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

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

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

MIL Industries and Aerospace Limited Standalone Cash Flow Statement (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

The company generated a net operating cash inflow of ₹101.32 lakhs in FY 2024-25, compared to ₹386.31 lakhs in FY 2023-24. This sharp decline is mainly due to higher working capital requirements during the year, particularly an increase in inventories and other current assets, along with a rise in trade receivables. Although operating profit before working capital changes remained stable, the higher adjustments led to reduced cash generation. This indicates that while the company is profitable at the operational level, cash is being tied up in receivables and inventory.

Cash Flow from Investing Activities

In FY 2024-25, the company reported a net cash outflow of ₹75.44 lakhs from investing activities, which is an improvement compared to the larger outflow of ₹172.77 lakhs in FY 2023-24. The improvement came as the company reduced its capital expenditure on fixed assets during the year and also earned higher interest income. Additionally, the company realized some cash from the sale of assets, which was absent in the previous year. Overall, this suggests that the company is moderating its investment spending while generating some returns from past investments.

Cash Flow from Financing Activities

The company witnessed a strong inflow of ₹232.40 lakhs from financing activities in FY 2024-25, compared to an outflow of ₹29.13 lakhs in FY 2023-24. The positive inflow was primarily driven by fresh borrowings, which significantly boosted the financing side. Dividend payments and interest expenses continued, but they were much lower in size compared to the borrowings. This indicates that the company relied more on external funding during the current year to support its operations and investments.

Net Increase/Decrease in Cash and Cash Equivalents

As a result of the above activities, the company’s overall cash position improved. There was a net increase of ₹258.28 lakhs in FY 2024-25, higher than the ₹184.41 lakhs increase in FY 2023-24. The closing cash balance stood at ₹1,612.77 lakhs as of March 31, 2025, compared to ₹1,354.49 lakhs in the previous year. This growth reflects that despite weaker operating cash flows, higher financing inflows supported liquidity, keeping the company in a comfortable cash position.

MIL Industries and Aerospace Limited Financial Ratios

Summary of the Ratio Analysis for the year 2025 and 2024:

Current Ratio

The current ratio has fallen to 5.92 in FY 2024-25 from an extremely high 14.85 in FY 2023-24. While still showing strong short-term liquidity, the sharp fall indicates that the company’s current assets have reduced compared to liabilities. This means funds are being better utilized, but the ratio is still much higher than the ideal range (1.5–2.5), suggesting that too much capital is locked in current assets.

Debt-Equity Ratio

The debt-equity ratio increased to 0.16 from 0.06. Although this indicates a rise in borrowing, the company is still very lowly leveraged. The capital structure is safe and equity-heavy, showing minimal dependence on debt.

Debt Service Coverage Ratio (DSCR)

The DSCR stands at a strong 13.15 in FY 2024-25, while it was not reported in FY 2023-24. A ratio this high means the company generates significantly more earnings than required to meet its debt obligations, reflecting excellent repayment capacity.

Return on Equity (ROE)

ROE has decreased to 4.60% from 7.69%. This shows that shareholders are earning a lower return on their equity investment compared to last year. It reflects weaker profitability relative to the equity base.

Inventory Turnover Ratio

The inventory turnover ratio declined to 0.71 from 1.44. This indicates that inventory is being sold more slowly than in the previous year. It suggests inefficiency in inventory management and a possible buildup of unsold stock.

Trade Receivables Turnover Ratio

The receivables turnover dropped sharply to 6.01 from 18.55. This means the company is collecting dues from customers much more slowly, tying up more funds in receivables. It signals weaker credit control compared to the previous year.

Trade Payables Turnover Ratio

The payables turnover ratio fell to 4.17 from 11.19. This suggests that the company is taking longer to pay its suppliers compared to last year. While this may help cash flow in the short term, excessively delaying payments could strain supplier relationships.

Net Capital Turnover Ratio

The net capital turnover ratio declined to 0.55 from 0.85. This means the efficiency of using working capital to generate revenue has worsened. The company is generating less sales per unit of working capital employed.

Net Profit Ratio

The net profit ratio decreased slightly to 7.77% from 9.13%. This indicates a decline in profitability margins, meaning the company is retaining a smaller portion of its revenue as profit compared to last year.

Return on Capital Employed (ROCE)

ROCE fell to 7.40% from 10.55%. This shows a decline in the efficiency of using both equity and debt capital to generate returns. It suggests weaker overall profitability from total capital employed.

Return on Investment (ROI)

The ROI dropped to 4.61% from 8.07%. This shows that the overall return from the company’s investments has reduced significantly, highlighting less effective utilization of invested funds.