Dewas Metal Sections Limited Annual Report, Balance Sheet, and Financials.

Dewas Metal Sections Limited Balance Sheet (Rs in Lakhs)

Dewas Metal Sections Limited Profit & Loss Statement (Rs in Lakhs)

 Dewas Metal Sections 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

Net Profit Before Tax and Adjustments: The company reported a net profit before tax and extraordinary items of ₹699.76 lakhs in 2024, down from ₹1,237.94 lakhs in 2023. Key adjustments included depreciation (₹468.64 lakhs), finance costs (₹869.40 lakhs), and provisions for bad debts (₹36.09 lakhs).

Working Capital Changes: Working capital changes include an increase in inventory (₹379.76 lakhs), changes in payables (₹1,149.57 lakhs), and receivables (-₹1,485.94 lakhs), showing mixed cash impacts due to operational transactions.

Net Cash from Operations: After accounting for income tax, net cash generated from operating activities was ₹1,850.08 lakhs in 2024, an increase from ₹1,659.79 lakhs in 2023, reflecting strong operational cash flows.

Cash Flow from Investing Activities

Investment and Asset Transactions: The company had outflows for fixed assets (₹1,041.86 lakhs) and proceeds from the sale of assets (₹14.24 lakhs), along with receipts from investments (-₹75.90 lakhs).

Net Cash Used in Investing Activities: Overall, there was a net cash outflow from investing activities of ₹1,103.52 lakhs in 2024, up from a smaller outflow of ₹303.80 lakhs in 2023, mainly due to higher asset purchases.

Cash Flow from Financing Activities

Borrowings and Interest: Financing activities included repayments of long-term borrowings (₹262.57 lakhs) and proceeds from short-term borrowings (₹782.61 lakhs), alongside redemption of preference shares (-₹129.43 lakhs) and interest payments (-₹869.40 lakhs).

Net Cash Used in Financing Activities: The financing activities resulted in a net outflow of ₹478.79 lakhs in 2024, which, while still an outflow, shows improvement compared to the outflow of ₹1,219.70 lakhs in 2023.

Net Increase in Cash and Cash Equivalents

Overall Cash Flow: Combining all activities, the company had a net increase in cash and cash equivalents of ₹267.77 lakhs in 2024, up from ₹136.29 lakhs in 2023. This brought the cash balance at the end of the period to ₹788.18 lakhs, reflecting a positive movement in cash position year-over-year despite high investing and financing outflows.

Financial Ratios of The Canara Workshops Limited

Here is a summary of the financial and operational metrics for The Canara Workshops Limited for the year 2023 and 2024:

Current Ratio (2024: 1.32, 2023: 1.47)

The current ratio, which measures a company's ability to meet its short-term liabilities with its short-term assets, has decreased slightly from 1.47 in 2023 to 1.32 in 2024. While a current ratio above 1 is generally positive, the decline suggests the company has slightly reduced its liquidity cushion.

Debt-to-Equity Ratio (2024: 1.38, 2023: 1.41)

The debt-to-equity ratio indicates the proportion of debt financing relative to equity financing. The slight decrease from 1.41 to 1.38 suggests a small improvement in leverage, indicating the company is relying marginally less on debt. However, a ratio close to 1.4 still shows a significant reliance on debt.

Debt Service Coverage Ratio (DSCR) (2024: 1.19, 2023: 1.79)

The DSCR reflects the company’s ability to cover its debt obligations from operating income. The drop from 1.79 to 1.19 is notable, indicating a reduced capacity to service debt. A DSCR close to 1.0 can be concerning, as it suggests the company’s cash flow barely covers its debt payments.

Return on Equity (ROE) (2024: 0.11, 2023: 0.21)

ROE measures the profitability relative to shareholders' equity. The decrease from 0.21 to 0.11 suggests that the company generated less profit per unit of equity in 2024, which may reflect either lower profitability or higher equity investment.

Inventory Turnover Ratio (2024: 8.33, 2023: 8.44)

This ratio indicates how quickly inventory is sold and replaced. A decrease from 8.44 to 8.33 suggests a slight reduction in inventory efficiency, meaning it takes the company slightly longer to turn over its inventory.

Trade Receivables Turnover Ratio (2024: 6.47, 2023: 8.78)

This ratio shows how effectively the company collects receivables. The decline from 8.78 to 6.47 implies that the collection process has slowed, potentially increasing the risk of uncollected receivables.

Trade Payables Turnover Ratio (2024: 8.03, 2023: 11.44)

This ratio reflects how often the company pays off its suppliers. The drop from 11.44 to 8.03 suggests a slower rate of paying suppliers, which may improve short-term liquidity but could affect supplier relationships if payments are delayed.

Net Capital Turnover Ratio (2024: 11.48, 2023: 9.93)

The net capital turnover ratio, which measures how effectively the company uses its working capital, has improved from 9.93 to 11.48. This indicates that the company has increased its efficiency in generating revenue from its working capital.

Net Profit Ratio (2024: 0.02, 2023: 0.03)

This ratio represents the profit margin of the company. A decrease from 0.03 to 0.02 signals a lower profitability margin, possibly due to increased costs or reduced revenues.

Return on Capital Employed (ROCE) (2024: 0.20, 2023: 0.27)

ROCE assesses the efficiency of capital use in generating profit. The decline from 0.27 to 0.20 indicates reduced efficiency in capital usage, suggesting the company is generating less profit per unit of capital employed.