Spray Engineering Balance Sheet & Revenue

Spray Engineering Devices Limited Balance Sheet (Rs in Millions)

Spray Engineering Devices Limited Profit & Loss Statement (Rs in Millions)

Spray Engineering Devices 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:

Profit/(Loss) before tax:

The profit before tax for FY 2024 was ₹737.27 million, compared to ₹466.47 million in FY 2023, indicating an improved profitability in the current year.

Adjustments:

Depreciation/Amortization: Non-cash expenses like depreciation increased slightly from ₹38.52 million in FY 2023 to ₹49.30 million in FY 2024, reflecting increased wear and tear on assets.

Bad Debts Written Off: The company had to write off ₹30.18 million in bad debts in FY 2024, lower than the ₹86.53 million in FY 2023.

Gain on Derecognition of Financial Liabilities: In FY 2023, there was a gain of ₹6.73 million from derecognizing financial liabilities, which did not occur in FY 2024.

(Gain)/Loss on Sale of Property, Plant & Equipment: The loss of ₹0.02 million in FY 2023 was not seen in FY 2024.

(Gain)/Loss on Fair Valuation of Investments: A small gain on investment valuation was recorded at ₹0.99 million in FY 2024, compared to ₹0.09 million in FY 2023.

Finance Cost: Finance costs increased to ₹98.91 million in FY 2024 from ₹80.71 million in FY 2023, indicating higher borrowing costs.

Interest Income: Interest earned was slightly higher in FY 2024 at ₹7.08 million, up from ₹5.44 million in FY 2023.

Other Appropriations: In FY 2023, there was a small appropriation of ₹0.20 million, not present in FY 2024.

After these adjustments, the operating profit before changes in working capital for FY 2024 stood at ₹907.59 million, compared to ₹659.79 million in FY 2023, showcasing improved operational efficiency.

Movements in Working Capital:

Trade Payables: Trade payables increased by ₹147.27 million in FY 2024, compared to an increase of ₹73 million in FY 2023.

Other Current Liabilities and Provisions: A significant decrease of ₹578.74 million in FY 2024, compared to a reduction of ₹59.40 million in FY 2023, which suggests a substantial reduction in short-term liabilities.

Trade Receivables: Receivables increased by ₹297.40 million in FY 2024, reflecting more credit extended to customers, compared to an increase of ₹258.33 million in FY 2023.

Inventories: Inventories decreased by ₹18.42 million in FY 2024, compared to an increase of ₹116.67 million in FY 2023, indicating better inventory management.

Other Current Assets: Other current assets decreased by ₹64.18 million in FY 2024, compared to an increase of ₹84.59 million in FY 2023.

As a result, the net cash generated from operations was ₹261.32 million in FY 2024, slightly higher than ₹213.80 million in FY 2023.

Income Tax Paid: Income tax paid increased slightly to ₹70.17 million in FY 2024 from ₹59.10 million in FY 2023.

Net Cash Flow from Operating Activities: After taxes, the net cash inflow from operating activities was ₹191.15 million for FY 2024, up from ₹154.70 million in FY 2023, reflecting stronger operational cash generation.

Cash Flow from Investing Activities:

Purchase of PPE and Intangible Assets: Investments in property, plant, and equipment (PPE) and intangible assets amounted to ₹301.03 million in FY 2024, a reduction from ₹448.05 million in FY 2023, showing decreased capital expenditure.

(Increase)/Decrease in Other Bank Balances: A positive cash inflow of ₹17.10 million in FY 2024 due to a reduction in other bank balances, compared to a negative movement of ₹35.71 million in FY 2023.

Proceeds from Sale of PPE: In FY 2023, the company earned ₹1.95 million from the sale of PPE, with no such sale in FY 2024.

Interest Income: Interest income increased slightly to ₹7.08 million in FY 2024 from ₹5.44 million in FY 2023.

(Increase)/Decrease in Investments: There was a minor increase in investments of ₹1.01 million in FY 2024 compared to ₹2.01 million in FY 2023.

Overall, net cash used in investing activities amounted to ₹277.86 million in FY 2024, which is an improvement from ₹478.38 million used in FY 2023.

Cash Flow from Financing Activities:

Proceeds/(Repayment) of Long-Term Borrowings: Minimal activity in FY 2024, with ₹0.19 million raised, compared to ₹214.11 million in FY 2023, signaling a reduced need for long-term borrowing.

Proceeds/(Repayment) of Short-Term Borrowings: Short-term borrowings increased by ₹175.46 million in FY 2024, which is close to the ₹187.75 million borrowed in FY 2023.

Finance Cost: Finance costs (interest payments) increased to ₹98.91 million in FY 2024, compared to ₹80.71 million in FY 2023, reflecting higher interest obligations.

The net cash inflow from financing activities amounted to ₹76.74 million in FY 2024, lower than the inflow of ₹321.15 million in FY 2023, largely due to less borrowing.

Net Increase/(Decrease) in Cash and Cash Equivalents:

The overall net cash outflow was ₹9.97 million in FY 2024, compared to a smaller outflow of ₹2.53 million in FY 2023. Despite improved operational cash flow, the cash used in investing activities outweighed the cash generated from operations and financing.

Cash and Cash Equivalents:

At the beginning of the year: ₹14.07 million at the start of FY 2024 compared to ₹16.60 million in FY 2023.

At the end of the year: Cash and cash equivalents declined to ₹4.10 million at the end of FY 2024 from ₹14.07 million at the end of FY 2023.

Components of Cash and Cash Equivalents:

Cash on hand remained consistent at ₹0.10 million in FY 2024, slightly lower than ₹0.11 million in FY 2023.

Cash in current accounts dropped significantly from ₹13.96 million in FY 2023 to ₹4.00 million in FY 2024.

Financial Ratios of Spray Engineering Devices Limited

Here is a summary of the financial and operational metrics for Spray Engineering Devices Limited for the years 2024 and 2023:

Current Ratio (2024: 1.38, 2023: 1.13)

The current ratio improved from 1.13 in 2023 to 1.38 in 2024, indicating that the company 's short-term liquidity position has strengthened. A higher current ratio means the company has more current assets to cover its current liabilities, reducing short-term financial risk.

Debt-Equity Ratio (2024: 0.61, 2023: 0.83)

The debt-equity ratio has decreased from 0.83 in 2023 to 0.61 in 2024, showing that the company has reduced its reliance on debt financing. A lower ratio indicates a healthier financial structure, as the company is less leveraged and may be in a better position to manage interest obligations.

Debt Service Coverage Ratio (2024: 12.98, 2023: 10.97)

The debt service coverage ratio (DSCR) has improved from 10.97 to 12.98, suggesting that the company is generating more than enough earnings to cover its debt obligations. A DSCR above 1 indicates strong solvency, and the increase in 2024 reflects improved operational performance or reduced debt servicing requirements.

Return on Equity (ROE) (2024: 54.75%, 2023: 64.6%)

ROE has decreased from 64.6% in 2023 to 54.75% in 2024, signaling a reduction in the profitability generated from shareholders ' equity. Despite the decline, a 54.75% ROE is still strong, but it indicates that the company 's efficiency in using equity to generate profits has reduced compared to the previous year.

Inventory Turnover Ratio (2024: 4.51, 2023: 3.43)

The inventory turnover ratio increased from 3.43 to 4.51, showing that the company has improved its efficiency in managing inventory. A higher turnover indicates faster movement of inventory, which reduces holding costs and the risk of obsolescence, leading to better operational efficiency.

Trade Receivables Turnover Ratio (2024: 7.45, 2023: 7.62)

This ratio slightly decreased from 7.62 in 2023 to 7.45 in 2024, indicating that the company is collecting receivables at a slightly slower rate. However, the decrease is minor and does not suggest significant inefficiency in credit management.

Trade Payables Turnover Ratio (2024: 8.37, 2023: 7.95)

The trade payables turnover ratio has increased from 7.95 to 8.37, suggesting the company is paying its suppliers faster than in the previous year. While this can indicate good creditworthiness, it may also reflect less favorable credit terms with suppliers.

Net Capital Turnover Ratio (2024: 9.64, 2023: 17.7)

A significant drop in the net capital turnover ratio from 17.7 in 2023 to 9.64 in 2024 indicates that the company is generating less revenue per unit of working capital. This suggests that while revenues have increased, the growth of working capital may have outpaced revenue generation, leading to reduced efficiency.

Net Profit Ratio (2024: 9.71%, 2023: 8.84%)

The net profit ratio increased from 8.84% to 9.71%, showing an improvement in profitability. This indicates that a higher percentage of revenue is being converted into profit, which reflects better cost management and higher operational efficiency.

Return on Capital Employed (ROCE) (2024: 41.61%, 2023: 42.03%)

The ROCE remained relatively stable, with a slight decrease from 42.03% in 2023 to 41.61% in 2024. This stability indicates that the company continues to maintain a high return on its overall capital employed, showing that it is efficiently using both debt and equity to generate profits.

Dividend History

Spray Engineering Devices 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 393.91 Million, while in 2023, they were Rs. -129.79 Million. 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