NCL Buildtek Annual Reports, Balance Sheet and Financials

 NCL Buildtek Limited Balance Sheet (Rs in Lakhs)

NCL Buildtek Limited Profit & Loss Statement (Rs in Lakhs)

NCL Buildtek Limited Cash Flow Statement (Rs in Lakhs)

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

Operating Activities

The company’s operating activities generated a net cash flow of ₹4,010.92 lakhs in 2024, slightly higher than ₹3,938.44 lakhs in 2023. This increase can be attributed primarily to a higher profit before tax, which rose from ₹1,911.65 lakhs in 2023 to ₹2,370.84 lakhs in 2024. Adjustments for non-cash items, including depreciation and finance costs, contributed significantly to the cash flow. Notably, the increase in depreciation and finance costs were somewhat offset by a decrease in amortization and interest income. Changes in working capital had a mixed impact: inventories and trade receivables increased, leading to a cash outflow, while other assets and liabilities, such as trade payables and other financial liabilities, varied, contributing to the final cash flow from operations.

Investing Activities

The net cash used in investing activities increased significantly from ₹541.65 lakhs in 2023 to ₹1,519.32 lakhs in 2024. This rise reflects a substantial outlay for the purchase of property, plant, and equipment, which was notably higher in 2024 compared to the previous year. Additionally, the company made a significant investment in a joint venture in 2023, which did not recur in 2024. On the positive side, interest received on fixed deposits and proceeds from the sale of property, plant, and equipment contributed to inflows, though these were insufficient to offset the higher capital expenditure.

Financing Activities

Cash used in financing activities remained relatively stable, with a slight increase from ₹2,551.10 lakhs in 2023 to ₹2,575.95 lakhs in 2024. This stability is due to consistent repayment of long-term borrowings and finance costs, although the net impact of short-term borrowings provided some offset. The company also paid dividends and dividend distribution tax, which contributed to the overall cash outflow from financing activities.

Net Change in Cash and Cash Equivalents

Overall, the company experienced a decrease in cash and cash equivalents of ₹84.36 lakhs in 2024, compared to an increase of ₹845.69 lakhs in 2023. This decrease primarily resulted from higher net cash outflows in investing and financing activities, which outweighed the inflow from operating activities. Despite this reduction, the company’s cash balance at the end of the year was still healthy at ₹1,179.23 lakhs, albeit lower than the ₹1,263.60 lakhs recorded at the start of the year

 Financial Ratios of NCL Buildtek Limited

Here is a summary of the financial and operational metrics for NCL Buildtek Limited for the year 2024 and 2023:

Current Ratio

The current ratio, which measures the company’s ability to cover short-term liabilities with short-term assets, decreased from 1.21 in 2023 to 1.13 in 2024. This decline suggests a slight reduction in liquidity. Although the ratio is still above 1, which generally indicates sufficient liquidity, the decrease might imply tighter working capital management or increased current liabilities relative to current assets.

Debt-Equity Ratio

The debt-equity ratio improved from 0.73 in 2023 to 0.60 in 2024. This indicates a reduction in financial leverage, as the company has decreased its reliance on debt relative to equity. A lower ratio signifies a stronger equity position and potentially reduced financial risk, which can be favorable to investors and creditors as it reflects lower risk associated with the company’s capital structure.

Debt Service Coverage Ratio

The debt service coverage ratio improved significantly from 0.61 in 2023 to 0.90 in 2024. This ratio measures the company 's ability to meet its debt obligations from its operating income. The improvement suggests that the company’s cash flow from operations relative to its debt service requirements has strengthened, indicating better capacity to meet interest and principal payments.

Return on Equity (ROE)

Return on Equity increased from 11.38% in 2023 to 12.64% in 2024. This rise reflects an improvement in the company’s profitability relative to shareholders ' equity. A higher ROE indicates that the company is generating more profit per unit of equity, demonstrating effective management and potentially enhancing investor confidence.

Inventory Turnover Ratio

The inventory turnover ratio decreased from 7.65 in 2023 to 7.09 in 2024. This ratio measures how efficiently the company manages its inventory and how often inventory is sold and replaced over a period. A lower ratio could suggest slower inventory movement or a build-up of stock, which might impact liquidity or imply potential issues in inventory management.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio fell from 5.33 in 2023 to 5.00 in 2024. This ratio assesses how efficiently the company collects its receivables. A decrease may indicate a longer collection period for receivables, potentially reflecting slower payments from customers or less effective credit management.

Trade Payables Turnover Ratio

The trade payables turnover ratio decreased from 6.91 in 2023 to 6.74 in 2024. This ratio measures how quickly the company pays its trade creditors. A lower ratio might suggest that the company is taking slightly longer to settle its payables, which could be a strategy to manage cash flow or an indication of extended payment terms with suppliers.

Net Capital Turnover Ratio

The net capital turnover ratio decreased significantly from 9.87 in 2023 to 7.34 in 2024. This ratio measures how efficiently the company is using its capital to generate sales. A decrease indicates a decline in sales generated per unit of net capital employed, which might suggest less efficient use of capital or slower sales growth.

Net Profit Ratio

The net profit ratio increased from 4.28% in 2023 to 5.59% in 2024. This ratio indicates the proportion of revenue that translates into net profit. The rise reflects improved profitability and better cost control, as a higher percentage of sales is converted into profit.

Return on Capital Employed (ROCE)

The return on capital employed improved from 14.53% in 2023 to 15.93% in 2024. This ratio measures the company’s efficiency in generating profits from its capital employed. The increase signifies enhanced operational performance and efficient use of capital, leading to higher returns on the capital invested.

Return on Investment (ROI)

The return on investment, which matches the return on equity at 12.64% for 2024, shows an improvement from 11.38% in 2023. This ratio assesses the return generated on the total investment in the company. The increase in ROI reflects better overall performance and higher returns on the investments made in the business.