MIL Industries and Aerospace Limited Annual Report, Balance Sheet, Financials.

MIL Industries and Aerospace Limited Balance Sheet (Rs in Lakhs)

 MIL Industries and Aerospace Limited Profit & Loss Statement (Rs in Lakhs)

MIL Industries and Aerospace Limited 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’s net cash generated from operating activities increased significantly from ₹108.02 lakhs in FY 2023 to ₹386.31 lakhs in FY 2024. This substantial improvement, despite a nearly unchanged profit before tax of ₹297.6 lakhs (compared to ₹298.09 lakhs in FY 2023), is driven by better management of working capital. Key adjustments include a reduction in depreciation from ₹51.07 lakhs to ₹37.61 lakhs, and a rise in operating profit before working capital changes from ₹329.8 lakhs to ₹293.1 lakhs. Positive changes in working capital components, such as decreased inventories and improved trade payables, further contributed to the higher cash generation. However, interest income saw a notable increase, reflecting improved returns on investments.

Investing Activities: The cash flow from investing activities turned more negative, with net outflows rising from ₹21.41 lakhs in FY 2023 to ₹172.77 lakhs in FY 2024. This increase in outflow is primarily due to a significant rise in fixed asset purchases, from ₹42.48 lakhs to ₹218.49 lakhs. Despite the additional cash inflows from interest income, the higher capital expenditure led to a larger net cash outflow in investing activities.

Financing Activities: Cash flow from financing activities shows a slight improvement, with a net outflow reducing from ₹82.52 lakhs in FY 2023 to ₹29.13 lakhs in FY 2024. The reduction in outflow is largely due to the absence of new borrowings and minimal interest payments, alongside a small dividend payment of ₹27.51 lakhs. The decrease in financing outflows reflects a more stable financing strategy and reduced reliance on external funding.

Overall Cash Position: The net increase in cash and cash equivalents for FY 2024 was ₹184.41 lakhs, a significant improvement from ₹4.09 lakhs in FY 2023. This increase, combined with an opening balance of ₹1,170.08 lakhs, resulted in a closing cash balance of ₹1,354.49 lakhs. The enhanced cash position reflects better cash flow management and operational performance, allowing the company to increase its liquidity and financial flexibility.

 Financial Ratios of MIL Industries and Aerospace Limited

Here is a summary of the financial and operational metrics for MIL Industries and Aerospace Limited for the year 2024 and 2023:

Current Ratio: The current ratio has decreased from 17.11 in 2022-23 to 14.85 in 2023-24. This ratio measures the company’s ability to cover its short-term liabilities with its short-term assets. Despite the drop, the ratio remains significantly above 1, indicating a strong liquidity position. The decrease might be due to an increase in current liabilities or a slower growth rate of current assets. Although the liquidity remains robust, the decrease suggests a need for close monitoring of working capital management.

Debt Equity Ratio: The debt-equity ratio increased slightly from 0.05 in 2022-23 to 0.06 in 2023-24. This ratio indicates the proportion of debt used relative to shareholders ' equity. A higher ratio, though still low, shows a slight increase in the company’s reliance on debt to finance its assets. This minor increase suggests a modest rise in financial leverage but remains low, reflecting a conservative approach to debt and low financial risk.

Debt Service Coverage Ratio (DSCR): The DSCR has improved marginally from 205.08 in 2022-23 to 208.57 in 2023-24. This ratio measures the company’s ability to cover its debt obligations with its operating income. A DSCR well above 1 indicates strong capacity to service debt, and the increase shows a slight improvement in this ability. The high ratio signifies that the company comfortably manages its debt payments from operating cash flows.

Return on Equity (ROE): ROE decreased from 11.36% in 2022-23 to 10.55% in 2023-24. This ratio measures the profitability relative to shareholders ' equity. The decrease in ROE indicates a slight reduction in the return generated on shareholders ' investment. This could be due to a lower net income or increased equity. Although the company remains profitable, the reduction suggests a slight decline in overall financial performance.

Inventory Turnover Ratio: The inventory turnover ratio increased from 1.22 in 2022-23 to 1.44 in 2023-24. This ratio measures how efficiently the company is managing its inventory. A higher ratio indicates improved efficiency in converting inventory into sales. The increase suggests that the company is selling and replenishing its inventory more effectively, which is positive for operational performance and cash flow management.

Trade Receivables Turnover Ratio: The trade receivables turnover ratio rose significantly from 10.48 in 2022-23 to 18.55 in 2023-24. This ratio measures how effectively the company collects payments from its customers. A higher ratio indicates faster collection of receivables, improving liquidity. The substantial increase suggests that the company has become more efficient in managing its credit policies and collecting payments.

Trade Payables Turnover Ratio: The trade payables turnover ratio increased from 7.31 in 2022-23 to 11.19 in 2023-24. This ratio measures how quickly the company pays its suppliers. A higher ratio implies that the company is paying its trade payables more rapidly. This could indicate stronger supplier relationships or improved cash flow management, though it might also suggest a tighter cash position.

Net Capital Turnover Ratio: The net capital turnover ratio slightly decreased from 0.88 in 2022-23 to 0.85 in 2023-24. This ratio evaluates how effectively the company uses its capital to generate revenue. The slight decrease indicates a marginal reduction in the efficiency of capital utilization. While still close to the previous year’s performance, the drop suggests a need for more effective use of capital to drive sales.

Net Profit Ratio: The net profit ratio improved from 8.65% in 2022-23 to 9.13% in 2023-24. This ratio measures net income as a percentage of sales. The increase indicates higher profitability relative to sales, reflecting improved operational efficiency or better cost management. This positive change suggests that the company is more effective in converting sales into actual profit.

Return on Capital Employed (ROCE): The ROCE decreased from 11.36% in 2022-23 to 10.55% in 2023-24. This ratio measures the return generated from the capital employed in the business. The decline indicates a slight reduction in the efficiency of capital utilization. While still strong, the decrease suggests that there might be a need for better capital allocation to maintain high returns.

     Return on Investment (ROI): The ROI increased from 7.13% in 2022-23 to 8.07% in 2023-24. This ratio evaluates the return on investments made by       the company. The increase indicates that the company has improved its return on its investments, suggesting better investment decisions or improved             performance from existing investments.