U P Asbestos Annual Reports, Balance Sheet and Financials

UP Asbestos Limited Consolidated Balance Sheet (Rs in Lakhs)

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

UP Asbestos Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

During FY 2024–25, the company generated a net cash inflow of ₹1,547.94 lakhs from operating activities, which is almost stable compared to ₹1,553.29 lakhs in FY 2023–24. The net profit before tax and exceptional items increased significantly to ₹1,901.85 lakhs from ₹663.89 lakhs, reflecting improved profitability. After adding back non-cash expenses such as depreciation (₹547.92 lakhs), finance cost (₹1,058.26 lakhs) and provision for doubtful debts (₹349.65 lakhs), and adjusting for non-operating income like interest earned (₹377.95 lakhs) and dividend income (₹0.05 lakhs), operating profit improved.

However, working capital changes impacted cash flow negatively, as trade receivables increased by ₹1,198.76 lakhs and inventories increased by ₹805.46 lakhs, leading to cash blockage. This was partially offset by an increase in trade payables and other liabilities of ₹982.54 lakhs. After adjusting for direct taxes paid (₹901.65 lakhs), the company maintained a strong operating cash flow position.

Cash Flow from Investing Activities

Investing activities resulted in a net cash outflow of ₹604.83 lakhs, lower than the previous year’s outflow of ₹808.82 lakhs. The main outflow was due to loans and advances given (₹1,000 lakhs). The purchase of property, plant and equipment was minimal at ₹1.94 lakhs, significantly lower than last year’s capital expenditure. Inflows were generated from interest received (₹377.95 lakhs) and dividend income. The reduced investing outflow indicates controlled capital expenditure but increased deployment of funds in loans and advances.

Cash Flow from Financing Activities

Financing activities showed a significant net cash outflow of ₹1,974.44 lakhs in FY 2024–25 compared to ₹215.56 lakhs in FY 2023–24. The major outflows were due to net repayment of borrowings amounting to ₹916.66 lakhs and finance cost payments of ₹1,058.26 lakhs. This indicates that the company focused on reducing debt and servicing financial obligations during the year, which strengthened its capital structure but reduced cash reserves.

Net Change in Cash and Cash Equivalents

Overall, the company recorded a net decrease in cash and cash equivalents of ₹1,031.34 lakhs, compared to an increase of ₹528.91 lakhs in the previous year. The cash balance declined from ₹3,550.32 lakhs at the beginning of the year to ₹2,518.95 lakhs at the end of FY 2024–25. Despite strong operating cash flows, higher financing outflows and investment in loans led to a reduction in overall liquidity.

UP Asbestos Limited Financial ratios

Summary of the financial ratios for the years 2025 and 2024:

Current Ratio

The current ratio declined to 2.93 in FY 2024–25 from 3.46 in FY 2023–24. Although the ratio has reduced, it remains well above 1, indicating that the company continues to maintain a strong liquidity position. The decline suggests relatively higher growth in current liabilities compared to current assets, but overall short-term solvency remains comfortable.

Debt–Equity Ratio

The debt–equity ratio improved to 1.42 from 1.67, reflecting a reduction in leverage. This indicates that the company has reduced its dependence on borrowed funds and strengthened its capital structure during the year. Lower financial risk enhances long-term solvency and financial stability.

Debt Service Coverage Ratio

The DSCR slightly decreased to 1.29 from 1.31. Although marginally lower, it remains above 1, indicating that the company is generating adequate earnings to meet its debt servicing obligations. However, the narrow margin suggests that debt servicing capacity should be monitored closely.

Return on Equity

Return on equity increased significantly to 18.98% from 9.14%. This sharp improvement reflects higher profitability and better utilization of shareholders’ funds. The growth in ROE indicates enhanced value creation for equity investors during FY 2024–25.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio improved to 5.37 from 4.91, showing better collection efficiency. This indicates that the company is recovering dues from customers more quickly than the previous year, leading to improved cash flow management.

Trade Payables Turnover Ratio

The trade payables turnover ratio increased substantially to 103.67 from 62.03. This suggests that the company is paying its suppliers more quickly than before. While this may reflect strong liquidity and supplier relationships, it could also reduce the benefit of credit periods available from vendors.

Inventory Turnover Ratio

The inventory turnover ratio improved to 13.59 from 10.73. This indicates more efficient inventory management and faster movement of stock. Higher turnover reduces holding costs and minimizes the risk of obsolescence, positively impacting profitability.

Net Capital Turnover Ratio

The net capital turnover ratio slightly declined to 2.55 from 2.69. This suggests marginally lower efficiency in utilizing working capital to generate revenue. The decline may be linked to increased working capital investment during the year.

Net Profit Ratio

The net profit ratio improved significantly to 5.76% from 2.78%. This reflects better cost control, improved operational efficiency, and stronger profitability. The improvement indicates that the company is retaining a higher portion of revenue as profit.

Return on Capital Employed

ROCE increased to 14.97% from 9.41%, indicating improved efficiency in utilizing total capital (both debt and equity). This improvement highlights stronger operational performance and better returns generated from invested capital.