Ring Plus Aqua Annual Reports, Balance Sheet and Financials

Ring Plus Aqua Limited Balance Sheet (Rs in Lakhs)

 Ring Plus Aqua Limited Profit & Loss Statement (Rs in Lakhs)

 Ring Plus Aqua Limited Consolidated Cash Flow Statement (Rs in Lakhs)

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

Cash Flow from Operating Activities

The company generated a profit before exceptional items and tax of ₹8,019.73 lakhs in FY 2024, an increase from ₹5,516.76 lakhs in FY 2023. Adjustments to this figure included depreciation and amortization expenses of ₹1,014.06 lakhs, slightly higher than ₹959.27 lakhs in the previous year. Employee benefit expenses, specifically stock options (ESOP), decreased significantly from ₹42.96 lakhs to a negative ₹205.15 lakhs, reflecting a reversal or adjustment. There were also net gains on the sale and fair valuation of investments of ₹542.12 lakhs in FY 2024, compared to a lower gain of ₹150.52 lakhs in FY 2023.

Other adjustments include a minor profit on unrealized foreign exchange losses of ₹28.07 lakhs and a reduction in dividend income to zero. Interest income decreased to ₹1.48 lakhs from ₹22.26 lakhs, while finance costs rose substantially to ₹479.54 lakhs from ₹20.25 lakhs.

Overall, the operating cash profit before working capital changes improved to ₹8,587.74 lakhs from ₹6,368.03 lakhs. Working capital changes included a decrease in inventories of ₹166.19 lakhs, an increase in trade and other receivables by ₹1,410.82 lakhs, and an increase in trade and other payables by ₹1,709.78 lakhs. The increase in provisions was minor at ₹32.64 lakhs. After accounting for taxes paid (₹1,853.90 lakhs) and exceptional items, specifically payments towards voluntary retirement schemes (VRS) amounting to ₹1,386.56 lakhs, the net cash inflow from operating activities was ₹5,447.41 lakhs, up from ₹4,074.70 lakhs in the previous year.

Cash Flow from Investing Activities

The company’s investing activities led to a net outflow of ₹64,536.74 lakhs in FY 2024, compared to an outflow of ₹3,491.35 lakhs in FY 2023. Major payments included ₹979.30 lakhs for property, plant, and equipment and intangible assets, and significant investments in subsidiaries amounting to ₹68,208.51 lakhs. There was a notable inflow of ₹74,230.22 lakhs from the sale of current investments, although this was partly offset by payments for the purchase of current investments totaling ₹69,730.51 lakhs. Receipts from the sale of property, plant, and equipment were ₹150.23 lakhs, and interest income was ₹1.48 lakhs. Overall, the cash outflow from investing activities indicates substantial investment in both existing and new assets, coupled with a significant transaction involving investments in subsidiaries.

Cash Flow from Financing Activities

In financing activities, the company recorded a net inflow of ₹58,991.12 lakhs in FY 2024, reversing the outflow of ₹218.18 lakhs in FY 2023. This shift was driven by a substantial inflow of ₹60,100.00 lakhs from non-current borrowings. Repayments of current borrowings amounted to ₹625.40 lakhs, and interest payments increased to ₹483.48 lakhs from ₹16.43 lakhs in the previous year.

Financial Ratios of Ring Plus Aqua Limited

Here is a summary of the financial and operational metrics for Ring Plus Aqua Limited for the year 2024 & 2023:

Current Ratio

The current ratio measures a company’s ability to pay its short-term liabilities with its short-term assets. For the year ending March 31, 2024, the current ratio stands at 1.13, down from 1.76 in the previous year. A current ratio above 1 is generally acceptable, but the drop may point to a tighter liquidity position or an increase in current liabilities relative to current assets.

Debt-Equity Ratio

The debt-equity ratio reflects the company’s leverage by comparing its total debt to shareholders ' equity. The ratio surged to 2.84 in FY 2024 from a negligible 0.04 in FY 2023. Such a high ratio suggests the company is heavily reliant on debt financing, which could impact its financial stability and flexibility.

Debt Service Coverage Ratio (DSCR)

The DSCR measures the company 's ability to service its debt with its operating income. The ratio dropped sharply to 2.51 in FY 2024 from an exceptionally high 241.53 in FY 2023.

Return on Equity (ROE)

The return on equity ratio measures how effectively the company uses shareholders’ equity to generate profit. For FY 2024, the ROE remains stable at 28%, consistent with the previous year.

Inventory Turnover Ratio

The inventory turnover ratio evaluates how effectively the company manages its inventory. It increased to 5.39 in FY 2024 from 4.74 in FY 2023. A higher ratio indicates better inventory management and quicker turnover.

Trade Receivables Turnover Ratio

This ratio measures how efficiently the company collects its receivables. It decreased to 5.43 in FY 2024 from 6.01 in FY 2023. The decline suggests a slower collection period for receivables, potentially indicating issues with credit control or longer payment terms granted to customers. A lower ratio could impact liquidity and cash flow.

Trade Payables Turnover Ratio

The trade payables turnover ratio assesses how quickly the company pays its suppliers. It decreased slightly to 3.8 in FY 2024 from 4.07 in FY 2023. This reduction indicates a slower payment cycle to suppliers, which could affect relationships with vendors or reflect extended credit terms obtained by the company.

Net Capital Turnover Ratio

This ratio measures how efficiently the company uses its capital to generate revenue. The significant increase to 24.83 in FY 2024 from 4.76 in FY 2023 indicates a dramatic improvement in capital efficiency. This surge suggests that the company has become much more effective at generating revenue from its capital base, reflecting improved operational performance or strategic capital deployment.

Net Profit Ratio

The net profit ratio reflects the proportion of revenue that turns into profit after all expenses. It improved to 13% in FY 2024 from 11% in FY 2023. This increase indicates that the company has enhanced its profitability relative to its revenue, showing better cost control or higher margins.

Return on Capital Employed (ROCE)

ROCE measures the profitability and efficiency in using capital employed. The ratio decreased to 9% in FY 2024 from 30% in FY 2023. This significant drop suggests reduced efficiency or profitability in utilizing the capital employed. A lower ROCE can indicate increased capital investments with lower returns or operational challenges impacting profitability.

Return on Investment (ROI)

ROI assesses the return generated on investments relative to their cost. The ratio decreased to 8% in FY 2024 from 20% in FY 2023. This decline reflects a reduced return on invested capital, which may suggest lower returns from investments or higher investment costs. The drop indicates a need for evaluating and possibly improving investment strategies to enhance returns.

Dividend history