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Last Updated : Oct 14, 2020 07:38 AM IST | Source: Moneycontrol.com

These 5 companies cut down their debt heavily in FY20 while retaining growth

Moneycontrol found only five companies that reduced their total debt in FY20 by 25% or more on a year-on-year basis. And at the same time, the company's sales and profit growth numbers rose over 25%

While it is essential for a company to bring in fresh money for growth, a debt-heavy balance sheet is not an ideal condition. The idea is to balance the debt levels and at the same time fuel the company's sales and profit numbers. On data analysis, Moneycontrol found only five names from the BSE list of companies that reduced their total debt in FY20 by 25 percent or more on a year-on-year basis. And at the same time, the company's sales and profit growth numbers rose over 25 percent in FY20 itself. We considered companies with a market cap of over Rs 500 crore. Interestingly, 3 out of the 5 stocks have gained over 100 percent in FY21 so far.

While it is essential for a company to bring in fresh money for growth, a debt-heavy balance sheet is not an ideal condition. The idea is to balance the debt levels and at the same time fuel the company's sales and profit numbers. On data analysis, Moneycontrol found only five names from the BSE list of companies that reduced their total debt in FY20 by 25 percent or more on a year-on-year basis. And at the same time, the company's sales and profit growth numbers rose over 25 percent in FY20 itself. We considered companies with a market cap of over Rs 500 crore. Interestingly, 3 out of the 5 stocks have gained over 100 percent in FY21 so far (Data Source: ACE Equity).

Zen Technologies  | The company reduced its total debt in FY20 by-71 percent to Rs 3 crore on a year-on-year basis. Meanwhile, sales and profit growth numbers came in at 62 percent and 341 percent, respectively, in the same period. In FY21 so far, the stock price has jumped 272 percent to Rs 84.70, as of October 14

Zen Technologies  | The company reduced its total debt in FY20 by 71 percent to Rs 3 crore on a year-on-year basis. Meanwhile, sales and profit growth numbers came in at 62 percent and 341 percent, respectively, in the same period. In FY21 so far, the stock price has jumped 272 percent to Rs 84.70, as of October 14

GTPL Hathway  | In FY21 so far, the stock price has gained 237 percent to Rs 137.35 as of October 14. The company's FY20 total debt reduced by 49 percent to Rs 148 crore compared to its previous fiscal year while it has witnessed decent sales and profit growth of 91 percent and 253 percent respectively.

GTPL Hathway | The company reduced its total debt in FY20 by 49 percent to Rs 148 crore on a year-on-year basis. Meanwhile, sales and profit growth numbers came in at 91 percent and 253 percent, respectively, in the same period. In FY21 so far, the stock price has jumped 237 percent to Rs 137.35, as of October 14.

Dixon Technologies (India)  | In FY21 so far, the stock price has gained 136 percent to Rs 8451.95 as of October 14. The company's FY20 total debt reduced by 37 percent to Rs 107 crore compared to its previous fiscal year while it has witnessed decent sales and profit growth of 47 percent and 90 percent respectively.

Dixon Technologies (India) | The company reduced its total debt in FY20 by 37 percent to Rs 107 crore on a year-on-year basis. Meanwhile, sales and profit growth numbers came in at 47 percent and 90 percent, respectively, in the same period. In FY21 so far, the stock price has jumped 136 percent to Rs 8451.95 , as of October 14.

Fertilisers & Chemicals Travancore  | In FY21 so far, the stock price has gained 35 percent to Rs 43.45 as of October 14. The company's FY20 total debt reduced by 44 percent to Rs 1105 crore compared to its previous fiscal year while it has witnessed decent sales and profit growth of 42 percent and 500 percent respectively.

Fertilisers & Chemicals Travancore | The company reduced its total debt in FY20 by 44 percent to Rs 1105 crore on a year-on-year basis. Meanwhile, sales and profit growth numbers came in at 42 percent and 500 percent, respectively, in the same period. In FY21 so far, the stock price has jumped 35 percent to Rs 43.45 , as of October 14.

Gujarat State Petronet  | In FY21 so far, the stock price has gained 10 percent to Rs 189.95 as of October 14. The company's FY20 total debt reduced by 26 percent to Rs 2633 crore compared to its previous fiscal year while it has witnessed decent sales and profit growth of 31 percent and 94 percent respectively.

Gujarat State Petronet | The company reduced its total debt in FY20 by 26 percent to Rs 2633 crore on a year-on-year basis. Meanwhile, sales and profit growth numbers came in at 31 percent and 94 percent, respectively, in the same period. In FY21 so far, the stock price has jumped 10 percent to Rs 189.95 , as of October 14.

First Published on Oct 13, 2020 04:27 pm
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