Asiatic Oxygen Annual Reports, Balance Sheet and Financials

Asiatic Oxygen Ltd Balance Sheet (Rs in Thousands)

Asiatic Oxygen Ltd Profit & Loss Statement (Rs in Thousands)

 Asiatic Oxygen Ltd Consolidated Cash Flow Statement (Rs in Thousands)

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

Cash Flow from Operating Activities:

The company reported a significant increase in profit before tax, rising from ₹35,943 thousand in 2023 to ₹1,67,604 thousand in 2024. Despite this increase in profit, several non-cash adjustments affected the operating cash flow. Key adjustments include depreciation and amortization of ₹3,111 thousand (down slightly from ₹3,275 thousand in 2023) and finance costs of ₹4,615 thousand, indicating interest paid on borrowings. Interest income and dividend income on non-current investments led to cash inflows but were recorded as deductions from profit. Additionally, net gains on the sale of non-current investments and assets, amounting to ₹-92,579 thousand and ₹-5,079 thousand, respectively, also reduced the cash from operations.

Despite the large profit before tax, after these non-cash adjustments, the operating profit before working capital changes turned negative, at ₹-40,376 thousand in 2024 (compared to ₹-96,573 thousand in 2023). Changes in working capital provided some relief, particularly through a decrease in long-term loans and advances, contributing ₹48,921 thousand in cash. However, increases in short-term loans and advances and other liabilities, among other movements, created additional cash outflows.

Consequently, the cash generated from operations remained negative at ₹-32,189 thousand in 2024, slightly better than the negative ₹-80,009 thousand in 2023. After considering tax payments of ₹26,714 thousand, the net cash outflow from operating activities totaled ₹-58,903 thousand in 2024, improving from ₹-98,201 thousand in the previous year.

Cash Flow from Investing Activities:

Investing activities showed significant improvement in cash inflows in 2024. While the company spent ₹76,005 thousand on purchasing property, plant, and equipment (compared to a much smaller expenditure of ₹941 thousand in 2023), other activities generated substantial cash inflows. These included proceeds from the sale of investment property (₹27,500 thousand) and non-current investments (₹29,070 thousand). Additionally, interest received of ₹1,14,200 thousand and dividends from non-current investments (₹4,068 thousand) significantly bolstered the cash inflow.

As a result, the net cash flow from investing activities was a positive ₹1,14,556 thousand in 2024, a slight increase from ₹97,837 thousand in 2023. This suggests that despite the higher capital expenditure, the company managed to generate considerable cash from its investment activities, largely due to asset sales and investment income.

Cash Flow from Financing Activities:

In 2024, the company experienced a notable cash inflow from financing activities, primarily through proceeds from borrowings, which amounted to ₹54,686 thousand, compared to ₹11,356 thousand in 2023. After accounting for interest payments of ₹4,615 thousand, the net cash generated from financing activities was ₹50,071 thousand in 2024, a significant increase from the ₹7,705 thousand recorded in the previous year. This indicates that the company relied more heavily on external financing in 2024 to support its operations and investments.

Net Increase in Cash and Cash Equivalents:

Overall, the company saw a substantial net increase in cash and cash equivalents of ₹1,05,724 thousand in 2024, a marked improvement over the modest increase of ₹7,341 thousand in 2023. This improvement can be attributed to strong cash inflows from investing and financing activities, which offset the negative cash flows from operating activities.

Financial Ratios of Asiatic Oxygen Ltd

Here is a summary of the financial and operational metrics for Asiatic Oxygen Ltd for the year 2024 and 2023:

Current Ratio:

The current ratio measures the company 's ability to cover its short-term obligations with its short-term assets. In 2024, the current ratio stands at 23.34, a significant increase from 14.39 in 2023. A higher current ratio indicates a strong liquidity position, meaning the company has ample current assets to meet its current liabilities.

Debt Equity Ratio:

The debt-to-equity ratio indicates the proportion of debt financing relative to shareholders ' equity. In 2024, this ratio is 0.03, slightly up from 0.01 in 2023, but still quite low. A lower debt-equity ratio reflects a conservative capital structure with minimal reliance on debt.

Debt Service Coverage Ratio:

The debt service coverage ratio (DSCR) measures the company 's ability to meet its debt obligations, including interest and principal payments. In 2024, the DSCR is 2.01, compared to 1.94 in 2023, showing a slight improvement.

Return on Equity (ROE) Ratio:

ROE measures the profitability relative to shareholders ' equity. In 2024, the ROE stands at 4.60%, a substantial improvement from 1.42% in 2023. This indicates the company has significantly improved its ability to generate profits from shareholders ' equity.

Trade Receivables Turnover Ratio:

This ratio measures how efficiently the company collects its receivables. In 2024, the trade receivables turnover ratio is 10.23, compared to 4.34 in 2023. A higher ratio indicates faster collection of receivables, which improves cash flow.

Trade Payables Turnover Ratio:

This ratio measures how quickly the company pays off its suppliers. In 2024, the ratio is 30.52, compared to 29.44 in 2023. A higher ratio suggests that the company is paying its suppliers more quickly, which could indicate strong cash flow or favorable credit terms.

Net Capital Turnover Ratio:

This ratio measures the efficiency of the company in using its working capital to generate revenue. In 2024, the net capital turnover ratio is 0.35, down from 0.59 in 2023. A decrease in this ratio suggests a decline in the company 's efficiency in using its working capital to generate sales.

Net Profit Ratio:

The net profit ratio measures the company’s profitability after all expenses. In 2024, the net profit ratio is 48.20%, more than double the 21.90% recorded in 2023. This substantial increase indicates that the company has become much more profitable, either by reducing costs or increasing revenues, which is a strong positive for overall financial health.

Return on Capital Employed (ROCE):

ROCE measures the company 's ability to generate returns from its total capital employed. In 2024, the ROCE is 5.56%, up from 1.80% in 2023. This significant improvement indicates the company is utilizing its capital more effectively to generate profits

Return on Investment (ROI):

ROI measures the company 's efficiency in generating returns from its investments. In 2024, the ROI is 15.88%, up from 10.48% in 2023. This increase shows that the company has improved its ability to generate returns from its investments, indicating that its investment decisions are yielding better results and adding value to the business.