Kunal, You can’t compare this case with the names you mentioned unless they use that cashflow to reduce debt. After the debt reduces, the cash flow remains (and hopefully grows, if its a growing business)….Lets fast forward a bit…..Just assume, the 50cr cash is used to pay down down only. After about 3 years, what remains is a business valued at 170cr earning 50cr of cash with no debt, on a recurring basis….If future business remains debt funded, or the debt increases further – this may not hold true….Which means we need to re-analyse the business model and figure why they need so much debt (not making it a good business to be in)…..
I am not saying 15% was on a lower base….15% was before the acquisition
With regards to the balance sheet, the numbers mentioned are not present on the snapshot you have provided. Please see moneycontrol.com or any other website which has separate sections for overall debt, working capital and cash….You will find the trends over there….Please include FY15 numbers too….For example debt has reduced from 180cr to 139cr
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