Hira Ferro Alloys Annual Reports, Balance Sheet and Financials

Hira Ferro Alloys Limited Standalone Balance Sheet (Rs. In Lakhs)

Hira Ferro Alloys Limited Standalone Profit & Loss (Rs. In Lakhs)

Hira Ferro Alloys Limited Standalone Cash Flow Statement (Rs. In Lakhs)

Here is a summary of the Cash Flow Statement for the years 2025 and 2024

Cash Flow from Operating Activities

In FY 2024–25, the company generated a strong operating cash inflow of ₹5,536.56 lakhs, a significant jump from ₹916.55 lakhs in FY 2023–24. This improvement is mainly because of higher profitability (net profit before tax rose from ₹1,139.09 lakhs to ₹4,212.95 lakhs), coupled with adjustments such as higher depreciation and finance costs. Working capital changes also supported the cash flow—particularly an increase in liabilities and provisions and trade payables. However, large increases in inventories and trade receivables put some pressure. Despite this, the company showed strong cash generation capacity in 2024–25 compared to the previous year.

Cash Flow from Investing Activities

The company’s investing activities in FY 2024–25 resulted in a net cash outflow of ₹1,910.86 lakhs, whereas the previous year had a net inflow of ₹1,351.84 lakhs. The outflow was primarily due to higher capital expenditure of ₹2,904.62 lakhs in property, plant, and equipment (compared to ₹2,075.40 lakhs in FY 2023–24). On the positive side, the company raised cash by selling non-current investments worth ₹750.00 lakhs and benefited from dividend and interest income. In FY 2023–24, investing activities were favorable mainly because of redemption of other bank balances worth ₹2,602.91 lakhs. Thus, 2024–25 shows a reinvestment phase with higher spending on assets, indicating long-term growth focus.

Cash Flow from Financing Activities

Financing activities in FY 2024–25 led to a cash outflow of ₹3,624.53 lakhs, a reversal compared to a heavy outflow of ₹13,282.11 lakhs in FY 2023–24. The outflow was driven by repayment of both long-term and short-term borrowings (₹761.44 lakhs and ₹2,023.54 lakhs, respectively), along with interest payments of ₹839.55 lakhs. In the previous year, the company had raised substantial short-term borrowings of ₹12,686.76 lakhs, which caused a much larger net outflow after repayments and interest costs. The 2024–25 figures indicate a more balanced approach with gradual debt repayment, reducing reliance on borrowings.

Net Cash Position

Overall, the company reported a small positive net increase of ₹1.17 lakhs in FY 2024–25, compared to a huge cash outflow of ₹11,013.73 lakhs in FY 2023–24. The closing cash balance improved to ₹3.51 lakhs, up from ₹2.34 lakhs at the end of last year. This turnaround reflects stronger operating cash flows and controlled financing activity, though heavy capital expenditure limited further cash buildup.

Hira Ferro Alloys Limited Financial Ratios

Here is a summary of the financial ratio for the years 2025 and 2024

Current Ratio

The current ratio improved slightly from 1.90 to 2.05, which means the company now has ₹2.05 of current assets for every ₹1 of current liabilities. This indicates a stronger liquidity position and better ability to meet short-term obligations compared to the previous year.

Debt-Equity Ratio

The debt-equity ratio remained constant at 0.19 in both years. This shows the company continues to maintain a conservative capital structure with low dependence on borrowed funds. Its financial risk remains minimal.

Debt Service Coverage Ratio (DSCR)

The DSCR improved from 2.19 to 3.42, showing the company is in a much stronger position to service its debt obligations (both principal and interest). A ratio above 1 is considered safe, and 3.42 reflects comfortable repayment ability.

Return on Equity (ROE)

ROE increased from 1.34% to 4.18%, indicating that the company has generated higher returns for its shareholders in FY 2024–25. Though the figure is still modest, the improvement suggests better utilization of equity capital compared to last year.

Inventory Turnover Ratio

The inventory turnover ratio jumped from 12.57 to 28.13 times. This means the company is selling and replacing its inventory at a much faster rate, which reflects efficient stock management and improved demand for its products.

Debtors Turnover Ratio

The ratio improved from 13.34 to 16.75 times, meaning the company is collecting payments from its customers faster than before. This improvement in receivables management enhances liquidity and reduces credit risk.

Creditors Turnover Ratio

The creditors turnover ratio increased significantly from 4.44 to 13.34 times. This indicates that the company is paying its suppliers more quickly compared to the previous year. While it shows financial strength, it may also mean less credit period is being availed.

Net Capital Turnover Ratio

This ratio improved from 2.86 to 3.83 times, showing that the company is using its working capital more efficiently to generate sales. The higher turnover reflects better utilization of available resources.

Net Profit Ratio

The net profit margin increased from 2.37% to 5.17%, which means the company earned ₹5.17 profit for every ₹100 of sales, compared to only ₹2.37 last year. This improvement highlights stronger profitability and cost efficiency.

Return on Capital Employed (ROCE)

ROCE rose from 3.00% to 6.20%, indicating that the company is earning better returns on the overall capital invested in the business. This reflects improved profitability and utilization of both debt and equity capital.

Return on Investment – Quoted

The return on quoted investments fell sharply from 115.68% to 18.74%. While still positive, it means the gains from quoted investments (such as listed securities) are much lower than the exceptional returns recorded in the previous year.

Return on Investment – Unquoted

The return on unquoted investments turned negative, dropping from a positive 24.60% last year to (61.51%) in FY 2024–25. This indicates significant losses or poor performance from unlisted/unquoted investments, which dragged down overall returns.