San Engineering Annual Report & Financials

San Engineering And Locomotive Company Limited Balance Sheet (Rs in Millions)

 San Engineering And Locomotive Company Ltd Profit & Loss Statement (Rs in Millions)

 San Engineering And Locomotive Company Ltd. 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 company generated a net profit before tax and extraordinary items of Rs. 370.38 million in 2024, an increase from Rs. 259.18 million in 2023. This growth in profitability is supported by higher depreciation and finance costs. However, interest and dividend income decreased, impacting the operating profit. Adjustments for working capital changes show a significant increase in trade receivables, a decrease in trade payables, and other changes that reduced cash flow. Despite these changes, cash generated from operations decreased from Rs. 231.98 million in 2023 to Rs. 162.91 million in 2024. After deducting direct taxes and adjustments for prior year provisions, the net cash generated from operating activities decreased from Rs. 160.76 million in 2023 to Rs. 69.17 million in 2024.

Cash Flow from Investing Activities: The company spent Rs. 122.53 million on purchasing property, plant, and equipment, a significant increase from the Rs. 45.34 million spent in 2023. Proceeds from the sale of property, plant, and equipment were minimal, and there was no acquisition of a subsidiary in 2024, unlike in 2023. Net cash inflows from investment activities were Rs. 43.28 million in 2024, compared to Rs. 53.14 million in 2023, largely due to higher capital expenditures and changes in investments.

Cash Flow from Financing Activities: Finance costs and dividends paid both increased in 2024, contributing to a net cash outflow of Rs. 29.37 million, up from Rs. 22.21 million in 2023. This increase reflects higher costs and dividends impacting the financing cash flows.

Net Increase/Decrease in Cash and Cash Equivalents: Overall, the company experienced a net decrease in cash and cash equivalents of Rs. 3.48 million in 2024, contrasting with an increase of Rs. 85.41 million in 2023. Despite the cash inflows from operating activities and investing activities, the outflows in financing activities and higher capital expenditures led to a slight reduction in cash reserves. At the end of the year, cash and cash equivalents stood at Rs. 152.2 million, slightly down from Rs. 155.68 million the previous year. The detailed cash components include cash on hand, current accounts, unpaid dividends, and margin money accounts, showing a stable liquidity position despite the decrease.

Financial Ratios of San Engineering And Locomotive Company Limited

Here is a summary of the financial and operational metrics for San Engineering And Locomotive Company Limited for the year 2024 and 2023:

Current Ratio: The current ratio slightly decreased from 3.02 in 2023 to 2.96 in 2024. This minor decline indicates a slight reduction in the company’s short-term liquidity. Although the current ratio remains above the generally acceptable level of 2, suggesting that the company is still in a strong position to meet its short-term obligations.

Debt Service Coverage Ratio: The debt service coverage ratio has decreased significantly from 1,843.13 in 2023 to 708.93 in 2024. This sharp decline implies that the company’s ability to cover its debt obligations from its operating cash flow has weakened, possibly due to increased debt or reduced cash flow from operations.

Return on Equity (ROE): ROE improved from 0.09 in 2023 to 0.12 in 2024. This increase indicates that the company is generating more profit per unit of equity, reflecting better returns for shareholders.

Inventory Turnover Ratio: The inventory turnover ratio slightly decreased from 2.66 in 2023 to 2.58 in 2024. This suggests that inventory is turning over more slowly, potentially indicating higher stock levels or slower sales.

Trade Receivables Turnover: The trade receivables turnover ratio fell from 2.73 in 2023 to 2.43 in 2024. This decline points to a slower collection of receivables, which may affect liquidity and operational efficiency.

Trade Payable Turnover: The trade payable turnover ratio decreased from 4.62 in 2023 to 3.26 in 2024. A lower ratio indicates that the company is taking longer to pay its suppliers, which could be a strategy to manage cash flow or may reflect delayed payments.

Net Capital Turnover Ratio: The net capital turnover ratio improved slightly from 1.41 in 2023 to 1.43 in 2024. This indicates a marginal increase in the efficiency of using capital to generate sales.

Net Profit Ratio: The net profit ratio increased from 0.09 in 2023 to 0.13 in 2024. This improvement reflects a higher proportion of net profit relative to sales, suggesting enhanced profitability.

Return on Capital Employed (ROCE): ROCE increased from 0.12 in 2023 to 0.15 in 2024, indicating that the company is generating more profit from its capital employed, thus enhancing overall operational efficiency.

Return on Investment (ROI): ROI decreased slightly from 0.08 in 2023 to 0.07 in 2024. This small drop suggests a minor reduction in the effectiveness of investments in generating returns