Morocco for producing phosphoric acid. In FY21, it exited its software business by selling assets and transferring liabilities.
With a market capitalisation of Rs. 21,058.28 crore, the stock trades at Rs. 525.60. The company’s current debt is Rs. 98.76 crore compared to Rs. 4336.86 crore three years ago, marking a reduction of approximately 97.72 percent. The debt-to-equity ratio stands at 0.01.
2. Swiggy Ltd (NSE: SWIGGY)
Swiggy is an Indian on-demand convenience platform, widely recognised for food delivery and also offering grocery delivery via Instamart and other services. Founded in 2014, it connects customers to restaurants and stores to enable orders and deliveries.
The company has a market capitalisation of Rs. 99,097.53 crore, with shares priced at Rs. 397.40. Current debt is Rs. 1702.95 crore, down from Rs. 16070.75 crore three years ago, marking a decline of about 89.40 percent. The debt-to-equity ratio is 0.17.
3. Maruti Suzuki India Ltd (NSE: MARUTI)
Maruti Suzuki India Limited manufactures and sells passenger and commercial vehicles, along with spare parts and accessories under the Maruti Suzuki Genuine Parts and Accessories brands. It also deals in pre-owned car sales, fleet management, and financing.
With a market capitalisation of Rs. 4,05,736.52 crore, Maruti Suzuki trades at Rs. 12,905. Its debt has dropped from Rs. 425.50 crore to Rs. 87 crore over three years, a reduction of about 79.55 percent. The company currently maintains a debt-to-equity ratio of 0.
4. CG Power & Industrial Solutions Ltd (NSE: CGPOWER)
CG Power & Industrial Solutions is a global player providing complete solutions in efficient and sustainable electrical energy for utilities, industries, and consumers. It operates in two main segments, Power Systems and Industrial Systems.
The company’s market capitalisation is Rs. 1,04,778.52 crore, with the stock priced at Rs. 665.45. Debt has reduced from Rs. 366.94 crore to Rs. 40.97 crore over three years, amounting to a 88.83 percent decline. The debt-to-equity ratio is 0.01.
5. GE Vernova T&D India Ltd (NSE: GVT&D)
GE Vernova T&D is the listed entity of GE’s Grid Solutions business in India, with over a century in the power transmission and distribution sector. It offers a broad range of solutions for integrating and evacuating power to the grid.
The stock trades at Rs. 2,844.20, giving it a market capitalisation of Rs. 72,824.76 crore. Debt levels have fallen from Rs. 225.91 crore to Rs. 34.56 crore in three years, reflecting an 84.71 percent drop. The company’s debt-to-equity ratio is 0.02.
Written by – Manan Gangwar
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