Garg Acrylics Limited (Garg Acrylics ) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40
Garg Acrylics Limited

Garg Acrylics Limited Standalone Balance Sheet (Rs. in Crores)

Particulars	31-03-2025	31-03-2024
Non-current assets
Plant, property and equipment	389.62	405.03
Capital WIP	-	2.34
Intangible assets	0.03	0.04
Investment	2.44	1.70
Other financial assets	9.75	0.52
Other non current assets	4.66	6.98
Current assets
Inventories	369.68	401.01
Investment	0.89	0.89
Trade receivables	169.74	197.70
Cash and cash equivalent	1.37	0.91
Bank and other balances	2.11	5.59
Other current financial assets	0.43	4.33
Other current assets	106.17	73.37
Total assets	1,056.90	1,100.41
Equity
Equity share capital	6.64	6.64
Other equity	475.49	452.27
Non-Current liabilities
Borrowings	100.98	124.99
Provisions	3.78	4.41
Deferred tax liabilities	1.09	4.03
Current liabilities
Borrowings	386.26	407.58
Trade payables – outstanding dues of micro and small enterprises	1.25	11.28
Trade payables – outstanding dues other than above	65.45	75.70
Other financial liabilities	1.41	1.11
Other current liabilities	12.83	10.49
Provisions	1.70	1.91
Total equity and liabilities	1,056.90	1,100.41

Garg Acrylics Limited Standalone Profit & Loss Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operations	1,753.70	1,605.14
Other Income	2.25	2.27
Total Income	1,755.95	1,607.41
Expenses
Cost of material consumed	1,235.71	1,133.89
Purchase of stock in trade	3.42	4.90
Changes in inventories of finished goods and WIP	-11.76	29.21
Employee benefits expense	117.32	105.02
Finance costs	57.31	47.84
Depreciation & amortization expense	36.71	29.81
Other Expenses	299.60	281.22
Total Expenses	1,738.30	1,631.90
Profit before tax and exceptional items	17.65	-24.48
Exceptional items	0.14	0.57
Profit/(loss) before tax	17.79	-23.92
Deferred tax liability/(asset)	-3.55	3.09
Prior year tax provisions	-0.06	-0.08
Profit/ Loss after tax	21.40	-26.93
Other comprehensive income for the year
Other items that will not be reclassified to P/L account
Remeasurement of defined benefit plans	2.44	1.75
Income tax relating to above	-0.61	-0.44
Total comprehensive income for the year	23.22	-25.62
Earning per share
Basic	32.22	-40.54
Diluted	32.22	-40.54

Garg Acrylics Limited Standalone Cash Flow Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Net Profit/(loss) Before Tax	17.79	-23.92
Adjustment for -:
Depreciation and amortisation	36.71	29.81
Interest expense	53.61	44.86
Fair value (gain)/loss on investment	-0.04	-0.23
Deferred revenue on capital subsidy	-0.02	-0.02
Interest income	-2.15	-2.01
Sale of assets	-0.14	-0.57
Gratuity provision	-0.84	0.02
Gratuity – other comprehensive income	2.44	1.75
Adjustment for change in working capital
Trade and other receivables	-7.86	-15.57
Inventories	31.33	-30.39
Trade and other payables	-17.61	42.20
Cashflow generated from operations	113.21	45.92
Income tax paid	0.06	0.08
Net Cash from/(used in) Operating Activities	113.27	46.00
Cash Flow from Investing Activities
Purchase of fixed assets	-18.98	-135.00
Proceeds from sale of fixed assets	0.17	0.87
Increase/decrease in investment	-0.70	-0.75
Interest income	2.15	2.01
Net Cash from / (used in) Investing Activities	-17.36	-132.86
Cash Flow from Financing Activities
Proceeds/repayment from long term borrowing	-24.01	69.83
Proceeds/repayment from short term borrowing	-21.32	63.38
Interest paid	-53.61	-44.76
Net Cash from/(used in) Financing Activities	-98.93	88.45
Net Increase/decrease in Cash & cash equivalents	-3.02	1.59
Cash and cash equivalents at the beginning of the year	6.50	4.91
Cash and cash equivalents at the end of the year	3.48	6.50

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

Cash Flow from Operating Activities

The company has shown a strong turnaround in operating performance, with net cash from operating activities increasing significantly from ₹46.00 crore in FY24 to ₹113.27 crore in FY25. This improvement is supported by a shift from a pre-tax loss of -₹23.92 crore to a profit of ₹17.79 crore, along with substantial non-cash adjustments such as depreciation (₹36.71 crore) and high interest expense (₹53.61 crore). A major contributor to the strong operating cash flow is favorable working capital movement, particularly a large reduction in inventories (₹31.33 crore), although this is partially offset by an increase in receivables (-₹7.86 crore) and a decrease in payables (-₹17.61 crore). Overall, the company demonstrates strong cash generation from core operations, indicating improved operational efficiency despite cost pressures.

Cash Flow from Investing Activities

Investing activities show a net outflow of -₹17.36 crore in FY25 compared to a much larger outflow of -₹132.86 crore in FY24. This sharp reduction in outflow is primarily due to significantly lower capital expenditure (₹18.98 crore in FY25 vs ₹135.00 crore in FY24), suggesting that the company has completed a major investment phase in the previous year. There are minor inflows from sale of assets and interest income, but overall investing activity remains negative, indicating continued but reduced investment in assets. The trend reflects a transition from heavy expansion to a more stable investment phase.

Cash Flow from Financing Activities

Financing activities show a substantial outflow of -₹98.93 crore in FY25 compared to a strong inflow of ₹88.45 crore in FY24. This reversal is mainly due to repayment of both long-term (-₹24.01 crore) and short-term borrowings (-₹21.32 crore), along with high interest payments (-₹53.61 crore). In contrast, the previous year saw significant borrowing inflows. This indicates that the company is now deleveraging and reducing its debt burden, although high interest costs continue to impact cash flows.

Net Increase/Decrease in Cash & Cash Equivalents

The company recorded a net decrease in cash of -₹3.02 crore in FY25 compared to an increase of ₹1.59 crore in FY24. As a result, cash balances declined from ₹6.50 crore to ₹3.48 crore. Despite strong operating cash flows, the decline is mainly due to significant outflows in financing activities, particularly debt repayment and interest payments.

Financial ratios of Garg Acrylics Limited.

Particulars	31-03-2025	31-03-2024
Current ratio	1.39	1.35
Debt to equity ratio	1.01	1.16
Debt service coverage ratio	1.40	0.58
Return on equity	0.05	-0.06
Inventory turnover ratio	4.20	3.95
Trade receivables turnover ratio	9.37	8.38
Trade payables turnover ratio	15.53	18.53
Net capital turnover ratio	9.66	9.13
Net profit %	1.22	-1.68
Return on capital employed	7.72	2.35
Return on investment – unquoted	3.48	25.23
Return on investment – quoted	-27.06	132.94

Summary of Financial Ratios for the year 2025 and 2024.

Current Ratio:
The current ratio improved slightly from 1.35 in FY24 to 1.39 in FY25, indicating a marginal strengthening of the company’s short-term liquidity position. While the ratio remains above 1, suggesting that current assets exceed current liabilities, the improvement is modest and reflects a stable but not highly comfortable liquidity buffer.

Debt to Equity Ratio:
The debt-to-equity ratio declined from 1.16 in FY24 to 1.01 in FY25, indicating a reduction in leverage and improved capital structure. This suggests that the company has started deleveraging and reducing its dependence on borrowed funds, which lowers financial risk.

Debt Service Coverage Ratio (DSCR):
The DSCR improved significantly from 0.58 in FY24 to 1.40 in FY25, indicating a strong improvement in the company’s ability to service its debt obligations. A ratio above 1 reflects that the company is now generating sufficient earnings to cover interest and principal repayments.

Return on Equity (ROE):
The ROE improved from -0.06 in FY24 to 0.05 in FY25, reflecting a turnaround from losses to profitability. However, the return remains relatively low, indicating limited returns generated for shareholders despite the improvement.

Inventory Turnover Ratio:
The inventory turnover ratio increased from 3.95 in FY24 to 4.20 in FY25, indicating better inventory management and faster movement of goods, which reflects improved operational efficiency.

Trade Receivables Turnover Ratio:
The receivables turnover ratio improved from 8.38 in FY24 to 9.37 in FY25, indicating more efficient collection of receivables and better credit management, which supports liquidity.

Trade Payables Turnover Ratio:
The payables turnover ratio declined from 18.53 in FY24 to 15.53 in FY25, suggesting the company is taking relatively longer to pay suppliers, which may support short-term liquidity but could strain supplier relationships if prolonged.

Net Capital Turnover Ratio:
The net capital turnover ratio improved from 9.13 in FY24 to 9.66 in FY25, indicating better utilization of working capital to generate revenue and improved operational efficiency.

Net Profit %:
The net profit margin improved from -1.68% in FY24 to 1.22% in FY25, reflecting a shift from losses to profitability, although margins remain relatively low.

Return on Capital Employed:
ROCE increased significantly from 2.35% in FY24 to 7.72% in FY25, indicating improved efficiency in the use of total capital and better operational performance.

Return on Investment – Unquoted:
The return declined sharply from 25.23% in FY24 to 3.48% in FY25, suggesting reduced performance from unquoted investments.

Return on Investment – Quoted:
The return turned negative from 132.94% in FY24 to -27.06% in FY25, indicating high volatility and losses in market-linked investments.