Madhur Iron And Steel Annual Reports, Balance Sheet and Financials

Madhur Iron & Steel (India) Limited Standalone Balance Sheet (Rs. in crores).

Madhur Iron & Steel (India) Limited Standalone Profit & Loss Statement (Rs. in crores).

Madhur Iron & Steel (India) 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 reported an improvement in profit before tax to ₹25.12 crore in FY25 compared to ₹17.30 crore in FY24, along with higher depreciation and interest costs, indicating expansion and increased borrowing. However, despite better profitability, the company experienced a significant deterioration in operating cash flow, with cash generated from operations at ₹-39.92 crore compared to ₹-18.47 crore in the previous year. This decline is primarily driven by substantial working capital outflows, particularly a sharp increase in trade receivables and inventories, along with higher loans and advances, which indicates that a large portion of revenue is not being converted into cash. Although there was some support from increased trade payables, it was insufficient to offset the overall working capital pressure. After accounting for taxes, the net cash outflow from operating activities stood at ₹-44.00 crore, highlighting weak cash generation from core business operations.

Cash Flow from Investing Activities

The net cash outflow from investing activities reduced to ₹-8.01 crore in FY25 from ₹-13.19 crore in FY24, indicating relatively lower investment intensity during the year. The company continued to invest in property, plant and equipment, though at a reduced level, suggesting ongoing but moderated expansion efforts. There were also outflows toward bank deposits, which may reflect liquidity management or margin requirements, while interest income remained stable. Overall, investing activities reflect a controlled approach to capital expenditure compared to the previous year, possibly indicating a pause or consolidation phase in expansion.

Cash Flow from Financing Activities

Financing activities generated strong cash inflows of ₹52.70 crore in FY25, significantly higher than ₹34.09 crore in FY24, making it the primary source of liquidity for the company. This was largely driven by substantial funds raised through equity issuance and securities premium, along with continued reliance on working capital borrowings. At the same time, interest expenses increased, reflecting a higher debt burden. The company’s dependence on external financing to support operations and working capital needs is evident, as internal cash generation remains weak.

Net Increase/Decrease in Cash & Cash Equivalents

Despite negative cash flow from operations and continued investing outflows, the company managed to record a net increase in cash and cash equivalents of ₹0.70 crore in FY25 compared to a marginal increase in FY24. This improvement is entirely attributable to strong financing inflows, which offset the cash deficits from other activities. The closing cash balance improved to ₹0.70 crore, but remains relatively modest, indicating limited liquidity buffer.

Financial ratios of Madhur Iron & Steel (India) Limited.

Summary of Financial Ratio of the year 2025 and 2024.

Current Ratio

The current ratio improved to 1.52 in FY25 from 1.35 in FY24, indicating a better short-term liquidity position. This suggests that the company has strengthened its ability to meet its current obligations, although the improvement should be viewed alongside rising working capital requirements.

Debt Equity Ratio

The debt equity ratio declined to 1.53 from 2.00, reflecting a reduction in financial leverage. This improvement indicates a relatively stronger capital structure, supported by equity infusion and controlled borrowing levels, reducing financial risk.

Debt Service Coverage Ratio

The debt service coverage ratio remained stable at 4.31 in both years, indicating consistent ability to service debt obligations. This suggests that despite changes in profitability and borrowing, the company maintains a comfortable cushion to cover its debt repayments.

Return on Equity

Return on equity decreased to 0.27 from 0.39, indicating a decline in returns generated for shareholders. This may be due to increased equity base or relatively lower profit growth compared to capital employed.

Inventory Turnover Ratio

The inventory turnover ratio fell to 2.48 from 2.85, showing slower movement of inventory. This aligns with the increase in inventory levels and may indicate inefficiencies in inventory management or slower demand.

Trade Receivables Ratio

The trade receivables ratio dropped sharply to 15.61 from 103.07, indicating significantly slower collection of receivables. This suggests extended credit periods or inefficiencies in collection, which is a major concern for cash flow.

Trade Payables Turnover Ratio

The trade payables turnover ratio declined to 9.32 from 10.37, indicating that the company is taking slightly longer to pay its suppliers. This may be a deliberate strategy to manage liquidity amid high working capital requirements.

Net Capital Turnover Ratio

The net capital turnover ratio decreased to 4.65 from 8.29, reflecting reduced efficiency in utilizing capital to generate revenue. This indicates that increased capital investment is not translating proportionately into sales.

Net Profit Ratio

The net profit ratio improved marginally to 7.36% from 7.21%, indicating slightly better cost control and profitability at the margin level despite operational challenges.

Return on Capital Employed

Return on capital employed declined significantly to 34.09% from 50.63%, showing reduced efficiency in generating returns from total capital employed. This may be due to increased capital base or lower operating efficiency.

Return on Investment

Return on investment decreased to 13.45 from 16.88, indicating lower returns on invested funds. This reflects a moderation in overall investment efficiency and profitability compared to the previous year.