Elofic Industries Annual Reports, Balance Sheet and Financials

Elofic Industries Limited Balance Sheet (Rs in Lakhs)

Particulars	31-03-2023	31-03-2022
Equity and liabilities
Shareholders’ Funds
Share Capital	250.84	250.84
Reserves and Surplus	20,670.13	16905.30
Non-current liabilities
Deferred tax liabilities (Net)	31.47	9.83
Long term provisions	0.26	0.67
Current liabilities
Short term borrowings	-	9.60
Total outstanding dues of micro enterprises and small enterprises	521.77	10.56
Total outstanding dues of creditors other than micro enterprises and small enterprises	2639.27	3841.54
Other current liabilities	514.25	595.85
short term provisions	307.51	316.97
Total Liabilities	24935.5	21941.16
Assets
Non-current assets
Property, plant and equipment	5646.17	4825.48
Intangible assets	17.33	24.44
Capital work-in-progress	563.29	1062.66
Intangible assets under development	136.35	59.41
Long-term loans and advances	278.64	222.68
Other non-current assets	1100.89	88.97
Current assets
Current investments	20.00	20.00
Inventories	5677.3	5910.93
Trade receivables	4170.7	3811.71
Cash and bank balances	5221.85	3488.43
Short-term loans and advances	1653.2	1923.78
Other current assets	449.78	502.67
Total Assets	24935.50	21941.16

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

Particulars	31-03-2023	31-03-2022
Revenue from operations	35972.17	33001.54
Other income	201.67	168.67
Total Income	36173.84	33170.21
Expenses
Cost of materials consumed	17123.8	14984.05
Purchases of stock-in-trade	583.26	581.98
Changes in inventories of Finished goods, work-in-progress and stock-in-trade	-328.46	-335.47
Employee benefits expense	4740.64	4261.52
Finance costs	34.11	25
Depreciation and amortization expense	980.11	879.36
Other expenses	7665.29	7106.68
Total expenses	30798.75	27503.12
Profit before tax	5375.09	5667.09
Tax expense
Current tax	1597.09	1724.8
Deferred tax	21.64	-10.18
Net tax expense	1618.73	1714.62
Profit after tax for the year	3756.36	3952.47
Earnings per equity share
Basic	149.75	157.57
Diluted	149.75	157.57

Elofic Industries Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2023	31-03-2022
Cash flow from operating activities
Net profit before tax	5375.09	5667.09
Adjustment for
Depreciation and amortization expense	980.11	879.36
Finance costs	34.11	25
Interest income	-176.51	-93.63
Profit/ loss on sale of property, plant and equipment	0.82	-2.85
Income of deferred government grant	-0.65	-0.8
Sundry balances written back	-4.36	-52.04
Net gain/ loss on foreign currency transaction and translation	-47.47	-93.08
Balances written off	5.12	26.43
Operating profit before working capital changes	6166.26	6355.48
Changes in working capital:
Adjustments for increase/ decrease in operating assets:
inventories	442.15	-735.63
Trade receivables	-228.48	-704.1
Long-term loans and advances	0.59	0.99
Short-term loans and advances	270.92	-1080.14
Other assets	49.16	-129.82
Adjustments for increase/ decrease in operating liabilities:
Long-term provisions	-0.41	-0.34
Trade payables	-899.44	-24.61
Other current liabilities	-82.75	1.52
Short term provisions	18.1	10.84
Cash generated from operations	5736.1	3694.19
Income taxes paid (Net)	-1632.42	-1714.39
Net cash generated from / used in operating activities	4103.68	1979.8
cash flow from investing activities
Purchase of property, plant and equipment/ intangible assets including capital work-in-progress	-1425.31	-2075.29
Proceeds from sale of property, plant and equipment	4.79	5.52
Bank balances not considered as cash and cash equivalents	-2485.06	-63.49
interest received	156.77	93.71
Net cash generated from / used in investing activities	-3748.81	-2039.55
Cash flow from Financing activities
Repayment of long term borrowings	-	-9.6
Repayment of short term borrowings	-9.6	-8.13
interest paid	-33.3	-26.05
Dividend paid	-75.25	-50.17
Net cash generated from / used in financing activities	-118.15	-93.95
Net increase/ decrease in cash and cash equivalents	236.72	-153.7
Cash and cash equivalents at the beginning of the year	258.92	408.49
Effect of exchange differences on balances with banks in foreign currency	0.09	4.13
Cash and cash equivalents at the end of the year	495.73	258.92
Cash and cash equivalents at the end of the year comprises
Cash on hand	0.25	1.17
Balance with banks in current accounts	495.48	257.75
	495.73	258.92

Here is the analysis of cash flow statement of 2023 and 2022:

Cash Flow from Operating Activities

Net Profit before Tax:

2023: ₹5375.09 million

2022: ₹5667.09 million

There was a slight decrease in the net profit before tax by ₹292 million in 2023.

Adjustments for Non-Cash and Non-Operating Items:

Depreciation and Amortization Expense:

2023: ₹980.11 million

2022: ₹879.36 million

Increase in depreciation and amortization expense indicates higher allocation of costs to the period, reflecting increased capital investments.

Finance Costs:

2023: ₹34.11 million

2022: ₹25 million

Higher finance costs in 2023 indicate an increase in borrowings or interest rates.

Interest Income:

2023: -₹176.51 million

2022: -₹93.63 million

Higher interest income suggests more interest-earning investments or deposits.

Profit/Loss on Sale of Property, Plant and Equipment:

2023: ₹0.82 million

2022: -₹2.85 million

Gain in 2023 compared to a loss in 2022 implies better disposal of assets.

Income from Deferred Government Grant:

2023: -₹0.65 million

2022: -₹0.8 million

Slight decrease in deferred government grant income.

Sundry Balances Written Back:

2023: -₹4.36 million

2022: -₹52.04 million

Significant reduction in written-back balances.

Net Gain/Loss on Foreign Currency Transactions and Translations:

2023: -₹47.47 million

2022: -₹93.08 million

Lesser foreign currency losses indicate favorable currency movements.

Balances Written Off:

2023: ₹5.12 million

2022: ₹26.43 million

Reduced balances written off reflect better receivables management.

Operating Profit before Working Capital Changes:

2023: ₹6166.26 million

2022: ₹6355.48 million

The slight decrease shows a consistent operating performance with minor variations.

Changes in Working Capital:

Inventories:

2023: ₹442.15 million increase

2022: -₹735.63 million decrease

Positive change in 2023 reflects better inventory management.

Trade Receivables:

2023: -₹228.48 million

2022: -₹704.1 million

Less increase in trade receivables in 2023, showing improved collection.

Long-Term Loans and Advances:

2023: ₹0.59 million

2022: ₹0.99 million

Minor changes with slight decreases.

Short-Term Loans and Advances:

2023: ₹270.92 million

2022: -₹1080.14 million

Significant improvement in 2023 with recovery of advances.

Other Assets:

2023: ₹49.16 million

2022: -₹129.82 million

Improved asset management in 2023.

Long-Term Provisions:

2023: -₹0.41 million

2022: -₹0.34 million

Minimal changes.

Trade Payables:

2023: -₹899.44 million

2022: -₹24.61 million

Significant reduction in payables in 2023, indicating better payments.

Other Current Liabilities:

2023: -₹82.75 million

2022: ₹1.52 million

Decrease in liabilities in 2023.

Short-Term Provisions:

2023: ₹18.1 million

2022: ₹10.84 million

Slight increase in provisions for 2023.

Cash Generated from Operations:

2023: ₹5736.1 million

2022: ₹3694.19 million

Significant improvement due to better working capital management.

Income Taxes Paid:

2023: -₹1632.42 million

2022: -₹1714.39 million

Slight decrease in tax outflows.

Net Cash Generated from Operating Activities:

2023: ₹4103.68 million

2022: ₹1979.8 million

Major improvement due to operational efficiencies and working capital management.

Cash Flow from Investing Activities

Purchase of Property, Plant, and Equipment/Intangible Assets:

2023: -₹1425.31 million

2022: -₹2075.29 million

Reduced capital expenditures in 2023.

Proceeds from Sale of Property, Plant, and Equipment:

2023: ₹4.79 million

2022: ₹5.52 million

Slight decrease in proceeds.

Bank Balances Not Considered as Cash and Cash Equivalents:

2023: -₹2485.06 million

2022: -₹63.49 million

Major outflow in 2023, possibly due to higher fixed deposits.

Interest Received:

2023: ₹156.77 million

2022: ₹93.71 million

Increase in interest income due to higher interest-bearing investments.

Net Cash Used in Investing Activities:

2023: -₹3748.81 million

2022: -₹2039.55 million

Higher outflow due to significant increase in bank balances.

Cash Flow from Financing Activities

Repayment of Long-Term Borrowings:

2023: ₹0

2022: -₹9.6 million

No repayments in 2023.

Repayment of Short-Term Borrowings:

2023: -₹9.6 million

2022: -₹8.13 million

Slight increase in short-term debt repayment.

Interest Paid:

2023: -₹33.3 million

2022: -₹26.05 million

Increase in interest payments.

Dividend Paid:

2023: -₹75.25 million

2022: -₹50.17 million

Higher dividends paid in 2023.

Net Cash Used in Financing Activities:

2023: -₹118.15 million

2022: -₹93.95 million

Higher outflow due to increased dividend and interest payments.

Net Increase/Decrease in Cash and Cash Equivalents

2023: ₹236.72 million increase

2022: -₹153.7 million decrease

Overall increase in cash position in 2023 due to strong operating cash flow despite higher investment outflows.

Cash and Cash Equivalents

Beginning of the Year:

2023: ₹258.92 million

2022: ₹408.49 million

Decrease at the start of 2023.

Effect of Exchange Differences:

2023: ₹0.09 million

2022: ₹4.13 million

Minor impact due to currency exchange differences.

End of the Year:

2023: ₹495.73 million

2022: ₹258.92 million

Substantial increase by the end of 2023.

Composition of Cash and Cash Equivalents

Cash on Hand:

2023: ₹0.25 million

2022: ₹1.17 million

Reduced cash on hand.

Balance with Banks in Current Accounts:

2023: ₹495.48 million

2022: ₹257.75 million

Significant increase in bank balances in 2023.

Financial Ratios of Elofic Industries Limited

Ratios	2023	2022
Current ratio	4.32	3.28
Debt equity ratio	-	0.001
Debt coverage ratio	3118.03	453.91
Return on equity ratio	0.18	0.23
Inventory turnover ratio	3.99	3.68
Trade receivables turnover ratio	8.69	9.26
Trade payables turnover ratio	4.87	4.17
Net capital turnover ratio	2.62	2.9
Net profit ratio	0.11	0.13
Return on capital employed	0.26	0.33

Here is the summary of financial and operational metrics for Elofic Industries Limited for year 2023 & 2022:

Liquidity Ratios

Current Ratio:

2023: 4.32

2022: 3.28

Analysis: The current ratio improved significantly in 2023, indicating a stronger liquidity position and an enhanced ability to cover short-term liabilities with short-term assets.

Solvency Ratios

Debt Equity Ratio:

2023: Not available (NA)

2022: 0.001

Analysis: The debt equity ratio is extremely low in 2022, showing minimal reliance on debt financing. The absence of this ratio in 2023 suggests either negligible or no debt, indicating a strong equity base or reduced borrowings.

Debt Coverage Ratio:

2023: 3118.03

2022: 453.91

Analysis: The debt coverage ratio has increased dramatically in 2023, suggesting an exceptionally high ability to cover debt obligations from operating income. This implies improved financial stability and reduced debt burden.

Profitability Ratios

Return on Equity (ROE) Ratio:

2023: 0.18 (or 18%)

2022: 0.23 (or 23%)

Analysis: ROE has declined, indicating a lower return generated on shareholders ' equity. This suggests a slight decrease in profitability or efficiency in generating profits from equity.

Net Profit Ratio:

2023: 0.11 (or 11%)

2022: 0.13 (or 13%)

Analysis: The net profit ratio has decreased, showing a reduction in the percentage of profit earned per unit of revenue. This could indicate higher costs or lower margins.

Efficiency Ratios

Inventory Turnover Ratio:

2023: 3.99

2022: 3.68

Analysis: The inventory turnover ratio has improved, indicating faster movement of inventory and better inventory management in 2023.

Trade Receivables Turnover Ratio:

2023: 8.69

2022: 9.26

Analysis: There is a slight decline in the trade receivables turnover ratio, implying slower collection of receivables in 2023 compared to 2022.

Trade Payables Turnover Ratio:

2023: 4.87

2022: 4.17

Analysis: The trade payables turnover ratio has increased, indicating that the company is paying off its suppliers faster in 2023 than in 2022.

Net Capital Turnover Ratio:

2023: 2.62

2022: 2.9

Analysis: The net capital turnover ratio has decreased, showing that the company is generating slightly less revenue per unit of net working capital in 2023 compared to 2022.

Dividend History

Particulars	2023	2022
Dividend per share (in Rs.)	3	3

Elofic Industries Limited Recent Financial Performance:

Dividend per Share: The specific dividend per share figure for March 2023 is Rs. 3 and 2022 is also Rs. 3, 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.

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.

Industry overview

The automotive components industry registered a CAGR of 6%, reaching $49.3 billion in FY20. Exports grew at a CAGR of 7.6% during 2016-2020, to reach $14.5 billion during the same financial year. It was found that this industry accounted for 2.3% of India’s Gross Domestic Product (GDP) by 2020. According to the Automobile Component Manufacturers Association (ACMA), automobile component export from India is expected to reach $80 billion by 2026. Thus, we can see that this industry is vital not just for automobile manufacturers but also for the overall economic development of our country.