Amrut Dredging and Shipping Limited

Amrut Dredging and Shipping Limited Balance Sheet (Rs in Lakhs)

 Amrut Dredging and Shipping Limited Profit & Loss Statement (Rs in Lakhs)

 Amrut Dredging and Shipping Limited 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:

Net Profit Before Tax rose significantly from ₹443.30 lakh in FY 2023 to ₹1,115.66 lakh in FY 2024, indicating improved operational performance.

Adjustments: Key adjustments included depreciation, interest on lease liabilities, finance costs, and provisions for gratuity and leave encashment, reflecting increased expenses and allocations for equipment depreciation and financing costs.

Working Capital Changes: Substantial increases in current assets and inventory changes impacted cash flow, resulting in reduced liquidity. For example, current assets increased by ₹1,097.57 lakh, and trade receivables, though decreasing from the prior year, still created a significant cash outflow of ₹473.68 lakh. Trade payables and financial liabilities rose, providing a slight cash inflow.

Direct Taxes: There was a reduction in current tax paid to ₹90 lakh in FY 2024, down from ₹104.48 lakh in the previous year. However, direct taxes paid showed an increase, impacting cash flow.

Net Cash from Operating Activities for FY 2024 was ₹5.33 lakh, a considerable improvement from the outflow of ₹535.49 lakh in FY 2023, indicating better cash management despite higher working capital demands.

Cash Flow from Investing Activities:

Capital Expenditure: A major outflow of ₹5,645.02 lakh for property and equipment purchases in FY 2024 highlighted significant investment in assets, compared to ₹1,141.77 lakh in FY 2023. This expenditure was aimed at expanding capacity or upgrading infrastructure.

Sales and Investments: There was no cash inflow from property sales in FY 2024, unlike FY 2023, which had gains of ₹237.56 lakh. Additionally, changes in investments created a minor outflow of ₹9.82 lakh in FY 2024.

Net Cash Used in Investing Activities increased to ₹5,654.84 lakh in FY 2024 from ₹900.99 lakh in FY 2023, reflecting substantial capital commitments impacting liquidity.

Cash Flow from Financing Activities:

Equity Financing: A notable inflow of ₹6,709.13 lakh was raised from issuing share capital in FY 2024, a new addition that provided significant liquidity.

Long-Term Borrowings: A decrease in long-term borrowings of ₹747.81 lakh in FY 2024 contrasted with an increase in the previous year, indicating debt repayment or reduced reliance on loans.

Other Financing: Finance costs rose slightly, and dividend payments increased to ₹107.27 lakh from ₹50.06 lakh, representing increased costs and returns to shareholders.

Net Cash from Financing Activities was ₹5,660.19 lakh, up from ₹1,480.69 lakh, driven largely by share issuance, which provided substantial cash to support operations and investments.

Net Increase/Decrease in Cash & Cash Equivalents:

The overall effect of these activities led to a modest increase of ₹10.68 lakh in cash and cash equivalents in FY 2024, bringing the closing balance to ₹83.22 lakh, up from ₹72.54 lakh in FY 2023. This shows a net positive cash position after financing and investing activities, though operational cash flow remains tight.

Financial Ratios of Amrut Dredging and Shipping Limited

Here is a summary of the financial and operational metrics for Amrut Dredging and Shipping Limited for the years 2024 and 2023:

Current Ratio (4.67): This ratio, though slightly lower than 2023 (5.3), indicates strong liquidity, showing that current assets significantly cover current liabilities. This reduction suggests a slight decrease in liquidity buffer, though the company remains well-positioned to meet short-term obligations.

Debt-Equity Ratio (0.17): A decrease from 0.61 in 2023 reflects reduced leverage and reliance on debt, suggesting that the company is either repaying debt or using more equity funding. This is a positive sign of a stable capital structure with minimal financial risk.

Debt Service Coverage Ratio (0.72): This ratio improved substantially from 0.19 in 2023, indicating better capacity to cover debt obligations with operational cash flow. Although not yet at a comfortable level, this increase points to an enhanced ability to meet interest and principal payments.

Return on Equity (ROE) (0.51): A marked increase from 0.05 in 2023 demonstrates that the company is generating significantly higher returns on shareholders’ equity, indicating better profitability and efficient use of equity investments.

Inventory Turnover Ratio (6.64): An increase from 6.48 suggests improved efficiency in managing and selling inventory. This reflects effective inventory control and may signal a higher demand for products or services.

Trade Receivables Turnover Ratio (1.43): Improvement from 1.15 in 2023 indicates that the company is collecting receivables faster, enhancing cash flow. This suggests better credit management and timely collections from customers.

Trade Payables Turnover Ratio (2.19): A jump from 0.94 in 2023 implies faster payment to suppliers, which could be due to better cash availability or terms with suppliers. This is a positive for supplier relations, though it may affect short-term liquidity.

Net Capital Turnover Ratio (0.91): This slight increase from 0.85 in 2023 reflects the company’s effective use of working capital to generate revenue, indicating that the firm is maintaining efficient asset utilization.

Net Profit Ratio (0.13): A significant rise from 0.02 in 2023 shows that the company has improved its profitability, indicating higher profit margins. This is a favorable sign of operational efficiency and cost control.

Return on Capital Employed (ROCE) (0.1): The increase from 0.08 suggests better returns on total capital employed, showing more effective utilization of both debt and equity to generate profits.

Return on Investment (ROI) (0.01): A slight decrease from 0.03 suggests lower returns on investments made, which may be due to recent capital expenditures or investments that have not yet matured.