Molind Engineering Ltd Annual Report and Financials

Molind Engineering Limited Balance Sheet (Rs In Lakhs)

Molind Engineering Limited Profit & Loss Statement (Rs In Lakhs)

 Molind Engineering Limited Consolidated Cash Flow Statement (Rs In Lakhs)

Certainly, here is a summary of the Cash Flow Statement for the years 2023 and 2022:

2023:

Operating Activities:

Net cash used amounted to Rs 5,875.18 crore. This was primarily influenced by a net profit of Rs 7,094.50 crore, adjusted for non-cash items such as depreciation, finance costs, and the substantial loss on the sale of fixed assets.

Investing Activities:

Net cash generated was Rs 7,260.84 crore, mainly from interest income and proceeds of Rs 7,100.43 crore from the sale of fixed assets.

Financing Activities:

Net cash used was Rs 1,355.02 crore, primarily due to payments related to non-convertible preference shares and finance costs.

Overall Result:

The company experienced a net increase in cash and cash equivalents of Rs 30.64 crore, ending the year with Rs 153.84 crore in cash and cash equivalents.

2022:

Operating Activities:

Net cash used was Rs 5.6 crore. The net loss of Rs 48.24 crore was adjusted for non-cash items, with the most significant impact being the loss on the sale of fixed assets.

Investing Activities:

Net cash generated was Rs 4.61 crore, primarily from interest income and a modest amount from the sale of fixed assets.

Financing Activities:

Net cash used was minimal at Rs 0.09 crore, involving finance costs.

Bellow are the Financial Ratios

Here is a summary of the financial and operational metrics for Molind Engineering Limited for the years 2023 and 2022:

2023:

Current Ratio (3.68):

The current ratio of 3.68 indicates that the company has more than enough current assets to cover its current liabilities. This suggests a strong short-term liquidity position, providing the company with the ability to meet its short-term obligations comfortably.

Debt-Equity Ratio (0.02):

With a debt-equity ratio of 0.02, Molind Engineering has a very low level of debt relative to equity. This signifies a conservative capital structure, indicating that the company relies more on equity financing rather than debt, which can enhance financial stability.

Return on Equity (ROE) Ratio (1.18):

The ROE of 1.18 implies that for every rupee of equity, the company generated a profit of Rs 1.18. This is a positive sign, indicating that the company is efficiently using shareholder equity to generate returns.

Trade Receivables Turnover Ratio (4.13):

The trade receivables turnover ratio of 4.13 suggests that, on average, the company collects its receivables approximately four times during the year. This reflects effective management of receivables and a relatively short cash conversion cycle.

Net Profit Ratio (33.11):

The net profit ratio of 33.11 indicates that the company retained Rs 0.33 as net profit for every rupee of sales. This reflects a healthy profit margin, indicating efficient cost management and profitability.

Return on Capital Employed (ROCE) (2.61):

The ROCE of 2.61 reflects the efficiency of capital utilization, indicating a positive return on the capital invested in the business. This is a favorable metric, signifying effective use of both equity and debt capital.

2022:

Current Ratio (17.57):

The extremely high current ratio of 17.57 raises questions about the efficiency of current asset management. While it suggests ample liquidity, such a high ratio may indicate underutilized assets or a breakdown in the calculation.

Debt-Equity Ratio (0.03):

Similar to 2023, the low debt-equity ratio of 0.03 in 2022 indicates a conservative capital structure, with low reliance on debt financing.

Return on Equity (ROE) Ratio (-0.11):

The negative ROE suggests a net loss for shareholders in 2022, indicating financial challenges or operational issues that led to a loss on equity.

Trade Receivables Turnover Ratio (0):

The absence of a trade receivables turnover ratio or a ratio of zero may imply either no trade receivables or a breakdown in the calculation, making it challenging to assess the efficiency of receivables management.

Net Profit Ratio (-2.28):

The negative net profit ratio of -2.28 indicates a loss on sales, reflecting a negative profit margin. This suggests financial difficulties or a period of unprofitability.

Return on Capital Employed (ROCE) (0.05):

While the ROCE is positive, it is notably lower than in 2023, suggesting a lower return on the capital employed in the business during 2022.