U P Asbestos Annual Reports, Balance Sheet and Financials

UP Asbestos Limited Balance Sheet (Rs in Lakhs)

 UP Asbestos Limited Profit & Loss Statement (Rs in Lakhs)

 UP Asbestos 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 net profit after tax of ₹663.89 lakhs. After adjusting for non-cash items like depreciation (₹484.62 lakhs), finance costs (₹1,035.89 lakhs), and other income (e.g., interest income and foreign exchange gains), the operating profit before working capital changes amounted to ₹1,891.70 lakhs. Further adjustments, such as a decrease in inventories (₹667.88 lakhs) and receivables (₹99.22 lakhs), increased cash flow, while a decrease in payables (₹-585.37 lakhs) reduced it. After accounting for tax payments, the net cash generated from operations was ₹1,980.85 lakhs, indicating strong cash generation from core business activities.

Cash Flow from Investing Activities

The company spent a significant amount on purchasing property, plant, and equipment (₹1,652.74 lakhs), which resulted in a net outflow. However, the company generated some inflows from loans and advances (₹450 lakhs) and interest income (₹368.58 lakhs). Overall, the net cash used in investing activities was ₹-799.98 lakhs, reflecting a focus on capital investments.

Cash Flow from Financing Activities

The company raised ₹817.99 lakhs from borrowings during the year but faced significant outflows due to finance costs (₹1,035.89 lakhs). The net cash outflow from financing activities was ₹-215.56 lakhs, showing that more cash was used to cover interest payments than was raised through borrowing.

Net Change in Cash and Cash Equivalents

The net increase in cash during the year was ₹965.31 lakhs. With an opening balance of ₹3,087.01 lakhs, the closing cash balance was ₹4,052.32 lakhs, reflecting improved liquidity by the year-end.

Financial Ratios of UP Asbestos Limited

Here is a summary of the financial and operational metrics for UP Asbestos Limited for the year 2024 and 2023:

Current Ratio

The current ratio measures a company 's ability to meet short-term liabilities with its current assets. In 2024, the ratio increased to 3.81 from 3.14 in 2023. This suggests the company has improved liquidity, meaning it has more than enough current assets to cover its short-term obligations. This higher ratio can indicate financial stability, but if too high, it may suggest the company is not using its assets efficiently.

 Debt-Equity Ratio

This ratio assesses the proportion of debt used to finance the company relative to equity. In 2024, the ratio slightly decreased to 1.63 from 1.7 in 2023, meaning the company still relies heavily on debt for financing but has made marginal improvements in reducing its debt levels relative to its equity base. A high ratio indicates greater financial risk, but the decrease suggests the company may be slowly improving its capital structure.

 Debt Service Coverage Ratio (DSCR)

The DSCR measures the company 's ability to cover its debt obligations from its operating income. In 2024, the DSCR improved to 1.28 from 0.94 in 2023, showing that the company is now generating enough income to cover its debt payments more comfortably. A DSCR above 1.0 is generally favorable, indicating that the company has sufficient earnings to meet its debt obligations without strain.

 Return on Equity (ROE)

ROE measures the profitability of the company relative to shareholders ' equity. In 2024, the ROE dropped to 4.78% from 7.25% in 2023, suggesting that the company is generating lower returns for its shareholders. This decline indicates reduced profitability and efficiency in using equity capital to drive profits, which could be a concern for investors looking for higher returns.

 Trade Receivables Turnover Ratio

This ratio shows how efficiently the company collects payments from customers. In 2024, the ratio was 4.74, slightly lower than 4.84 in 2023. This minor decline suggests that the company’s ability to collect receivables has slightly slowed, though not significantly. It still reflects a reasonable collection period, meaning the company is maintaining good cash flow from customer payments.

 Trade Payables Turnover Ratio

This ratio reflects how quickly the company pays its suppliers. The trade payables turnover ratio increased significantly to 66.56 in 2024, up from 50.41 in 2023. This sharp rise indicates that the company is paying its suppliers much faster, which may signal better liquidity or improved payment practices. Faster payments can strengthen supplier relationships but may also strain cash flow if not managed carefully.

 Inventory Turnover Ratio

The inventory turnover ratio measures how efficiently a company sells and replaces its stock. In 2024, the ratio surged to 11.71 from 4.58 in 2023. This significant improvement indicates much faster inventory movement, suggesting strong sales performance or better inventory management. A higher turnover is generally positive, showing the company is efficiently managing its stock.

 Net Capital Turnover Ratio

This ratio indicates how effectively the company uses its working capital to generate revenue. In 2024, the ratio was relatively stable at 2.56, compared to 2.57 in 2023. This consistency suggests the company’s ability to generate revenue from its working capital remained nearly unchanged, indicating stable operational efficiency.

 Net Profit Ratio

The net profit ratio measures how much of each rupee of revenue turns into profit. In 2024, the ratio increased to 2.70% from 2.24% in 2023, reflecting improved profitability. This suggests the company is either managing costs more effectively or generating higher margins, resulting in a larger share of revenue translating into profit.

Return on Capital Employed (ROCE)

ROCE measures how efficiently the company generates profit from its capital (both equity and debt). In 2024, the ROCE declined to 9.57% from 10.67% in 2023, indicating a decrease in the company 's ability to generate returns from its capital. This slight reduction in efficiency may signal a decrease in operational performance or increased capital investment without a corresponding rise in profit.