Orissa Sponge Iron And Steel Annual Reports, Balance Sheet and Financials

Orissa Sponge Iron & Steel Limited Balance Sheet (In Rs. Crores)

Orissa Sponge Iron & Steel Limited Profit & Loss Statement (In Rs. Crores)

Orissa Sponge Iron & Steel Limited Consolidated Cash Flow Statement (In Rs. Crores)

 Let 's break down the Cash Flow Statement for the year ended 31st March 2023

Year 2023:

Operating Activities: In the year ended 31st March 2023, the company demonstrated a positive trend in operating cash flow. The Profit Before Tax increased significantly to 13.58 from the previous year 's -16.66. Adjustments for liabilities written back, write-offs, and depreciation resulted in an operating profit before working capital changes of 2.16. The change in working capital saw an increase, contributing to a substantial Cash Generated from Operations of 16.05.

Investing Activities: The company made significant investments in property, plant, and equipment, amounting to -164.44. Additionally, there was expenditure for plant redevelopment (CWIP) of -90.77, resulting in a Net Cash Used in Investing Activities of -164.29.

Financing Activities: The financing activities in 2023 showed a positive net cash flow. Proceeds/repayments of long-term borrowings, including finance lease, were 148.22. Lease payments and interest paid were minor, resulting in a Net Cash Generated from Financing Activities of 148.10. The overall financing activities contributed to a positive net change in cash and cash equivalents.

Year 2022:

Operating Activities: In contrast, the year ended 31st March 2022 reflected challenges in operating cash flow. The Profit Before Tax was -16.66, and adjustments for liabilities, write-offs, and depreciation resulted in an operating profit before working capital changes of -3.48. The change in working capital contributed to a negative Cash Generated from Operations of -22.52.

Investing Activities: The company had minimal investing activities in 2022, with the purchase of property, plant, and equipment amounting to -0.22, and no significant expenditure for plant redevelopment. The Net Cash Used in Investing Activities was -90.97.

Financing Activities: The financing activities in 2022 showed a positive net cash flow, primarily driven by proceeds/repayments of long-term borrowings, including finance lease, totalling 122.43. Lease payments and interest paid were minor, resulting in a Net Cash Generated from Financing Activities of 113.74. Despite challenges in operating activities, the positive financing activities contributed to a positive net change in cash and cash equivalents.

In summary, the company demonstrated positive operational performance, strategic investments, and a stable financing structure during the specified period, resulting in a favorable net cash position.

Financial ratio for Orissa Sponge Iron & Steel Limited

Insight of Financial ratio for the year ended 31st March 2023

Current Ratio:

2022-23: The current ratio improved to 0.63, indicating a better ability to cover short-term liabilities with current assets.

2021-22: The previous year had a lower current ratio of 0.37, suggesting a potential liquidity challenge.

Debt-Equity Ratio:

2022-23: The debt-equity ratio significantly decreased to -53.09, indicating a potential overleveraging or negative equity situation.

2021-22: The previous year 's ratio was also negative at -10.03, suggesting a higher proportion of equity in the capital structure.

Debt Service Coverage Ratio:

2022-23: The debt service coverage ratio decreased to -0.79, suggesting challenges in covering debt obligations from operating income.

2021-22: The previous year had a ratio of -0.44, indicating a similar concern in meeting debt service requirements.

Return on Equity Ratio:

2022-23: The return on equity ratio was -1.92, indicating a negative return on shareholders ' equity.

2021-22: The previous year 's ratio was 0.74, suggesting a positive return, although the current year shows a deterioration.

Inventory Turnover Ratio:

2022-23: The inventory turnover ratio dropped to 0.2, suggesting slower inventory turnover compared to the previous year.

2021-22: The previous year 's ratio was higher at 4.02, indicating a more efficient use of inventory.

Trade Receivable Turnover Ratio:

2022-23: The trade receivable turnover ratio decreased to 1.37, indicating a lower efficiency in collecting receivables.

2021-22: The previous year 's ratio was higher at 18.1, suggesting a more efficient receivables collection.

Trade Payable Turnover Ratio:

2022-23: The trade payable turnover ratio improved to 3.41, suggesting a more efficient management of trade payables.

2021-22: The ratio was not available (NA), making it challenging to assess the trend.

Net Capital Turnover Ratio:

2022-23: The net capital turnover ratio worsened to -1.58, indicating challenges in generating revenue from capital employed.

2021-22: The previous year 's ratio was -0.1, showing a negative trend in utilizing capital for generating revenue.

Net Profit Ratio:

2022-23: The net profit ratio improved to 1.22, indicating a positive net profit margin.
2021-22: The previous year had a negative net profit ratio of -7.39, suggesting a loss.

Return on Capital Employed:

2022-23: The return on capital employed improved slightly to 0.04, indicating a marginal positive return.
2021-22: The previous year 's ratio was -0.04, suggesting a small negative return, and the current year shows a slight improvement.

These ratios collectively provide insights into the company 's liquidity, solvency, profitability, and efficiency. The negative values in certain ratios for both years raise concerns about the company 's financial health and operational efficiency, warranting further analysis and investigation.

Dividend History of Orissa Sponge Iron & Steel Limited