ESL Steel Annual Reports, Balance Sheet and Financials

ESL Steel Limited Balance Sheet (Rs in Lakhs)

ESL Steel Limited Profit & Loss Statement (Rs in Lakhs)

ESL Steel 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:

Profit/(Loss) before tax:

31-03-2024: ₹ -64,917.67

31-03-2023: ₹ -47,077.25

This represents the company 's profit or loss before accounting for tax expenses.

Adjustments to Profit/(Loss) before tax:

Depreciation and amortization expenses: These are non-cash expenses that reflect the wear and tear or the allocation of intangible assets over time.

Loss/(profit) on sale/discard of fixed assets: Indicates the gain or loss incurred from selling or disposing of fixed assets.

Sundry Credit balances/Provision no longer required written back: Adjustments made for credits or provisions that are no longer necessary.

Sundry Balances written-off: Amounts written off from the books due to irrecoverable balances.

Unrealized (gain)/ Loss on foreign currency translation and transaction: Reflects gains or losses due to exchange rate changes.

Net gain/(loss) on Derivative Instruments on fair valuation through profit and loss: Gains or losses from derivative contracts valued at fair market prices.

Interest Income: Income earned from interest on investments.

Net Gain/(loss) on Current Investments on Fair Valuation through profit and loss: Gains or losses from current investments adjusted to fair market value.

Impairment Allowance for doubtful debts, Advances and deposits: Provision made for potential losses on debts or advances deemed doubtful.

Operating profit/(loss) before Working Capital Changes:

Represents the profit or loss generated from the core operations of the business before considering changes in working capital.

Movements in working capital:

Decrease/(Increase) in Inventories: Change in the value of inventory held by the company.

(Decrease)/Increase in Trade Payables, Other financial/non-financial liabilities and Provisions: Change in the amounts owed to suppliers and other liabilities.

Decrease/(Increase) in Trade Receivables (net of advances received): Change in amounts owed to the company by customers after adjusting for advances received.

Decrease/(increase) in loans and advances, Other financial/non-financial assets and other assets: Changes in loans given, advances made, and other assets held.

Direct taxes paid (net of refunds):

Taxes paid or refunded directly related to operating activities.

Net Cash flow generated / (used in) Operating Activities:

Overall cash flow generated or used in operating activities after adjusting for non-cash items and changes in working capital.

Cash Flow from Investing Activities:

Purchase of Property, Plant and Equipment (other than ROU Assets) including intangible assets and movement in Capital Work in Progress:

Cash used for acquiring or improving property, plant, equipment, and intangible assets.

Proceeds from disposal of Property, Plant and Equipment:

Cash received from selling or disposing of assets.

Movement in Fixed Deposits (having original maturity of more than three months):

Changes in fixed deposits with a maturity of more than three months.

Investment in mutual funds:

Cash used for purchasing mutual fund investments.

Sale Proceeds on disposal of mutual funds:

Cash received from selling mutual fund investments.

Interest received:

Income earned from interest on investments.

Net Cash flow generated / (used in) Investing Activities:

Overall cash flow generated or used in investing activities, reflecting the net impact of all transactions.

Cash Flow from Financing Activities:

Repayment of long-term borrowings:

Cash used to repay long-term borrowings.

Proceeds/(Repayment) from short-term borrowings (net):

Cash received from or used for short-term borrowing activities.

Payment against Lease Liabilities (including cost of land for afforestation):

Cash used for paying lease liabilities, including specific costs.

Interest and other borrowing cost paid:

Cash used for paying interest and other borrowing costs.

Net Cash flow generated / (used in) Financing Activities:

Overall cash flow generated or used in financing activities, after accounting for all borrowing and repayment activities.

Financial Ratios of ESL Steel Limited

Here is a summary of the financial and operational metrics for ESL Steel Limited for the year 2024 & 2023:

Current Ratio:

2024: 0.41

2023: 0.66

Insight: The current ratio measures the company 's ability to cover its short-term liabilities with its short-term assets. A current ratio below 1 indicates that the company may have difficulty meeting its short-term obligations. The decrease from 2023 to 2024 suggests a worsening liquidity position.

Debt-Equity Ratio:

2024: 0.55

2023: 0.47

Insight: The debt-equity ratio indicates the proportion of debt and equity used to finance the company 's assets. An increase in this ratio typically means higher financial leverage. In this case, the increase suggests a higher reliance on debt financing compared to equity in 2024.

Debt Service Coverage Ratio:

2024: 0.23

2023: 0.37

Insight: This ratio measures the company 's ability to cover its debt obligations from its operating income. A decrease indicates that the company 's operating income is less sufficient to cover its debt service requirements, posing a potential risk to creditors.

Return on Equity Ratio:

2024: -20.48%

2023: 104.35%

Insight: The return on equity (ROE) reflects how effectively the company is utilizing shareholders ' equity to generate profit. A negative ROE in 2024 indicates a loss on equity investment, which is unfavorable. The significant drop from 2023 suggests a substantial decline in profitability relative to shareholders ' equity.

Inventory Turnover Ratio:

2024: 6.70

2023: 13.08

Insight: This ratio indicates how efficiently the company manages its inventory by measuring how many times inventory is sold and replaced in a period. A decrease in the turnover ratio from 2023 to 2024 suggests a slower movement of inventory, which could tie up capital and affect liquidity.

Trade Receivable Turnover Ratio:

2024: 47.36

2023: -2.29

Insight: A high turnover ratio indicates that the company is collecting its receivables more frequently. The negative ratio in 2023 might indicate issues with accounts receivable management, possibly including write-offs or adjustments.

Trade Payables Turnover Ratio:

2024: 2.62

2023: -20.03

Insight: The turnover ratio for trade payables measures how quickly the company pays its suppliers. A positive ratio in 2024 indicates an improvement in payment turnover compared to the negative ratio in 2023, which suggests delayed payments.

Net Capital Turnover Ratio:

2024: -3.22

2023: -51.51

Insight: This ratio assesses how effectively the company utilizes its net capital (total assets minus current liabilities) to generate sales. Both years show negative ratios, indicating inefficiency in capital utilization.

Net Profit Ratio:

2024: -11.07%

2023: 58.28%

Insight: The net profit ratio (net income as a percentage of sales) shows profitability after all expenses. The negative ratio in 2024 indicates a loss, whereas the positive ratio in 2023 reflects profit. This suggests a significant decline in profitability.

Return on Capital Employed (ROCE):

2024: -2.74%

2023: 128.79%

Insight: ROCE measures the efficiency with which capital is employed to generate profit. A negative ROCE in 2024 indicates that the company 's capital employed did not generate sufficient returns to cover costs, contrasting sharply with the high positive ROCE in 2023.

Return on Investments:

2024: 7.37%

2023: -49.44%

Insight: This ratio assesses the return on investments made by the company. The positive ratio in 2024 indicates a return on investments, whereas the negative ratio in 2023 suggests losses on investments.