Hira Ferro Alloys Annual Reports, Balance Sheet and Financials

 Hira Ferro Alloys Limited Balance Sheet (Rs in Lakhs)

 Hira Ferro Alloys Limited Profit & Loss Statement (Rs in Lakhs)

Hira Ferro Alloys Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the years 2024  and 2023:

Net Profit Before Tax

2024: 1139.09

2023: 2945.37

Analysis: There is a significant decline in net profit before tax in 2024 compared to 2023. This reduction indicates lower profitability, which is a concern for the company 's financial health.

Adjustments for Non-Cash Items

Depreciation and Amortization Expense

2024: 1202.22

2023: 546.33

Analysis: Depreciation and amortization expense has increased significantly. This increase could be due to higher capital expenditure or changes in asset valuation. Depreciation is a non-cash expense that affects the cash flow statement by adjusting the net profit to reflect the actual cash flow from operations.

Finance Costs

2024: 1512.34

2023: 628.17

Analysis: Finance costs have more than doubled in 2024. This increase indicates higher interest expenses, possibly due to increased borrowing or higher interest rates, which impacts cash flow negatively.

Provision for Gratuity

2024: 33.84

2023: 26.13

Analysis: The provision for gratuity has increased slightly. While the amount is not substantial, it still contributes to cash outflows.

Interest Income

2024: -437.58

2023: -769.27

Analysis: The interest income has decreased, which implies lower income from investments or deposits, reducing cash inflows.

Dividend Received

2024: -192

2023: -408

Analysis: Dividend income has decreased. This impacts cash flow slightly but is not a major concern.

(Profit) / Loss on Sale of PPE

2024: -97.28

2023: 44.13

Analysis: The loss on sale of property, plant, and equipment (PPE) in 2024 indicates a less favorable outcome from asset sales compared to a profit in 2023.

Changes in Assets and Liabilities

Trade Receivables

2024: -50.37

2023: 3154.13

Analysis: A decrease in trade receivables in 2024 improves cash flow compared to a substantial increase in 2023, which indicates improved cash collection efficiency.

Inventories

2024: -4851.61

2023: 2580.62

Analysis: A significant increase in inventories in 2024 suggests that more cash is tied up in stock, which reduces cash flow.

Trade Payables

2024: 1116.16

2023: -1241.68

Analysis: An increase in trade payables indicates that the company is delaying payments to suppliers, which improves cash flow.

Loans and Advances and Other Assets

2024: 2935.37

2023: 1494.42

Analysis: The increase in loans and advances and other assets indicates cash inflows, improving overall cash flow.

Liabilities and Provisions

2024: -428.84

2023: -127.23

Analysis: The increase in liabilities and provisions in 2024 means more cash is used for these purposes compared to 2023.

Income Tax Paid (Net of Refund)

2024: 25.22

2023: -680.32

Analysis: The reduction in income tax refund or increase in tax payment decreases cash flow compared to the previous year.

Net Cash (Used)/Generated in Operating Activities

2024: 1906.56

2023: 8192.80

Analysis: There is a significant decrease in net cash generated from operating activities. This drop reflects lower operating efficiency or increased cash outflows in 2024.

2. Cash Flow from Investing Activities

(Increase)/Decrease in PPE Including Capital WIP

2024: -2075.40

2023: -11470.22

Analysis: The decrease in capital expenditure in 2024 suggests reduced investment in new property, plant, and equipment compared to the previous year.

Sale Proceeds of PPE

2024: 194.74

2023: 158.91

Analysis: There is a slight increase in proceeds from the sale of PPE, which contributes positively to cash flow.

Redemption/(Investment) in Bank Balances

2024: 2602.91

2023: -1098

Analysis: The redemption of bank balances in 2024 results in positive cash flow, contrasting with the previous year’s negative cash flow from investments.

Dividend Received

2024: 192

2023: 408

Analysis: The decrease in dividends received impacts cash flow but is relatively minor compared to other changes.

Interest Received

2024: 437.58

2023: 769.27

Analysis: The decrease in interest received negatively affects cash flow, though it is a smaller component.

Net Cash (Used)/Generated in Investing Activities

2024: 1351.83

2023: -11232.04

Analysis: There is a significant improvement in cash flow from investing activities, shifting from a large outflow in 2023 to a positive inflow in 2024.

3. Cash Flow from Financing Activities

Proceeds from Issue of Preference Shares

2024: -

2023: 11000

Analysis: No new proceeds from preference shares in 2024, compared to a substantial inflow in 2023.

Repayment of Long-Term Borrowings

2024: -73.01

2023: -102.10

Analysis: A slight decrease in repayment of long-term borrowings, which is relatively stable.

Proceeds/(Repayment) from Short-Term Borrowings

2024: -12686.76

2023: 3410.06

Analysis: Significant repayment of short-term borrowings in 2024 compared to a net increase in 2023. This outflow indicates a reduction in short-term liquidity.

Finance Costs

2024: -1512.34

2023: -628.17

Analysis: An increase in finance costs indicates higher interest expenses, impacting cash flow negatively.

Net Cash (Used)/Generated in Financing Activities

2024: -14272.11

2023: 13679.79

Analysis: A substantial outflow in 2024 compared to a significant inflow in 2023, reflecting a shift in financing strategy or increased repayment obligations.

Net (Decrease)/Increase in Cash and Cash Equivalents

2024: -11013.73

2023: 10640.55

Analysis: The large decrease in cash and cash equivalents in 2024 highlights a substantial reduction in available cash. This contrasts sharply with the increase in cash in 2023.

Cash and Cash Equivalents

At Beginning of the Period

2024: 11016.07

2023: 375.52

At End of the Period

2024: 2.34

2023: 11016.07

Analysis: The drastic reduction from a significant cash balance at the beginning of 2024 to a minimal amount at the end of the period indicates severe cash flow issues or significant expenditures that depleted the cash reserves.

Cash and Cash Equivalents Include:

Cash on Hand

2024: 2.34

2023: 2.99

Balances with Scheduled Banks

2024: -

2023: 6.11

FDR with Bank (with original maturity of less than 3 months)

2024: -

2023: 11006.97

Analysis: The ending balance of cash and cash equivalents primarily consists of cash on hand with no short-term deposits or bank balances remaining in 2024.

Financial Ratios of Hira Ferro Alloys Limited

Here is a summary of the financial and operational metrics for Hira Ferro Alloys Limited for the years 2024 and 2023:

Current Ratio

2024: 1.9

2023: 1.44

Analysis: The current ratio has improved in 2024, indicating that the company has a better ability to cover its short-term liabilities with its short-term assets. A current ratio of 1.9 is generally considered healthy, suggesting improved liquidity and a better position to handle short-term obligations compared to 2023.

Debt – Equity Ratio

2024: 0.24

2023: 0.57

Analysis: The decrease in the debt-equity ratio from 0.57 to 0.24 indicates a significant reduction in leverage. The company has a lower proportion of debt relative to equity, which suggests lower financial risk and improved financial stability. This reduction could be due to reduced borrowings or increased equity.

Debt Service Coverage Ratio (DSCR)

2024: 2.19

2023: 0.24

Analysis: The substantial improvement in the DSCR from 0.24 to 2.19 indicates that the company’s ability to service its debt has improved dramatically. A DSCR of 2.19 means the company can comfortably cover its debt obligations with its operating income, whereas in 2023, the ratio was too low to cover its debt obligations effectively.

Return on Equity (ROE)

2024: 1.34%

2023: 4.23%

Analysis: The decline in ROE from 4.23% to 1.34% suggests a significant drop in the return generated for shareholders ' equity. This decrease indicates that the company is less effective at generating profits from shareholders ' investments compared to the previous year.

Inventory Turnover Ratio

2024: 12.57

2023: 16.17

Analysis: The inventory turnover ratio has decreased, indicating that the company is selling its inventory at a slower rate. This could suggest overstocking or slower-moving inventory, which ties up cash and affects operational efficiency.

Trade Receivables Turnover Ratio

2024: 13.34

2023: 10.95

Analysis: The increase in the trade receivables turnover ratio indicates that the company is more efficient at collecting receivables in 2024. Higher turnover implies quicker collection of outstanding invoices, which improves cash flow.

Trade Payables Turnover Ratio

2024: 4.44

2023: 3.12

Analysis: The increase in the trade payables turnover ratio suggests that the company is paying off its trade payables more quickly. While this indicates good relationships with suppliers and possibly better cash flow, it may also reflect reduced credit terms or tighter cash management.

Net Capital Turnover Ratio

2024: 2.86

2023: 4.04

Analysis: The decrease in the net capital turnover ratio indicates reduced efficiency in utilizing net capital to generate revenue. This decline suggests that the company is less effective at using its capital base to generate sales compared to 2023.

Net Profit Ratio

2024: 2.37%

2023: 4.80%

Analysis: The decrease in the net profit ratio highlights reduced profitability. The company’s ability to convert sales into profit has diminished significantly, indicating higher costs or lower revenue.

Return on Capital Employed (ROCE)

2024: 3.00%

2023: 4.44%

Analysis: The drop in ROCE indicates that the company’s efficiency in generating profit from its capital employed has decreased. This reduction could be due to higher capital costs or lower returns on investments.

Return on Investment (ROI)

2024: 24.58%

2023: 18.21%

Analysis: The increase in ROI indicates that the returns on investments have improved. This suggests that the company has achieved better returns from its investments, which is a positive sign despite the challenges in other areas.

Dividend History

Hira Ferro Alloys Limited Recent Financial Performance

Dividend per Share: The specific dividend per share figure for 2024 and 2023 is not provided. 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.

Retained Earnings: Retained earnings for 2024 amounted to Rs. 126,162.63 Lakhs, while in 2022, they were Rs. 27,040.93 Lakhs. Retained earnings represent the portion of a company 's profits that is reinvested in the business rather than distributed as dividends. An increase in retained earnings suggests that the company has retained more of its profits for reinvestment or future growth.

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