ESL Steel Annual Reports, Balance Sheet and Financials

ESL Steel Limited Standalone Balance Sheet (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Non-Current Assets
Property, plant and equipment	4,24,867.90	4,43,749.07
Capital work-in-progress	2,23,198.98	1,70,018.23
Other Intangible assets	37,675.40	42,128.38
Other financial assets	9,311.33	9,542.42
Non-Current Tax Assets (net)	2,730.96	2,179.45
Deferred Tax Assets (net)	2,28,400.55	2,23,096.73
Other Non-Current Assets	4,986.34	7,225.19
Current Assets
Inventories	99,680.02	1,06,339.14
Investments	2,101.95	2,001.50
Trade receivables	9,455.81	11,070.27
Cash and cash equivalents	5,888.95	15,950.80
Bank balances other than cash and cash equivalent	16,535.94	11,397.04
Other financial assets	2,065.35	2,637.11
Other current assets	22,869.54	33,453.71
Total Assets	10,89,769.02	10,80,789.04
Equity
Equity share capital	1,84,903.02	1,84,903.02
Other equity	2,48,191.98	2,74,965.34
Non-Current Liabilities
Borrowings	1,09,345.47	1,48,895.66
Lease liabilities	2,370.91	2,503.15
Provisions	22,782.06	22,328.02
Current Liabilities
Borrowings	1,08,467.21	80,432.66
Lease liabilities	30,336.51	21,637.57
Operational Buyers ' Credit / Suppliers ' Credit	79,259.88	86,364.88
Trade Payable:
Total outstanding dues of micro and small	9,867.63	4,653.72
Other Financial Liabilities	1,30,655.66	70,099.15
Other current liabilities	94,383.64	1,28,102.50
Provisions	171.31	166.28
Total Equity and Liabilities	10,89,769.02	10,80,789.04

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

Particulars	31-03-2025	31-03-2024
Sale of Products	7,92,763.92	8,30,046.22
Other Operating Income	21,943.77	27,784.85
Other Income	13,502.82	4,032.85
Total Income	8,28,210.51	8,61,863.92
Expenses
Cost of Materials Consumed	4,17,963.02	4,36,188.39
Changes in Inventories of Finished, Process Stock and Stock-in-Trade	4,231.25	14,808.97
Employee benefits expense	22,583.81	22,589.61
Finance costs	42,453.42	43,161.44
Depreciation and amortization expense	44,387.50	46,300.78
Other expenses	3,28,431.89	3,61,153.18
Total Expenses	8,60,050.89	9,24,202.37
Profit/ (Loss) before exceptional items and tax	(31,840.38)	(62,338.45)
Exceptional Items	-	(2,579.22)
Profit/ (loss) before tax	(31,840.38)	(64,917.67)
Deferred Tax	(5,221.07)	31,839.15
Profit/ (loss) for the year	(26,619.31)	(96,756.82)
Other Comprehensive income/(loss)
Items that will not be reclassified to profit and loss	(236.80)	(124.89)
Income tax relating to items that will not be reclassified to profit or loss	82.75	43.64
Total Profit/(loss) for the year	(26,773.36)	(96,838.07)
Earning per equity share:
Basic and diluted (Rs.)	(1.44)	(5.23)

ESL Steel Limited Standalone Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Profit/(Loss) before tax	(31,840.38)	(64,917.67)
Adjustments for:
Depreciation and Amortization expenses	44,387.50	46,300.78
Loss/(profit) on sale/discard of fixed assets	2,293.36	307.88
Sundry Credit balances/Provision no longer required written back	(8,017.53)	(7,019.29)
Profit on Sale as per Finance Lease	(8,763.99)	-
Sundry Balances written-off	2,165.48	1,085.72
Unrealized (gain)/ Loss on foreign currency translation and transaction	106.55	(457.47)
Net gain/(loss) on Derivative Instruments on fair valuation through profit and loss	(265.95)	(15.24)
Interest Income	(2,935.40)	(2,196.54)
Net Gain/(loss) on Current Investments on Fair Valuation through profit and loss	(66.84)	(137.37)
Impairment Allowance for doubtful debts, Advances and deposits	511.45	117.86
Finance Cost	42,453.42	43,161.44
Operating profit before working capital changes	40,027.67	16,230.10
Movements in working capital:
Decrease/(Increase) in Inventories	5,921.82	33,100.17
(Decrease)/Increase in Trade Payables, Other financial/non-financial liabilities and Provisions	60,487.13	(12,534.62)
Decrease/(Increase) in Trade Receivables	(19,581.39)	94,621.00
Decrease/(increase) in loans and advances, Other financial/non-financial assets and other assets	2,055.58	(5,282.35)
Cash Generated from Operations	88,910.81	1,26,134.30
Net income tax (paid) / refunded	(551.51)	282.12
Net Cash flow generated / (used in) Operating Activities	88,359.30	1,26,416.42
Cash Flow from Investing Activities
Payment against Property, Plant and Equipment including intangible assets and movement in Capital Work in Progress	(57,477.55)	(47,423.75)
Realization against Property, Plant and Equipments	20,016.83	30.05
Movement in Fixed Deposits	(5,069.47)	4,382.62
Investment in mutual funds	(45,797.71)	(1,31,693.43)
Proceeds against redemption of mutual funds	45,764.10	1,31,832.69
Interest Received	2,831.71	2,159.62
Net Cash flow generated / (used in) Investing Activities	(39,732.09)	(40,712.20)
Cash Flow from Financing Activities
Repayment of long-term borrowings	(46,041.60)	(46,041.60)
Receipt against long-term borrowings	12,423.00	-
Proceeds/(Repayment) from short-term borrowings (net)	21,784.55	34,391.06
Payment against Lease Liabilities	(6,400.36)	(21,666.36)
Interest and other borrowing cost paid	(40,454.65)	(39,940.17)
Net Cash flow generated / (used in) Financing Activities	(58,689.06)	(73,257.07)
Net increase/(decrease) in cash and cash equivalents	(10,061.85)	12,447.15
Cash and cash equivalents at the beginning of the year	15,950.80	3,503.65
Cash and cash equivalents at the end of the year	5,888.95	15,950.80

Summary of the Cash Flow Statement for the years 2025 and 2024:

Operating Activities

The company reported a loss before tax of ₹31,840.38 lakhs in FY 2025, compared to a loss of ₹64,917.67 lakhs in FY 2024. After adjustments such as depreciation of ₹44,387.50 lakhs, finance costs of ₹42,453.42 lakhs, and changes in working capital, the net cash generated from operating activities stood at ₹88,359.30 lakhs in FY 2025. This represents a decline from ₹1,26,416.42 lakhs generated in FY 2024.

Investing Activities

Cash outflows were primarily due to payments towards property, plant, and equipment of ₹57,477.55 lakhs and investment in fixed deposits of ₹50,069.47 lakhs. Although there were inflows from realisation of assets (₹20,016.83 lakhs) and proceeds from redemption of mutual funds (₹45,764.10 lakhs), the company recorded a net cash outflow of ₹39,732.09 lakhs in FY 2025, almost at par with the outflow of ₹40,712.20 lakhs in FY 2024.

Financing Activities

The company faced significant cash outflows under financing activities, including repayment of long-term borrowings of ₹46,401.60 lakhs and interest and other borrowing costs of ₹40,454.65 lakhs. Despite inflows from proceeds of long-term borrowings of ₹12,423.00 lakhs and short-term borrowings of ₹21,784.55 lakhs, the overall result was a net cash outflow of ₹58,689.06 lakhs in FY 2025, compared to an outflow of ₹73,257.07 lakhs in FY 2024.

Net Movement in Cash

Combining all activities, the company reported a net decrease in cash and cash equivalents of ₹10,061.85 lakhs in FY 2025, against a net increase of ₹12,447.15 lakhs in FY 2024. Consequently, the closing cash and cash equivalents stood at ₹5,888.95 lakhs as of March 31, 2025, compared to ₹15,950.80 lakhs in the previous year.

ESL Steel Limited Standalone Ratio Analysis:

Particulars	31-03-2025	31-03-2024
Current Ratio	0.30	0.41
Debt Equity ratio	0.58	0.55
Debt service coverage ratio	0.43	0.23
Return on Equity Ratio	-6.15%	-20.48%
Inventory turnover ratio	7.38	6.70
Trade Receivables turnover ratio	79.38	47.36
Trade payables turnover ratio	2.96	2.62
Net capital Turnover Ratio	-2.24	-3.22
Net profit ratio	-3.27%	-11.07%
Return on Capital employed	1.73%	-2.74%
Return on investment	3.28%	7.37%

Summary of financial ratios for the year ended 2024-25

Current Ratio (0.30 vs 0.41)

The current ratio has fallen, showing that the company’s short-term liquidity is weak. It means ESL Steel has only ₹0.30 of current assets for every ₹1 of current liability, which indicates pressure in meeting near-term obligations.

Debt Equity Ratio (0.58 vs 0.55)

The ratio is almost stable, showing that the company uses a moderate level of debt compared to equity. A ratio of 0.58 indicates the company is not highly leveraged, which is a relatively balanced capital structure.

Debt Service Coverage Ratio (0.43 vs 0.23)

This ratio improved, but still remains low. It means the company generates only 43 paise of operating cash for every ₹1 of debt repayment. Though better than last year, it still highlights difficulty in comfortably servicing debt.

Return on Equity (–6.15% vs –20.48%)

Negative but improved. Shareholders are still losing value, but the losses have reduced significantly compared to last year. This suggests the business is moving in the right direction.

Inventory Turnover Ratio (7.38 vs 6.70)

This has improved, meaning the company is selling and replenishing its inventory faster. It indicates better efficiency in managing stock and improved demand or sales.

Trade Receivables Turnover Ratio (79.38 vs 47.36)

A major improvement. The company is collecting payments from customers much quicker than before. This strengthens cash flow and reduces the risk of bad debts.

Trade Payables Turnover Ratio (2.96 vs 2.62)

This ratio has slightly increased, showing the company is paying suppliers a bit faster than last year. While good for supplier relationships, it reduces available cash reserves.

Net Capital Turnover Ratio (–2.24 vs –3.22)

Still negative, meaning working capital is inefficiently used. However, the improvement shows that the level of inefficiency has reduced compared to last year.

Net Profit Ratio (–3.27% vs –11.07%)

Losses have reduced. The company is still not profitable, but the negative margin has narrowed, indicating better cost control and higher efficiency in operations.

Return on Capital Employed (1.73% vs –2.74%)

This has turned positive, which means the company is now generating a small return from the total capital employed in the business. It’s a positive sign of recovery.

Return on Investment (3.28% vs 7.37%)

The return on investments has fallen, meaning the company is earning less from its investments compared to last year. This shows weaker investment efficiency.