Ador Powertron Annual Report, Balance Sheet & Financials

Ador Powertron Limited Balance Sheet (Rs in Lakhs)

 Ador Powertron Limited Profit & Loss Statement (Rs in Lakhs)

 Ador Powertron Limited Consolidated Cash Flow Statement (Rs in Lakhs)

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

Operating Activities: For the year ending March 31, 2024, the company 's net profit before tax decreased to ₹1,799 lakhs from ₹2,102 lakhs in the previous year. Adjustments for non-cash items and changes in operating assets and liabilities led to an operating profit before working capital changes of ₹2,420 lakhs, down from ₹2,903 lakhs in 2023. Key adjustments included depreciation and amortization of ₹384 lakhs and interest expense of ₹428 lakhs. Significant movements in working capital included a substantial increase in trade and other receivables (₹2,590 lakhs) and inventories (₹791 lakhs), which contrasted with a smaller increase in these areas in the previous year. Conversely, there was an increase in trade payables and provisions by ₹1,084 lakhs. These changes resulted in a much lower cash inflow from operations, falling to ₹124 lakhs from ₹2,757 lakhs in the prior year. After accounting for tax payments of ₹466 lakhs, the net cash outflow from operating activities amounted to ₹342 lakhs, a significant decline from the cash inflow of ₹2,407 lakhs the previous year.

Investing Activities: In investing activities, the company experienced a net outflow of ₹466 lakhs in 2024, a slight improvement compared to the larger outflow of ₹1,375 lakhs in 2023. Key components include the acquisition of fixed assets amounting to ₹528 lakhs, down from ₹636 lakhs the previous year. The sale of fixed assets did not contribute any cash inflow in 2024, compared to ₹6 lakhs in 2023. Interest received on fixed deposits was ₹27 lakhs, compared to ₹32 lakhs the previous year. Additionally, the company had a net inflow of ₹35 lakhs from investments in associates and subsidiaries, reversing the previous year 's substantial outflow of ₹777 lakhs.

Financing Activities: The financing activities saw a significant shift, with a net cash inflow of ₹1,211 lakhs in 2024, in contrast to a net outflow of ₹922 lakhs in 2023. This change was driven by a notable increase in loans of ₹1,839 lakhs, compared to a repayment of ₹373 lakhs in the prior year. Interest and finance charges amounted to ₹428 lakhs, slightly higher than ₹399 lakhs in the previous year. Dividend payments and taxes increased to ₹200 lakhs from ₹150 lakhs in 2023.

Net Increase in Cash/Cash Equivalents: Overall, the net increase in cash and cash equivalents was ₹403 lakhs in 2024, a notable rise from ₹110 lakhs in 2023. This increase is attributed to improved financing activities and an increase in cash balances, which rose to ₹538 lakhs by the end of the year from ₹135 lakhs at the beginning.

Financial Ratios of Ador Powertron Limited

Here is a summary of the financial and operational metrics for Ador Powertron Limited for the year 2024 & 2023:

Current Ratio: The Current Ratio increased to 1.39 in 2024 from 1.31 in 2023. This ratio measures the company’s ability to cover its short-term liabilities with its short-term assets. The improvement suggests a marginally stronger liquidity position, indicating that the company is in a better position to meet its short-term obligations with its current assets.

Debt-Equity Ratio: The Debt-Equity Ratio rose to 0.4 in 2024 from 0.24 in 2023, reflecting a higher proportion of debt relative to equity. This increase indicates a higher reliance on debt financing, which could amplify both potential returns and risks. The higher ratio suggests that the company is using more borrowed funds compared to its equity base.

Debt Service Coverage Ratio: The Debt Service Coverage Ratio improved significantly to 3.97 in 2024 from 2.92 in 2023. This ratio assesses the company’s ability to service its debt (interest and principal payments) from its operating cash flows. A higher ratio indicates that the company has more than enough cash flow to cover its debt obligations, suggesting better financial stability and less risk of default.

Return on Equity (ROE): The Return on Equity dropped sharply to 4.50% in 2024 from 63.70% in 2023. ROE measures the profitability relative to shareholders ' equity. The drastic decline indicates a significant reduction in the company’s ability to generate profit from its equity, which could be due to decreased net income or increased equity.

Inventory Turnover Ratio: The Inventory Turnover Ratio decreased to 4.87 in 2024 from 5.72 in 2023. This ratio evaluates how efficiently inventory is converted into sales. A lower ratio suggests slower inventory turnover, which could indicate overstocking, declining sales efficiency, or slower-moving inventory.

Trade Receivables Turnover Ratio: The Trade Receivables Turnover Ratio slightly declined to 2.01 in 2024 from 2.11 in 2023. This ratio measures how effectively the company collects its receivables. A decrease might suggest a slight reduction in the efficiency of collecting payments from customers, potentially impacting cash flow.

Trade Payables Turnover Ratio: The Trade Payables Turnover Ratio increased to 2.89 in 2024 from 2.58 in 2023. This ratio indicates how quickly the company pays its suppliers. An increased ratio suggests that the company is paying its payables more quickly, which could imply improved supplier relationships or more stringent payment terms.

Net Capital Turnover Ratio: The Net Capital Turnover Ratio fell to 4.17 in 2024 from 5.51 in 2023. This ratio measures the efficiency of using capital to generate sales. A decline indicates a decrease in the efficiency with which capital is used to generate revenue, potentially signaling inefficiencies or reduced sales performance.

Net Profit Ratio: The Net Profit Ratio decreased significantly to 3.50% in 2024 from 63.60% in 2023. This ratio measures the percentage of revenue that remains as profit after all expenses. The dramatic drop highlights a substantial reduction in profitability, which could be due to increased costs, decreased sales, or other operational issues.

Return on Capital Employed (ROCE): The Return on Capital Employed improved to 16.90% in 2024 from 13.60% in 2023. ROCE assesses the efficiency and profitability of capital investments. An increase suggests that the company is generating higher returns from its capital, reflecting better utilization and investment returns.

Return on Investment (ROI): The Return on Investment decreased to 4.50% in 2024 from 63.70% in 2023. ROI measures the return generated on investments made by the company. The significant decline parallels the drop in ROE and net profit ratio, indicating that investment returns have diminished, possibly due to reduced profitability or increased costs.