Raajratna Metal Industries Ltd Annual Reports, Balance Sheet & Financials

Raajratna Metal Industries Limited Consolidated Balance Sheet (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Non-Current Assets
Property, Plant & Equipment - Tangible Assets	367.23	375.28
Intangible Assets	2.62	0.20
Capital Work-in-Progress	31.66	7.33
Investment Property	0.97	1.72
Investments	38.92	39.94
Other Financial Assets	0.74	2.31
Other Non-Current Assets	2.64	1.85
Current Assets
Inventories	429.04	324.33
Trade Receivables	348.78	338.45
Cash and Cash Equivalents	114.07	127.26
Other Balances with Banks	329.56	189.86
Loans & Advances	41.54	33.58
Other Financial Assets	1.92	1.32
Other Current Assets	46.49	44.50
Total Assets	1,756.18	1,487.93
Equity
Equity Share Capital	8.36	8.36
Other Equity	1,502.36	1,312.22
Non-Controlling Interest	1.12	0.98
Non-Current Liabilities
Borrowings	3.90	4.10
Deferred Tax Liability (Net)	27.90	25.55
Other Non-Current Liabilities	6.33	4.96
Current Liabilities
Borrowings	58.31	24.15
Trade Payables - Micro Enterprises & Small Enterprises	3.88	3.38
Trade Payables - Other than Micro Enterprises & Small Enterprises	77.35	52.13
Other Current Liabilities	9.59	7.31
Provisions	53.55	44.78
Income Tax Liabilities (Net)	3.53	-
Total Equity and Liabilities	1,756.18	1,487.93

Raajratna Metal Industries Limited Consolidated Profit & Loss Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Income
Revenue from operations	1,546.01	1,569.05
Other Income	47.50	50.90
Total Revenue	1,593.52	1,619.95
Cost of materials consumed	880.93	902.30
Purchase of Trading Goods	22.69	18.85
Changes in inventories of finished goods and work-in-progress	-54.32	42.14
Employee Benefit Expenses	103.36	97.72
Financial Costs	4.49	4.23
Depreciation and Amortization Expenses	30.17	27.46
Other Expenses	331.65	283.12
Total Expenses	1,318.97	1,375.82
Profit before tax	274.54	244.13
Current tax	73.54	59.74
Short/(Excess) tax provision for earlier years	2.07	0.05
Deferred tax	0.18	-0.90
Net Profit for the year	198.76	185.23
Other comprehensive income
Re measurement Gain/(loss) of the defined benefit Plans	-0.94	-0.58
Income Tax Effect	0.24	0.15
Gain on fair value of investments	-1.02	5.08
Income Tax Effect	0.15	-1.16
Total comprehensive income for the year	197.18	188.72
Earning per equity share - Basic & Diluted	237.49	221.32

Raajratna Metal Industries Limited Consolidated Cash Flow Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Profit Before Tax	274.54	244.13
Adjustments For:
Depreciation on Property, Plant & Equipments	30.17	27.46
Interest Expenses	4.49	4.23
Interest Income	-30.35	-19.10
Loss/(Profit) on sale of Assets	0.11	-3.60
Loss/(Profit) on sale of Investment Property	-0.34	-3.08
Financial Guarantee commission	-0.10	0.18
Lease Rental Income	-1.51	-1.13
Operating Profit before Working Capital Changes	277.02	248.72
Decrease/(Increase) in Trade Receivable, Other Current & Non-current Assets	-165.90	-89.53
Decrease/(Increase) in Inventories	-104.71	86.36
Increase/(Decrease) in Trade Payables, Current & Non-current Liabilities and Provisions	37.20	-12.08
Cash Generated from Operations	43.51	233.47
Direct taxes paid/payable	-65.10	-72.05
Net Cash Flow From Operating Activities	-21.58	161.43
Cash Flow from Investment Activities
Purchase of Property Plant & Equipments	-50.38	-82.34
Sale of Property Plant & Equipments	0.64	6.85
(Purchase)/Sale of Investment Property	1.07	8.93
Financial Guarantee commission	0.10	0.18
Lease Rental Income	1.51	1.13
Net Cash Flow From Investment Activities	-47.06	-65.25
Cash Flow from Financing Activities
Proceeds/(Repayments) from Long Term/Short term Borrowings	33.95	-24.05
Interest Expenses	-4.49	-4.23
Interest Received	30.35	19.10
Increase/(Decrease) in Foreign currency translation reserve	-4.32	-5.06
Non Controlling Interest	-0.03	-0.02
Net Cash Flow From Financing Activities	55.45	-14.26
Net increase in Cash & Cash Equivalent	-13.19	81.91
Cash & Cash Equivalents At the Beginning	127.26	45.35
Cash & Cash Equivalents At the End	114.07	127.26

Summary of Cash Flow Statement:

Cash Flow from Operating Activities

The company 's operating activities generated an operating profit before working capital changes of 274.54 in 2024–25, compared to 244.13 in the previous year, reflecting improved profitability. However, a significant increase in trade receivables, inventories, and other current assets resulted in substantial cash outflows. Consequently, cash generated from operations declined sharply to 43.51 from 233.47 in 2023–24. After accounting for direct tax payments of 65.10, the company reported a net cash outflow from operating activities of 21.58, compared with a net cash inflow of 161.43 in the previous year. This indicates that although profitability improved, higher working capital requirements adversely affected operating cash flows.

 

Cash Flow from Investing Activities

Net cash used in investing activities amounted to 47.06 during 2024–25 compared with 65.25 in 2023–24. The primary outflow was towards the purchase of property, plant and equipment amounting to 50.38, indicating continued investment in productive assets. The company also generated modest inflows from the sale of property, plant and equipment, investment property, lease rental income, and financial guarantee commission. The lower cash outflow compared to the previous year suggests relatively lower capital expenditure while maintaining investment in long-term assets to support future operations.

 

Cash Flow from Financing Activities

The company recorded a net cash inflow from financing activities of 55.45 during 2024–25, compared with a net cash outflow of 14.26 in the previous year. The improvement was mainly due to net proceeds from long-term and short-term borrowings of 33.95 and higher interest income of 30.35, which more than offset interest payments and foreign currency translation losses. The positive financing cash flow reflects the company 's ability to raise funds to support its operational and investment requirements while maintaining a low level of financial obligations.

 

Net Increase/(Decrease) in Cash and Cash Equivalents

Overall, the company reported a net decrease in cash and cash equivalents of 13.19 during 2024–25, in contrast to a net increase of 81.91 in 2023–24. The decline was primarily attributable to negative operating cash flows despite positive financing inflows. As a result, the closing balance of cash and cash equivalents decreased from 127.26 at the beginning of the year to 114.07 at the end of the year. Although the cash balance remains comfortable, the reduction highlights the impact of increased working capital requirements on the company 's liquidity during the year.

 

Financial ratios of Raajratna Metal Industries Limited for the years 2025 and 2024:

 

Particulars	31-03-2025	31-03-2024
Current Ratio	6.36	8.04
Debt-Equity Ratio	0.04	0.02
Debt Service Coverage Ratio	42.97	38.23
Return on Equity Ratio	14.04%	15.07%
Inventory turnover ratio	4.10	4.27
Trade Receivables turnover ratio	4.50	4.61
Trade Payables turnover ratio	19.99	15.12
Net capital turnover ratio	1.40	1.69
Net profit ratio	12.86%	11.81%
Return on Capital employed	17.37%	17.97%
Return on Investment	7.93%	8.00%

 

Summary of Financial Ratios:

 

Current Ratio

The Current Ratio decreased from 8.04 in 2023–24 to 6.36 in 2024–25. Despite the decline, the ratio remains significantly above the standard benchmark of 2:1, indicating that the company continues to maintain a strong liquidity position and is well-equipped to meet its short-term obligations.

 

Debt–Equity Ratio

The Debt–Equity Ratio increased from 0.02 to 0.04 during the year. Although the ratio has doubled, it remains extremely low, reflecting the company 's conservative capital structure and minimal dependence on borrowed funds, thereby indicating low financial risk.

 

Debt Service Coverage Ratio

The Debt Service Coverage Ratio improved from 38.23 to 42.97, demonstrating an enhanced ability of the company to meet its debt servicing obligations from operating profits. The exceptionally high ratio reflects strong earnings and excellent debt repayment capacity.

 

Return on Equity

The Return on Equity declined from 15.07% to 14.04%. This indicates a marginal reduction in the return generated on shareholders ' funds, though the company continues to deliver healthy returns to its equity investors.

 

Inventory Turnover Ratio

The Inventory Turnover Ratio decreased slightly from 4.27 to 4.10, suggesting that inventory was converted into sales at a marginally slower rate than in the previous year. However, the ratio still indicates efficient inventory management.

 

Trade Receivables Turnover Ratio

The Trade Receivables Turnover Ratio reduced marginally from 4.61 to 4.50, indicating a slight slowdown in the collection of receivables. Nevertheless, the ratio reflects an effective credit collection process and sound receivables management.

 

Trade Payables Turnover Ratio

The Trade Payables Turnover Ratio increased significantly from 15.12 to 19.99. This suggests that the company settled its supplier obligations more quickly during the year, reflecting improved payment practices and strong liquidity.

 

Net Capital Turnover Ratio

The Net Capital Turnover Ratio declined from 1.69 to 1.40, indicating that the company generated comparatively lower revenue per unit of working capital employed. This may suggest relatively less efficient utilisation of working capital during the year.

 

Net Profit Ratio

The Net Profit Ratio improved from 11.81% to 12.86%, reflecting higher profitability from operations. The increase indicates better cost management and improved operational efficiency, enabling the company to retain a greater proportion of revenue as net profit.

 

Return on Capital Employed

The Return on Capital Employed decreased marginally from 17.97% to 17.37%. While there was a slight decline, the ratio continues to indicate efficient utilisation of long-term funds in generating operating profits.

 

Return on Investment

The Return on Investment declined slightly from 8.00% to 7.93%. The marginal decrease indicates a small reduction in returns earned on investments; however, the company continues to generate stable and satisfactory investment returns.