Balaji Agro Oils Annual Reports, Balance Sheet and Financials

Balaji Agro Oils Limited Balance Sheet (Rs in Lakhs)

Balaji Agro Oils Limited Profit & Loss Statement (Rs in Lakhs)

Balaji Agro Oils 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 for the Year: The company made a profit of ₹249.94 crore in 2024 compared to ₹118.02 crore in 2023. This reflects a significant improvement in profitability.

Adjustments: The non-cash adjustments include depreciation of assets (₹143.34 crore in 2024 and ₹143.76 crore in 2023), finance costs (₹172.13 crore in 2024 and ₹160.38 crore in 2023), and a negative interest from fixed deposits (-₹33.05 crore in 2024 and -₹8.53 crore in 2023). Additionally, there was a fair value change in investments, reflecting a slight decrease in value (-₹5.18 crore in 2024 and -₹0.46 crore in 2023).

Operating Profit before Working Capital Changes: After these adjustments, the operating profit before working capital changes was ₹527.17 crore in 2024 and ₹413.17 crore in 2023, showing a better operational performance.

Changes in Working Capital:

There was a significant increase in trade receivables by ₹654.32 crore in 2024, reversing the decrease of ₹332.59 crore in 2023.

Inventories decreased by ₹395.35 crore in 2024, improving liquidity, whereas they had increased by ₹62.69 crore in 2023.

Other financial assets increased slightly (-₹22.73 crore in 2024).

Current assets saw a moderate decrease of ₹42.23 crore in 2024, while they had increased by ₹71.22 crore in 2023.

Trade payables showed a small decrease (-₹15.37 crore in 2024 compared to -₹22.3 crore in 2023), while current liabilities also decreased by ₹48.56 crore in 2024 (up from ₹85.18 crore in 2023).

Cash Generated from Operations: After accounting for working capital changes, the company generated ₹1,532.41 crore in cash from operations in 2024, compared to just ₹9.56 crore in 2023, a drastic improvement.

Net Income Tax Paid: The company paid ₹42.88 crore in taxes in 2024, while in 2023, there was a refund of ₹1.58 crore.

Net Cash Flow from Operating Activities: After tax, the net cash flow from operating activities was ₹1,489.53 crore in 2024, a significant rise compared to ₹11.13 crore in 2023.

Cash Flow from Investing Activities

Purchase of Property, Plant, and Equipment: The company spent ₹14.57 crore on capital expenditures in 2024, a decrease from ₹37.67 crore in 2023. No sales of property occurred in 2024, but in 2023, property sales amounted to ₹2.45 crore.

Interest on Fixed Deposits: The interest earned from fixed deposits increased to ₹33.05 crore in 2024, compared to ₹8.53 crore in 2023.

Net Cash Flow from Investing Activities: The net cash flow from investing activities was positive at ₹18.48 crore in 2024, while in 2023 it was negative at -₹26.7 crore, due to higher capital expenditures.

Cash Flow from Financing Activities

Proceeds/Repayment of Long-Term Borrowings: The company raised ₹54.11 crore from long-term borrowings in 2024, lower than the ₹324.35 crore in 2023.

Proceeds/Repayment of Short-Term Borrowings: There was a repayment of ₹68.42 crore in 2024 compared to a small increase of ₹8.68 crore in 2023.

Finance Costs: Finance costs increased to ₹172.13 crore in 2024, up from ₹160.38 crore in 2023, reflecting a higher cost of borrowing.

Net Cash Flow from Financing Activities: The net cash flow from financing activities was negative (-₹186.43 crore in 2024 compared to ₹172.66 crore in 2023), largely due to higher repayments of borrowings.

Net Increase/Decrease in Cash and Cash Equivalents

The overall net increase in cash and cash equivalents in 2024 was ₹1,321.58 crore, a substantial rise compared to ₹157.1 crore in 2023. This large increase indicates strong operating cash flows and better liquidity management.

Cash & Cash Equivalents at the Beginning of the Year

At the beginning of 2024, the company had a negative cash balance of -₹1,424.04 crore, up from -₹1,581.14 crore in 2023. This was composed of:

Cash on Hand: ₹9.74 crore in 2023 and ₹22.11 crore in 2022.

Balance with Scheduled Banks: ₹359.55 crore in 2023 and ₹319.22 crore in 2022.

Secured Cash Credit: -₹1,793.33 crore in 2023 and -₹1,922.48 crore in 2022.

Cash & Cash Equivalents at the End of the Year

At the end of 2024, the company reported a negative cash balance of -₹102.46 crore, significantly improved from -₹1,424.04 crore in 2023. This was composed of:

Cash on Hand: ₹33.48 crore in 2024 compared to ₹9.74 crore in 2023.

Balance with Scheduled Banks: ₹2,200.75 crore in 2024 compared to ₹359.55 crore in 2023.

Secured Cash Credit: -₹2,336.69 crore in 2024 compared to -₹1,793.33 crore in 2023.

Financial Ratios of Balaji Agro Oils Limited

 Here is a summary of the financial and operational metrics for Balaji Agro Oils Limited for the years 2024 and 2023:

Current Ratio (2024: 2.23, 2023: 2.31)

The current ratio slightly decreased from 2.31 in 2023 to 2.23 in 2024. This indicates that the company still maintains a healthy level of liquidity and can cover its short-term liabilities with its current assets. However, the slight dip suggests a marginal decline in liquidity management efficiency.

Debt-Equity Ratio (2024: 1.49, 2023: 1.39)

The debt-equity ratio increased from 1.39 to 1.49, indicating that the company has taken on more debt relative to its equity. This rise suggests the company is relying more on borrowed funds for financing. While the ratio is still within acceptable limits, an increasing trend could point to potential risks if not managed properly.

Debt Service Coverage Ratio (2024: 1.52, 2023: 1.3)

The debt service coverage ratio (DSCR) improved to 1.52 from 1.3, reflecting the company’s enhanced ability to meet its debt obligations. A DSCR above 1 indicates the company generates enough cash to cover its debt payments, showing improved financial stability.

Return on Equity (ROE) Ratio (2024: 6.10%, 2023: 4.07%)

The return on equity ratio increased significantly from 4.07% in 2023 to 6.10% in 2024. This growth reflects that the company is generating more profit for its shareholders from their equity investments. It is a positive indicator of profitability and shareholder value creation.

Inventory Turnover Ratio (2024: 7.32, 2023: 8.74)

The inventory turnover ratio declined from 8.74 to 7.32, indicating that the company is holding onto inventory for a longer period in 2024 compared to 2023. This could suggest potential inefficiencies in inventory management or a change in demand for goods. A lower ratio may result in higher holding costs or obsolescence risk.

Trade Receivables Turnover Ratio (2024: 4.83, 2023: 5.33)

The trade receivables turnover ratio dropped from 5.33 to 4.83, meaning the company is collecting receivables less frequently in 2024. This indicates a slower collection process, which may negatively impact cash flow and working capital if not addressed.

Trade Payables Turnover Ratio (2024: 599.48, 2023: 350.9)

The trade payables turnover ratio surged from 350.9 to 599.48, suggesting that the company is paying its suppliers much faster than in 2023. This could be a sign of stronger financial discipline or the company negotiating better credit terms, but it could also reduce liquidity if not balanced with cash inflows.

Net Capital Turnover Ratio (2024: 3.95, 2023: 5.14)

The net capital turnover ratio decreased from 5.14 to 3.95, indicating that the company’s efficiency in using its working capital to generate revenue has declined. This could be due to slower sales growth or higher working capital requirements, which might lead to reduced operational efficiency.

Net Profit Ratio (2024: 1.41%, 2023: 0.59%)

The net profit ratio more than doubled, from 0.59% in 2023 to 1.41% in 2024. This shows that the company has improved its profitability and is converting a larger percentage of revenue into profit. Although the profit margin is still relatively low, the increase is a positive sign of better cost control and revenue generation.

Return on Capital Employed (ROCE) (2024: 9.41%, 2023: 6.54%)

The return on capital employed increased significantly from 6.54% in 2023 to 9.41% in 2024. This shows that the company is utilizing its capital more effectively to generate profits, which is a good indicator of operational efficiency and long-term financial health.

Return on Investment (ROI) (2024: 22.79%, 2023: 2.60%)

The return on investment jumped dramatically from 2.60% in 2023 to 22.79% in 2024, indicating that the company made highly successful investments during the year. This huge increase signals that the company 's investments yielded significantly better returns, contributing to overall profitability.