Mohindra Fasteners Annual Reports, Balance Sheet and Financials

Mohindra Fasteners Limited Consolidated Balance sheet (Rs. In Lakhs)

Mohindra Fasteners Limited Consolidated Profit & Loss Statement (Rs. In Lakhs)

Mohindra Fasteners Limited Consolidated Cash Flow Statement (Rs. In Lakhs)

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flow from Operating Activities

Net Profit before Tax:

For the year ending March 31, 2024, the net profit before tax is rs. 2,168.41, up from rs. 2,027.74 in 2023. This increase indicates higher profitability in 2024 compared to the previous year.

Adjustments to Net Profit:

Depreciation and Amortization Expense: Increased to rs. 567.38 from rs. 423.68. This rise could reflect new assets or changes in depreciation schedules, impacting the cash flow positively by adding back non-cash expenses.

Loss/(Profit) on Disposal of Property, Plant & Equipment (Net): The loss increased slightly to rs. 3.92 from rs. 0.30. This indicates a minor loss from selling assets, which reduces net profit but does not affect cash flow directly.

Share of (Loss) of Investment Accounted for Using Equity Method: The loss increased to rs. 33.19 from rs. 23.69. This suggests that the company 's share of losses from its investments accounted for using the equity method has increased.

Remeasurement of Defined Benefit Plans: There was a remeasurement loss of rs. 27.54 in 2024, compared to a gain of rs. 50.30 in 2023. This swing from gain to loss reflects changes in actuarial assumptions or pension fund performance.

Finance Costs: Increased to rs. 303.64 from rs. 199.06, indicating higher interest expenses or increased borrowing.

Rental Income: Rose to rs. 6.60 from rs. 1.65, reflecting increased rental income earned by the company.

Interest Income: Increased substantially to rs. 231.80 from rs. 104.16, which suggests improved returns on investments or higher cash balances.

Dividend Income: Slightly increased to rs. 0.11 from rs. 0.06.

Operating Profit before Working Capital Changes:

This improved to rs. 2,736.28 from rs. 2,570.91, highlighting enhanced operational performance before accounting for changes in working capital.

Changes in Working Capital:

Increase in Inventories: The increase to rs. 138.72 from a decrease of rs. 195.75 indicates that the company is holding more inventory, which ties up cash.

Increase in Other Current Assets: Increased significantly by rs. 1,492.08 compared to a decrease of rs. 713.99 in 2023. This might include higher receivables or other prepayments, affecting cash flow.

Decrease in Non-current Assets: The decrease of rs. 982.49 in 2024, compared to an increase of rs. 1,022.92 in 2023, suggests asset sales or disposals that impacted cash flow.

Increase in Trade Payables: Increased by rs. 575.50 in 2024 from rs. 401.59, indicating that the company is extending its payment terms with suppliers, which positively affects cash flow.

Increase in Other Current Liabilities: Increased by rs. 85.53 compared to rs. 67.72, indicating higher short-term liabilities.

Increase in Non-current Liabilities: Reduced slightly by rs. 6.20 in 2024 from a decrease of rs. 32.50, reflecting minor changes in long-term liabilities.

Cash Generated from Operations:

Increased to rs. 1,869.24 from rs. 1,075.05, showing stronger cash generation from core business activities.

Income Taxes Paid (Net):

Increased to rs. 547 from rs. 417.81, indicating higher tax payments which align with increased profitability.

Net Cash from Operating Activities:

Increased significantly to rs. 1,322.23 from rs. 657.25, demonstrating improved cash flow from operating activities.

Cash Flow from Investing Activities

Purchase of Property, Plant & Equipment (including Capital-work-in-progress and Payment for Capital Advances):

Outflow decreased to rs. 405.16 from rs. 2,064.28, suggesting reduced investment in new assets or capital expenditures.

Proceeds from Disposal of Property, Plant & Equipment:

Slightly decreased to rs. 3.92 from rs. 7.83, reflecting fewer sales or disposals of assets.

Investment in Equity Instruments:

The outflow increased to rs. 55.01 from an inflow of rs. 23.69, indicating more investments in equity securities.

Rental Income, Interest Income, and Dividend Income:

Rental Income: Increased to rs. 6.60 from rs. 1.65.

Interest Income: Rose significantly to rs. 231.80 from rs. 104.16.

Dividend Income: Slightly increased to rs. 0.11 from rs. 0.06.

Net Cash (Used in)/from Investing Activities:

Improved to a net outflow of rs. 217.75 from rs. 1,926.88, indicating reduced cash spent on investments and higher cash inflows from interest and rental income.

3. Cash Flow from Financing Activities

Proceeds of Long-Term Borrowings (Net):

There was a net outflow of rs. 555.41 compared to an inflow of rs. 669.74, reflecting reduced new long-term borrowings or repayment of existing debt.

Proceeds of Short-Term Borrowings (Net):

Increased inflow to rs. 581.98 from rs. 208.87, indicating higher short-term financing needs.

Interest Paid:

Increased to rs. 303.64 from rs. 197.77, reflecting higher interest expenses.

Dividends Paid:

Increased to rs. 265.16 from rs. 235.70, suggesting higher dividend payouts.

Payment of Lease Liabilities:

No payment in 2024 compared to rs. 13.02 in 2023, indicating either no new leases or changes in lease accounting.

Net Cash from Financing Activities:

Net outflow of rs. 542.23 compared to an inflow of rs. 432.13, indicating net cash outflow from financing activities.

4. Net Change in Cash and Cash Equivalents

Net (Decrease) in Cash and Cash Equivalents:

Increased by rs. 562.26 in 2024, compared to a decrease of rs. 837.53 in 2023, showing improved cash position.

Cash and Cash Equivalents at the Beginning of the Year:

Decreased to rs. 1,145.75 from rs. 1,983.28, reflecting a lower starting cash balance.

Cash and Cash Equivalents at the End of the Year:

Increased to rs. 1,708.01 from rs. 1,145.75, indicating a positive change in cash reserves.

Mohindra Fasteners Limited Financial Ratios

Here is a summary of the financial and operational metrics for Mohindra Fasteners Limited for the years 2024 and 2023:

Current Ratio

2024: 1.96

2023: 1.65

Insight: The current ratio measures the company’s ability to pay its short-term liabilities with its short-term assets. An increase from 1.65 to 1.96 indicates improved liquidity. This suggests the company is in a stronger position to cover its short-term obligations, which is a positive sign of financial health.

Debt-Equity Ratio

2024: 0.35

2023: 0.39

Insight: The debt-equity ratio shows the proportion of debt used relative to equity. A decrease from 0.39 to 0.35 indicates a reduction in financial leverage and a lower reliance on debt financing. This improvement reflects a more conservative approach to leveraging and potentially reduces financial risk.

3.Debt Service Coverage Ratio

2024: 2.89

2023: 7.37

Insight: The debt service coverage ratio measures the company’s ability to meet its debt obligations from operating income. A significant drop from 7.37 to 2.89 suggests a reduction in the company’s ability to cover its debt payments with its operating cash flow. This decline may be a concern, indicating potential difficulties in meeting debt obligations Return on Equity (ROE) Ratio

2024: 0.15 (15%)

2023: 0.17 (17%)

Insight: ROE measures the profitability of the company in relation to shareholders ' equity. The slight decrease from 17% to 15% indicates a minor decline in the effectiveness of using shareholders’ equity to generate profits. While still positive, the reduction suggests a slight decrease in profitability or higher equity base.

Inventory Turnover Ratio

2024: 3.44

2023: 3.50

Insight: This ratio measures how efficiently inventory is being converted into sales. A decrease from 3.50 to 3.44 suggests a slight decline in inventory turnover. This could imply that inventory is being held slightly longer before being sold, which might affect liquidity and cash flow.

Trade Receivable Turnover Ratio

2024: 4.44

2023: 4.80

Insight: This ratio indicates how efficiently the company collects receivables. The decrease from 4.80 to 4.44 suggests a slower collection period for receivables, which could impact cash flow. This decrease may reflect challenges in credit collection or changes in credit terms.

Trade Payable Turnover Ratio

2024: 3.34

2023: 3.40

Insight: This ratio measures how quickly the company pays its suppliers. The slight decrease from 3.40 to 3.34 indicates that the company is taking marginally longer to pay its trade payables. This could be a result of extended payment terms or strategic cash management.

Net Capital Turnover Ratio

2024: 3.19

2023: 4.68

Insight: This ratio measures how efficiently the company utilizes its net capital to generate sales. The significant decrease from 4.68 to 3.19 indicates reduced efficiency in generating sales from net capital. This decline could suggest lower revenue generation relative to the capital invested in the business.

Net Profit Ratio

2024: 0.09 (9%)

2023: 0.09 (9%)

Insight: The net profit ratio remains unchanged at 9%, indicating stable profit margins despite changes in revenue or expenses. This consistency suggests that the company has maintained its profitability relative to sales, which is a positive indicator of cost control and pricing strategy. turn on Capital Employed (ROCE)

2024: 0.20 (20%)

2023: 0.16 (16%)

Insight: ROCE measures the efficiency of capital use in generating profits. The increase from 16% to 20% indicates improved profitability relative to the capital employed. This improvement suggests more effective use of capital to generate earnings, reflecting stronger operational performance.

Dividend history