Nayara Energy Annual Report | Balance Sheet for FY 2023-24

Nayara Energy Limited (Nayara Energy) Return Comparision with Primex 40 Index

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Nayara Energy Limited

Nayara Energy Limited Balance Sheet (Rs in Millions)

Particulars	31-03-2024	31-03-2023
Non-current assets
Property, plant and equipment	4,09,601	4,24,411
Capital work-in-progress	54,210	40,533
Goodwill	1,08,184	1,08,184
Other Intangible assets	271	229
Intangible assets under development	-	15
Right-of-use assets	13,919	12,997
Loans	290	372
Other Financial assets	788	765
Deferred tax assets (net)	-	36
Non-current tax assets (net)	2,200	2,242
Other non-current Assets	7,774	4,960
Current assets
Inventories	1,03,932	95,952
Investments	3,753	17,801
Trade receivables	73,197	52,648
Cash and cash equivalents	17,750	72,118
Bank balances other than above	42,599	7,124
Loans	412	327
Other financial assets	34,106	2,179
Other current assets	4,504	5,521
Total Assets	8,77,490	8,48,414
Equity
Equity share capital	15,072	15,072
Other equity	4,19,838	2,90,259
Total equity	4,34,910	3,05,331
Non-current liabilities
Borrowings	81,900	1,06,996
Lease liabilities	15,810	14,345
Other financial liabilities	22,712	87,275
Deferred tax liabilities (net)	74,879	74,631
Current liabilities
Borrowings	35,952	13,429
Lease liabilities	1,294	1,201
Trade payables	1,17,859	1,45,873
Other financial liabilities	72,856	79,444
Other current liabilities	17,178	17,991
Provisions	1,075	819
Current tax liabilities (net)	1,065	1,079
Total Equity and Liabilities	8,77,490	8,48,414

Nayara Energy Limited Profit & Loss Statement (Rs in Millions)

Particulars	31-03-2024	31-03-2023
Income
Revenue from operations	15,50,915	13,81,125
Other income	9,390	7,538
Total Income	15,60,305	13,88,663
Expenses
Cost of raw materials consumed	9,37,970	7,96,728
Excise duty	2,19,777	2,07,257
Purchases of stock-in-trade	1,32,876	1,17,146
Changes in inventory of finished goods, stock-in-trade and work-in-progress	-3,177	19,010
Employee benefits expense	10,435	8,349
Finance costs	22,419	23,767
Depreciation, amortisation and impairment expense	19,982	34,012
Other expenses	55,726	57,048
Total expenses	13,96,008	12,63,317
Profit before tax	1,64,297	1,25,346
Current tax expenses	41,881	9,660
Deferred tax expense	-794	21,424
Profit for the year	1,23,210	94,262
Other comprehensive income
Items that will not be reclassified to profit and loss	-87	-16
Re-measurement (loss) on defined benefit plans	-117	-21
Income tax effect	30	5
	-87	-16
Items that will be reclassified to profit and loss	6,456	-5,332
Effective portion of cash flow hedges (net)	8,594	-7,147
Income tax effect	-2,163	1,799
	6,431	-5,348
Foreign currency monetary item translation difference account	34	52
Income tax effect	-9	-13
	25	39
Exchange difference arising on translation of foreign operation	-	-23
	-	-23
Other comprehensive (loss)/income for the year, net of tax	6,369	-5,348

Total comprehensive income for the year	1,29,579	88,914
(comprising profit for the year and other comprehensive (loss)/income for the year)
Earnings per share (Face value Rs.10 per share)
Basic and Diluted (in Rs. )	83	63

Nayara Energy Limited Cash Flow Statement (Rs in Millions)

Particulars	31-03-2024	31-03-2023
Cash flow from operating activities
Profit before tax	1,64,297	1,25,346
Adjustments for:
Interest income	-6,115	-1,902
Depreciation, amortisation and impairment expense	19,982	34,012
Loss on disposal/discard of property, plant and equipment (net)	14	187
Gain on investment/financial assets measured at FVTPL	-707	-524
Gain on re-measurement of leases	-12	-31
Export obligation deferred income	-61	-286
Unrealised foreign exchange differences (net)	576	4,488
Mark to market (gain) on derivative contracts (net)	501	-660
Expected credit loss (net)	633	1,281
Provision for doubtful debts/ doubtful debt written off	23	1,429
Provision/Liabilities written back	-737	-115
Finance costs	22,419	23,767
Operating profit before working capital changes	2,00,813	1,86,992
Adjustments for working capital changes:
Decrease/(increase) in inventories	-7,981	27,489
(Increase) in trade and other receivables	-21,778	-2,554
(Decrease)/increase in trade and other payables	-93,735	-23,323
Cash generated from operating activities	77,319	1,88,604
Income tax (payment)/refund (net) (including interest)	-42,765	-8,417
Net cash generated from operating activities	34,554	1,80,187
Cash flow from investing activities
Payments for property, plant and equipment (including capital work in progress, Intangible assets, Capital advances, Capital creditors and Intangible assets under development)	-18,630	-37,885
Proceed from sale of property, plant and equipment	16	137
Proceeds for sale / (payments for purchase ) of short term investments / Mutual fund (net)investments/Mutual fund (net)	14,755	-17,277
Placement of bank deposits	-28,785	-
Encashment bank deposits	1,997	-
(Placement) / encashment of short term bank deposits (net)	-37,457	4,604
Interest received	4,277	1,382
Net cash (used in) investing activities	-63,827	-49,039
Cash flow from financing activities
Proceeds from long-term borrowings	21,658	19,001
Repayment of long-term borrowings	-45,899	-30,364
Proceeds from short-term borrowings	20,671	-9,526
Payment of principal portion of lease liabilities	-1,186	-28,039
Payment of interest on lease liabilities	-1,450	-2,458
Finance cost paid	-19,350	-20,695
Net cash (used in) financing activities	-25,556	-72,081
Net increase/(decrease) in cash and cash equivalents	-54,829	59,067
Net exchange differences on foreign currency bank balances	-	78
Cash and cash equivalents at the beginning of the year	72,058	12,991
Cash and cash equivalents at the end of the year	17,229	72,136

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

Cash Flow from Operating Activities:

The company generated a net cash inflow from operating activities amounting to ₹34,554 million, a significant decline from the previous year 's inflow of ₹1,80,187 million. Despite a notable increase in profit before tax to ₹1,64,297 million from ₹1,25,346 million, the cash flow was negatively impacted by adjustments and changes in working capital. Key adjustments include a substantial decrease in depreciation and amortization expense to ₹19,982 million from ₹34,012 million, and changes in foreign exchange and derivative contract valuations. The company also experienced a large increase in working capital needs, with a significant decrease in inventories and an increase in trade and other receivables. The decrease in trade and other payables further contributed to the reduction in cash generated from operations. Additionally, the company had higher income tax payments of ₹42,765 million compared to ₹8,417 million in the previous year, further affecting the net cash from operating activities.

Cash Flow from Investing Activities:

In investing activities, the company reported a net cash outflow of ₹63,827 million, compared to an outflow of ₹49,039 million in 2023. This increase in cash outflow is primarily due to higher capital expenditures. Payments for property, plant, and equipment, including capital work in progress and intangible assets, amounted to ₹18,630 million, down from ₹37,885 million the previous year. However, there was a significant placement of bank deposits totaling ₹28,785 million, coupled with net encashment of short-term deposits of ₹37,457 million. These movements, along with lower proceeds from the sale of property, plant, and equipment, and higher interest received, contributed to the overall cash outflow from investing activities.

Cash Flow from Financing Activities:

The cash flow from financing activities resulted in a net cash outflow of ₹25,556 million, an improvement over the previous year 's outflow of ₹72,081 million. This positive change is attributed to lower repayments of long-term borrowings, which amounted to ₹45,899 million compared to ₹30,364 million the previous year. The company also saw a significant increase in short-term borrowings of ₹20,671 million. Payments for lease liabilities and interest on lease liabilities were substantially lower than in the prior year, which improved the overall financing cash flow. However, finance costs paid remained high, amounting to ₹19,350 million.

Net Increase/(Decrease) in Cash and Cash Equivalents:

Overall, the company experienced a net decrease in cash and cash equivalents of ₹54,829 million, a stark contrast to the increase of ₹59,067 million in the previous year. This decrease was driven by the significant outflows in investing and financing activities. The cash and cash equivalents at the end of the year dropped to ₹17,229 million from ₹72,136 million at the beginning of the year. This decline reflects the substantial outflows and adjustments made during the year, despite the inflows generated from operations.

Financial Ratios of Nayara Energy Limited

Particulars	2024	2023
Current ratio	1.16	0.96
Debt Equity Ratio	0.2	0.24
Debt Service Coverage ratio	9.9	3.67
Return on Equity (%)	32.57%	36.62%
Inventory Turnover ratio	25	32
Trade Receivables Turnover ratio	15	14
Trade Payables Turnover ratio	45	63
Net Capital turnover ratio	40	-
Net Profit Margin (%)	7.82%	6.96%
Return on Capital Employed (%)	37.18%	43.25%
Retun on Investment (%)	6.66%	5.96%

Here is a summary of the financial and operational metrics for The Calcutta Stock Exchange Limited for the year 2024 and 2023:

Current Ratio:

The current ratio increased to 1.16 in 2024 from 0.96 in 2023. A current ratio above 1 is generally considered healthy, as it implies that the company has more current assets than current liabilities.

Debt Equity Ratio:

The debt equity ratio decreased to 0.2 in 2024 from 0.24 in 2023. This reduction reflects a lower proportion of debt relative to equity, indicating that the company is less reliant on borrowed funds to finance its operations. A lower debt equity ratio suggests improved financial stability and reduced financial risk.

Debt Service Coverage Ratio:

The debt service coverage ratio improved significantly to 9.9 in 2024 from 3.67 in 2023. This ratio measures the company’s ability to service its debt obligations from its operating income. A higher ratio indicates that the company generates ample cash flow to cover its debt payments, which reflects strong financial health and a reduced risk of default.

Return on Equity (ROE):

ROE slightly decreased to 32.57% in 2024 from 36.62% in 2023. Despite the decline, the company continues to generate a high return on shareholders ' equity, indicating effective use of equity capital to generate profits. This drop might be due to increased equity or slightly lower profitability, but the overall performance remains robust.

Inventory Turnover Ratio:

The inventory turnover ratio decreased to 25 in 2024 from 32 in 2023. This decline suggests that the company is holding onto inventory for a longer period before selling it. While a lower ratio can indicate slower sales or overstocking, it could also reflect strategic changes in inventory management.

Trade Receivables Turnover Ratio:

The trade receivables turnover ratio improved to 15 in 2024 from 14 in 2023. This increase indicates that the company is more efficient in collecting receivables, as it takes less time to convert receivables into cash. Better receivables management enhances liquidity and reduces the risk of bad debts.

Trade Payables Turnover Ratio:

The trade payables turnover ratio decreased to 45 in 2024 from 63 in 2023. This decline indicates that the company is taking longer to pay its suppliers. While this can improve cash flow in the short term, it may also strain supplier relationships or result in missed discounts.

Net Capital Turnover Ratio:

The net capital turnover ratio of 40 for 2024 (with no data for 2023) reflects the company 's efficiency in using its net capital to generate sales. A higher ratio indicates more effective utilization of capital in generating revenue. Without a comparative figure for 2023, this data shows a strong performance in leveraging net capital.

Net Profit Margin:

The net profit margin increased to 7.82% in 2024 from 6.96% in 2023. This rise indicates that the company is improving its profitability relative to sales. A higher net profit margin reflects better cost management and pricing strategies, leading to increased profitability.

Return on Capital Employed (ROCE):

ROCE decreased to 37.18% in 2024 from 43.25% in 2023. This reduction suggests a decrease in the efficiency of using capital employed to generate profits. Despite the decrease, the ROCE remains high, indicating that the company is still effectively utilizing its capital, though not as efficiently as in the previous year.

Return on Investment (ROI):

The return on investment increased to 6.66% in 2024 from 5.96% in 2023. This improvement indicates that the company’s investments are yielding better returns. A higher ROI demonstrates effective investment strategies and efficient use of resources to generate profit.