Lamina Foundries Ltd Annual Report and Financials

LAMINA FOUNDRIES LIMITED Balance Sheet (In Lakhs)

 LAMINA FOUNDRIES LIMITED Profit & Loss Statement (In Lakhs)

LAMINA FOUNDRIES LIMITED Consolidated Cash Flow Statement (In Lakhs)

Operating Activities:

- Net Profit and Operating Profit: The company witnessed a substantial increase in Net Profit before tax and interest, reaching ₹878.19 lakhs in 2023 compared to ₹564.93 lakhs in 2022. Operating profit before working capital changes also experienced significant growth, reaching ₹1,134.64 lakhs in 2023.

- Adjustments for Non-Cash Items: A positive adjustment was made for the Profit on Sale of Property Plant & Equipment, amounting to ₹9.95 lakhs. However, depreciation slightly decreased from ₹249.13 lakhs in 2022 to ₹246.5 lakhs in 2023.

- Working Capital Management: The company demonstrated effective management of working capital. Notable adjustments were made for Trade and Other Receivables (-₹638.13 lakhs), indicating a reduction in outstanding receivables. Similarly, a decrease in Inventories (-₹231.78 lakhs) and an increase in Trade Payables (₹514.03 lakhs) showcased prudent inventory and payables management.

- Cash Generation: The overall positive adjustments resulted in Cash Generated from operations of ₹778.76 lakhs in 2023, a substantial increase from ₹639.63 lakhs in the previous year.

Investing Activities:

- Capital Expenditure: The company invested significantly in fixed assets in 2023, with a purchase of Fixed Assets amounting to -₹279.89 lakhs, compared to -₹91.54 lakhs in 2022.

- Asset Sales and Investments: A positive cash flow was realized from the sale of Fixed Assets (₹0.83 lakhs), partially offsetting the capital expenditure. Additionally, investments were made, amounting to -₹2.44 lakhs.

- Net Investing Cash Flow: The net cash outflow from investing activities was -₹281.5 lakhs in 2023.

Financing Activities:

- Working Capital and Loans: Working capital borrowings increased by ₹66.93 lakhs, reflecting proactive measures to meet short-term operational needs. Repayment of term loans saw a substantial increase to ₹172.98 lakhs, and interest paid decreased by ₹117.37 lakhs.

- Net Financing Cash Flow: Despite fluctuations, the net cash used in financing activities improved to -₹455.61 lakhs in 2023, compared to -₹555.16 lakhs in 2022.

Overall Cash Position:

- Net Increase in Cash: The company experienced a net increase in cash and cash equivalents of ₹41.65 lakhs in 2023, compared to a decrease of -₹7.07 lakhs in the previous year.

- Opening and Closing Cash Balances: The opening balance of cash & cash equivalents was ₹368.58 lakhs, and with the positive cash flow, the closing balance increased to ₹410.23 lakhs by the end of 2023.

Bellow, are the Financial Ratios

Financial Overview - 2020

1. EBITDA and Profitability:

- EBITDA Margin: The company faced a challenging year in 2020, evidenced by a negative EBITDA margin of -67.86%. This indicates that the company 's earnings before interest, taxes, depreciation, and amortization were insufficient to cover operating expenses.

2. Financial Health and Leverage:

- Net Worth and Debt/Equity Ratio: The company 's net worth took a significant hit, plummeting to -293.39%. This negative figure suggests that the company 's liabilities far exceeded its assets, raising concerns about financial stability. The Debt/Equity Ratio at -18.44 indicates a disproportionate reliance on equity, possibly reflecting financial distress.

3. Return on Investment:

- Return on Equity (ROE): The data indicates "N/A" for Return on Equity, implying that the company may not have generated positive returns for shareholders during the period.

4. Asset Management:

- Total Assets and Fixed Assets: The company experienced a decline in Total Assets by -7.04%. Fixed Assets, however, increased marginally by 0.08%, suggesting a limited investment in long-term assets during the challenging period.

- Current Assets and Liabilities: Current Assets declined significantly by -11.27%, indicating potential challenges in maintaining liquidity. Concurrently, Current Liabilities decreased by -14.22%, reflecting efforts to manage short-term obligations.

5. Trade Receivables and Payables:

- Trade Receivables: A notable decrease of -26.97% in Trade Receivables suggests an efficient approach to managing outstanding customer payments, possibly driven by tightened credit terms.

- Trade Payables: A sharp decrease of -46.73% in Trade Payables indicates a possible strain on the company 's relationship with suppliers, potentially impacting working capital dynamics.

6. Liquidity and Efficiency:

- Current Ratio: The Current Ratio of 1.22 suggests that the company had sufficient short-term assets to cover its current liabilities during 2020. However, it 's crucial to note that this ratio alone may not fully capture the liquidity challenges and operational efficiency.