Indofil Industries Annual Reports, Balance Sheet and Financials

Indofil Industries Limited Balance Sheet (Rs in Crores)

Indofil Industries Limited Profit & Loss Statement (Rs in Crores)

Indofil Industries Limited Consolidated Cash Flow Statement (Rs in Crores)

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flow from Operating Activities

Operating cash flow indicates the cash generated from the company 's core business activities. For the year ending 31st March 2024, the company reported a profit before exceptional items and tax of ₹363.68 crores, an increase from ₹294.78 crores in the previous year. After accounting for non-cash and non-operating items like depreciation, finance costs, and other adjustments (such as interest and dividend income), the operating profit before working capital changes was ₹469.96 crores compared to ₹409.72 crores in 2023.

There were significant changes in working capital, with a major contributor being the reduction in inventories, which freed up ₹163.60 crores of cash in 2024, as opposed to an increase in inventories of ₹47.57 crores in 2023. The company also saw a reduction in trade receivables by ₹141.91 crores, indicating better collection management. Trade payables increased by ₹42.57 crores in 2024, reflecting extended credit periods from suppliers, compared to a large decrease of ₹371.37 crores in 2023.

After adjusting for taxes, the net cash generated from operating activities for 2024 was ₹426.64 crores, a strong rebound from the negative operating cash flow of ₹67.15 crores in 2023. This increase in operating cash flow demonstrates a healthy recovery in the company’s core business operations.

Cash Flow from Investing Activities

Investing activities reflect the company 's expenditure and income related to investments, including the purchase or sale of assets and investments. In 2024, the company spent ₹66.52 crores on property, plant, and equipment, which was slightly less than ₹85.69 crores in 2023. Despite this outflow, the company managed to generate ₹47.69 crores of net cash from investing activities, a significant improvement compared to ₹1.12 crores in 2023.

The improvement was mainly driven by an increase in dividend income (₹50.65 crores in 2024, up from ₹27.07 crores in 2023) and proceeds from current investments (₹36.31 crores in 2024 compared to ₹25.15 crores in 2023). Moreover, the company received ₹42.62 crores from bank deposits not considered cash equivalents, providing further liquidity.

Cash Flow from Financing Activities

Financing activities reflect how the company funds its operations and growth, through borrowings, repayment of debt, interest payments, and dividends to shareholders. In 2024, the company used ₹256.69 crores in net financing activities, a larger outflow compared to ₹184.28 crores in 2023.

This cash outflow was primarily due to the repayment of current borrowings (₹123.38 crores in 2024 compared to ₹41.03 crores in 2023) and non-current borrowings (₹72.94 crores in 2024 compared to ₹90.67 crores in 2023). Dividend payments also increased in 2024, with ₹21.35 crores paid to shareholders, up from ₹8.54 crores in 2023. Additionally, finance costs (interest payments) totaled ₹39.60 crores in 2024, which slightly decreased from ₹44.31 crores in 2023.

Net Increase/Decrease in Cash and Cash Equivalents

The company saw a substantial increase in cash and cash equivalents in 2024, with a net inflow of ₹217.64 crores, compared to a significant decrease of ₹250.31 crores in 2023. This was primarily due to the recovery in operating activities and improved cash inflows from investing activities, despite the larger outflow in financing activities.

The company started the year with ₹140.51 crores in cash and cash equivalents, and ended the year with ₹358.15 crores, reflecting a much stronger liquidity position. The bulk of this cash was held in current bank accounts (₹343.08 crores), with a smaller portion in deposit accounts (₹15.00 crores) and a nominal amount in cash on hand (₹0.07 crores).

Financial Ratios of Indofil Industries Limited

Here is a summary of the financial and operational metrics for Indofil Industries Limited  for the year 2024 and 2023:

Current Ratio (in times)

The current ratio is a liquidity ratio that measures the company’s ability to pay its short-term liabilities with its short-term assets. In 2024, the current ratio stands at 2.25, indicating that for every ₹1 of current liabilities, the company has ₹2.25 in current assets.

Debt/Equity Ratio (in times)

The debt-to-equity ratio compares the company’s total debt to its equity, reflecting the proportion of financing that comes from creditors versus shareholders. In 2024, the ratio has decreased to 0.16 from 0.31 in 2023, indicating that the company is reducing its reliance on debt for financing its operations and growth.

Debt Service Coverage Ratio (In times)

The debt service coverage ratio (DSCR) shows how easily a company can pay its debt obligations using its operating income. A ratio of 4.8 in 2024, up from 4.14 in 2023, means the company generates 4.8 times more income than needed to cover its debt payments.

Return on Equity (ROE) (%)

Return on Equity (ROE) measures the profitability of the company in relation to shareholders’ equity. In 2024, the ROE is 12.49%, up from 11.51% in 2023, showing that the company generated ₹12.49 of profit for every ₹100 of equity.

Inventory Turnover Ratio (In days)

The inventory turnover ratio measures how quickly the company sells its inventory, with the figure expressed in days. In 2024, the company’s inventory turnover is 98 days, down from 102 days in 2023.

Debtor’s Turnover (No. of days)

The debtor’s turnover ratio reflects the average time it takes for the company to collect payment from its customers. In 2024, it takes 113 days on average to collect receivables, a slight increase from 107 days in 2023. The increase indicates a slight delay in collections, which may be due to extended credit terms or slower payment from customers.

Payables Turnover (No. of days)

The payables turnover ratio indicates the average time the company takes to pay its suppliers. In 2024, the company took 91 days to pay its suppliers, down from 117 days in 2023.

Net Capital Turnover (in times)

Net capital turnover measures the company’s efficiency in using working capital (current assets minus current liabilities) to generate sales. In 2024, the ratio stands at 2.86, down from 3.59 in 2023. A lower ratio indicates that the company is using its working capital less efficiently to generate revenue compared to the previous year.

Net Profit Margin (%)

The net profit margin measures the percentage of revenue that translates into net profit. In 2024, the company’s net profit margin increased to 8.23% from 6.66% in 2023, indicating improved profitability. This higher margin means the company is more efficient at converting revenue into profit after all expenses, taxes, and interest have been deducted.

Return on Capital Employed (ROCE) (%)

Return on Capital Employed (ROCE) evaluates how well the company is using its capital to generate profits. In 2024, the ROCE improved to 14.93% from 14.39% in 2023. This indicates that the company is generating higher returns from its capital base, reflecting efficient use of both debt and equity to drive profitability.

Return on Investments (ROI) (%)

The return on investments (ROI) measures the profit earned on investments made by the company. In 2024, the ROI increased to 0.88%, up from 0.71% in 2023. While the increase shows that the company is earning a better return on its investments, the ROI is relatively low compared to other metrics, suggesting that there is room for improving the efficiency of capital allocation and investment returns.

Dividend history

 Your Directors are pleased to recommend for approval of the Company’s Shareholders at the ensuing Annual General Meeting (AGM), a final Dividend of 100% for the year ended March 31, 2024, i.e. 10/- for each Fully Paid Up Equity Shares of 10 each and 3/- for each Partly Paid Up Equity Shares of 3/- each.