Question 23
Directions: Read the following simplified financial data for X Robotics Ltd. carefully and answer the given subquestions. Show your mathematical reasoning. All formulas and concepts required are based strictly on the provided financial analysis case study framework.
Company Overview & Financial Data (Figures in Millions of Rupees):
X Robotics Ltd. is an industrial automation manufacturer. Below is a snapshot of their simplified financial position for the fiscal year ending March 31, 2025 (FY 2025), along with select figures from FY 2024.
Simplified Profit & Loss Statement Data (FY 2025):
● Revenue from Operations: ₹500 ● Cost of Materials and Services: ₹300 ● Employee Benefits & Other Expenses: ₹100 ● Depreciation: ₹20 ● Finance Costs (Interest): ₹10 ● Tax Rate: 30% flat on Profit Before Tax (PBT) ● (Note: For FY 2024, Revenue from Operations was ₹400).
Simplified Balance Sheet Data (As of March 31, 2025):
● Total Assets: ₹400 ● Shareholder's Equity (Net Worth): ₹200 ● Total Debt (Borrowings): ₹100 (Note: The company pays a flat 10% interest rate on its debt) ● Average Inventory: ₹60 ● Average Debtors (Trade Receivables): ₹50
Market Data:
● Shares Outstanding: 10 million shares ● Market Price per Share: ₹73.50 ● Total Dividends Paid: ₹24.5 million
Between FY 2024 and FY 2025, X Robotics saw its revenue increase significantly. If the company maintains the exact same year-over-year revenue growth rate heading into FY 2026, and benefits from softer commodity prices that improve its Profit Margin to 11.00%, what will be the absolute increase in Net Profit (in millions of rupees) from FY 2025 to FY 2026?
₹10.00 million
₹15.50 million
₹19.75 million
₹68.75 million