Amol Minechem Annual Reports, Balance Sheet and Financials

Amol Minechem Limited Balance Sheet (Rs in Lakhs)

 Amol Minechem Limited Profit & Loss Statement (Rs in Lakhs)

 Amol Minechem Limited Consolidated Cash Flow Statement (Rs in Lakhs)

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

Cash Flow from Operating Activities:
The company experienced a significant improvement in profit before tax, rising to ₹1,689.85 million from ₹1,088.98 million in the previous year. This increase was supported by substantial depreciation and amortization expenses of ₹56.46 million, though slightly lower than the previous year 's ₹64.65 million. Finance costs decreased to ₹63.15 million from ₹100.89 million, indicating reduced interest expenses. The write-off of bad debts rose to ₹21.52 million, up from ₹8.81 million, reflecting higher credit losses.

Key adjustments include increased interest income of ₹453.73 million from ₹332.85 million and an unrealized gain on investment revaluation of ₹108.90 million, which was not present in the previous year. Additionally, the company saw a profit on the sale of fixed assets and a reduction in exchange rate gains.

After adjusting for working capital changes, the company’s operating profit before working capital changes increased to ₹1,251.02 million from ₹885.41 million. However, movements in working capital had mixed effects: an increase in inventories and trade receivables, along with decreases in other financial assets and other bank balances, led to variations in cash flow. Despite these fluctuations, the company generated ₹682.88 million from operations, up from ₹604.46 million. After accounting for direct taxes paid, net cash flow from operating activities improved significantly to ₹710.59 million from ₹388.73 million.

Cash Flow from Investing Activities:
The cash flow from investing activities turned negative with a net outflow of ₹-678.67 million compared to a positive inflow of ₹238.14 million in 2023. This shift was driven by substantial inter corporate loans given out, amounting to ₹-2,080.90 million, compared to ₹-1,040.15 million in the previous year. Although the company received ₹1,545.95 million in inter corporate loans back, this was less than the previous year’s ₹1,300.19 million.

Other notable activities included the purchase of fixed assets and capital advances of ₹-28.06 million and a reduction in investments. The company also received interest income of ₹86.78 million and minor amounts in dividends, which somewhat mitigated the cash outflows. Overall, investing activities had a net outflow as substantial loans given out and asset purchases overshadowed inflows.

Cash Flow from Financing Activities:
Financing activities also saw a negative cash flow of ₹-77.84 million compared to ₹-615.90 million in 2023. The reduction in outflows was due to lower repayments of borrowings (₹-23.97 million vs. ₹-520.78 million) and decreased interest payments (₹-34.57 million vs. ₹-75.14 million). The company paid a similar amount in dividends on equity shares, totaling ₹-19.30 million.

Net Increase/(Decrease) in Cash and Cash Equivalents:
Overall, the company’s cash and cash equivalents decreased by ₹-45.92 million during the year, contrasting with an increase of ₹10.97 million in the previous year. Despite positive cash flow from operating activities, significant outflows from investing and financing activities led to a reduction in cash reserves. Consequently, cash and cash equivalents at the end of the year were ₹27.22 million, down from ₹73.14 million at the beginning of the year.

 Financial Ratios of Amol Minechem Limited

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

Current Ratio: The current ratio decreased significantly to 1.92 in 2024 from 4.23 in 2023. This sharp decline suggests that while the company still maintains a ratio above 1, indicating sufficient short-term assets to cover short-term liabilities.

Debt-Equity Ratio: The debt-equity ratio improved to 0.1 in 2024 from 0.12 in 2023. This decrease indicates that the company has reduced its reliance on debt relative to its equity, suggesting a stronger balance sheet with lower financial leverage and potentially lower financial risk.

Return on Equity (ROE): The ROE decreased to 20.42% from 26.63% year-over-year. Despite the decline, a return of over 20% still indicates strong profitability relative to shareholders ' equity, though the reduction suggests lower growth in net income or increased equity base.

Inventory Turnover Ratio: The inventory turnover ratio improved to 8.98 times in 2024 from 7.26 times in 2023. This increase reflects enhanced efficiency in managing and selling inventory, indicating better inventory management and potentially stronger sales performance.

Trade Receivables Turnover Ratio: The ratio decreased slightly to 4.62 times from 5.27 times. This reduction implies that the company’s collection period for receivables has lengthened, possibly indicating slower collections or less efficient credit control compared to the previous year.

Trade Payables Turnover Ratio: The trade payables turnover ratio increased to 6.26 times from 6.04 times. This minor increase suggests that the company is paying its suppliers slightly more frequently, which could reflect improved supplier relationships or a strategic decision to manage payables more efficiently.

Net Capital Turnover Ratio: The net capital turnover ratio improved to 209.87% from 124.34%. This significant increase indicates that the company is generating more revenue per unit of capital employed, showcasing enhanced operational efficiency and a more effective use of capital resources.

Net Profit Ratio: The net profit ratio decreased to 22.71% from 26.35%. Despite the decline, the ratio remains robust, indicating that the company is still achieving a high profit margin relative to its sales. The decrease may reflect higher costs or expenses impacting profitability.

Return on Capital Employed (ROCE): The ROCE increased to 25.01% from 20.34%, signaling improved efficiency in utilizing capital to generate profits. This rise indicates that the company is delivering higher returns on its employed capital, reflecting better operational performance and financial management.

Return on Investment (ROI): The ROI surged to 33.03% from a minimal 0.57%. This dramatic increase indicates that the company has significantly improved the profitability of its investments, reflecting successful investment strategies or better returns on invested capital.