Balasore Alloys Annual Reports, Balance Sheet and Financials

Balasore Alloys Limited Balance Sheet (Rs in Lakhs)

Balasore Alloys Limited Profit & Loss Statement (Rs in Lakhs)

 Balasore Alloys 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:

The company reported a net loss before tax of ₹9,187.55 lakhs in 2024, an improvement from the loss of ₹22,451.36 lakhs in 2023. Despite the substantial loss, several non-cash adjustments positively impacted cash flow. Key adjustments included depreciation/amortization expenses of ₹2,305.95 lakhs, a net loss on foreign exchange of ₹965.78 lakhs, and a provision for doubtful debts of ₹638.04 lakhs, which helped offset the losses. Additionally, the company recorded interest expenses of ₹2,283.16 lakhs but also received interest income of ₹616.98 lakhs, partially reducing the outflows.

Working capital changes played a crucial role in improving cash flow from operations. Significant movements include a decrease in trade receivables by ₹5,527.34 lakhs, indicating faster collection of dues, and a decrease in inventories by ₹2,708.14 lakhs, which reflects better inventory management or reduced stock levels. There was also an increase in trade payables and other liabilities by ₹2,888.51 lakhs, contributing positively to cash flow.

Overall, the company generated ₹4,042.63 lakhs from operations, a significant turnaround from the cash outflow of ₹28,782.24 lakhs in 2023. After adjusting for taxes paid of ₹486.17 lakhs, the net cash flow from operating activities stood at ₹3,556.47 lakhs, signaling an improvement in cash flow management despite ongoing losses.

Cash Flow from Investing Activities:

Investing activities primarily involved capital expenditure. The company spent ₹1,666.30 lakhs on purchasing property, plant, and equipment (PPE), which is a significant outflow compared to previous years. Additionally, there was a net outflow of ₹1,177.52 lakhs due to investments in fixed deposits. Despite these outflows, the company generated ₹296.74 lakhs in interest income and realized ₹7.01 lakhs from the sale of fixed assets.

In total, net cash used in investing activities was ₹2,540.07 lakhs, compared to a small inflow of ₹302.19 lakhs in 2023. The higher capital expenditure reflects ongoing investment in the company’s fixed assets, although it contributed to a negative cash flow in this segment.

Cash Flow from Financing Activities:

Financing activities saw significant changes during the year. The company did not take on any new long-term borrowings in 2024, in contrast to 2023, when it raised ₹53,103.45 lakhs. Instead, the company had a net outflow of ₹926.81 lakhs in short-term borrowings, indicating repayments or reductions in short-term debt. Additionally, interest paid amounted to ₹2,163.33 lakhs, reflecting a decline from ₹6,775.95 lakhs in 2023, likely due to the reduction in overall borrowing levels.

As a result, the net cash used in financing activities amounted to ₹3,090.14 lakhs, compared to a large inflow of ₹30,699.63 lakhs in the previous year, primarily due to the absence of new borrowings and the repayment of interest and short-term debt.

Financial Ratios of Balasore Alloys Limited

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

Current Ratio:

The current ratio compares a company 's current assets to its current liabilities, indicating its short-term liquidity. In 2024, the current ratio was 0.9, down from 1.01. A ratio below 1 means the company does not have enough current assets to cover its current liabilities, suggesting potential liquidity concerns.

Debt-Equity Ratio:

The debt-equity ratio increased from 1.02 to 1.11 in 2024, indicating the company’s reliance on debt relative to equity. A ratio of 1.11 means the company has ₹1.11 of debt for every ₹1 of equity, reflecting a moderate level of leverage.

Debt Service Coverage Ratio (DSCR):

The debt service coverage ratio (DSCR) decreased significantly from 0.38 in the previous year to -1.37 in 2024. A DSCR below 1 indicates that the company does not generate sufficient earnings to cover its debt obligations.

Return on Equity (ROE):

The return on equity (ROE), which measures how well the company generates profit from shareholders ' equity, improved slightly from -0.27 in the previous year to -0.02 in 2024. Although still negative, the improvement suggests the company is reducing its losses and moving closer to break-even.

Inventory Turnover Ratio:

The inventory turnover ratio jumped from 1.41 in the previous year to 4.12 in 2024. This ratio measures how efficiently the company sells and replaces its inventory. The significant increase indicates that the company improved its inventory management, selling its stock more quickly.

Trade Receivables Turnover Ratio:

The trade receivables turnover ratio improved significantly, rising from 3.43 in the previous year to 10.65 in 2024. This ratio measures how efficiently the company collects payments from its customers.

Trade Payables Turnover Ratio:

The trade payables turnover ratio increased from 0.93 to 2.15 in 2024. This ratio measures how quickly the company is paying off its suppliers. The rise indicates that the company is settling its payables more promptly compared to the previous year, possibly due to improved cash management or more favorable credit terms with suppliers.

Net Capital Turnover Ratio:

The net capital turnover ratio saw a dramatic change, dropping from 51.82 in the previous year to -16 in 2024. This ratio measures how efficiently the company uses its working capital to generate revenue.

Net Profit Ratio:

The net profit ratio improved slightly from -0.45 to -0.01 in 2024. This ratio measures the percentage of revenue that remains as profit after all expenses are accounted for. Return on Capital Employed (ROCE):

The return on capital employed (ROCE), which measures the company’s ability to generate profits from its total capital, improved slightly from -0.15 in the previous year to -0.07 in 2024.