Inox Air Products Annual Reports | Balance Sheet | Financials

Inox Air Products Limited (Inox Air) Return Comparision with Primex 40 Index

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Inox Air Products Limited

Inox Air Products Limited Balance Sheet (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
ASSETS
Non-current assets
Property, plant, and equipment	3,76,506.60	3,15,853.49
Capital work-in-progress	77,331.17	52,565.60
Right-of-use assets	7,198.38	7,154.05
Intangible assets	291.49	138.14
Investment accounted for using the equity method	1,682.51	1,657.69
Financial assets
Other Investments	88,769.33	77,923.07
Loans	51.17	38.02
Other non-current financial assets	7,501.31	22,790.92
Income Tax assets	194.09	221.25
Other non-current assets	28,535.42	21,808.53
Current assets
Inventories	12,527.89	11,049.84
Other Investments	69,742.14	34,574.83
Trade receivables	26,747.38	23,940.45
Cash and cash equivalents	3,128.46	937.56
Bank balances other than above	71,514.59	912.95
Loans	115.08	83.3
Other current financial assets	12,832.03	54,950.57
Other current assets	13,396.97	8,183.97
Assets held for sale	22.36	13.35
Total Assets	7,98,088.37	6,34,797.58
EQUITY AND LIABILITIES
Equity
Equity Share capital	1,034.07	1,034.07
Other equity	5,46,272.17	4,70,897.21
Non-current liabilities
Borrowings	1,18,985.21	47,030.46
Lease liabilities	698.81	592.98
Other non-current financial liabilities	200	200
Provisions	1,589.72	1,503.29
Deferred tax liabilities (net)	42,511.45	36,355.62
Other non-current liabilities	7,516.53	6,599.99
Current liabilities
Borrowings	28,564.80	36,836.23
Lease liabilities	18.08	42.37
Trade payables
Total outstanding dues of micro enterprises and small enterprises	1,300.84	173.58
Total outstanding dues of creditors other than micro enterprises and small enterprises	8,728.96	8,707.04
Other current financial liabilities	31,144.16	16,918.79
Other current liabilities	4,150.45	3,576.30
Provisions	5,102.14	4,132.53
Current tax liabilities (net)	270.98	197.12
Total equity and liabilities	7,98,088.37	6,34,797.58

Inox Air Products Limited Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Revenue from operations	2,58,993.53	2,19,182.57
Other income	18,381.11	14,948.51
Total Income	2,77,374.64	2,34,131.08
Expenses
Cost of materials consumed	13,994.45	13,842.51
Purchase of stock-in-trade	6,281.17	4,284.18
Changes in inventories of finished goods and stock-in-trade	-521.85	-78.39
Employee benefits expense	21,653.58	16,991.59
Finance costs	8,094.86	6,140.12
Power and fuel	63,818.64	51,263.62
Depreciation and amortization expense	23,139.89	20,119.64
Other expenses	39,136.57	33,247.44
Total Expenses	1,75,597.31	1,45,810.71
Share of profit of joint venture	99.82	403.5
Profit before tax	1,01,877.15	88,723.87
Tax expense
Current tax	19,099.00	18,471.00
Deferred tax	6,209.51	3,680.34
Taxation pertaining to earlier years	-	32.35
Total tax expense	25,308.51	22,183.69
Profit for the year	76,568.64	66,540.18
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of the defined benefit plans	-213.29	-32.04
Tax on above	53.68	8.06
Total other comprehensive income	-159.61	-23.98
Total comprehensive income for the year	76,409.03	66,516.20
Earning per equity share of Rs. 10 each
Basic and Diluted (in `)	740.46	643.48

Inox Air Products Limited Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Cash flow from operating activities
Profit for the year	76,568.64	66,540.18
Adjustments:
Tax expense	25,308.51	22,183.69
Depreciation and amortisation expense	23,139.89	20,119.64
Share of profit of a joint venture	-99.82	-403.5
Interest income	-6,436.73	-3,925.75
Dividend income	-0.45	-0.45
Profit on disposal/retirement of property, plant and equipment (net)	-113.45	-2,845.73
Impairment of goodwill on business combination	-	5.42
Finance costs	8,094.86	6,140.12
Allowance for doubtful trade receivables/expected credit losses (net)	160.02	8.81
Bad debts and remissions	31.39	16.09
Liabilities and provisions no longer required, written back	-467.61	-404.3
Mark-to-market (gain)/loss on derivative financial instruments (net)	-	114.04
Net unrealised foreign exchange (gain)/loss	-45.80	-6.35
Government grants - deferred income	-586.59	-489.43
Net gain on investments carried at fair value through profit or loss	-9,448.94	-5,281.79
Operating profit before working capital changes	1,16,103.92	1,01,770.69
Adjustments:
(Increase)/decrease in trade receivables	-2,997.61	-2,691.32
(Increase)/decrease in financial assets	-2,150.57	-8.89
(Increase)/decrease in loans	-44.93	-11.38
(Increase)/decrease in inventories	-1,478.05	-1,174.57
(Increase)/decrease in other assets	-4,371.27	795.52
Increase/(decrease) in trade payables	1,661.85	1,713.80
Increase/(decrease) in financial liabilities	652.86	-671.88
Increase/(decrease) in other liabilities	154.18	-376.31
Increase/(decrease) in provisions	842.76	101.88
Cash generated from operations	1,08,373.14	99,447.54
Income-tax paid (net)	19,000.97	17,966.75
Net cash generated from operating activities	89,372.17	81,480.79
Cash flow from investing activities
Purchase of property, plant and equipment (including changes in capital work in progress, capital advances/capital creditors)	-1,01,858.67	-69,508.27
Purchase of other intangible assets	-209.60	-5.14
Payment towards right-of-use assets	-91.54	-892.12
Sale of property, plant and equipment	191.8	3,020.93
Capital Subsidy (Government grants) received	817.13	804.44
Purchase consideration for business combination	-	-1
Purchase of non-current investments	-5,094.69	-4,499.78
Redemption of non-current investments	-	12,641.44
Purchase of current investments	-46,497.68	-40,997.95
Redemption of current investments	15,027.73	41,611.73
Interest received	6,112.53	2,966.04
Dividend received on shares	75.45	900.45
Term deposits with financial institutions	-18,500.00	-53,505.00
Maturity of term deposits with financial institutions	61,505.00	50,000.00
Movement in other bank balances	-52,617.74	-13,302.18
Net cash used in investing activities	-1,41,140.28	-70,766.41
Cash flow from financing activities
Proceeds from non-current borrowings	1,00,000.00	30,000.00
Repayment of non-current borrowings	-34,217.41	-30,406.81
Movement in cash credit account (net)	-1,796.51	-2,127.30
Payment of lease liabilities	-82.34	-84.8
Finance costs paid	-8,910.66	-6,760.12
Dividend paid	-1,034.07	-827.26
Net cash (used in) / generated from financing activities	53,959.01	-10,206.29
Net increase/(decrease) in cash and cash equivalents	2,190.90	508.09
Cash and cash equivalents at the beginning of the year	937.56	419.67
Add: On amalgamation	-	9.8
Cash and cash equivalents at the end of the year	3,128.46	937.56

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

Cash Flow from Operating Activities

Profit for the Year: The profit for the year ended March 31, 2024, is ₹76,568.64 lakh, an increase from ₹66,540.18 lakh in the previous year.

Adjustments: Several adjustments are made to reconcile the profit to cash generated from operations:

Tax Expense: ₹25,308.51 lakh (₹22,183.69 lakh in the previous year) is added back since it is a non-cash charge.

Depreciation and Amortisation: Non-cash expense of ₹23,139.89 lakh (₹20,119.64 lakh in the previous year) is added back.

Share of Profit of a Joint Venture: A non-cash income of ₹99.82 lakh (₹403.50 lakh in the previous year) is deducted.

Interest Income and Dividend Income: These incomes (₹6,436.73 lakh and ₹0.45 lakh, respectively) are subtracted as they are not part of operating activities.

Profit on Disposal of Property: The profit of ₹113.45 lakh (₹2,845.73 lakh in the previous year) is subtracted since it is an investing activity.

Finance Costs: ₹8,094.86 lakh (₹6,140.12 lakh in the previous year) is added back because it is considered a financing activity.

Changes in Working Capital: Adjustments are made for changes in trade receivables, inventories, and other current assets and liabilities to reflect cash generated from operating activities.

Operating Profit Before Working Capital Changes: The operating profit before working capital changes for the current year is ₹1,16,103.92 lakh.

Working Capital Adjustments: Adjustments include changes in trade receivables, financial assets, loans, inventories, trade payables, etc. For instance, an increase in trade receivables by ₹2,997.61 lakh reduces cash flow.

Cash Generated from Operations: After working capital adjustments, the company generated ₹1,08,373.14 lakh from operations.

Income Tax Paid: ₹19,000.97 lakh (₹17,966.75 lakh in the previous year) is deducted, representing taxes paid.

Net Cash Generated from Operating Activities: The net cash flow from operating activities is ₹89,372.17 lakh, indicating strong operational performance.

Cash Flow from Investing Activities

Purchase of Property, Plant, and Equipment: Significant capital expenditure of ₹1,01,858.67 lakh (₹69,508.27 lakh in the previous year) was made, indicating investment in long-term assets.

Sale of Property, Plant, and Equipment: The company earned ₹191.80 lakh (₹3,020.93 lakh in the previous year) from the disposal of assets.

Purchase and Redemption of Investments: Net cash outflow for current and non-current investments shows strategic financial decisions regarding investment activities. For example, the company invested ₹46,497.68 lakh in current investments and redeemed ₹15,027.73 lakh.

Interest and Dividend Income: ₹6,112.53 lakh was received as interest and ₹75.45 lakh as dividend income.

Net Cash Used in Investing Activities: There is a net cash outflow of ₹1,41,140.28 lakh, reflecting the company 's investments in long-term growth opportunities.

Cash Flow from Financing Activities

Proceeds from Non-Current Borrowings: The company raised ₹1,00,000 lakh from new borrowings, showing reliance on external financing for operations or investments.

Repayment of Non-Current Borrowings: ₹34,217.41 lakh was repaid, indicating debt servicing.

Finance Costs Paid: Interest payments amounted to ₹8,910.66 lakh (₹6,760.12 lakh in the previous year), a cash outflow related to financing.

Dividend Paid: ₹1,034.07 lakh was paid as dividends to shareholders.

Net Cash Generated from Financing Activities: Net cash inflow from financing activities is ₹53,959.01 lakh, reflecting a positive financing activity primarily due to new borrowings.

Net Increase/(Decrease) in Cash and Cash Equivalents

The company’s cash and cash equivalents increased by ₹2,190.90 lakh, resulting in an ending balance of ₹3,128.46 lakh as of March 31, 2024.

The positive net increase in cash indicates that the company has been able to generate enough cash from its operations and financing activities to offset its investing activities.

Financial Ratios of Inox Air Products Limited

Particulars	2024	2023
Current Ratio	2.65	1.91
Debt – Equity Ratio	0.27	0.18
Debt Service Coverage Ratio	2.52	2.51
Return on Equity Ratio	15.02%	15.28%
Inventory Turnover ratio	60.84	64.11
Trade receivables turnover ratio	10.22	9.7
Trade payables turnover ratio	12.76	12.27
Net capital turnover ratio	2.66	3.63
Net Profit Ratio	29.55%	30.58%
Return on capital employed	15%	16.20%
Return on investment	7.85%	4.45%

Here is a summary of the financial and operational metrics for Inox Air Products Limited for the years 2024 and 2023:

Current Ratio (2.65 in 2024 vs. 1.91 in 2023): The current ratio has increased significantly from 1.91 to 2.65. This indicates improved liquidity, suggesting that the company is in a stronger position to cover its short-term liabilities with its short-term assets. The company appears to have more than enough current assets to meet its current liabilities, enhancing its financial stability.

Debt-Equity Ratio (0.27 in 2024 vs. 0.18 in 2023): The debt-equity ratio has increased from 0.18 to 0.27. While the company 's leverage has risen, it still maintains a relatively low debt level compared to equity. The increase suggests the company has taken on more debt, possibly to fund growth or investments, but it remains conservative in its use of leverage, indicating prudent financial management.

Debt Service Coverage Ratio (DSCR) (2.52 in 2024 vs. 2.51 in 2023): The DSCR is relatively stable, with a slight increase from 2.51 to 2.52. This ratio measures the company 's ability to service its debt with its operating income. A ratio above 1 indicates that the company generates sufficient income to cover its debt obligations comfortably. The slight improvement in 2024 reflects consistent performance in managing debt repayment.

Return on Equity (ROE) (15.02% in 2024 vs. 15.28% in 2023): The ROE has slightly decreased from 15.28% to 15.02%. This minor decline indicates that the company is generating a marginally lower return on shareholders ' equity compared to the previous year. It could be due to higher equity levels or slightly lower profitability. Nevertheless, a 15% ROE is still a healthy return, showing the company efficiently uses shareholders ' funds to generate profits.

Inventory Turnover Ratio (60.84 in 2024 vs. 64.11 in 2023): The inventory turnover ratio has decreased from 64.11 to 60.84, indicating a slightly slower pace of inventory management. The company might be holding onto inventory for a longer duration, which could be due to changes in demand, production strategies, or supply chain factors. While still a high turnover, the decline may warrant monitoring to ensure inventory levels are managed efficiently.

Trade Receivables Turnover Ratio (10.22 in 2024 vs. 9.7 in 2023): This ratio has improved, rising from 9.7 to 10.22. It suggests that the company is collecting its receivables more efficiently in 2024. Faster collection of receivables enhances the company 's cash flow and reduces the risk of bad debts, indicating effective credit management policies.

Trade Payables Turnover Ratio (12.76 in 2024 vs. 12.27 in 2023): An increase in the trade payables turnover ratio from 12.27 to 12.76 suggests the company is paying its suppliers more frequently. While this can indicate strong cash flow, it might also suggest that the company could be taking less advantage of credit terms, which could impact cash management efficiency.

Net Capital Turnover Ratio (2.66 in 2024 vs. 3.63 in 2023): This ratio has decreased from 3.63 to 2.66, indicating that the company is generating lower revenue per unit of working capital compared to the previous year. This decrease could result from an increase in working capital or a slower revenue growth rate, pointing to a need to optimize the use of working capital.

Net Profit Ratio (29.55% in 2024 vs. 30.58% in 2023): The net profit ratio has decreased slightly from 30.58% to 29.55%, suggesting a marginal decline in profitability. This could be due to increased costs, higher taxes, or changes in sales mix. Although there is a slight dip, the ratio remains high, indicating that the company continues to maintain a strong profit margin on its revenue.

Return on Capital Employed (ROCE) (15% in 2024 vs. 16.20% in 2023): The ROCE has decreased from 16.20% to 15%. This indicates a slight reduction in the efficiency with which the company uses its capital to generate profits. While still a healthy return, this decline could result from increased capital employed or reduced operating profit, highlighting the need for optimizing capital utilization.

Return on Investment (ROI) (7.85% in 2024 vs. 4.45% in 2023): The ROI has improved significantly from 4.45% to 7.85%, indicating that the company has achieved a much higher return on its investments in 2024. This improvement suggests that recent investments or strategic initiatives have been successful in generating higher returns, enhancing overall profitability.

Dividend History

Particulars	2024	2023
Dividend Per Share (in rs.)	10	8
Retained Earnings (Rs. In Lakhs)	44,048.73	21,173.77

Inox Air Products Limited Recent Financial Performance

Dividend per Share: The specific dividend per share figure for 2024 and 2023 is Rs. 10 and Rs. 8 per share. 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 44,048.73

Lakhs, while in 2023, they were Rs. 21,173.77 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.