Nayara Energy Annual Reports, Balance Sheet and Financials

Nayara Energy Limited Balance Sheet (Rs in Millions)

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

Nayara Energy Limited Cash Flow Statement (Rs in Millions)

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

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.