AKC Steel Annual Reports, Balance Sheet and Financials

AKC Steel Industries Limited Balance Sheet (Rs in Lakhs)

AKC Steel Industries Limited Profit & Loss Statement (Rs in Lakhs)

 AKC Steel Industries Limited Cash Flow Statement (Rs in Lakhs)

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

Operating Activities: The company reported a net profit before extraordinary items and tax of Rs. 322.24 lakhs, up from Rs. 287.24 lakhs in the previous year, indicating improved profitability. Adjustments for non-cash items showed a decrease in depreciation and amortization to Rs. 45.98 lakhs from Rs. 50.74 lakhs, and a significant reduction in impairment of fixed assets, which was absent this year compared to Rs. 37.38 lakhs last year. The company also saw a slight gain from the sale of fixed assets and a modest profit from mutual fund redemptions. The operating profit before working capital changes decreased to Rs. 288.87 lakhs from Rs. 354.9 lakhs, largely due to changes in working capital. Increased inventories and trade receivables, coupled with minor reductions in trade payables and other liabilities, resulted in a lower cash generation from operations. After accounting for taxes paid, net cash flow from operating activities was Rs. 171.72 lakhs, a decrease from Rs. 469.82 lakhs in the previous year, reflecting higher operational outflows and working capital adjustments.

Investing Activities: The company had a net cash outflow from investing activities of Rs. 163.2 lakhs, compared to Rs. 118.68 lakhs in the previous year. This outflow was driven by significant additions to fixed assets amounting to Rs. 188.3 lakhs, up from Rs. 7.31 lakhs last year. However, there were inflows from the sale of fixed assets and mutual funds, which partially offset the high expenditure. The investment in mutual funds and capital advances also contributed to the negative cash flow, with a substantial increase in mutual fund investments this year.

Financing Activities: There were no cash inflows or outflows reported from financing activities this year, as opposed to the previous year, where significant cash outflows were recorded for buyback expenses and associated taxes totaling Rs. 359.73 lakhs. This absence of financing activity suggests a shift in the company’s approach, with no new financing activities or buyback transactions impacting cash flow.

Overall Cash Flow: The net increase in cash and cash equivalents was Rs. 8.52 lakhs, a slight improvement from a decrease of Rs. 8.59 lakhs in the previous year. This increase reflects a better management of cash reserves despite the substantial outflows from investing activities. Cash and cash equivalents at the end of the year were Rs. 19.74 lakhs, up from Rs. 11.22 lakhs at the beginning, indicating a positive overall cash flow situation despite the challenges faced.

Financial Ratios of AKC Steel Industries Limited

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

Current Ratio: The current ratio has improved significantly from 9.43 in 2023 to 17.23 in 2024. This substantial increase indicates a strong improvement in the company 's liquidity position. The current ratio measures the company’s ability to meet its short-term liabilities with its short-term assets. A higher ratio suggests that the company has a robust buffer of current assets relative to its current liabilities, enhancing its financial stability and short-term solvency.

Return on Equity (ROE): The ROE decreased slightly from 15.83% in 2023 to 14.89% in 2024. This ratio measures the profitability relative to shareholders ' equity, indicating how effectively the company is using shareholders ' funds to generate profit. The decline suggests a small reduction in profitability relative to equity, possibly due to increased equity or lower net income growth compared to the previous year.

Inventory Turnover Ratio: The inventory turnover ratio has decreased from 12.44 in 2023 to 11.33 in 2024. This ratio reflects how efficiently the company manages its inventory by showing how many times inventory is sold and replaced over a period. A lower ratio implies a slower inventory turnover, which could indicate overstocking, obsolescence, or slower sales.

Trade Receivables Turnover Ratio: This ratio fell from 6.26 in 2023 to 5.1 in 2024. It measures how effectively the company collects receivables from its customers. A decrease suggests that the company may be facing longer collection periods or slower customer payments, which could impact cash flow and working capital.

Trade Payables Turnover Ratio: The ratio improved from 3.81 in 2023 to 4.65 in 2024. This ratio indicates how quickly the company pays its suppliers. An increase signifies that the company is paying its trade payables more quickly, which could reflect better supplier relationships or improved liquidity.

Net Capital Turnover Ratio: The net capital turnover ratio decreased from 0.84 in 2023 to 0.67 in 2024. This ratio measures the efficiency with which the company uses its net capital to generate sales. A lower ratio suggests a decline in the efficiency of generating revenue from net capital employed, which could be due to reduced sales or increased capital investment.

Net Profit Ratio: The net profit ratio increased significantly from 43.36% in 2023 to 57.20% in 2024. This ratio indicates the percentage of sales revenue that translates into net profit. An increase in this ratio signifies improved profitability and operational efficiency, suggesting that the company has been able to convert a higher percentage of its sales into actual profit.

Return on Capital Employed (ROCE): The ROCE slightly decreased from 20.29% in 2023 to 19.22% in 2024. This ratio measures the efficiency of the company in using its capital to generate profits. The decline implies a small decrease in the return generated from capital employed, which could be due to increased capital investment or a slight reduction in profitability.

Return on Investment (ROI): The ROI for 2024 is reported at 45.57%, with no data for 2023. ROI measures the gain or loss generated relative to the investment made. A high ROI indicates a strong return on investments, suggesting that the company has achieved substantial gains relative to the amount invested, reflecting effective investment strategies and profitability.