The Southern Gas Annual Reports, Balance Sheet and Financials

The Southern Gas Limited Balance Sheet (Rs in Lakhs)

The Southern Gas Limited Profit & Loss Statement (Rs in Lakhs)

The Southern Gas Limited 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

2024: ₹168.19 Lakhs, 2023: ₹233.84 Lakhs

Net Profit Before Tax: The company started with a comprehensive income before tax of ₹251.57 Lakhs in 2024, an increase from ₹112.37 Lakhs in 2023.

Adjustments: These include non-cash items such as depreciation, which was ₹184.53 Lakhs in 2024, higher than the previous year's ₹166.80 Lakhs, and other adjustments like interest income, provision for doubtful debts, and profit/loss on the sale of property, plant, and equipment (PPE).

Working Capital Changes: In 2024, the company had several working capital changes such as a decrease in trade receivables of ₹34.16 Lakhs, an increase in inventories of ₹15.02 Lakhs, and changes in liabilities and other financial assets. These adjustments contributed to a net cash generation from operations of ₹225.37 Lakhs in 2024, slightly lower than ₹279.15 Lakhs in 2023.

Taxes Paid: Taxes paid amounted to ₹57.18 Lakhs in 2024, higher than ₹45.31 Lakhs in 2023.

Net Cash from Operating Activities: After taxes, the company generated ₹168.19 Lakhs in 2024, lower than the ₹233.84 Lakhs in 2023. This reflects a solid operating performance, though slightly lower than the previous year due to higher working capital needs and taxes.

Cash Flow from Investing Activities

2024: ₹(182.18) Lakhs, 2023: ₹(236.56) Lakhs

The company invested significantly in the purchase of PPE and capital work in progress (CWIP), spending ₹202.41 Lakhs in 2024, compared to ₹247.98 Lakhs in 2023.

There was some inflow from the sale of PPE, amounting to ₹15.87 Lakhs in 2024.

Interest received in 2024 was ₹68.06 Lakhs, higher than the ₹57.89 Lakhs in 2023.

The net result was a cash outflow of ₹182.18 Lakhs in 2024, which is an improvement from the ₹236.56 Lakhs in 2023, reflecting lower investments in fixed assets and an increase in other bank balances.

Cash Flow from Financing Activities

2024: ₹(39.12) Lakhs, 2023: ₹(38.89) Lakhs

The company had limited financing activities. It made repayments of long-term borrowings of ₹19.06 Lakhs and short-term borrowings of ₹6.18 Lakhs in 2024.

Interest payments were ₹2.63 Lakhs, lower than ₹4.34 Lakhs in 2023.

The company also paid dividends of ₹11.25 Lakhs in both years, maintaining consistency.

Overall, the company had a slight cash outflow from financing activities of ₹39.12 Lakhs in 2024, which is similar to the ₹38.89 Lakhs in 2023.

Net Increase/Decrease in Cash and Cash Equivalents

2024: ₹(53.12) Lakhs, 2023: ₹(41.61) Lakhs

The net result of all cash flows was a decrease in cash and cash equivalents of ₹53.12 Lakhs in 2024, compared to a decrease of ₹41.61 Lakhs in 2023.

Opening Cash Balance: The year started with ₹191.14 Lakhs in cash and cash equivalents in 2024, compared to ₹232.74 Lakhs in 2023.

Closing Cash Balance: The year ended with ₹138.02 Lakhs in 2024, down from ₹191.14 Lakhs in 2023.

Financial Ratios of The Southern Gas Limited

Here is a summary of the financial and operational metrics for The Southern Gas Limited for the year 2024 and 2023:

Current Ratio:

2024: 1.00, 2023: 1.07

The current ratio slightly declined from 1.07 to 1. This ratio measures the company’s ability to meet its short-term obligations using its current assets. A ratio of 1 indicates that the company has just enough current assets to cover its current liabilities, showing a borderline liquidity position compared to the previous year.

Debt-Equity Ratio:

2024: 0.01, 2023: 0.02

The debt-equity ratio decreased from 0.02 to 0.01, indicating that the company has very low reliance on debt compared to equity. This signifies a strong capital structure with minimal financial leverage, reducing risk from debt servicing.

Debt Service Coverage Ratio (DSCR):

2024: 142.28, 2023: 57.38

The DSCR surged significantly, reflecting a dramatic improvement in the company’s ability to cover its debt obligations. A higher DSCR means that the company generates significantly more cash flow than is required to service its debt, indicating strong financial health and reduced credit risk.

Return on Equity (ROE):

2024: 8.57, 2023: 3.80

The ROE increased from 3.80% to 8.57%, indicating that the company has become more effective in generating returns for its shareholders. This suggests improved profitability and better utilization of shareholders' equity.

Inventory Turnover Ratio:

2024: 27.32, 2023: 25.34

The inventory turnover ratio improved slightly, indicating that the company is selling and replenishing its inventory faster. This is a positive sign of operational efficiency, as it shows effective management of stock levels and quicker inventory movement.

Trade Receivables Turnover Ratio:

2024: 7.41, 2023: 7.89

This ratio slightly declined, indicating that the company is taking a bit longer to collect its receivables compared to the previous year. However, a ratio around 7 still reflects efficient collection practices.

Trade Payables Turnover Ratio:

2024: 25.71, 2023: 23.41

An increase in the trade payables turnover ratio shows that the company is settling its payables more quickly than in the previous year. This could be indicative of stronger liquidity or better supplier management, as the company is paying off its suppliers faster.

Net Capital Turnover Ratio:

2024: -5719.5, 2023: 57.63

The drastic negative shift in the net capital turnover ratio suggests significant changes in working capital management, possibly due to large fluctuations in current liabilities or negative working capital. A negative ratio often indicates that current liabilities exceed current assets, which could be a sign of aggressive financing or operational issues.

Net Profit Ratio:

2024: 5.26%, 2023: 2.25%

The net profit margin more than doubled, reflecting improved profitability. This shows the company is converting a larger percentage of its revenue into profit, which may be the result of better cost management, increased sales efficiency, or reduced expenses.

Return on Capital Employed (ROCE):

2024: 11.33%, 2023: 5.82%

The ROCE, which measures the company’s efficiency in using its capital to generate profits, nearly doubled. This improvement reflects better utilization of both debt and equity in driving profitability, a positive sign of operational effectiveness.

Return on Investments (ROI):

2024: 6.45, 2023: 6.20

The ROI increased slightly, indicating better returns on the company’s investments. Though the improvement is modest, it shows that the company is generating higher returns on the capital it has invested in projects or assets.