Delta Galaxy Financials, Balance Sheet & Revenue

Delta Galaxy Engineering Service Balance Sheet (Rs in Lakhs)

Delta Galaxy Engineering Service Profit & Loss Statement (Rs in Lakhs)

 Delta Galaxy Engineering Service Cash Flows (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flow from Operating Activities

Net Profit Before Tax and Adjustments: The year began with a net profit before tax of Rs. 1,992.52 lakhs in 2024, a significant increase from Rs. 325.55 lakhs in 2023. This indicates a substantial improvement in profitability.

Adjustments: Non-cash adjustments included depreciation (Rs. 72.40 lakhs in 2024) and interest expenses (Rs. 279.55 lakhs), which increased the operating profit to Rs. 2,378.08 lakhs.

Changes in Working Capital:

Trade Payables and Other Current Liabilities increased significantly (by Rs. 500.36 lakhs and Rs. 2,822.14 lakhs respectively), boosting the cash flow.

Inventory and Trade Receivables saw considerable increases, reducing the overall cash position, as these were substantial cash outflows totaling Rs. 4,086.18 lakhs and Rs. 1,880.70 lakhs respectively.

Operating Cash Flow After Working Capital Changes: After adjustments, the company recorded a net operating loss of Rs. (2,845.24) lakhs in 2024, a slight improvement over Rs. (2,252.69) lakhs in 2023. With income tax payments, the final net cash used in operating activities was Rs. (557.72) lakhs.

Cash Flow from Investing Activities

Fixed Assets: The company made a small profit from the sale of fixed assets, with Rs. 85.62 lakhs generated, improving from a cash outflow of Rs. (511.12) lakhs in 2023.

Net Cash from Investing Activities: The total inflow from investing activities stood at Rs. 85.62 lakhs in 2024, signaling a reduced investment in assets.

Cash Flow from Financing Activities

Share Capital Issuance: The company raised Rs. 995.00 lakhs by issuing share capital in 2024, bolstering cash flow.

Borrowings: While there were minor repayments of both long-term and short-term borrowings, they resulted in moderate outflows, contrasting with substantial borrowings in 2023.

Interest Payments: Interest costs, amounting to Rs. (279.55) lakhs, slightly reduced the net cash generated from financing activities, which was Rs. 398.19 lakhs in 2024, compared to Rs. 2,464.69 lakhs in 2023.

Net Increase/Decrease in Cash and Cash Equivalents

Overall Cash Position: The net cash decreased by Rs. (73.91) lakhs in 2024, leaving a year-end balance of Rs. 110.75 lakhs, down from Rs. 184.67 lakhs in 2023.

Cash Components: By the year-end, cash in hand and bank balances totaled Rs. 110.75 lakhs.

Financial Ratios of Delta Galaxy Engineering Service

Here is a summary of the financial and operational metrics for Delta Galaxy Engineering Service Limited for the year 2024 & 2023:

Current Ratio

2024: 1.43 | 2023: 1.22

The current ratio, which measures the company’s ability to meet short-term obligations, has improved slightly. A ratio of 1.43 suggests a stable liquidity position, with sufficient current assets to cover current liabilities, though the company may aim to improve this further for added liquidity stability.

Debt-Equity Ratio

2024: 1.05 | 2023: 9.97

A substantial decrease in the debt-equity ratio signifies a reduction in reliance on debt. This significant drop from 9.97 to 1.05 indicates improved financial leverage, lowering risk and potentially reducing interest expenses, which could enhance profitability.

Debt Service Coverage Ratio (DSCR)

2024: 8.13 | 2023: 9.13

The DSCR has decreased slightly, though it remains strong at 8.13. This ratio indicates that the company generates sufficient earnings to cover debt obligations multiple times over, signaling strong solvency and low default risk, even with the slight decline from last year.

Return on Equity (ROE)

2024: 51.65% | 2023: 85.02%

ROE has decreased from 85.02% to 51.65%, indicating a decline in profitability relative to shareholders’ equity. While still high, the reduction suggests that although the company remains efficient in generating returns for shareholders, the returns have moderated compared to the previous year.

Inventory Turnover Ratio

2024: 3.64 | 2023: 7.29

A decrease in inventory turnover ratio reflects that inventory is moving slower through sales. This could be due to increased inventory levels or slower sales, potentially impacting cash flow and increasing storage costs. A ratio of 3.64 may indicate room for improvement in inventory management.

Trade Receivables Turnover Ratio

2024: 4.64 | 2023: 4.36

A slight improvement in this ratio implies better efficiency in collecting receivables. This marginal increase suggests that the company is converting credit sales into cash slightly faster than in the previous year, positively impacting liquidity.

Trade Payables Turnover Ratio

2024: 1.5 | 2023: 2.38

A lower trade payables turnover ratio indicates the company is taking longer to pay suppliers. While this may help short-term cash flow, it could impact supplier relationships if payments are delayed beyond reasonable terms. A ratio of 1.5 could suggest a need to manage payables more actively.

Net Capital Turnover Ratio

2024: 4.81 | 2023: 6.89

A decrease in this ratio suggests that the company generated less revenue per unit of working capital compared to the previous year. This may indicate that additional working capital is not being as effectively utilized for revenue generation as before, highlighting a potential area for efficiency improvements.

Net Profit Ratio

2024: 8.05% | 2023: 3.42%

The net profit ratio has more than doubled, indicating a significant improvement in profitability. This ratio increase implies better cost control, higher revenues, or a reduction in expenses relative to revenue, enhancing the company’s bottom line and suggesting stronger overall financial health.

Return on Capital Employed (ROCE)

2024: 53.92% | 2023: 19.05%

A substantial rise in ROCE reflects that the company is generating significantly higher returns on its employed capital. This improvement suggests efficient utilization of both debt and equity resources, potentially due to improved operational performance or better capital management.