Amalgamations Repco Annual Reports, Balance Sheet and Financials

Amalgamations Repco Limited Balance Sheet (Rs in Lakhs)

 Amalgamations Repco Limited Profit & Loss Statement (Rs in Lakhs)

Amalgamations Repco 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’s operating cash flow improved significantly from a net inflow of ₹427.8 lakhs in FY 2023 to ₹876.2 lakhs in FY 2024. Despite a substantial decrease in profit before tax from ₹517.58 lakhs to ₹98.4 lakhs, adjustments such as increased depreciation, lower profit on asset disposals, and a notable increase in working capital requirements (particularly a significant rise in inventories and a decrease in trade payables) contributed to the increase in cash flow from operating activities. The positive adjustments to working capital, including a reduction in trade receivables and other assets, helped offset the higher cash usage in operations.

Investing Activities: The net cash outflow from investing activities decreased from ₹611.65 lakhs in FY 2023 to ₹337.53 lakhs in FY 2024. This reduction is primarily due to a smaller outlay for the purchase of property, plant, and equipment and an increase in bank deposits made during the year. Despite the lower cash outflow, the company continued to invest in its infrastructure while also seeing some cash inflows from the sale of property and interest received.

Financing Activities: The net cash outflow from financing activities increased significantly from an inflow of ₹195.83 lakhs in FY 2023 to an outflow of ₹464.14 lakhs in FY 2024. This shift is attributed to higher repayments of borrowings and a significant cash credit repayment, alongside increased finance costs and dividends paid. The company raised some funds through term loans, but this was insufficient to cover the larger outflows for debt repayment and other financing activities.

 Financial Ratios of Amalgamations Repco Limited

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

1. Current Ratio: The current ratio has decreased slightly from 1.28 in 2023 to 1.25 in 2024. This ratio measures the company’s ability to cover its short-term liabilities with its short-term assets. A ratio above 1 indicates that the company has more current assets than current liabilities, which is generally favorable. The slight decline suggests a minor reduction in liquidity, possibly due to an increase in short-term obligations or slower growth in current assets. Despite the decrease, the ratio remains healthy, indicating adequate short-term financial stability.

2. Debt-Equity Ratio: The debt-equity ratio has improved from 0.28 in 2023 to 0.19 in 2024, reflecting a lower proportion of debt relative to equity. This improvement indicates that the company has reduced its reliance on borrowed funds and has strengthened its equity base. A lower debt-equity ratio is favorable as it implies lower financial risk and reduced leverage, leading to enhanced financial stability and less burden of interest payments.

3. Debt Service Coverage Ratio (DSCR): The DSCR has declined significantly from 1.92 in 2023 to 0.94 in 2024. This ratio measures the company’s ability to service its debt with its operating income. A ratio below 1 indicates that the company’s operating income is insufficient to cover its debt obligations, which is concerning. This sharp decline could be due to increased debt servicing costs or reduced operating income, highlighting a potential strain on cash flow and the need for improved debt management.

4. Return on Equity (ROE): The ROE has decreased from 0.11 in 2023 to 0.04 in 2024. This ratio indicates the return generated on shareholders ' equity. A decrease in ROE signifies that the company is generating lower profits from its shareholders’ investments. This decline might be due to reduced net income or increased equity, reflecting weaker profitability and efficiency in using equity capital to generate returns.

5. Inventory Turnover Ratio: The inventory turnover ratio has decreased from 7.09 in 2023 to 6.76 in 2024. This ratio measures how efficiently the company is managing and selling its inventory. A lower ratio suggests that inventory is being sold and replaced at a slower pace, which could indicate excess inventory or decreased sales efficiency. This reduction may impact cash flow and indicate potential issues with inventory management or market demand.

6. Trade Receivables Turnover Ratio: The trade receivables turnover ratio has decreased from 5.32 in 2023 to 5.1 in 2024. This ratio assesses how effectively the company collects payments from its customers. A lower ratio suggests that it is taking slightly longer to collect receivables. This can affect cash flow and may indicate issues with credit control or slower customer payments.

7. Trade Payables Turnover Ratio: The trade payables turnover ratio has decreased from 3.95 in 2023 to 3.47 in 2024. This ratio measures how quickly the company pays its suppliers. A lower ratio indicates that the company is taking longer to settle its payables, which could be a strategy to manage cash flow or a sign of potential liquidity issues.

8. Net Capital Turnover Ratio: The net capital turnover ratio has improved significantly from 12.57 in 2023 to 16.44 in 2024. This ratio evaluates how effectively the company uses its capital to generate sales. An increase indicates that the company is more efficient in using its capital base to drive revenue growth. This improvement reflects better capital utilization and operational efficiency.

9. Net Profit Ratio: The net profit ratio has decreased from 0.02 in 2023 to 0.01 in 2024. This ratio measures the net profit as a percentage of sales. A lower ratio indicates a decrease in profitability, suggesting that the company’s net income has declined relative to its sales. This decline may reflect higher costs, lower sales, or other factors impacting overall profitability.

10. Return on Capital Employed (ROCE): The ROCE has fallen from 0.14 in 2023 to 0.04 in 2024. This ratio measures the return generated from the capital employed in the business. A lower ROCE indicates reduced efficiency in generating profits from capital investments. This significant drop might be due to a decrease in operating profit or an increase in capital employed, signaling reduced effectiveness in utilizing capital to generate returns.

11. Return on Investment (ROI): The ROI has decreased from 0.06 in 2023 to 0.02 in 2024. This ratio evaluates the return generated from overall investments. A lower ROI suggests that the returns from investments have declined relative to the investment amount. This decrease may indicate lower profitability from investments or increased investment levels without a proportional increase in returns.

Dividend History