Step 1 · Long-Range Planning · Financial Statement Analysis
Sankey View · Where value is created and lost
Explains what is driving financial outcomes — follow the flow from revenue to profit, assets to equity, and cash in to cash out
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Revenue of ₹500 Cr flowing through costs to EBITDA of ₹66.5 Cr (13.3% margin)
FY25 actuals · ₹ Cr
Income Statement Sankey Revenue of 500 Cr flows through COGS, employee costs, and operating expenses to produce EBITDA of 66.5 Cr Revenue ₹500 Cr COGS ₹175 Cr · 35% Employee costs ₹150 Cr · 30% Other opex ₹108 Cr · 21.6% Gross profit ₹325 Cr 65% margin EBITDA ₹66.5 Cr 13.3% margin Emp. cost ₹150 Cr 30% rev. Target gap Need 18% Gap: 4.7 pts Value leak Opex high vs LRP plan Wage skew Senior roles overpaid
Revenue driver
New customer growth
+152 accounts · ₹10.8L avg
Largest cost leak
Operating expenses
₹108 Cr · 4.3 pts above LRP
Margin gap
4.7 pts to LRP target
Need ₹23.5 Cr cost reduction
Lever to pull
Wage bill regrading
Recovers ₹8–10 Cr immediately
₹280 Cr total assets — how capital is deployed and funded
FY25 actuals · ₹ Cr
Balance Sheet Sankey Total assets of 280 Cr funded by liabilities and equity, showing capital deployment and funding structure Total assets ₹280 Cr Fixed assets ₹75 Cr · 27% Trade receivables ₹105 Cr · 37.5% Cash & equivalents ₹60 Cr · 21.5% Intangibles & other ₹40 Cr · 14% Fixed ₹75 Cr Receivables ₹105 Cr Cash ₹60 Cr Debt ₹110 Cr 39% of assets Trade payables ₹58 Cr Equity ₹112 Cr 40% of assets Leverage risk D/E: 0.98 Target: <0.7 Collection lag DSO: 76 days Target: 55 days Equity growth ROE: 18.2% Target: >22%
Leverage risk
D/E ratio at 0.98
Target <0.7 — reduce debt by ₹30 Cr
Collection lag
DSO 76 days
Freeing 21 days releases ₹18 Cr cash
Capital deployed
39% in fixed assets
Review Capex plan vs LRP milestones
ROE gap
18.2% vs 22% target
Closes as PAT grows with margin plan
₹500 Cr revenue — how cash enters and exits the business
FY25 actuals · ₹ Cr
Cash Flow Sankey Revenue of 500 Cr flowing through operating, investing and financing activities to net free cash flow of 22 Cr Cash inflow ₹500 Cr Payroll ₹150 Cr · 30% Vendor & opex ₹108 Cr · 21.6% COGS cash ₹175 Cr · 35% Operating CF ₹67 Cr · 13.4% Operating CF ₹67 Cr Investing CF -₹32 Cr Capex outflow Financing CF -₹13 Cr Free cash flow ₹22 Cr Cash burn risk 86.6% outflow of all revenue Capex intensity ₹32 Cr invested review ROI FCF target ₹150 Cr by FY27 gap: ₹128 Cr
Cash conversion
86.6% exits operations
Only ₹22 Cr retained as free cash
Biggest outflow
COGS at ₹175 Cr
Gross margin improvement is priority 1
Capex review
₹32 Cr deployed
Validate ROI against LRP milestones
FCF gap
₹128 Cr to FY27 target
Requires margin + working capital fix
Each view reveals a different dimension of value creation — Income Statement shows profitability drivers, Balance Sheet shows capital efficiency, Cash Flow shows liquidity and conversion
Feeds → MOS signals