Avlokiteshvar Valinv Annual Reports, Balance Sheet and Financials

Avlokiteshvar Valinv Limited Balance Sheet (Rs in Lakhs)

Avlokiteshvar Valinv Limited Profit & Loss Statement (Rs in Lakhs)

Avlokiteshvar Valinv Limited Consolidated 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:

Profit Before Tax: For 2024, the company reported a significant increase in profit before tax (PBT), rising to ₹7,378.31 lakhs from ₹443.12 lakhs in 2023. This surge in profit indicates improved business performance.

Adjustments for Non-Cash Items: The statement includes various non-cash adjustments to reconcile PBT to net cash generated by operating activities. Depreciation and amortization amounted to ₹73.96 lakhs in 2024, slightly higher than ₹65.10 lakhs in the previous year. A net loss on the sale of investments (₹5,332.98 lakhs) and investment written off (₹568.02 lakhs) contributed to a reduction in cash flow, suggesting some investments were sold at a loss or impaired during the year.

Working Capital Changes: Changes in working capital reflect adjustments to assets and liabilities that affect cash flow. Inventories decreased by ₹200.77 lakhs, and other financial assets decreased by ₹148.59 lakhs, both of which are cash inflows. Conversely, trade receivables saw an increase of ₹219.79 lakhs, which represents a cash outflow (the company is taking longer to collect receivables). The deferred tax asset increased by ₹2,040.81 lakhs, a positive cash flow adjustment, indicating a tax deferral.

Tax Payments: The company paid ₹489.80 lakhs in taxes, a higher outflow compared to ₹153.45 lakhs in 2023.

Net Cash from Operating Activities: After all adjustments, net cash from operating activities was ₹2,955.72 lakhs for 2024, which is a slight increase from ₹2,878.96 lakhs in 2023, indicating that the business continued to generate positive cash flow from operations.

Cash Flow from Investing Activities:

Investment Income: The company received ₹37.42 lakhs from interest on fixed deposits and ₹24.15 lakhs from rental income, both of which are cash inflows. These inflows were slightly higher than in the previous year (₹23.19 lakhs and ₹17.72 lakhs respectively).

Investments and Sales: The company generated substantial cash from the sale of investments (₹24,494.52 lakhs in 2024 vs. ₹5,764.37 lakhs in 2023), indicating a significant divestment of assets. However, this was partially offset by the purchase of investments, which amounted to ₹27,020.39 lakhs in 2024, up from ₹8,346.79 lakhs in 2023. The net cash used in investments was significant, reflecting the company’s strategic shift or active portfolio management.

Capital Expenditure: There was a small cash outflow of ₹9.44 lakhs for capital expenditure towards investment property. The company also incurred ₹36.21 lakhs in purchases of property, plant, and equipment.

Net Cash Used in Investing Activities: Overall, net cash used in investing activities was ₹2,755.84 lakhs in 2024, slightly more negative compared to ₹2,558.93 lakhs in the prior year, reflecting the company’s higher investment activity.

Cash Flow from Financing Activities:

Borrowings and Repayments: There were no new borrowings in 2024, but the company repaid ₹700 lakhs of borrowings, consistent with the repayment of ₹5,500 lakhs in the previous year. This indicates the company is reducing its debt levels, which could be part of a strategy to lower financial leverage or meet repayment obligations.

Interest on Loans: The company paid interest on loans (in 2023, interest paid was ₹6.95 lakhs, while it appears there was no new loan interest expense in 2024).

Net Cash from Financing Activities: As a result of repayments and no new borrowings, the net cash used in financing activities was ₹700 lakhs in 2024, a decrease compared to the ₹6.95 lakhs in 2023, indicating a reduction in financing activity and debt.

Net Change in Cash and Cash Equivalents:

Change in Cash: The net change in cash and cash equivalents was a decrease of ₹500.12 lakhs for the year 2024, compared to an increase of ₹313.08 lakhs in 2023. This decrease reflects the higher cash outflows from investing activities (due to net purchases of investments) and financing activities (due to loan repayments).

Cash at Beginning and End of Year: The company started the year with ₹1,798.37 lakhs in cash and cash equivalents, but this decreased to ₹1,298.25 lakhs by the end of the year, reflecting the overall outflows across operating, investing, and financing activities.

Financial Ratios of Avlokiteshvar Valinv Limited

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

Debt Equity Ratio

The debt-equity ratio measures the proportion of debt used to finance the company’s assets in relation to shareholder equity. The 0.02 ratio in 2023 indicates that the company has very low debt compared to equity, signifying a conservative capital structure with minimal financial risk. The absence of this ratio for 2024 could suggest no significant debt or the company is in a debt-free situation, which could be worth verifying in the company's notes or further financial reports.

Debt Service Coverage Ratio (DSCR)

The DSCR assesses the company's ability to meet its debt obligations using its operating income. A ratio of 0.73 in 2023 indicates that the company did not generate sufficient operating income to cover its debt service, which could signal potential liquidity issues. A ratio of less than 1 suggests that the company may have trouble meeting its debt obligations without relying on additional financing or restructuring.

Return on Equity (ROE)

ROE measures the profitability generated from shareholders' equity. The sharp increase from 1.16% in 2023 to 20.61% in 2024 indicates a significant improvement in the company's ability to generate profit for its equity holders. This could be due to improved profitability, better cost management, or higher returns on equity investment in 2024.

Inventory Turnover Ratio

The inventory turnover ratio indicates how many times the company’s inventory is sold and replaced during the year. A ratio of 23.41 in 2024 suggests highly efficient inventory management, as the company is turning over its inventory more than 23 times during the year, compared to just 4.23 times in 2023. This improvement indicates better inventory management and a more efficient supply chain.

Net Profit Ratio

The net profit ratio measures the proportion of revenue that is converted into profit. A significant increase from 0.31% in 2023 to 0.72% in 2024 shows that the company improved its ability to generate profit from its sales. This improvement suggests better cost control or higher revenue with relatively stable costs.

Return on Capital Employed (ROCE)

ROCE measures the company’s ability to generate profit from its capital employed (equity + debt). A dramatic increase from 1.22% in 2023 to 19.99% in 2024 suggests a strong improvement in capital efficiency, indicating that the company is generating significantly higher returns on the capital it employs. This improvement is a positive sign of operational efficiency.

Return on Investment (ROI)

ROI measures the return the company generates on its investment. The increase from 1.16% in 2023 to 20.61% in 2024 is a very significant jump, indicating that the company has become much more efficient at generating profits from its investments, which could result from better asset utilization or higher returns from invested capital.

Capital to Risk-Weighted Assets Ratio (CRAR)

CRAR measures the capital adequacy of the company, especially for banks and financial institutions. A ratio of 1.04 in 2024 indicates that the company’s capital is slightly above the required level to cover its risk-weighted assets. The small increase from 1.03 in 2023 shows that the company is maintaining a stable and sufficient capital base to support its risk profile.

Tier I CRAR

Tier I CRAR measures the proportion of the company's core equity capital to its risk-weighted assets. A decrease from 0.69 in 2023 to 0.64 in 2024 suggests a slight reduction in the core capital adequacy ratio. This could imply a slight weakening of the company’s ability to cover its risk-weighted assets with its core capital, although it still remains relatively strong.

Tier II CRAR

Tier II CRAR measures the proportion of supplementary capital (Tier II) to risk-weighted assets. The increase from 0.11 in 2023 to 0.20 in 2024 suggests that the company has strengthened its Tier II capital base. This indicates that the company has improved its overall capital position, which could be in response to regulatory requirements or to strengthen its financial stability.