Matangi Rubber Limited (Matangi Rubber) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40
Matangi Rubber Limited

Matangi Rubber Limited Standalone Balance Sheet (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Equity
Share Capital	342.96	272.03
Reserves & Surplus	8,679.87	4,777.66
Non-Current Liabilities
Long Term Borrowings	1,550.60	4,067.87
Long Term Provisions	32.88	-
Current Liabilities
Total outstanding dues of creditors other than micro enterprises and small enterprises	948.58	1,452.84
Short Term borrowings	6,304.39	2,225.87
Short term Provisions	392.91	139.43
Other current liabilities	326.51	151.95
Total Equity & Liabilities	18,578.70	13,087.65
Non-Current Assets
Property, plant and equipments	2,011.72	1,959.96
Capital work-in-progress	5,847.11	2,295.20
Deferrad tax assets (net)	41.30	44.29
Investments	2,272.16	244.55
Long term loans and advances	135.53	63.07
Current Assets
Investments	14.71	-
Short Term Loans & Advances	3,235.03	3,712.89
Inventories	3,277.22	2,359.12
Trade Receivables	1,502.92	2,034.53
Cash and bank balances	229.51	35.63
Other Current Assets	11.49	338.42
Total Assets	18,578.70	13,087.65

Matangi Rubber Limited Standalone Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operations	9,205.22	9,011.86
Other Income	142.73	114.65
Total Income	9,347.95	9,126.51
Expenses
Cost of material consumed	9,126.51	5,679.09
Purchase of stock in trade	-	230.63
Changes in inventories of finished goods	-550.96	-141.94
Direct expenses	887.45	868.30
Employee Benefit Expenses	600.74	634.06
Finance Costs	316.82	332.15
Depreciation & amortization expense	302.41	173.00
Other Expenses	1,133.18	659.57
Total Expenses	7,122.47	8,484.86
Profit Before Prior Period Items and Tax	2,215.48	641.65
Prior period expenses	-431.78	-
Profit before tax	1,793.70	641.65
Current Tax	604.42	181.20
Deferred Tax	-15.56	4.80
Profit/(Loss) for the period	1,204.84	455.65
Earning per share
Basic	39.64	16.95
Diluted	39.64	16.95

Matangi Rubber Limited Standalone Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Net Profit Before Tax	1,793.70	641.65
Adjustments for :
Depreciation and Amortization expense	302.41	173.00
(Gain)/Loss on sale of property, plant and equipment & investments	-0.69	-0.32
Interest expenses and other financing cost	316.82	332.15
Interest income	-81.11	-111.13
Liabilities and provisions no longer required, written back	-0.46	-0.57
Prior period expenses	431.78	-
Non-operating expenses	0.23	-
Operating profit/(loss) before working capital changes	2,762.68	1,034.78
Movements in working capital
(Decrease) /Increase in trade payables	-504.26	354.30
(Decrease) /Increase in Provision	14.55	-
(Decrease) /Increase in other current liabilities	109.26	61.20
Decrease/(Increase) in trade receivables	166.28	-85.48
Decrease /(Increase) in inventories	-918.10	-31.01
Decrease /(Increase) in other current assets	326.94	-329.62
Decrease /(Increase) in long term loans and advances	-72.44	-19.61
Decrease /(Increase) in short term loans and advances	477.86	-1,936.32
Cash Generated from Operations	2,362.77	-951.31
Direct tax paid	-353.87	-127.61
Net cash flows from (used in) operating activities	2,008.90	-1,078.92
Cash Flow from Investing Activities
Purchase of property plant & equipment including capital work in progress	-4,114.92	-3,701.83
Decrease of property plant equipments including capital work in progress	307.91	847.98
Decrease/ (Increase) in investments	-1,382.30	15.38
Gain/(Loss) on sale of property, plant and equipment & investments	0.69	0.32
Non-operating expenses	-0.23	-
Other bank balances	-4.09	-
Interest received	81.11	111.13
Net cash flows from (used in) investing activities	-5,111.83	-2,727.02
Cash Flow from Financing Activities
Proceeds from income of equity share (including share premium)	2,048.30	839.99
(Decrease)/Increase in long term borrowings	-2517.28	2,695.50
(Decrease)/Increase in short term borrowings	4,078.52	578.01
Interest paid	-316.82	-332.15
Net cash flows Generated from (used in) financing activities	3,292.72	3,780.35
Net Increase/decrease in Cash & cash equivalents	189.79	-25.59
Cash and cash equivalents in the beginning of the year	35.63	61.22
Cash and cash equivalents at the end of the year	225.42	35.63

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

Cash Flow from Operating Activities

In FY 2024–25, the company generated positive operating cash flows of ₹2,008.90 lakhs, compared to an outflow of ₹1,078.92 lakhs in the previous year, indicating a clear improvement in core operations. This was mainly driven by a profit before tax of ₹1,793.70 lakhs, supported by non-cash charges such as depreciation of ₹302.41 lakhs and interest expense of ₹316.82 lakhs. Working capital movements showed mixed trends, with cash outflows due to an increase in inventories of ₹918.10 lakhs and a decrease in trade payables of ₹504.26 lakhs, partially offset by a reduction in trade receivables of ₹166.28 lakhs and lower other current assets of ₹326.94 lakhs. After payment of direct taxes amounting to ₹353.87 lakhs, the operating cash flow remained healthy, reflecting improved operational efficiency.

Cash Flow from Investing Activities

The company reported a net cash outflow of ₹5,111.83 lakhs from investing activities during FY 2024–25, higher than ₹2,727.02 lakhs in the previous year. The outflow was primarily on account of capital expenditure of ₹4,114.92 lakhs towards property, plant and equipment and an increase in investments of ₹1,382.30 lakhs. These outflows were partially offset by proceeds from sale of fixed assets of ₹307.91 lakhs and interest income of ₹81.11 lakhs. The negative investing cash flow reflects the company’s focus on long-term growth and asset expansion.

Cash Flow from Financing Activities

Financing activities resulted in a net inflow of ₹3,292.72 lakhs during FY 2024–25 as against ₹3,780.35 lakhs in FY 2023–24. This was supported by equity share capital proceeds of ₹2,048.30 lakhs and an increase in short-term borrowings of ₹4,078.52 lakhs, while long-term borrowings were reduced by ₹2,517.28 lakhs. Additionally, interest payments of ₹316.82 lakhs led to cash outflow. The financing pattern indicates a strategic shift towards short-term funding while reducing long-term debt obligations.

Net Change in Cash and Cash Equivalents

Despite significant investments during the year, the company recorded a net increase in cash and cash equivalents of ₹189.79 lakhs in FY 2024–25, compared to a decline of ₹25.59 lakhs in FY 2023–24. Cash and cash equivalents increased from ₹35.63 lakhs at the beginning of the year to ₹225.42 lakhs at the end of the year, reflecting an improvement in the overall liquidity position.

Financial ratios of Matangi Rubber Limited

Particulars	31-03-2025	31-03-2024
Current ratio	1.04	2.14
Debt equity ratio	0.87	1.25
Debt service coverage ratio	3.29	2.07
Return on equity ratio	0.17	0.10
Trade receivables ratio	70.13	80.67
Trade payables turnover ratio	91.89	70.17
Net capital turnover ratio	3.83	2.34
Net profit ratio	0.13	0.05
Return on capital employed	0.13	0.09
Inventory turnover ratio	1.69	2.83

Summary of the Financial ratios for the years 2025 and 2024:

Current Ratio

The current ratio declined from 2.14 in FY 2022–23 to 1.04 in FY 2023–24, indicating a significant reduction in short-term liquidity. This suggests that the company’s ability to meet its current liabilities using current assets has weakened, reflecting tighter working capital conditions during the year.

Debt–Equity Ratio

The debt–equity ratio decreased from 1.25 to 0.87, indicating an improvement in the capital structure. The reduction reflects lower reliance on debt financing and improved financial stability, reducing long-term financial risk.

Debt Service Coverage Ratio

The DSCR improved from 2.07 to 3.29, demonstrating a stronger capacity to meet debt repayment and interest obligations from operating earnings. This reflects improved cash generation and enhanced creditworthiness of the company.

Return on Equity

Return on equity increased from 0.10 to 0.17, indicating improved profitability and more efficient utilization of shareholders’ funds. The increase suggests higher returns generated for equity shareholders during the year.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio declined from 80.67 to 70.13, indicating slower collection of receivables. This may be due to extended credit terms or delays in customer payments, potentially affecting cash flow management.

Trade Payables Turnover Ratio

The trade payables turnover ratio increased from 70.17 to 91.89, indicating faster payment to suppliers. While this reflects improved supplier relationships and credibility, it may also put pressure on the company’s working capital.

Net Capital Turnover Ratio

The net capital turnover ratio increased from 2.34 to 3.83, indicating improved efficiency in the use of net working capital to generate revenue. This reflects better operational efficiency and effective working capital management.

Net Profit Ratio

The net profit ratio improved significantly from 0.05 to 0.13, reflecting enhanced profitability. The increase suggests better cost control, improved operational performance, and stronger margins during FY 2023–24.

Return on Capital Employed

ROCE increased from 0.09 to 0.13, indicating improved efficiency in generating returns from total capital employed. This reflects better utilization of both equity and debt funds.

Inventory Turnover Ratio

The inventory turnover ratio declined from 2.83 to 1.69, indicating slower inventory movement. This suggests higher inventory holding levels or slower sales, which may adversely impact working capital efficiency.