APL Metals Annual Reports, Balance Sheet and Financials

APL Metals Limited Standalone Balance Sheet (Rs in Lacs)

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

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

Summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flow from Operating Activities

The company reported a net loss before tax of ₹1,310.16 lakhs in FY24, compared to a profit of ₹433.37 lakhs in FY23, indicating a deterioration in core profitability. However, after adjusting for non-cash and financial items such as high finance costs (₹2,383.06 lakhs) and depreciation, the operating profit before working capital changes stood at ₹1,220.45 lakhs, lower than ₹2,430.95 lakhs in FY23.

A major positive shift came from working capital changes, particularly a large increase in trade payables (₹10,089.82 lakhs), which significantly boosted cash inflows. However, this was partially offset by inventory build-up (₹3,687.22 lakhs) and increases in other financial assets. Overall, despite weak profitability, the company generated a strong positive operating cash flow of ₹5,966.16 lakhs, compared to a negative ₹1,579.72 lakhs in FY23. This suggests that cash generation was largely driven by credit from suppliers rather than operational efficiency, which may not be sustainable long term.

Cash Flow from Investing Activities

Cash flow from investing activities remained negative at ₹265.18 lakhs, similar to ₹191.02 lakhs in FY23. The outflow is mainly due to capital expenditure on fixed assets (₹268.21 lakhs), indicating ongoing investment in business assets. Unlike FY23, there were no proceeds from asset sales in FY24, which slightly increased net outflows. Interest income remained minimal. Overall, investing activity reflects moderate and consistent capital spending, without aggressive expansion or major asset liquidation.

Cash Flow from Financing Activities

Financing activities showed a significant cash outflow of ₹5,114.32 lakhs in FY24, compared to a small inflow of ₹182.71 lakhs in FY23. The company raised ₹3,617.37 lakhs through long-term borrowings, but this was more than offset by repayments of ₹4,393.85 lakhs and a reduction in short-term borrowings (₹1,954.78 lakhs). Additionally, high interest payments (₹2,383.06 lakhs) further drained cash.This indicates a deleveraging trend, where the company is reducing its debt burden, but at the cost of significant cash outflows. The high interest expense also reflects heavy reliance on debt in prior periods, which is impacting liquidity.

Net Change in Cash Position

Despite strong operating cash inflows, the heavy financing outflows resulted in a net increase in cash of ₹586.66 lakhs, reversing the decline of ₹1,588.03 lakhs in FY23. The closing cash balance improved to ₹741.71 lakhs from ₹155.05 lakhs, indicating better short-term liquidity at the end of FY24.

Financial Ratios of APL Metals Limited

Summary of the financial and operational metrics for APL Metals Limited for the year 2024 and 2023:

Current Ratio

The current ratio declined slightly to 1.32 in FY24 from 1.37 in FY23, indicating a marginal weakening in short-term liquidity. Although the ratio remains above 1 (which means current assets still exceed current liabilities), the decline suggests reduced cushion to meet short-term obligations, aligning with increased working capital pressures seen in inventory and liabilities.

Debt-Equity Ratio

The debt-equity ratio increased significantly to 5.28 from 4.55, indicating a higher dependence on borrowed funds. This reflects a highly leveraged capital structure, which increases financial risk. The rise suggests that even though some debt repayment occurred, equity erosion (due to losses) has worsened the ratio, making the company more vulnerable to financial stress.

Debt Service Coverage Ratio

The DSCR turned negative (-0.94) in FY24 from 0.93 in FY23, which is a major concern. A negative DSCR indicates that the company is not generating sufficient operating income to cover its debt obligations (interest and principal). This highlights serious issues in debt servicing capacity and financial sustainability.

Return on Equity

The ROE sharply declined to -97.43% from a positive 17.94%, reflecting substantial losses in FY24. This means shareholders experienced a significant erosion in value, mainly due to net losses and high finance costs. It indicates poor utilization of shareholders ' funds during the year.

Inventory Turnover Ratio

The inventory turnover ratio decreased to 3.36 from 4.48, showing slower movement of inventory. This suggests inefficient inventory management or reduced demand, leading to higher holding periods and potential liquidity blockage in stock.

Trade Receivables Turnover Ratio

The receivables turnover ratio slightly declined to 21.61 from 22.75, indicating a marginal slowdown in collection efficiency. However, the ratio remains relatively strong, suggesting that the company is still effective in collecting dues from customers, with only a minor deterioration.

Trade Payables Turnover Ratio

The payables turnover ratio dropped sharply to 9.67 from 22.53, indicating that the company is taking significantly longer to pay its suppliers. This aligns with the large increase in trade payables seen in the cash flow statement and suggests reliance on supplier credit to manage liquidity.

Net Capital Turnover Ratio

The net capital turnover ratio declined to 11.83 from 16.44, reflecting reduced efficiency in using working capital to generate revenue. This indicates that more capital is tied up in operations relative to sales, reducing operational efficiency.

Net Profit Ratio

The net profit margin turned negative at -1.40% compared to 0.34% in FY23, showing that the company incurred losses relative to its revenue. This reflects higher costs, especially finance costs, and possibly lower operational efficiency, leading to negative profitability.

Return on Capital Employed

The ROCE declined to 6.80% from 12.30%, indicating weaker returns generated from total capital employed. Although still positive, the sharp fall shows reduced operational efficiency and profitability, and lower returns to both debt and equity providers.