INKEL Ltd Annual report, Balance Sheet and Financials

Inkel Limited Balance Sheet (Rs in Lakhs)

 Inkel Limited Profit & Loss Statement (Rs in Lakhs)

 Inkel 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: In 2024, the company’s profit before taxation and exceptional items surged to Rs. 3,986.10 lakhs from Rs. 1,806.34 lakhs in 2023. Adjustments for non-cash items, including depreciation and amortization, and interest income and expense, align closely with previous years. Significant changes in working capital include a substantial increase in trade receivables and long-term loans and advances, alongside reductions in other current assets and trade payables. These adjustments resulted in cash generated from operations rising dramatically to Rs. 3,382.87 lakhs, up from Rs. 106.82 lakhs in 2023. After accounting for taxes paid, the net cash generated from operating activities improved to Rs. 2,414.26 lakhs, reversing the negative cash flow of Rs. 299.42 lakhs in 2023.

Cash Flow from Investing Activities: Investing activities in 2024 saw a decrease in expenditures on property, plant, and equipment compared to the previous year. Proceeds from the sale of property and equipment were significantly higher, and dividend income remained steady. Interest received and a minor change in investments added to the cash inflow. Overall, the net cash used in investing activities was Rs. 2,067.39 lakhs, an increase from Rs. 1,159.86 lakhs in 2023, indicating higher inflows from asset sales and reduced capital expenditures.

Cash Flow from Financing Activities: Financing activities in 2024 show a reversal in trends with an increase in dividends paid and interest expense. The company repaid long-term borrowings and dealt with a non-consolidated subsidiary’s share capital adjustment. The net cash used in financing activities was Rs. 2,830.47 lakhs, slightly lower than the Rs. 2,896.52 lakhs in 2023, reflecting continued significant outflows for debt repayment and finance costs.

Financial Ratios of Inkel Limited

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

Current Ratio: The current ratio increased from 1.93 in 2023 to 2.04 in 2024. This improvement suggests a stronger liquidity position, indicating the company is better equipped to meet its short-term liabilities with its short-term assets.

Debt Equity Ratio: The debt equity ratio decreased from 0.65 in 2023 to 0.55 in 2024. This decline signifies a reduction in financial leverage, meaning the company has a lower proportion of debt relative to equity, which could imply a more conservative approach to financing or improved equity levels.

Return on Equity (ROE): ROE improved significantly from 0.07 in 2023 to 0.14 in 2024. This substantial increase indicates that the company has enhanced its efficiency in generating profits from shareholders ' equity, providing better returns to its investors.

Inventory Turnover Ratio: The inventory turnover ratio dropped from 70.54 in 2023 to 49 in 2024. This decrease suggests that the company’s inventory is turning over more slowly, which may indicate slower sales or higher stock levels.

Trade Receivable Turnover Ratio: The trade receivable turnover ratio slightly increased from 0.94 in 2023 to 1 in 2024. This small improvement indicates a marginally more efficient collection of receivables, although the rate of collection remains relatively slow.

Trade Payable Turnover Ratio: The trade payable turnover ratio fell from 0.93 in 2023 to 0.77 in 2024. This decrease indicates that the company is taking longer to pay its suppliers, which could affect relationships with vendors but may be used strategically to manage cash flow.

Net Capital Turnover Ratio: The net capital turnover ratio improved from 0.93 in 2023 to 1.01 in 2024. This rise suggests a better efficiency in using capital to generate sales, reflecting improved operational performance.

Net Profit Ratio: The net profit ratio increased from 0.17 in 2023 to 0.31 in 2024. This significant improvement shows that the company has managed to achieve a higher profit margin on its sales, indicating better cost control or higher revenues.

Return on Capital Employed (ROCE): ROCE more than doubled from 0.11 in 2023 to 0.22 in 2024. This substantial increase reflects a marked improvement in generating profit from capital employed, demonstrating enhanced overall efficiency and profitability.

Return on Investment (ROI): ROI increased slightly from 0.10 in 2023 to 0.11 in 2024. This marginal improvement indicates a better return on investments, suggesting the company’s investments are yielding slightly higher returns.