Lamina Foundries Ltd Annual Report and Financials

Lamina Foundries Limited Standalone Balance Sheet (Rs in Crores)

Lamina Foundries Limited Standalone Profit & Loss Statement (Rs in Crores)

Lamina Foundries Limited Standalone Cash Flow Statement (Rs in Crores) 

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

The company generated positive cash flow from operations in both years, though it slightly declined from ₹12.28 crore in 2024 to ₹10.81 crore in 2025. Operating profit before working capital changes also reduced from ₹12.12 crore to ₹11.27 crore, indicating a mild drop in core profitability. A significant impact came from working capital movements—trade receivables and inventories increased in 2025, leading to cash outflows, while trade payables increased substantially, partially offsetting this effect. Overall, the company continues to maintain strong operating cash flows, but efficiency in managing receivables and inventory has weakened compared to the previous year.

Cash Flow from Investing Activities

Investing activities show a lower cash outflow in 2025 (₹3.36 crore) compared to a heavy outflow in 2024 (₹14.03 crore). This indicates that the company significantly reduced its capital expenditure during the year. In 2024, the company invested heavily in fixed assets, which may have been for expansion or modernization, while in 2025, such investments were minimal. This reduction improves short-term liquidity but may suggest slower expansion or a pause in major capital projects.

Cash Flow from Financing Activities

Financing activities reflect a shift from a positive inflow of ₹1.19 crore in 2024 to a substantial outflow of ₹6.65 crore in 2025. The company repaid term loans in 2025, unlike the previous year when it raised funds through borrowings. Additionally, interest payments increased to ₹8.23 crore, indicating a higher debt burden. Although there was a slight increase in working capital borrowings, it was not enough to offset loan repayments and interest costs. This suggests the company is focusing on debt reduction but is under pressure due to high finance costs.

Net Cash Position

The overall cash position improved slightly, with a net increase of ₹0.78 crore in 2025 compared to a decrease of ₹0.55 crore in 2024. The closing cash balance rose to ₹4.33 crore from ₹3.54 crore. Despite lower operating cash flow and higher financing outflows, reduced capital expenditure helped maintain a positive cash position. This indicates stable liquidity in the short term, but long-term sustainability will depend on improving operational efficiency and managing financial obligations effectively.

Financial ratios of Lamina Foundries Limited

Summary of ratios for the years 2025 and 2024:

Current Ratio
The current ratio of the company slightly declined from 1.19 in 2023-24 to 1.15 in 2024-25. This indicates a marginal weakening in short-term liquidity. However, the ratio remains above 1, suggesting that the company still has sufficient current assets to meet its short-term obligations, though the cushion has reduced slightly.

Debt-Equity Ratio

The debt-equity ratio increased from 2.07 to 2.47, indicating a higher reliance on debt financing. This rise reflects increased financial risk as the company is becoming more leveraged. A higher ratio suggests greater pressure on earnings due to interest obligations and may impact long-term solvency if not managed properly.

Debt Service Coverage Ratio
The debt service coverage ratio dropped significantly from 3.72 to 1.65. This sharp decline indicates reduced ability of the company to service its debt obligations from operating income. Although the ratio is still above 1, the decrease is concerning and suggests tightening cash flows or increased debt burden.

Return on Equity
Return on equity declined drastically from 0.61 to 0.02, indicating a substantial fall in returns to shareholders. This suggests that the company’s profitability has weakened significantly during the year, reducing the efficiency of equity utilization.

Inventory Turnover Ratio
The inventory turnover ratio slightly decreased from 3.52 to 3.50, indicating marginally slower movement of inventory. While the change is not significant, it suggests that inventory management efficiency has remained almost stable with a slight decline.

Trade Receivables Turnover Ratio
The trade receivables turnover ratio improved from 9.35 to 10.76, indicating better collection efficiency. The company is able to recover its receivables faster, which improves cash flow and reduces the risk of bad debts.

Trade Payables Turnover Ratio
The trade payables turnover ratio increased from 4.17 to 5.74, indicating that the company is paying its suppliers more quickly than before. While this may improve supplier relationships, it could also put pressure on working capital if payments are made too quickly.

Net Capital Turnover Ratio
The net capital turnover ratio improved from 4.30 to 4.82, indicating better utilization of working capital to generate revenue. This reflects improved operational efficiency despite other financial challenges.

Net Profit Ratio
The net profit ratio was 0.10 in the previous year but is not reported in the current year, which may indicate negligible or negative profits. This suggests a deterioration in overall profitability and operational performance.

Return on Capital Employed
The return on capital employed was 0.07 in the previous year but is not available for the current year, indicating a possible decline in operating profitability. This reflects reduced efficiency in generating returns from total capital employed.

Return on Investments
Return on investments declined from 0.19 to 0.11, indicating lower earnings from invested funds. This suggests that the company’s investment decisions or external market conditions have not been as favorable during the current year.