Binani Industries Annual Reports, Balance Sheet and Financials

Binani Industries Limited Balance Sheet (Rs in Lakhs)

Binani Industries Limited Profit & Loss Statement (Rs in Lakhs)

Binani Industries Limited Cash Flow Statement (Rs in Lakhs)

Cash Flow from Operating Activities:

Earnings before extraordinary items and tax:

In FY 2024, the company reported a negative cash flow of -714.76 (likely in thousands), indicating a loss before extraordinary items and taxes. The previous year (FY 2023) had a much larger negative figure of -15,072.27, showing a significant reduction in losses year-over-year.

Adjustments: In FY 2024, the adjustments include a few items, most notably a unrealized gain on exchange rate fluctuation of 8.44 and loss on realization of 13.51.

In FY 2023, adjustments included depreciation and amortization of 15.98, interest and financial cost of 1.99, a gain on exchange rate fluctuation of -154.77, and a loss on realization of 9,166.86.

Operating Profit Before Working Capital Changes: In FY 2024, the figure is -721.58, indicating a negative operating profit before considering changes in working capital.The previous year had a more negative figure of -6,126.94.

Changes in Working Capital:

Trade and Other Receivables: Increased by 110.88 in FY 2024, compared to 967.09 in FY 2023, indicating a smaller amount of receivables being collected in the recent year.

Trade and Other Payables: Decreased by -42.7 in FY 2024, compared to an increase of 5,082.97 in FY 2023. The decrease in FY 2024 suggests that the company paid off more of its payables compared to FY 2023.

Cash Generated from Operations: The company generated -653.41 from operations in FY 2024, compared to -76.88 in FY 2023. This reflects a significant decline in cash generated from operational activities in the recent year.

Income Tax Paid: There was no income tax paid in FY 2024, while in FY 2023, a small amount of 0.05 was paid.

Net Cash from Operating Activities: The net cash outflow from operating activities was -653.41 in FY 2024, compared to -76.93 in FY 2023, indicating a deterioration in operating cash flow.

Cash Flow from Investing Activities:

Proceeds from Sale of Assets Held for Sale:

The company received 5.29 from the sale of assets held for sale in FY 2024, which was not present in FY 2023.

Interest Income Received: Interest income of 20.01 was received in FY 2024, compared to 5.72 in FY 2023.

Net Cash from Investing Activities: The company had a net inflow of 25.3 in FY 2024 from investing activities, compared to a net outflow of -233.13 in FY 2023. This improvement suggests better cash management or asset liquidation in FY 2024.

Cash Flow from Financing Activities:

Proceeds from Short-Term Borrowings (Net): The company received 251 in net short-term borrowings in FY 2024, compared to 135.9 in FY 2023.

Net Cash from Financing Activities: The net cash inflow from financing activities was 251 in FY 2024, slightly higher than 130.79 in FY 2023.

Net Increase/(Decrease) in Cash and Cash Equivalents:

Net Change in Cash: There was a significant decrease in cash and cash equivalents by -377.11 in FY 2024, compared to -179.27 in FY 2023.

Closing Cash and Cash Equivalents: The closing cash and cash equivalents as of March 31, 2024, were 47.87, down from 419.18 in the previous year, indicating a considerable reduction in the company 's liquid assets.

Financial Ratios of Binani Industries Limited

Here is a summary of the financial and operational metrics for Binani Industries Limited for the years 2024 and 2023:

Current Ratio (0.06 in 2024 vs. 0.08 in 2023):

Insight: The current ratio has declined from 0.08 in 2023 to 0.06 in 2024. This extremely low ratio indicates that the company has very limited current assets relative to its current liabilities, raising concerns about its short-term liquidity. A current ratio below 1 suggests that the company might struggle to meet its short-term obligations, which could lead to liquidity issues.

Debt-Equity Ratio (-0.89 in 2024 vs. -0.93 in 2023):

Insight: The debt-equity ratio is negative, which is unusual. This could imply that the company has negative equity, meaning its liabilities exceed its assets. The ratio has slightly improved from -0.93 in 2023 to -0.89 in 2024, but the negative value still indicates a highly leveraged position or potential insolvency issues.

Return on Equity (ROE) Ratio (0.31 in 2024 vs. 0.81 in 2023):

Insight: The ROE has decreased from 0.81 in 2023 to 0.31 in 2024, indicating a decline in profitability relative to shareholders ' equity. This suggests that the company is generating lower returns for its shareholders in 2024 compared to the previous year. The significant drop points to either reduced profitability or a change in equity structure.

Trade Receivables Turnover Ratio (No data for 2024 vs. 5.5 in 2023):

Insight: The absence of data for 2024 suggests that either trade receivables were minimal or the company did not record any credit sales. In 2023, the turnover ratio was 5.5, indicating how many times the company collected its average receivables during the year. The lack of data for 2024 could indicate potential issues with credit sales or cash flow management.

Trade Payables Turnover Ratio (No data for 2024 vs. 0.02 in 2023):

Insight: Similar to the receivables turnover, there is no data for 2024, and the 2023 ratio was very low at 0.02. This low ratio in 2023 indicated that the company took a long time to pay off its suppliers. The absence of data for 2024 might suggest changes in credit terms or a significant reduction in payables.

Net Capital Turnover Ratio (No data for 2024 vs. -0.01 in 2023):

Insight: The net capital turnover ratio, which was slightly negative in 2023, suggests inefficient use of working capital. The absence of data for 2024 could indicate further deterioration in working capital management or a lack of sufficient data to compute the ratio.

Net Profit Ratio (No data for 2024 vs. -100.67 in 2023):

Insight: The net profit ratio in 2023 was extremely negative at -100.67%, indicating that the company incurred a significant loss relative to its sales. The absence of data for 2024 could suggest either ongoing losses, potentially with no revenue, or a lack of sufficient data for the ratio calculation.

Return on Capital Employed (ROCE) (0.34 in 2024 vs. 10.88 in 2023):

Insight: ROCE has drastically declined from 10.88 in 2023 to 0.34 in 2024, indicating a significant drop in the efficiency with which the company is using its capital to generate profits. This suggests that the company is not using its capital effectively in 2024.

Return on Investment (ROI) (0.04 in 2024 vs. 0.81 in 2023):

Insight: ROI has decreased significantly from 0.81 in 2023 to 0.04 in 2024, showing that the return on investments made by the company has substantially declined. This could reflect poor investment decisions or a decline in the profitability of those investments.

Dividend History

Binani Industries Limited Recent Financial Performance

Dividend per Share: The specific dividend per share figure for 2024 and 2023 is not Provided. Dividend per share represents the portion of a company 's earnings that is distributed to shareholders in the form of dividends. A higher dividend per share may indicate that the company is sharing more of its profits with shareholders.

Retained Earnings: Retained earnings for 2024 amounted to Rs -42,499.67 Lakhs, while in 2023, they were Rs -41,898.34 Lakhs. Retained earnings represent the portion of a company 's profits that is reinvested in the business rather than distributed as dividends. An increase in retained earnings suggests that the company has retained more of its profits for reinvestment or future growth.

To provide a more comprehensive analysis, it would be necessary to consider additional financial metrics such as revenue, net profit, assets, liabilities, and cash flows. Additionally, an analysis of trends over multiple years and a comparison to industry benchmarks and competitors would help in assessing the company 's financial health and performance.