Balasore Alloys Annual Reports, Balance Sheet and Financials

Balasore Alloys Limited Consolidated Balance Sheet (Rs in Lakhs)

Balasore Alloys Limited Consolidated 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 2025 and 2024:

Cash Flow from Operating Activities

During FY 2024–25, the company reported a profit before tax of ₹9,622.83 lakh, a significant turnaround from a loss of ₹9,187.55 lakh in the previous year. This improvement indicates recovery in core operations. Various non-cash and non-operating adjustments were made, including depreciation, provisions for doubtful debts and advances, unrealised foreign exchange losses, and interest costs. The write-back of unspent liabilities provided a positive impact, while higher provisioning reflected a more conservative credit approach. After these adjustments, the company achieved an operating profit before working capital changes of ₹13,553.71 lakh, compared to an operating loss in FY 2023–24.

Working Capital Movements and Operating Cash Flow

Changes in working capital had a mixed impact on cash flows. Increases in inventories, receivables, and other financial assets resulted in cash outflows, while higher trade payables provided partial relief. The reduction in other current liabilities and financial liabilities also absorbed cash. Despite these pressures, the company generated cash from operations of ₹7,442.31 lakh, demonstrating improved cash efficiency. After paying taxes of ₹1,229.06 lakh, the net cash inflow from operating activities stood at ₹6,213.25 lakh, almost double the previous year’s operating cash inflow, reflecting stronger operational stability.

Cash Flow from Investing Activities

Investing activities resulted in a net cash outflow of ₹6,021.64 lakh, significantly higher than the prior year. This was mainly due to increased capital expenditure on property, plant and equipment and capital work-in-progress, indicating expansion or modernization initiatives. Additional cash was deployed in fixed deposits, while interest income provided some inflow. The limited proceeds from asset sales suggest that growth was largely funded through fresh investments rather than asset disposals.

Cash Flow from Financing Activities

Financing activities led to a net cash outflow of ₹482.31 lakh, a substantial improvement compared to the previous year’s outflow. The company raised long-term borrowings of ₹1,273.41 lakh, which partially offset repayments of short-term borrowings and interest payments. Lower finance costs compared to the prior year also indicate better debt management and possibly improved borrowing terms.

Net Change in Cash and Cash Equivalents

Due to higher investment outflows and financing repayments, the company experienced a net decrease in cash and cash equivalents of ₹290.70 lakh during the year. A positive foreign exchange adjustment provided marginal support. Consequently, cash and cash equivalents declined from ₹304.23 lakh at the beginning of the year to ₹105.29 lakh at year-end.

Financial Ratios of Balasore Alloys Limited

Summary of the financial and operational metrics for Balasore Alloys Limited for the year 2025 and 2024:

Current Ratio

The current ratio marginally declined from 0.90 in 2024 to 0.89 in 2025, indicating that current assets remain slightly lower than current liabilities. A ratio below 1 suggests tight short-term liquidity, meaning the company may need careful working capital management to meet short-term obligations. However, since the change is minimal, it reflects stability rather than deterioration in liquidity position.

Debt–Equity Ratio

The debt–equity ratio improved from 1.11 to 0.99, showing a reduction in reliance on borrowed funds relative to shareholders’ equity. This indicates a more balanced capital structure and lower financial risk. The improvement suggests either repayment of debt, strengthening of equity, or both, enhancing the company’s long-term solvency.

Debt Service Coverage Ratio (DSCR)

The DSCR increased sharply from –1.37 in 2024 to 5.87 in 2025, reflecting a major turnaround in the company’s ability to service its debt. A negative DSCR in the previous year indicated insufficient operating income to meet debt obligations, while a ratio well above 1 in 2025 shows strong cash generation and comfortable coverage of interest and principal repayments. This is a significant positive indicator of financial health.

Return on Equity (ROE)

The return on equity improved from –2% in 2024 to 9% in 2025, indicating a shift from losses to profitability. This shows that the company has started generating positive returns for shareholders, reflecting improved operational efficiency and earnings performance. Although the ROE is still moderate, the turnaround is a strong sign of recovery.

Inventory Turnover Ratio

The inventory turnover ratio declined from 4.12 to 3.66, suggesting that inventory is moving more slowly compared to the previous year. This could indicate higher inventory holding levels or slower sales, which may tie up working capital. While the ratio remains reasonable, management should monitor inventory efficiency to avoid obsolescence or excess stock.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio increased from 10.65 to 13.12, indicating faster collection from customers. This improvement reflects better credit control and efficient receivables management, leading to improved cash inflows and reduced credit risk.

Trade Payables Turnover Ratio

The trade payables turnover ratio declined from 2.15 to 1.29, suggesting that the company is taking longer to pay its suppliers. While this may help conserve cash in the short term, prolonged payment cycles could strain supplier relationships. The lower ratio reflects extended credit usage as part of working capital management.

Net Capital Turnover Ratio

The net capital turnover ratio remained negative but improved from –16 to –13.01, indicating better utilization of net working capital, though it is still inefficient. A negative ratio typically reflects negative working capital, where current liabilities exceed current assets. The improvement suggests gradual operational stabilization.

Net Profit Ratio

The net profit ratio improved from –1% in 2024 to 6% in 2025, indicating a clear shift from losses to profitability. This reflects better cost control, improved revenue generation, or both. The positive margin demonstrates enhanced operational efficiency, although there remains scope for further improvement.

Return on Capital Employed (ROCE)

The ROCE improved significantly from –7% to 10%, indicating that the company is now generating positive returns from its total capital employed. This improvement highlights enhanced efficiency in the use of long-term funds and reflects a strong operational turnaround.