ACS Technologies Annual Report

ACS Technologies Limited (ACS Technologies) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40
ACS Technologies Limited

ACS Technologies Limited Balance Sheet (Rs in Thousand)

Particulars	31-03-2024	31-03-2023
ASSETS
Non-current assets
Property, plant, and equipment	35,439.53	40,635.44
Capital work in progress	34,825.97	-
Goodwill	2,42,910.42	2,69,900.47
Other intangible assets	94,418.67	81,019.83
Financial assets	4,750.00	4,750.00
Investment	19,999.53	19,999.53
Other non-current assets	28,659.63	31,844.04
Current assets
Financial assets	2,84,656.50	1,46,026.06
Trade receivables	4,13,464.18	4,61,308.46
Cash and cash equivalents	3,319.91	2,155.79
Bank balances other than cash and cash equivalent	14,512.47	14,195.21
Other financial assets	4,725.87	7,111.58
Other current assets	27,410.11	38,940.34
Total Assets	12,09,092.80	11,17,886.74
EQUITY AND LIABILITIES
Equity
Equity share capital	6,07,419.48	5,59,419.48
Other equity	3,33,838.96	2,62,093.16
Non-controlling interest	736.774	49
Liabilities
Non-current liabilities
Borrowings	52,420.40	71,878.23
Deferred tax liabilities (net)	-	-
Other non-current liabilities	166.913	6,777.05
Current liabilities
Borrowings	1,06,973.83	1,12,623.73
Total outstanding dues of creditors other than micro enterprises and small enterprises	81,153.90	86,055.61
Other current liabilities	11,005.10	8,223.76
Provisions	15,377.45	10,766.71
Total Equity and Liabilities	12,09,092.80	11,17,886.74

ACS Technologies Limited Profit & Loss Statement (Rs in Thousand)

Particulars	31-03-2024	31-03-2023
Income
Revenue from operations	8,19,939.73	6,94,497.62
Other income	976.36	516.945
Total Income	8,20,916.09	6,95,014.57
Expenses
Direct expenses	7,48,232.14	5,53,363.71
Changes in inventories of Stock-in-trade	-1,38,630.45	-3,933.84
Employee benefits expense	75,284.76	71,606.54
Finance costs	23,543.25	18,359.65
Depreciation and amortisation expense	48,811.40	13,642.10
Other expenses	27,470.19	11,550.41
Total Expenses	7,84,711.28	6,64,588.56
Profit before tax	36,204.80	30,426.00
Tax expenses
Current tax	5,447.55	5,078.71
Deferred tax charge/ (credit)	-6,610.14	1,363.76
MAT (Credit)	-5,297.28	-5,037.44
Income tax expense	-6,459.86	1,405.03
Profit for the year	42,664.67	29,020.97
Other comprehensive income
Other comprehensive income not to be reclassified to profit or loss
Re-measurement gains/ (losses) on defined benefit plan	-231.095	-
Income tax effect	-	-
Other comprehensive income for the year, net of tax	-231.095	-
Total comprehensive income for the year	42,433.57	29,020.97
Total comprehensive income for the period attributable to:
Owners of the Company	42,102.86	29,020.97
Non-controlling interests	330.717	-
Earnings per equity share (in INR)
Basic	0.74	0.61
Diluted	0.74	0.61

ACS Technologies Limited Consolidated Cash Flow Statement (Rs in Thousand)

Particulars	31-03-2024	31-03-2023
Operating activities
Profit / (Loss) before tax	36,204.80	30,426.00
Adjustments:
Depreciation and Amortization	48,811.40	13,642.10
MAT Credit Entitlement	-	30.28
Finance income	-976.36	-516.945
Finance cost	23,543.25	18,359.65
Adjustment of Non-controlling Interest	-687.774	-
Re-measurement gains/ (losses) on defined benefit plan	-231.095	-
Working capital adjustments:
(Increase)/ decrease in trade receivables	47,844.28	-4,60,632.24
(Increase)/ decrease in inventories	-1,38,630.45	-1,40,868.36
(Increase)/ decrease in financial assets	13,915.94	-40,642.41
Merger impact	-	5,355.18
Increase/ (decrease) in trade payables	-4,901.72	40,272.81
Increase/ (decrease) in provisions	2,781.34	3,624.83
Increase/ (decrease) in other liabilities	4,610.73	9,694.55
Net cash flows from / (used in) operating activities (A)	32,134.08	-5,21,326.11
Investing activities
Purchase of property, plant, and equipment	-2,778.34	-44,122.00
Purchase of intangible assets	-27,245.95	-91,738.99
Investment made in Capital Work in Progress	-34,825.97	-
Investment made in subsidiary and others	-	-20,050.53
Interest received	976.36	516.945
Net cash flows from / (used in) investing activities (B)	-63,873.90	-1,55,394.58
Financing activities
Proceeds from borrowings, net	-5,649.90	1,12,623.73
Repayment of unsecured loans	-19,457.84	-2,17,039.13
Change in Non-current assets	3,184.40	-31,844.04
Non-controlling interest	687.774	-
Issue of share capital	48,000.00	-4,86,935.60
Interest paid (gross)	-23,543.25	-18,359.65
Profit from Transferor company (Opening Balance - Merger Impact)	-	76,434.61
Goodwill	-	-2,69,900.47
Securities premium	30,000.00	-9,03,672.00
General Reserve	-	-1,500.00
CIRP Adjustment	-	24,26,924.07
Net cash flows from / (used in) financing activities (C)	33,221.20	6,86,731.53
Net increase/ (decrease) in cash and cash equivalents	1,481.38	10,010.84
Cash and cash equivalents at the beginning of the year	16,351.00	6,340.16
Cash and cash equivalents at the end of the period	17,832.38	16,351.00

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

Operating Activities

Profit / (Loss) before tax:
The company’s profit before taxes increased from ₹30,426.00K in 2023 to ₹36,204.80K in 2024, reflecting an overall positive performance for the year.

Depreciation and Amortization:
A significant increase in depreciation and amortization from ₹13,642.10K to ₹48,811.40K indicates that either new assets have been added or there has been a change in depreciation methodology. Higher depreciation suggests higher usage or addition of long-term assets.

Finance Income and Finance Cost:
Finance income refers to interest income, which decreased slightly from ₹516.945K to ₹976.36K. Finance costs (mainly interest paid on borrowings) increased from ₹18,359.65K to ₹23,543.25K, indicating the company has higher borrowings or financing costs.

Adjustment of Non-controlling Interest:
A decrease of ₹687.774K in 2024 suggests some realignment in equity structure with minority shareholders.

Working Capital Adjustments:

Trade Receivables:
A large decrease in trade receivables (₹47,844.28K in 2024 compared to ₹4,60,632.24K in 2023) suggests the company collected a lot of its outstanding payments from customers, improving cash flow.

Inventories:
The company saw a significant decrease in inventories of ₹1,38,630.45K in 2024 compared to ₹1,40,868.36K in 2023, which may indicate efficient inventory management or increased sales.

Financial Assets:
There was an increase in financial assets, reflecting improved financial stability.

Other Adjustments:
Other adjustments include changes in provisions, liabilities, and trade payables, reflecting the company 's operational dynamics and efforts to manage working capital efficiently.

Net Cash Flows from Operating Activities:
In 2024, the company saw a net inflow of ₹32,134.08K, compared to a significant outflow of ₹5,21,326.11K in 2023. This is a positive turnaround, indicating better management of operational activities and cash flows.

Investing Activities

Purchase of Property, Plant, and Equipment (PPE):
The cash outflow on PPE decreased from ₹44,122.00K in 2023 to ₹2,778.34K in 2024, indicating a reduction in investments in tangible assets.

Purchase of Intangible Assets:
There was significant investment in intangible assets in 2024, totaling ₹27,245.95K. This could indicate the company is focusing on intangible growth such as software, patents, or other intellectual property.

Capital Work in Progress:
There was an outflow of ₹34,825.97K towards ongoing projects, indicating new or continued investment in long-term projects.

Investment in Subsidiaries:
No additional investments were made in subsidiaries in 2024, unlike the ₹20,050.53K investment in 2023.

Net Cash Flows from Investing Activities:
The net cash outflow from investing activities in 2024 was ₹63,873.90K, which is lower than the previous year’s outflow of ₹1,55,394.58K. The reduced outflows suggest a decrease in investments in capital-intensive projects in 2024.

Financing Activities

Borrowings and Loan Repayment:
The company repaid a significant portion of its unsecured loans, totaling ₹19,457.84K in 2024. Borrowings reduced by ₹5,649.90K, suggesting deleveraging or a shift in financial strategy.

Issue of Share Capital:
In 2024, the company raised ₹48,000.00K by issuing share capital. This indicates either a new equity issuance or rights issue to raise funds.

Securities Premium and Other Reserves:
The securities premium of ₹30,000.00K in 2024 and the absence of new goodwill investments show that the company is trying to enhance shareholder equity without acquiring new entities.

CIRP Adjustment:
In 2023, there was a large adjustment of ₹24,26,924.07K, possibly due to Corporate Insolvency Resolution Process (CIRP), but this is not present in 2024, indicating that the company has stabilized financially.

Net Cash Flows from Financing Activities:
Net inflow from financing activities amounted to ₹33,221.20K in 2024, compared to the large inflow of ₹6,86,731.53K in 2023. This suggests continued focus on securing funding but at a lower level than in the previous year.

Net Increase in Cash and Cash Equivalents

The overall increase in cash and cash equivalents for 2024 was ₹1,481.38K, a significant decrease compared to the previous year’s increase of ₹10,010.84K. However, the company still managed to end the year with ₹17,832.38K in cash, a slight increase from ₹16,351.00K at the start of the year.

Financial Ratios of ACS Technologies Limited

Particulars	2024	2023
Current Ratio	3.49	3.08
Debt – Equity Ratio	0.06	0.1
Debt Service Coverage Ratio	8.67	3.46
Return on Equity Ratio	4.84	3.53
Inventory Turnover ratio	3.18	4.31
Trade receivables turnover ratio	194	242
Trade payables turnover ratio	37	45
Net capital turnover ratio	160.48	201.38
Net Profit Ratio	5.2	4.18
Return on capital employed	6.99	10.53
Return on investment	3.67	2.6

Here is a summary of the financial and operational metrics for ACS Technologies Limited for the years 2024 and 2023:

Current Ratio (3.49 in 2024 vs. 3.08 in 2023)

This ratio measures the company 's ability to meet its short-term obligations with its short-term assets. An increase from 3.08 to 3.49 suggests an improved liquidity position, indicating the company is in a better position to cover its current liabilities with current assets.

Debt-Equity Ratio (0.06 in 2024 vs. 0.1 in 2023)

The decrease in the debt-equity ratio from 0.1 to 0.06 indicates that the company has reduced its reliance on debt financing or increased its equity base. This is typically viewed positively by investors as it implies less risk associated with high leverage.

Debt Service Coverage Ratio (8.67 in 2024 vs. 3.46 in 2023)

A significant increase in this ratio indicates the company’s enhanced ability to service its debt from operational earnings. A higher ratio is a positive sign, showing increased efficiency in generating sufficient operating income to cover debt payments.

Return on Equity Ratio (4.84% in 2024 vs. 3.53% in 2023)

There’s an improvement in the return on equity, which measures the profitability from shareholders ' equity. The increase signifies better utilization of equity to generate profits.

Inventory Turnover Ratio (3.18 in 2024 vs. 4.31 in 2023)

The decrease in the inventory turnover ratio could indicate slower sales or increased inventory levels. This might suggest overstocking or inefficiencies in inventory management, possibly reflecting decreased demand for products.

Trade Receivables Turnover Ratio (194 in 2024 vs. 242 in 2023)

A lower ratio in 2024 suggests that the company is slower in collecting its accounts receivable or sales have declined. This could potentially lead to cash flow issues if not managed properly.

Trade Payables Turnover Ratio (37 in 2024 vs. 45 in 2023)

The decrease in this ratio indicates the company is taking longer to pay its suppliers. While this could help with short-term cash flow, it might strain relationships with suppliers or indicate cash management issues.

Net Capital Turnover Ratio (160.48 in 2024 vs. 201.38 in 2023)

This ratio has decreased, suggesting that the company is generating less revenue per unit of capital employed. This could indicate less efficient use of capital or lower sales efficiency.

Net Profit Ratio (5.2% in 2024 vs. 4.18% in 2023)

An increase in this ratio shows that the company has been more effective at converting sales into actual profit, suggesting better cost management or higher margins.

Return on Capital Employed (6.99% in 2024 vs. 10.53% in 2023)

The decrease in this ratio indicates a lower rate of return from the capital employed, which might point to decreased operational efficiency.

Return on Investment (3.67% in 2024 vs. 2.6% in 2023)

This ratio indicates an improvement in the effectiveness of the company’s investment policies and its ability to generate returns on investment.

Dividend History

Particulars	2024	2023
Dividend Per Share (in rs.)	-	-
Retained Earnings (Rs. In Lakhs)	75,516.48	1,17,275.12

ACS Technologies Limited Recent Financial Performance

Dividend per Share: The specific dividend per share figure for 2024 and 2023 is not provided. Dividend per share represents the portion of a company 's earnings that is distributed to shareholders in the form of dividends. A higher dividend per share may indicate that the company is sharing more of its profits with shareholders.

Retained Earnings: Retained earnings for 2024 amounted to Rs 75,516.48 Thousand, while in 2023, they were Rs. 1,17,275.12 Thousand. Retained earnings represent the portion of a company 's profits that is reinvested in the business rather than distributed as dividends. An increase in retained earnings suggests that the company has retained more of its profits for reinvestment or future growth.

To provide a more comprehensive analysis, it would be necessary to consider additional financial metrics such as revenue, net profit, assets, liabilities, and cash flows. Additionally, an analysis of trends over multiple years and a comparison to industry benchmarks and competitors would help in assessing the company 's financial health and performance.