APL Metals Annual Reports, Balance Sheet and Financials

APL Metals Limited Balance Sheet (Rs in Lacs)

APL Metals Limited Profit & Loss Statement (Rs in Lacs)

APL Metals Limited Consolidated Cash Flow Statement (Rs in Lacs)

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

Net Profit/Loss Before Tax

For the year ending March 31, 2024, the company reported a net loss before tax of -1,310.16 million. In contrast, the year ending March 31, 2023, showed a profit before tax of 433.37 million. This significant shift from profit to loss suggests a substantial downturn in the company's operational performance or significant extraordinary items affecting profitability.

Adjustments to Net Profit/Loss

Profit/Loss on Sale of Assets: No profit or loss was recorded in 2024 compared to a loss of -36.52 million in 2023. This implies no significant asset sales or disposals occurred in 2024.

Finance Costs: Finance costs increased to 2,383.06 million in 2024 from 1,889.81 million in 2023, reflecting a higher cost of borrowing or interest payments.

Depreciation & Amortization Expenses: Depreciation and amortization remained relatively stable, showing minor decrease from 151.24 million to 150.52 million.

Interest Income: Interest income decreased from -7.36 million in 2023 to -3.03 million in 2024, which might be due to lower interest rates or reduced investment income.

Sundry Balance Written Back: A minor write-back of 0.06 million was recorded in 2024, whereas no such entry was reported in 2023.

Sundry Balance Written Off: There was a write-off of 0.41 million in 2023, with no such write-off in 2024.

Operating Profit Before Working Capital Changes

The operating profit before working capital changes dropped from 2,430.95 million in 2023 to 1,220.45 million in 2024. This reduction indicates a decline in core operating performance or increased operational costs.

Changes in Working Capital

Provisions: Provisions decreased by 3.2 million in 2024 compared to an increase of 1.8 million in 2023, indicating a lower need for provisioning.

Trade Payables: There was a significant increase of 10,089.82 million in trade payables in 2024, versus a decrease of -2,243.98 million in 2023. This large increase suggests higher payables, which could reflect extended payment terms or increased purchases.

Other Financial Liabilities: A small increase of 4.66 million was noted in 2024, compared to a similar but slightly larger increase of 11.03 million in 2023.

Other Current Liabilities: There was a decrease of -399.81 million in 2024, compared to an increase of 373.17 million in 2023.

Other Non-Current Liabilities: No changes were recorded in 2024, whereas a decrease of -250 million was seen in 2023.

Other Non-Current Financial Assets: There was a decrease of 7.44 million in 2024 compared to a small decrease of 0.69 million in 2023.

Inventories: Inventories decreased by -3,687.22 million in 2024, which is a significant increase compared to a decrease of -1,493.42 million in 2023. This suggests a substantial reduction in inventory levels or better inventory management.

Trade & Other Receivables: An increase in trade and other receivables by 402.94 million in 2024 compared to a decrease of -575.98 million in 2023, indicating a higher receivable balance.

Other Current Financial Assets: There was a decrease of -1,552.61 million in 2024 versus an increase of 233.03 million in 2023.

Other Current Assets: A minor increase of 0.19 million in 2024 compared to a similar increase of 0.15 million in 2023.

Current Tax Assets (Net): A small increase in tax assets by -116.5 million in 2024 compared to -67.16 million in 2023.

5. Net Cash Flow from Operating Activities

The net cash flow from operating activities turned positive at 5,966.16 million in 2024, contrasting sharply with a negative cash flow of -1,579.72 million in 2023. This shift indicates a strong improvement in cash generation from core operations, likely due to better management of working capital despite a net loss before tax.

Cash Flow From Investing Activities

Purchase of Fixed Assets: The expenditure on fixed assets increased to -268.21 million in 2024 from -247.18 million in 2023, indicating continued investment in capital assets.

Proceeds from Sale of Fixed Assets: There were no proceeds in 2024 compared to 48.8 million in 2023.

Interest Received: Interest received decreased to 3.03 million in 2024 from 7.36 million in 2023.

Net Cash From Investing Activities

The net cash used in investing activities increased to -265.18 million in 2024 from -191.02 million in 2023, reflecting higher capital expenditure and lower asset sales and interest income.

Cash Flow From Financing Activities

Proceeds from Long-Term Borrowings: Increased to 3,617.37 million in 2024 from 1,822.20 million in 2023, showing more borrowing.

Repayment of Long-Term Borrowings: Increased to -4,393.85 million in 2024 from -1,906.88 million in 2023, indicating higher repayments.

Proceeds/Repayment of Short-Term Borrowings: A net repayment of -1,954.78 million in 2024 versus proceeds of 2,157.20 million in 2023.

Interest Paid: Increased to -2,383.06 million in 2024 from -1,889.81 million in 2023.

Net Cash From Financing Activities

The net cash used in financing activities became negative at -5,114.32 million in 2024 compared to a positive cash flow of 182.71 million in 2023. This significant change reflects increased repayments of borrowings and higher interest payments.

Net Increase/Decrease in Cash and Cash Equivalents

There was a positive increase of 586.66 million in 2024 compared to a negative decrease of -1,588.03 million in 2023. This improvement indicates better cash flow management or operational improvements.

Opening and Closing Cash Balances

The opening cash balance was 155.05 million in 2024, down from 1,743.08 million in 2023. The closing cash balance rose to 741.71 million in 2024 from 155.05 million in 2023. This increase in closing cash balance reflects the net positive cash flow during the year despite significant financing outflows.

Financial Ratios of APL Metals Limited

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

Current Ratio

2024: 1.32

2023: 1.37

Insight: The current ratio, which measures a company's ability to cover its short-term liabilities with short-term assets, has decreased from 1.37 to 1.32. This decline suggests a slight weakening in liquidity, though the ratio remains above the ideal benchmark of 1, indicating that the company still has sufficient short-term assets to cover its short-term liabilities.

Debt Equity Ratio

2024: 5.28

2023: 4.55

Insight: The debt equity ratio has increased significantly, reflecting a rise in leverage. This ratio indicates that the company is relying more on debt compared to equity to finance its operations. A higher ratio suggests higher financial risk and greater dependence on external borrowing.

Debt Service Coverage Ratio (DSCR)

2024: -0.94

2023: 0.93

Insight: The DSCR has dropped from 0.93 to -0.94, which is a dramatic and concerning change. A negative DSCR indicates that the company is not generating enough cash flow to cover its debt obligations, signaling potential liquidity problems and financial distress.

Return on Equity (ROE)

2024: -97.43%

2023: 17.94%

Insight: The ROE has turned negative from a positive 17.94% to -97.43%. This drastic decline signifies that the company is not only failing to generate profit for its shareholders but is also eroding shareholder equity. Such a negative return could reflect severe operational issues or significant losses.

Inventory Turnover Ratio

2024: 3.36

2023: 4.48

Insight: The inventory turnover ratio has decreased, indicating a slower turnover of inventory. This could imply overstocking, slower sales, or inefficiencies in inventory management. Lower turnover may lead to higher holding costs and potential obsolescence issues.

Trade Receivables Turnover Ratio

2024: 21.61

2023: 22.75

Insight: This ratio has slightly decreased, reflecting a small decline in the efficiency of collecting receivables. While the decrease is minor, it suggests that the company may be facing slightly longer collection periods or issues with receivables management.

Trade Payables Turnover Ratio

2024: 9.67

2023: 22.53

Insight: The substantial drop in the trade payables turnover ratio indicates that the company is taking much longer to pay its suppliers. This could be a strategic decision to manage cash flow better, but it also risks straining supplier relationships and could impact future credit terms.

Net Capital Turnover Ratio

2024: 11.83

2023: 16.44

Insight: The decrease in the net capital turnover ratio shows that the company is less efficient in using its net capital to generate sales. Lower turnover suggests reduced operational efficiency or increased capital employed without a proportional increase in revenue.

Net Profit Ratio

2024: -1.40%

2023: 0.34%

Insight: The negative net profit ratio indicates that the company is operating at a loss. This is a significant decline from a positive net profit ratio in 2023 and reflects poor profitability and operational performance.

Return on Capital Employed (ROCE)

2024: 6.80%

2023: 12.30%

Insight: The ROCE has decreased from 12.30% to 6.80%, indicating a reduction in the efficiency with which the company is using its capital to generate profits. This decrease suggests that the capital employed is yielding lower returns than in the previous year.