Credo Mineral Annual Reports, Balance Sheet and Financials

Credo Advanced Chemicals Limited Balance Sheet (Rs in Lakhs)

Credo Advanced Chemicals Limited Profit & Loss Statement (Rs in Lakhs)

 Credo Advanced Chemicals Limited 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 net profit before tax and extraordinary items stands at ₹2,664.98 lakhs, supplemented by non-cash adjustments such as depreciation and amortization (₹1,873.45 lakhs), interest expenses (₹2,721.83 lakhs), and deferred tax (₹881.10 lakhs). These non-cash items boost the operating cash flow by adjusting the net profit for items that don’t directly involve cash.

Working capital changes reflect some fluctuations: a decrease in trade receivables (₹378.75 lakhs) and an increase in trade payables (₹411.76 lakhs) aid cash inflow, while an increase in inventories (₹195.79 lakhs) signals a cash outflow.

After taxes, the net cash flow from operating activities totals ₹7,891.92 lakhs, indicating a solid cash inflow from core operations.

Cash Flow from Investing Activities

Significant investments were made in tangible assets, with a cash outflow of ₹4,746.33 lakhs. However, there was an offsetting increase in Capital Work in Progress (CWIP) by ₹4,787.26 lakhs, reflecting a net inflow likely due to project completion or asset capitalization.

Other activities included the purchase/sale of intangible assets, and some returns from current investments (₹178.34 lakhs), alongside interest received (₹21.52 lakhs).

Overall, the net cash used in investing activities was modest at -₹287.98 lakhs, primarily due to offsets between asset purchases and CWIP adjustments.

Cash Flow from Financing Activities

The financing activities led to a net cash outflow of ₹10,092.02 lakhs, primarily from substantial repayments on long-term borrowings (₹4,250.18 lakhs) and finance costs (₹2,721.83 lakhs).

Other financing adjustments included changes in minority interest, which added ₹432.40 lakhs, and a reduction in other equity by ₹2,935.21 lakhs, indicating possibly distributions or capital adjustments.

These outflows indicate significant debt servicing and equity adjustments, reflecting a focus on reducing long-term financial obligations.

Financial Ratios of Credo Advanced Chemicals Limited

Here is a summary of the financial and operational metrics for Credo Advanced Chemicals Limited for the year 2024:

Current Ratio (1.51 in 2024 vs. 2.35 in 2023)

The current ratio measures the company’s liquidity by comparing current assets to current liabilities. A decrease from 2.35 to 1.51 suggests a decline in liquidity, meaning the company has less short-term asset coverage for its liabilities compared to the previous year. However, a ratio above 1 still shows that the company can meet its short-term obligations.

Debt-Equity Ratio (0.08 in 2024 vs. 0.11 in 2023)

This ratio indicates the proportion of debt financing relative to equity. The slight decrease from 0.11 to 0.08 reflects a slight reduction in leverage, suggesting a lower reliance on debt compared to equity. A lower debt-equity ratio can be beneficial for risk management, as the company is less dependent on borrowed funds.

Debt Service Coverage Ratio (0.26% in 2024 vs. 2.72% in 2023)

The debt service coverage ratio (DSCR) assesses the company’s ability to cover its debt obligations. A steep decrease to 0.26% from 2.72% implies that the company’s ability to meet debt payments from its earnings has significantly weakened. This low ratio indicates potential challenges in covering debt costs and could signal cash flow constraints.

Trade Receivables Turnover Ratio (0 in 2024 vs. 58.81 in 2023)

A drop to 0 suggests either a complete absence of trade receivables or that the turnover rate is extremely low, indicating a potential shift away from credit sales or an issue with collecting receivables. In comparison, 2023’s turnover of 58.81 implied high efficiency in collecting payments from customers.

Net Capital Turnover Ratio (29.40% in 2024 vs. 21.59% in 2023)

The net capital turnover ratio measures how effectively the company is utilizing its working capital. An increase to 29.40% from 21.59% suggests improved efficiency, with higher sales generated per unit of working capital. This reflects positively on the company 's operational management.

Net Profit Ratio (-4.89% in 2024 vs. 7.83% in 2023)

The net profit ratio indicates profitability relative to revenue. A shift from a positive 7.83% to -4.89% indicates that the company incurred losses in 2024 compared to the previous year’s profits. This negative trend may be due to higher expenses or lower revenue, impacting overall profitability.

Return on Capital Employed (ROCE) (0.41% in 2024 vs. 1.35% in 2023)

ROCE measures the efficiency of capital usage in generating profit. A decrease to 0.41% from 1.35% suggests reduced effectiveness in generating returns from capital employed, which may indicate less productive use of resources or higher capital investment with lower immediate returns.

Return on Investment (ROI) (1.23% in 2024 vs. 4.60% in 2023)

ROI assesses the profitability of investments made by the company. A decrease from 4.60% to 1.23% suggests that the returns on the company’s investments have declined, which may be due to lower gains or increased investment costs without proportionate returns.