Lamina Foundries Ltd Annual Report and Financials

Lamina Foundries Limited Balance Sheet (Rs in Lakhs)

Lamina Foundries Limited Profit & Loss Statement (Rs in Lakhs)

 Lamina Foundries Limited Consolidated Cash Flow Statement (Rs in Lakhs)

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

Operating Activities:

The company reported a net cash inflow of ₹1,228.39 lakhs from operating activities in 2024, a significant improvement from ₹771.64 lakhs in 2023. The net profit before tax and interest rose to ₹976.79 lakhs from ₹890.99 lakhs in the previous year. After adjusting for non-cash items like depreciation (₹236.92 lakhs) and gains on the sale of assets (₹1.43 lakhs), the operating profit before working capital changes was ₹1,212.28 lakhs. Positive movements in receivables (₹643.04 lakhs) and inventory (₹220.26 lakhs) helped offset the reduction in trade payables (-₹847.20 lakhs), leading to an overall strong cash generation from operations.

Investing Activities:

In 2024, the company’s net cash outflow from investing activities stood at ₹1,405.11 lakhs, a significant increase compared to the outflow of ₹279.89 lakhs in 2023. This was primarily due to a large expenditure on the purchase of fixed assets (₹1,405.11 lakhs), showing a commitment to capital investment. However, the proceeds from the sale of fixed assets were limited at ₹1.43 lakhs, and there were no notable investment gains.

Financing Activities:

The company’s cash flow from financing activities recorded a net inflow of ₹119.62 lakhs in 2024, a reversal from the outflow of ₹448.51 lakhs in 2023. This was mainly driven by an increase in term loan borrowings (₹548 lakhs) and working capital borrowings (₹268.61 lakhs). However, this was partially offset by interest payments amounting to ₹696.99 lakhs.

Financial Ratios of Lamina Foundries Limited

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

Current Ratio

2023-24: 1.19, 2022-23: 1.37

The current ratio measures the company’s ability to meet its short-term liabilities with its short-term assets. A ratio of 1.19 means that for every ₹1 of liability, the company has ₹1.19 in current assets. The decline from 1.37 in 2022-23 suggests that the company 's liquidity position has slightly weakened, with less cushion to cover its short-term obligations, though it remains above 1, indicating adequate liquidity.

Debt-Equity Ratio

2023-24: 2.07, 2022-23: 2.28

This ratio shows the proportion of debt to equity in the company’s capital structure. A ratio of 2.07 in 2023-24 means that for every ₹1 of equity, the company has ₹2.07 of debt. The slight improvement from 2.28 in 2022-23 indicates that the company has reduced its reliance on debt, though it is still heavily leveraged. A high debt-equity ratio could suggest higher financial risk.

Debt Service Coverage Ratio (DSCR)

2023-24: 3.72, 2022-23: 2.42

DSCR measures the company’s ability to service its debt obligations from its operating income. A ratio of 3.72 in 2023-24 means the company generates 3.72 times the cash needed to meet its debt payments. This is a significant improvement over 2.42 in 2022-23, indicating better financial health and a stronger capacity to repay its debt.

Return on Equity (ROE)

2023-24: 0.61, 2022-23: 0.51

ROE measures the return generated on shareholders ' equity. A ratio of 0.61 means that for every ₹1 of equity, the company generates a profit of ₹0.61. The improvement from 0.51 in 2022-23 shows that the company is generating more profit from the same amount of equity, reflecting improved profitability and better use of shareholders’ funds.

Inventory Turnover Ratio

2023-24: 3.52, 2022-23: 3.6

This ratio shows how many times the company’s inventory is sold and replaced over the period. A ratio of 3.52 in 2023-24 indicates that the company sold and replaced its inventory 3.52 times during the year. The slight decrease from 3.6 in 2022-23 suggests a small drop in inventory management efficiency or slower sales relative to inventory levels.

Trade Receivables Turnover Ratio

2023-24: 9.35, 2022-23: 10.1

This ratio indicates how quickly the company collects cash from its credit sales. A ratio of 9.35 in 2023-24 means the company collects its receivables 9.35 times during the year. The drop from 10.1 in 2022-23 suggests that the company is taking slightly longer to collect payments from customers, potentially affecting cash flow.

Trade Payables Turnover Ratio

2023-24: 4.17, 2022-23: 4.33

This ratio measures how quickly the company pays off its suppliers. A ratio of 4.17 in 2023-24 means the company is paying its suppliers 4.17 times a year. The slight decrease from 4.33 in 2022-23 indicates that the company is taking a bit longer to settle its trade payables, which could be a strategy to manage cash flow.

Net Capital Turnover Ratio

2023-24: 4.3, 2022-23: 5.16

This ratio shows how effectively the company is using its working capital to generate sales. A ratio of 4.3 in 2023-24 means that the company generated ₹4.3 in sales for every ₹1 of working capital. The decrease from 5.16 in 2022-23 suggests that the company’s efficiency in using its working capital to generate revenue has slightly declined.

Net Profit Ratio

2023-24: 0.1, 2022-23: 0.09

This ratio measures how much of each rupee of revenue results in profit. A ratio of 0.1 in 2023-24 means that the company made ₹0.10 in profit for every ₹1 of revenue. The slight improvement from 0.09 in 2022-23 indicates marginally better profitability.

Return on Capital Employed (ROCE)

2023-24: 0.07, 2022-23: 0.06

ROCE measures the returns the company is generating from its capital (both equity and debt). A ratio of 0.07 in 2023-24 means the company generated ₹0.07 for every ₹1 of capital employed. The improvement from 0.06 in 2022-23 indicates that the company is using its capital more efficiently to generate returns.

Return on Investment (ROI)

2023-24: 0.19, 2022-23: 0.19

ROI measures the efficiency of an investment in generating profit. A ratio of 0.19 in both years shows that the company generates ₹0.19 in returns for every ₹1 invested. This stable ROI indicates consistent investment performance across both years.