Arcotech Ltd Annual Reports, Balance Sheet and Financials

Arcotech Limited Balance Sheet (Rs in Lakhs)

Arcotech Limited Profit & Loss Statement (Rs in Lakhs)

Arcotech Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the years 2023 and 2022:

Profit Before Tax: In the year ending March 31, 2023, the company reported a profit before tax of -12,014.99, showing a decrease from -9,046.75 in the previous year.

Non-Cash Adjustments: The company made several non-cash adjustments, including depreciation and amortization, finance costs, interest income, reversal of interest expense, unrealized foreign exchange fluctuation, provision for doubtful debts, capital advances written off, provision for doubtful advances, and sundry balance written off. These adjustments are necessary to reflect the actual cash flow situation by accounting for non-cash items and adjustments.

Movement in Working Capital: There were movements in various working capital components, such as inventories, trade receivables, other bank balances, current and non-current financial assets, other current and non-current assets, financial liabilities, other current and non-current liabilities, current and non-current provisions, and trade payable. These movements impacted the cash flow generated from operations.

Cash Generated from Operations: After considering the operating profit and adjustments in working capital, the cash generated from operations was -601.72 in 2023, indicating a net outflow of cash from operating activities. In contrast, it was 225.12 in 2022, showing a significant decrease in cash generated from operations.

Direct Taxes Paid: Direct taxes paid (net of refunds) were not specified for 2023, while they amounted to -54.07 in 2022.

Net Cash Flow Used in Operating Activities: Taking into account cash generated from operations and direct taxes paid, the net cash flow used in operating activities was -601.72 in 2023 and 171.06 in 2022

Cash Flow from Investing Activities: The company engaged in the purchase and sale of property, plant, and equipment (PPE). Additionally, it received interest income. The net cash used in investing activities was 0.50 in 2023 and -4.58 in 2022.

Cash Flow from Financing Activities: The company obtained net proceeds or made repayments of current borrowings. The net cash used in financing activities was 601.63 in 2023 and -166.54 in 2022.

Net Change in Cash & Cash Equivalents: After considering cash flows from operating, investing, and financing activities, there was a net change in cash and cash equivalents of 0.41 in 2023 and -0.06 in 2022.

Cash and Cash Equivalents at the Beginning and End of the Year: The cash and cash equivalents at the beginning of the year were 0.51 in 2023 and 0.57 in 2022. By the end of the year, cash and cash equivalents increased to 0.92 in 2023 and decreased to 0.51 in 2022.

Components of Cash and Cash Equivalents: The components include cash in hand and balances with banks. These components together make up the total cash and cash equivalents.

Financial Ratios of Arcotech Limited

Here is a summary of the financial and operational metrics for Arcotech Limited for the years 2023 and 2022:

Current Ratio: The current ratio decreased from 0.56 in 2022 to 0.41 in 2023. This indicates a decline in the company 's ability to cover its short-term liabilities with its current assets. A current ratio below 1.0 suggests potential liquidity issues and may indicate difficulty in meeting short-term obligations.

Debt-Equity Ratio: The debt-equity ratio decreased significantly from 20.67 in 2022 to 8.27 in 2023. This indicates a reduction in the proportion of debt relative to equity in the company 's capital structure. A lower debt-equity ratio suggests a lower financial risk and indicates a more conservative financing approach.

Debt Service Coverage Ratio: The debt service coverage ratio decreased from -0.14 in 2022 to -0.19 in 2023. A negative debt service coverage ratio indicates that the company 's operating income is insufficient to cover its debt obligations. This suggests financial distress and an increased risk of default on debt payments.

Return on Equity: The return on equity improved significantly from -2.64% in 2022 to 1.38% in 2023. This indicates that the company generated a positive return on its shareholders ' equity during the year. However, the return is still relatively low, suggesting room for improvement in profitability.

Inventory Turnover Ratio: The inventory turnover ratio is not provided for 2023, indicating that this information might not be available or applicable for the given period.

Trade Receivables Turnover Ratio: Similarly, the trade receivables turnover ratio is not provided for 2023, indicating that this information might not be available or applicable for the given period.

Trade Payables Turnover Ratio: The trade payables turnover ratio is not provided for 2023, indicating that this information might not be available or applicable for the given period.

Net Capital Turnover Ratio: The net capital turnover ratio is not provided for 2023, indicating that this information might not be available or applicable for the given period.

Net Profit Ratio: The net profit ratio is not provided for 2023, indicating that this information might not be available or applicable for the given period.

Return on Capital Employed: The return on capital employed improved significantly from -1.83% in 2022 to 1.07% in 2023. This indicates that the company generated a positive return on its capital investments during the year. However, the return is still relatively low, suggesting room for improvement.

Return on Investment: The return on investment remained relatively stable at 0.06% in 2023 compared to 2022.

Dividend History:

Arcotech Limited Recent Financial Performance

Dividend per Share: The specific dividend per share figure for 2023 and 2022 is not provided. Dividend per share represents the portion of a company 's earnings that is distributed to shareholders in the form of dividends. A higher dividend per share may indicate that the company is sharing more of its profits with shareholders.

Retained Earnings: Retained earnings for 2023 amounted to Rs -11,767.30 Lakhs, while in 2022, they were Rs. -3551.57 Lakhs. Retained earnings represent the portion of a company 's profits that is reinvested in the business rather than distributed as dividends. An increase in retained earnings suggests that the company has retained more of its profits for reinvestment or future growth.

To provide a more comprehensive analysis, it would be necessary to consider additional financial metrics such as revenue, net profit, assets, liabilities, and cash flows. Additionally, an analysis of trends over multiple years and a comparison to industry benchmarks and competitors would help in assessing the company 's financial health and performance.