Running example 1 — Kaveri Pumps & Motors Ltd (fictional)¶
Fictional company
Kaveri Pumps & Motors Ltd ("KPML", NSE: KAVERIPMP — not a real ticker) is invented for this course.
Its numbers are generated by tools/running_example/generate.py, which enforces that the balance sheet
balances every year and that the cash-flow statement reconciles exactly to the change in cash.
Any lesson, exercise or mock that uses KPML must use these numbers. Amounts are in ₹ crore
(1 crore = 10 million) unless stated. Financial year FY26 = 1-Apr-2025 to 31-Mar-2026.
1. Company profile¶
| Item | Detail |
|---|---|
| Business | Designs and manufactures agricultural submersible & monoblock pumps, domestic pumps, industrial pumps and electric motors; since FY23 a fast-growing solar pumping systems business sold mainly into state-government tenders under the PM-KUSUM scheme |
| Headquarters / plants | Coimbatore, Tamil Nadu (India's pump manufacturing cluster). Plant 1 (Coimbatore, 1996), Plant 2 (Hosur, motors — commissioned end-FY24 at a cost of ~₹190 Cr) |
| Distribution | ~1,800 dealers across 14 states; top-3 states = 52% of agri sales. Solar: direct to state nodal agencies/DISCOMs |
| Promoters | The Raghunathan family, 58.4% holding. From Q3 FY26, 6% of promoter shares are pledged (disclosed under SEBI SAST) |
| Other holders (Mar-26) | Mutual funds 14.2%, FPIs 7.9%, insurance 2.1%, retail & others 17.4% |
| Share data | 6.00 crore shares of ₹5 face value; ESOPs granted FY24 (diluted share count FY26: 6.07 Cr) |
| Share price | Peak ₹812 (Jan-2025); ₹520 at 31-Mar-2026; ₹390 on 18-Sep-2026 after falling ~25% since March on the Q1 FY27 miss and the promoter-pledge disclosure (market cap ≈ ₹2,340 Cr); beta vs Nifty 500 ≈ 1.05 |
| Auditor | Mid-sized Chennai firm; rotated in FY25 (mandatory rotation under the Companies Act, 2013) |
| Credit rating | Long-term bank facilities: "A / Stable" (FY26) |
2. Income statement (consolidated, ₹ Cr)¶
| ₹ Cr | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|
| Revenue from operations | 612.0 | 758.0 | 874.0 | 1,006.0 | 1,172.0 | 1,318.0 |
| Cost of materials consumed (incl. change in inventories) | 391.7 | 507.9 | 575.1 | 635.8 | 754.8 | 858.0 |
| Employee benefits expense | 62.4 | 69.7 | 79.5 | 90.5 | 103.1 | 117.3 |
| of which share-based payment (non-cash) | 0.0 | 0.0 | 0.0 | 0.8 | 2.0 | 2.4 |
| Other expenses | 78.3 | 89.4 | 104.9 | 124.7 | 141.8 | 160.8 |
| EBITDA (excl. other income) | 79.6 | 91.0 | 114.5 | 155.0 | 172.3 | 181.9 |
| Depreciation – PP&E | 21.2 | 22.3 | 23.8 | 25.8 | 37.0 | 39.6 |
| Amortisation – right-of-use (leases) | 3.3 | 3.5 | 3.6 | 4.1 | 4.3 | 4.7 |
| Amortisation – intangibles | 2.0 | 2.0 | 2.5 | 3.0 | 3.0 | 3.5 |
| EBIT (excl. other income) | 53.1 | 63.2 | 84.6 | 122.1 | 128.0 | 134.1 |
| Other income (treasury) | 5.0 | 6.2 | 7.4 | 6.9 | 4.5 | 3.9 |
| Finance costs – borrowings | 5.7 | 5.2 | 7.3 | 12.3 | 14.9 | 15.6 |
| Finance costs – lease interest | 1.1 | 1.1 | 1.1 | 1.2 | 1.4 | 1.4 |
| Exceptional items: gain / (loss) | (7.5) | 0.0 | 0.0 | 0.0 | 14.0 | 0.0 |
| Profit before tax (PBT) | 43.8 | 63.1 | 83.6 | 115.5 | 130.2 | 121.0 |
| Current tax | 10.0 | 14.9 | 20.0 | 26.1 | 31.8 | 29.5 |
| Deferred tax | 1.0 | 1.0 | 1.0 | 3.0 | 1.0 | 1.0 |
| Profit after tax (PAT) | 32.8 | 47.2 | 62.6 | 86.4 | 97.4 | 90.5 |
Notes: Tax rate is 25.17% throughout (new corporate regime, Sec. 115BAA, 22% + surcharge + cess). FY21 exceptional item = ₹7.5 Cr cash VRS cost on closing an old foundry line. FY25 exceptional item = ₹14.0 Cr gain on sale of a land parcel (book value ₹4.0 Cr, proceeds ₹18.0 Cr) — a one-off that flatters FY25 PAT. Other income is entirely treasury income on cash and liquid funds.
3. Balance sheet (as at 31-March, ₹ Cr)¶
Opening balance sheet at 31-Mar-2020: gross block 430.0 (of which land 22.0), accumulated depreciation 165.0, CWIP 8.0, right-of-use 12.0, intangibles 6.0, inventories 86.0, receivables 96.0, other current assets 19.0, cash 34.0, current investments 40.0; share capital 30.0, other equity 344.0, non-current borrowings 35.0, current borrowings 30.0, lease liabilities 13.0, payables 68.0, other current liabilities 32.0, DTL 14.0. Total assets = 566.0.
| ₹ Cr | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Gross block (PP&E, incl. land) | 450.0 | 480.0 | 518.0 | 734.0 | 780.0 | 830.0 |
| Less: accumulated depreciation | 186.2 | 208.5 | 232.3 | 258.1 | 295.1 | 334.7 |
| Net block (PP&E) | 263.8 | 271.5 | 285.7 | 475.9 | 484.9 | 495.3 |
| Capital work-in-progress (CWIP) | 4.0 | 6.0 | 68.0 | 0.0 | 4.0 | 2.0 |
| Right-of-use assets | 11.7 | 12.2 | 12.6 | 14.5 | 15.2 | 16.5 |
| Intangible assets (software, net) | 6.0 | 6.0 | 6.5 | 6.5 | 7.5 | 8.0 |
| Inventories | 88.0 | 103.0 | 119.7 | 130.6 | 161.3 | 188.1 |
| Trade receivables | 107.3 | 118.4 | 146.1 | 192.9 | 269.7 | 346.7 |
| Other current assets | 18.4 | 22.7 | 26.2 | 30.2 | 35.2 | 39.5 |
| Current investments (liquid mutual funds) | 30.0 | 45.0 | 25.0 | 20.0 | 30.0 | 15.0 |
| Cash & cash equivalents | 61.8 | 64.0 | 77.1 | 46.1 | 28.0 | 32.5 |
| Total assets | 591.0 | 648.8 | 766.9 | 916.7 | 1,035.8 | 1,143.6 |
| EQUITY & LIABILITIES | ||||||
| Equity share capital (6.0 Cr shares × ₹5) | 30.0 | 30.0 | 30.0 | 30.0 | 30.0 | 30.0 |
| Other equity (reserves & surplus) | 367.8 | 406.0 | 456.6 | 528.8 | 607.2 | 676.1 |
| Total equity | 397.8 | 436.0 | 486.6 | 558.8 | 637.2 | 706.1 |
| Borrowings – non-current (term loans) | 28.0 | 20.0 | 70.0 | 132.0 | 112.0 | 92.0 |
| Borrowings – current (working-capital + current maturities) | 36.0 | 42.0 | 38.0 | 30.0 | 58.0 | 96.0 |
| Lease liabilities | 12.8 | 13.4 | 13.9 | 15.9 | 16.7 | 18.2 |
| Trade payables | 70.8 | 83.5 | 97.7 | 109.7 | 132.3 | 143.4 |
| Other current liabilities & provisions | 30.6 | 37.9 | 43.7 | 50.3 | 58.6 | 65.9 |
| Deferred tax liability (net) | 15.0 | 16.0 | 17.0 | 20.0 | 21.0 | 22.0 |
| Total equity & liabilities | 591.0 | 648.8 | 766.9 | 916.7 | 1,035.8 | 1,143.6 |
4. Cash-flow statement (indirect method, ₹ Cr)¶
Presentation choices (both permitted under Ind AS 7 for a non-financial company, and common in India): interest paid is classified in financing; interest/treasury income received is classified in investing.
| ₹ Cr | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|
| Profit before tax | 43.8 | 63.1 | 83.6 | 115.5 | 130.2 | 121.0 |
| Add: depreciation & amortisation | 26.5 | 27.8 | 29.9 | 32.9 | 44.3 | 47.8 |
| Add: finance costs (shown in CFF) | 6.8 | 6.3 | 8.4 | 13.5 | 16.3 | 17.0 |
| Less: interest / treasury income (shown in CFI) | (5.0) | (6.2) | (7.4) | (6.9) | (4.5) | (3.9) |
| Less: gain on sale of land (shown in CFI) | 0.0 | 0.0 | 0.0 | 0.0 | (14.0) | 0.0 |
| Add: share-based payment expense (non-cash) | 0.0 | 0.0 | 0.0 | 0.8 | 2.0 | 2.4 |
| Operating profit before working-capital changes | 72.1 | 91.0 | 114.5 | 155.8 | 174.3 | 184.3 |
| (Increase)/decrease in inventories | (2.0) | (15.0) | (16.7) | (10.9) | (30.7) | (26.8) |
| (Increase)/decrease in trade receivables | (11.3) | (11.1) | (27.7) | (46.8) | (76.8) | (77.0) |
| (Increase)/decrease in other current assets | 0.6 | (4.3) | (3.5) | (4.0) | (5.0) | (4.3) |
| Increase/(decrease) in trade payables | 2.8 | 12.7 | 14.2 | 12.0 | 22.6 | 11.1 |
| Increase/(decrease) in other current liabilities | (1.4) | 7.3 | 5.8 | 6.6 | 8.3 | 7.3 |
| Income taxes paid | (10.0) | (14.9) | (20.0) | (26.1) | (31.8) | (29.5) |
| Cash flow from operations (CFO) | 50.8 | 65.7 | 66.6 | 86.6 | 60.9 | 65.1 |
| Purchase of PP&E incl. CWIP (capex) | (16.0) | (32.0) | (100.0) | (148.0) | (54.0) | (48.0) |
| Purchase of intangibles | (2.0) | (2.0) | (3.0) | (3.0) | (4.0) | (4.0) |
| Proceeds from sale of land | 0.0 | 0.0 | 0.0 | 0.0 | 18.0 | 0.0 |
| (Purchase)/sale of current investments (net) | 10.0 | (15.0) | 20.0 | 5.0 | (10.0) | 15.0 |
| Interest / treasury income received | 5.0 | 6.2 | 7.4 | 6.9 | 4.5 | 3.9 |
| Cash flow from investing (CFI) | (3.0) | (42.8) | (75.6) | (139.1) | (45.5) | (33.1) |
| Proceeds/(repayment) of term loans (net) | (7.0) | (8.0) | 50.0 | 62.0 | (20.0) | (20.0) |
| Proceeds/(repayment) of working-capital loans (net) | 6.0 | 6.0 | (4.0) | (8.0) | 28.0 | 38.0 |
| Interest paid on borrowings | (5.7) | (5.2) | (7.3) | (12.3) | (14.9) | (15.6) |
| Lease payments (principal + interest) | (4.3) | (4.5) | (4.6) | (5.2) | (5.6) | (5.9) |
| Dividends paid | (9.0) | (9.0) | (12.0) | (15.0) | (21.0) | (24.0) |
| Cash flow from financing (CFF) | (20.0) | (20.7) | 22.1 | 21.5 | (33.5) | (27.5) |
| Net change in cash | 27.8 | 2.2 | 13.1 | (31.0) | (18.1) | 4.5 |
| Closing cash & cash equivalents | 61.8 | 64.0 | 77.1 | 46.1 | 28.0 | 32.5 |
5. Segment revenue and related-party purchases (₹ Cr)¶
| ₹ Cr | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|
| Agricultural & domestic pumps | 403.9 | 500.3 | 550.6 | 573.5 | 586.0 | 606.2 |
| Industrial pumps & motors | 189.7 | 227.4 | 262.2 | 291.7 | 328.2 | 355.9 |
| Solar pumping systems (mostly govt. schemes) | 18.4 | 30.3 | 61.2 | 140.8 | 257.8 | 355.9 |
| Purchases from Kaveri Castings Pvt Ltd (promoter-owned), ₹ Cr | 25.5 | 35.6 | 43.1 | 52.1 | 68.7 | 89.2 |
| …as % of material cost | 6.5% | 7.0% | 7.5% | 8.2% | 9.1% | 10.4% |
6. Key ratios (computed by the generator — use these values)¶
Definitions: averages use opening and closing balance sheets. Capital employed = equity + all borrowings + lease liabilities. Invested capital = net block + CWIP + right-of-use + intangibles + (inventories + receivables + other current assets − payables − other current liabilities). NOPAT = EBIT × (1 − 25.17%). Market data is fictional.
| Ratio | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|
| Revenue growth | – | 23.9% | 15.3% | 15.1% | 16.5% | 12.5% |
| Gross margin | 36.0% | 33.0% | 34.2% | 36.8% | 35.6% | 34.9% |
| EBITDA margin | 13.0% | 12.0% | 13.1% | 15.4% | 14.7% | 13.8% |
| EBIT margin | 8.7% | 8.3% | 9.7% | 12.1% | 10.9% | 10.2% |
| PAT margin | 5.4% | 6.2% | 7.2% | 8.6% | 8.3% | 6.9% |
| ROE (PAT / avg equity) | 8.5% | 11.3% | 13.6% | 16.5% | 16.3% | 13.5% |
| ROCE ((EBIT + other income) / avg capital employed) | 12.5% | 14.1% | 16.4% | 19.2% | 17.0% | 15.9% |
| ROIC (NOPAT / avg invested capital) | 10.1% | 11.6% | 13.4% | 15.1% | 13.0% | 12.0% |
| Inventory days (on material cost) | 82 | 74 | 76 | 75 | 78 | 80 |
| Receivable days (on revenue) | 64 | 57 | 61 | 70 | 84 | 96 |
| Payable days (on material cost) | 66 | 60 | 62 | 63 | 64 | 61 |
| Cash conversion cycle (days) | 80 | 71 | 75 | 82 | 98 | 115 |
| CFO / EBITDA | 63.8% | 72.2% | 58.2% | 55.9% | 35.3% | 35.8% |
| CFO / PAT | 154.9% | 139.2% | 106.4% | 100.2% | 62.5% | 71.9% |
| Free cash flow (CFO – capex), ₹ Cr | 32.8 | 31.7 | (36.4) | (64.4) | 2.9 | 13.1 |
| Net debt (debt – cash – liquid inv.), ₹ Cr | (27.8) | (47.0) | 5.9 | 95.9 | 112.0 | 140.5 |
| Net debt / EBITDA | -0.3x | -0.5x | 0.1x | 0.6x | 0.7x | 0.8x |
| Interest cover (EBIT / finance costs) | 7.8x | 10.0x | 10.1x | 9.0x | 7.9x | 7.9x |
| Debt / equity | 0.2x | 0.1x | 0.2x | 0.3x | 0.3x | 0.3x |
| Asset turnover (revenue / total assets) | 1.0x | 1.2x | 1.1x | 1.1x | 1.1x | 1.2x |
| EPS (basic), ₹ | 5.5 | 7.9 | 10.4 | 14.4 | 16.2 | 15.1 |
| Adjusted EPS (ex-exceptional, post-tax), ₹ | 6.4 | 7.9 | 10.4 | 14.4 | 14.5 | 15.1 |
| Book value per share, ₹ | 66.3 | 72.7 | 81.1 | 93.1 | 106.2 | 117.7 |
| Dividend per share paid in year, ₹ | 1.5 | 1.5 | 2.0 | 2.5 | 3.5 | 4.0 |
| Share price at 31-March, ₹ | 210 | 320 | 360 | 610 | 780 | 520 |
| P/E (trailing, on reported EPS) | 38.4x | 40.7x | 34.5x | 42.4x | 48.0x | 34.5x |
| P/B | 3.2x | 4.4x | 4.4x | 6.5x | 7.3x | 4.4x |
| EV/EBITDA (EV incl. lease liabilities) | 15.6x | 20.7x | 19.0x | 24.3x | 27.9x | 18.0x |
7. Quarterly results (₹ Cr) — FY26 by quarter and Q1 FY27 (reported 8-Aug-2026)¶
| ₹ Cr | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|
| Revenue | 355.9 | 263.6 | 290.0 | 408.5 | 368.2 |
| EBITDA | 50.8 | 32.1 | 37.9 | 61.1 | 46.4 |
| EBITDA margin | 14.3% | 12.2% | 13.1% | 15.0% | 12.6% |
| Depreciation & amortisation | 11.9 | 11.9 | 11.9 | 12.1 | 12.3 |
| Other income | 1.0 | 1.0 | 1.0 | 0.9 | 0.8 |
| Finance costs | 4.2 | 4.2 | 4.2 | 4.4 | 5.1 |
| PBT | 35.7 | 17.0 | 22.8 | 45.5 | 29.8 |
| Tax | 9.0 | 4.3 | 5.7 | 11.5 | 7.5 |
| PAT | 26.7 | 12.7 | 17.1 | 34.0 | 22.3 |
| EPS (₹) | 4.5 | 2.1 | 2.9 | 5.7 | 3.7 |
FY26 quarterly revenue, EBITDA, PBT and PAT sum exactly to the annual figures. Seasonality: Q4 (Jan–Mar) and Q1 (Apr–Jun) are peak pump seasons ahead of summer irrigation demand.
Q1 FY27 (Apr–Jun 2026) headline: revenue +3.5% YoY (vs. management's FY27 guidance of 15–18% growth), EBITDA margin 12.6% (vs. 14.0–15.0% guided), PAT -16.5% YoY. Finance costs rose as working-capital borrowings increased. Management blamed "delayed tender finalisation in two states" for the solar segment and said receivables from state agencies "remain elevated but fully recoverable". Days receivable at 30-Jun-2026 were not disclosed in the results; the investor presentation showed a bar chart without numbers.
8. Notes-to-accounts items (FY26 annual report)¶
| Item | FY25 | FY26 | Comment |
|---|---|---|---|
| Receivables overdue > 6 months, ₹ Cr | 31.0 | 62.4 | Mostly from two state nodal agencies (solar) |
| Expected credit loss allowance on receivables, ₹ Cr | 3.1 | 4.0 | Allowance only ~6% of the >6-month bucket |
| Contingent liability — GST demand under appeal, ₹ Cr | 0.0 | 38.0 | Classification dispute on solar systems (5% vs 12%/18% GST rate) |
| Contingent liability — income-tax disputes, ₹ Cr | 9.0 | 11.0 | Old assessment years |
| Bank guarantees given (performance / tender), ₹ Cr | 58.0 | 96.0 | Grows with solar tender wins |
| Promoter shares pledged (% of promoter holding) | 0% | 6% | Pledge created Nov-2025 for a promoter-group real-estate venture |
| Related-party purchases (Kaveri Castings), % of material cost | 9.1% | 10.4% | Pricing stated to be "at arm's length"; approved by audit committee |
| Order book — solar (unexecuted), ₹ Cr | 290 | 410 | State tenders, typically executed in 6–12 months |
| Employees (nos.) | 2,310 | 2,480 | |
| Installed capacity — pumps (lakh units p.a.) / utilisation | 9.0 / 71% | 9.0 / 78% | |
| Installed capacity — motors (lakh units p.a.) / utilisation | 3.5 / 48% | 3.5 / 57% | Hosur plant ramping up |
9. Management guidance and narrative (from FY26 Q4 earnings call, May-2026 — fictional)¶
- FY27 revenue growth guided at 15–18%; EBITDA margin 14–15%; capex ₹45–50 Cr (maintenance + automation).
- "Solar is a multi-year opportunity; we are being selective on states with good payment track records."
- Working capital: "We expect receivable days to normalise towards 75–80 by end-FY27 as two large state dues clear."
- Capital allocation: dividend payout ~25%; no large capex planned; "open to acquisitions in the motors space".
10. Fictional peer set (for relative valuation exercises; market data as of 18-Sep-2026)¶
| Company (fictional) | Mcap ₹ Cr | Revenue FY26 | EBITDA margin | PAT FY26 | ROCE | Rev CAGR FY23–26 | Net debt/EBITDA | P/E | EV/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
| Nilgiri Pumps Ltd | 6,850 | 1,640 | 16.8% | 172 | 24% | 13% | −0.4x | 39.8x | 24.5x |
| Deccan Flow Systems Ltd | 2,100 | 980 | 11.5% | 58 | 14% | 9% | 1.2x | 36.2x | 20.1x |
| Sabarmati Motors & Drives Ltd | 3,900 | 1,210 | 15.2% | 118 | 21% | 17% | 0.1x | 33.1x | 21.4x |
| Konkan Solar Pumps Ltd | 1,450 | 720 | 12.1% | 49 | 18% | 38% | 0.9x | 29.6x | 17.8x |
| Kaveri Pumps & Motors (at ₹390) | 2,340 | 1,318 | 13.8% | 90.5 | 16% | 15% | 0.8x | 25.9x | 13.7x |
Raw CSVs: tools/data/kaveri_pumps_annual.csv, tools/data/kaveri_pumps_ratios.csv, tools/data/kaveri_pumps_quarterly.csv.