Sambhv Steel Annual Reports, Balance Sheet and Financials

Sambhv Steel tubes Limited Balance Sheet (Rs in Millions)

Sambhv Steel tubes Limited Profit & Loss Statement (Rs in Millions)

Sambhv Steel tubes 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 cash flow from operating activities begins with the profit before tax, which for the year ended March 31, 2024, was INR 1,107.65 compared to INR 811.17 for the previous year. This section is adjusted for non-cash expenses and income, such as depreciation and amortization (INR 209.09 in 2024), losses on the sale of property and equipment, and changes in provisions. Gains or losses from specific transactions like the sale of investments and lease remeasurements are also adjusted to reflect cash flow accurately.

Interest expenses (INR 304.28 in 2024) are added back to profit because they are financing activities, while interest income (INR 22.95) is subtracted as it is investing-related. The adjusted operating profit before working capital changes stood at INR 1,599.42 in 2024, up from INR 1,179.84 in 2023.

The adjustments for working capital include changes in assets and liabilities. For example, an increase in trade receivables by INR 596.09 in 2024 indicates cash outflow, while an increase in trade payables (INR 694.83) reflects cash inflow. After these adjustments, the cash flow from operations reached INR 1,605.43 in 2024. Following the deduction of income tax paid (INR 181.15), the net cash from operating activities was INR 1,424.28 for 2024, higher than INR 655.52 in 2023.

Cash Flow from Investing Activities

Investing activities include cash spent on acquiring property, plant, and equipment (INR 2,849.29 in 2024), which represented significant cash outflows. Proceeds from the sale of these assets were minimal at INR 2.06 in 2024. Investments in fixed deposits (INR 282.76) and purchases of current investments (INR 500) were also major outflows.

However, the company earned some cash inflow from the sale of current investments (INR 502.68) and interest received (INR 11.31). Overall, the net cash used in investing activities was negative at INR 3,116.00 in 2024, compared to INR 849.00 in 2023, indicating higher capital expenditures in the current year.

Cash Flow from Financing Activities

This section covers cash flows related to debt and equity. In 2024, the company raised INR 1,240.69 from non-current borrowings but also repaid INR 1,081.40 of such borrowings. Proceeds from current borrowings contributed INR 481.75 to cash inflows. The company issued new equity shares, raising INR 1,503.71, but incurred share issue expenses amounting to INR 50.48.

Interest payments related to lease liabilities (INR 2.18) and financing costs (INR 326.05) were outflows. After all these activities, the net cash generated from financing activities was INR 1,765.59 in 2024, compared to INR 194.85 in 2023, indicating a significant increase due to new equity issuance.

Net Increase/(Decrease) in Cash and Cash Equivalents

The overall change in cash position for 2024 was a net increase of INR 73.87, as opposed to a small increase of INR 1.37 in 2023. This reflects positive cash flow from operating and financing activities, offset by significant cash used in investing activities.

Cash and Cash Equivalents at the Beginning and End of the Year

The cash balance at the start of 2024 was INR 1.97, which increased to INR 75.84 by the year-end due to the net inflow of cash during the year. For 2023, the opening balance was INR 0.60, increasing to INR 1.97 by year-end.

In summary, the company showed an increase in cash from operations and financing activities in 2024, countered by substantial investments, leading to an overall positive net increase in cash and cash equivalents.

Financial Ratios of Sambhv Steel tubes Limited

Here is a summary of the financial and operational metrics for Sambhv Steel tubes Limited for the years 2024 and 2023:

Current Ratio (1.06):

The current ratio decreased from 1.33 in 2023 to 1.06 in 2024. This suggests that while the company can still cover its short-term liabilities, its liquidity position has weakened compared to the previous year, indicating tighter working capital.

Debt-Equity Ratio (0.8):

The debt-equity ratio improved significantly, dropping from 1.35 in 2023 to 0.8 in 2024. This indicates that the company has reduced its reliance on debt relative to its equity, improving its financial stability and lowering financial risk.

Debt Service Coverage Ratio (0.97):

The debt service coverage ratio fell from 1.24 in 2023 to 0.97 in 2024, suggesting the company has slightly less capacity to cover its debt obligations with its operating income. A ratio below 1 can indicate potential difficulties in meeting debt obligations without external financing or additional measures.

Return on Equity (ROE) (25.42%):

The return on equity decreased from 33.57% to 25.42%, indicating a decline in profitability and the efficiency with which the company generates profits from shareholders ' equity. Despite the decrease, an ROE of 25.42% still reflects a strong performance.

Inventory Turnover Ratio (6.34):

The inventory turnover ratio increased from 5.3 in 2023 to 6.34 in 2024. This implies that the company managed its inventory more efficiently, selling and replacing its inventory more frequently during the year.

Trade Receivables Turnover Ratio (19.99):

The trade receivables turnover ratio decreased from 37.33 in 2023 to 19.99 in 2024. This suggests that the company took longer to collect receivables, which may affect cash flow and working capital management.

Trade Payables Turnover Ratio (14.73):

The trade payables turnover ratio fell from 24.09 to 14.73, indicating that the company extended the time it takes to pay its suppliers. While this may help with short-term cash flow, it could impact supplier relationships.

Net Capital Turnover Ratio (69.22):

This ratio increased significantly from 18.41 in 2023 to 69.22 in 2024, indicating a significant improvement in the efficiency of using working capital to generate revenue.

Net Profit Ratio (6.41%):

The net profit ratio showed a slight decline from 6.44% to 6.41%. This suggests that while revenue may have increased, the profit margin remained stable, pointing to consistent cost management.

Return on Capital Employed (ROCE) (17.66%):

The ROCE dropped from 20.20% in 2023 to 17.66% in 2024, showing a reduction in the overall return the company generated from its capital employed. This indicates slightly lower efficiency in using capital to generate profits.

Return on Investment (ROI) (0.54%):

A positive shift to 0.54% from a negative position in 2023 indicates that the company has improved its returns from investments. However, the relatively low figure suggests there is room for further enhancement in investment performance.

Dividend History

Sambhv Steel Tubes Limited Recent Financial Performance

Dividend per Share: The specific dividend per share figure for 2024 and 2023 is not provided. Dividend per share represents the portion of a company 's earnings that is distributed to shareholders in the form of dividends. A higher dividend per share may indicate that the company is sharing more of its profits with shareholders.

Retained Earnings: Retained earnings for 2024 amounted to Rs 1,972.80 Millions, while in 2023, they were Rs. 1,836.40 Millions. Retained earnings represent the portion of a company 's profits that is reinvested in the business rather than distributed as dividends. An increase in retained earnings suggests that the company has retained more of its profits for reinvestment or future growth.

To provide a more comprehensive analysis, it would be necessary to consider additional financial metrics such as revenue, net profit, assets, liabilities, and cash flows. Additionally, an analysis of trends over multiple years and a comparison to industry benchmarks and competitors would help in assessing the company 's financial health and performance.