Anugraha Valve Castings Limited Unlisted Shares
(i) Anugraha Valve Castings Limited is one of the leading steel foundry situated in the steel hub South India, Coimbatore and has four Foundries and two Machine Shops. It caters to engineering, petroleum, chemicals and gas industries.
(ii) AVCL has been manufacturing and exporting steel castings since 1993, which is used in the valve and pump industries. The promoter has significant experience of over two decades in the steel castings and valve manufacturing business.
(iii) Approx 90% of AVCL’s revenues are derived from exports, with almost all its customers concentrated in European countries such as Germany, Italy, and France. One of the key strengths for AVCL is a stable customer base over the years and it enjoys a strong and stable business relationship with its customers. The company has also been able to add new customers to its portfolio in the last fiscal from geographies namely the US, Canada, and Russia with improving demand.
(iv) Anugraha exports over 36 million US$ of steel castings per annum. As Anugraha follows consistent quality as per international standards, decorated with quality certifications like ISO 9001:2015, ISO 14001:2015, OHSAS 18001:2007, etc. Anugraha exports over 6,000 Metric tons of Steel, Stainless Steel, Alloy Steel, Nickel-based alloy, Duplex, and Super Duplex steel castings per annum in raw and fully machined conditions.
(v) Anugraha has four manufacturing units and modern Two Machine Shops which are situated in and near Coimbatore. Machine shops are equipped with conventional and numerous CNC machines.
Anugraha Valve Castings Limited Unlisted Shares Details:
| Total Available Shares: | 100 |
| Face Value: | ₹ 10 Per Equity Share |
| ISIN: | INE629Z01015 |
| Lot Size: | 50 Shares |
| Current Unlisted Share Price: | ₹ Best in Industry Per Equity Share |
Promoters And Management:
Financials of Anugraha Valve Castings Limited Unlisted Shares:
Fig. in Crores
| Year | Revenue | EBITDA | EBITDA Margins | PAT | Profit Margins | Equity | EPS |
| FY18 | 197 | 18.18 | 9.2% | 9.03 | 4.6% | 3.5265 | 25.61 |
| FY19 | 232 | 18.42 | 7.9% | 13.24 | 5.7% | 3.5265 | 37.54 |
| FY20 | 252 | 27.04 | 10.7% | 11.43 | 4.5% | 3.5265 | 33 |
| FY21 | 216 | 27.71 | 12.8% | 13.95 | 6.5% | 3.5265 | 40 |
Company Address:
Anugraha Valve Castings Limited Unlisted Share – Company Overview
ANUGRAHA VALVE CASTINGS LIMITED is one of the leading manufacturers and exporters of Stainless Steel and Alloy Steel casting in India. The company’s customer base represents various industries including Petroleum, Engineering, Refinery, Oil, Gas & chemicals.
Anugraha Valve Castings Limited has a wide-ranging product portfolio which comprises Gate Valve, Swing Check Valve, Globe Valve, Control Valve, Strainer Valve, Knife Gate Valve, Ball Valve, Safety Relief Valve, Butterfly Valve, Flame Arrester Valve, and Plug Valve. The company mainly focuses on manufacturing Industrial Valve Castings of sizes ranging from 0.5 inches to 32 inches. In addition, the company’s product range is not limited to Stainless Steel, the company also produces products of Carbon, Low Alloy Steel, High Alloy Steel, Nickel-based Alloy, Duplex, and Super Duplex Steel.
The company has four manufacturing units and one modern machine shop, all are situated in Coimbatore. Apart from this, it owns 6 wind turbine generators with a capacity of 6,850 MVA and a solar plant with a capacity of 500 KW.
The company exports over 600 Metric Tons of its products every year in raw or fully machined conditions. It exports over US$ 36 million of steel castings per annum.
Anugraha Valve Castings Limited Incorporation Details
CIN of Anugraha Valve Castings |
U27109TZ1992PLC003873 |
Registration Date of Anugraha Valve Castings |
27 August 1992 |
Category/Sub-category of Anugraha Valve Castings |
A company having a share capital |
Anugraha Valve Castings Registered office address and contact details |
S.F.No.391/2, Sengoda Gounden Pudur, Arasur Village,
Coimbatore – 641 407 Ph.no. 0422-2360124; |
Anugraha Valve Castings Registrar and Transfer Agent address and contact details |
M/s. S.K.D.C. Consultants Limited,
PB No.2016, ”Kanapathy Towers”, 3rd Floor, 1391/a1, Sathy Road, Ganapathy Post, Coimbatore Tamilnadu – 641 006, Phone: +91 422 4958995, 2539835 |
Anugraha Valve Castings Limited Principal Business Activities
| Name and Description of main products/services | NIC Code of the product/service | % to the total turnover of the Company |
| Industrial Valve Castings (Iron and Steel in Primary Forms n.e.c.) | 3309 | 98.23% |
Anugraha Valve Castings Limited Board of Directors
Shri R. Baskaran (Chairman & Managing Director)
Shri B. Anandkumar (Joint Managing Director)
Shri R.P. Joshua (Independent Director)
Shri S. Ponraj (Independent Director)
Shri Ramnath Dureja (Non-Executive Director)
Shri Ajay J Shah (Non-Executive Director)
Anugraha Valve Castings Limited Shareholding Pattern (As of 31-03-2021)
| S. No. | Shareholders’ Name | Number of shares | % of total Shares of the company |
| 1 | Baskaran R | 8,34,231 | 23.66% |
| 2 | Grahalakshmi B | 7,00,490 | 19.86% |
| 3 | Anand Kumar B | 6,63,862 | 18.82% |
| 4 | Kvitha. A | 6,18,357 | 17.53% |
| 5 | Nikita .A | 2,09,761 | 5.95% |
| 6 | Public Shareholding | 4,99,803 | 14.17% |
| Total | 35,26,504 | 100.00% |
Industry Outlook
India became the world’s second-largest steel producer in 2019 with crude steel production of 111.2 Million Tonnes (MT). India overtook Japan to become the world’s second-largest steel producer in 2019. In FY 2020, the production of crude steel in India was 108.5 MT, and finished steel production was 101.03 MT. India’s cumulative production of crude steel and finished steel from April 2020 to January 2021 was 87.21 MT, and 76.04 MT respectively. Export of finished steel stood at 8.42 MT and import at 6.69 MT in FY 2020. From April 2020 to January 2021, the Export and import of finished steel stood at 8.84 MT and 3.79 MT, respectively.
The steel industry suffered a setback due to the COVID19 pandemic outbreak and the consequent lockdowns. The industry’s key customer sectors like automobiles, construction, and oil & gas drillers struggled hard to survive due to prolonged shutdowns, disrupted supply chains, collapsing confidence, and delayed investment and construction projects, as well as a decline in consumption activity across the globe.
The government of India has taken various steps to boost the sector, this includes the introduction of National Steel Policy 2017 and has allowed 100% Foreign Direct Investment (FDI) in the steel industry under the automatic route. Moreover, the Directorate General of Foreign Trade (DGFT), in October 2020, announced that steel manufacturers in India can avail of duty drawback benefits on steel supplied through their distributors, service centers, dealers, and stockyards. The Central Government of India has also introduced Steel Scrap Recycling Policy, which is mainly aimed to reduce imports.
However, Some recent policy decisions of the Indian government can negatively impact small and mid-sized steel producers. The Ministry of Urban Development has announced that Central Public Works Department (CPWD) will be buying rebars from the sponge EAF units with a minimum EAF size of 100 tonnes. This means, only EAS-based plants with a capacity of 100 Tonnes or more will be able to participate in the purchase program of CPWD, and the remaining steel producers, will not be able to participate.
Anugraha Valve Castings Limited Balance Sheet (Rs in Lakhs)
|
Particulars |
31-03-2023 |
31-03-2022 |
|
EQUITY AND LIABILITIES |
|
|
|
Share Capital |
352.65 |
352.65 |
|
Reserves and Surplus |
20726.64 |
20543.77 |
|
Non – Current Liabilities |
|
|
|
Long Term Borrowings |
1726.33 |
722.97 |
|
Deferred Tax Liabilities (Net) |
1181.16 |
1138.9 |
|
Current Liabilities |
|
|
|
Short – Term Borrowings |
6292.79 |
4642.41 |
|
Total Outstanding dues of micro enterprises small enterprises |
1440.71 |
775.26 |
|
Total outstanding dues of creditors other micro enterprises and small enterprises |
1165.47 |
793.87 |
|
Other Current Liabilities |
112.65 |
87.93 |
|
Short – Term Provisions |
1648.27 |
1437.79 |
|
TOTAL EQUITY AND LIABILITY |
34646.67 |
30495.55 |
|
ASSETS |
|
|
|
Non-Current Assets |
|
|
|
Property, Plant & Equipment |
13516.09 |
13962.79 |
|
Capital Work In Progress |
1825.37 |
593.27 |
|
Long term Loans and advances |
467.1 |
517.25 |
|
Other Non-Current Assets |
1246.58 |
1048 |
|
Current Assets |
|
|
|
Inventories |
7277.98 |
5529.03 |
|
Trade Receivables |
8965.78 |
6824.49 |
|
Cash and Bank Balances |
258.05 |
685.26 |
|
Other Current assets |
1089.72 |
1335.46 |
|
TOTAL ASSETS |
34646.67 |
30495.55 |
Anugraha Valve Castings Limited Profit & Loss Statement (Rs in Lakhs)
|
Particulars |
31-03-2023 |
31-03-2022 |
|
Revenue from Operations |
31651.65 |
24209.57 |
|
Other Income |
497.14 |
605.19 |
|
Total Income |
32148.79 |
24814.76 |
|
Cost of materials consumed |
11836.23 |
8591.15 |
|
Other manufacturing expenses |
12706.12 |
10019.39 |
|
Changes in stock – WIP |
-631.6 |
-785.44 |
|
Employee benefits expense |
5110.89 |
4697.35 |
|
Finance costs |
223.92 |
27.77 |
|
Depreciation and Amortisation Expenses |
923.44 |
925.76 |
|
Other expenses |
1692.77 |
1162.12 |
|
Total Expenses |
31861.77 |
24638.1 |
|
Profit Before Exceptional and Extraordinary Items & Tax |
287.02 |
176.66 |
|
Exceptional Items |
– |
360 |
|
Profit before Tax |
287.02 |
536.66 |
|
Current Tax |
61.89 |
97 |
|
Deferred Tax |
42.26 |
39.88 |
|
Profit/(loss) for the period |
182.87 |
399.78 |
|
Earnings per equity share |
|
|
|
Basic |
5.19 |
11.34 |
|
Diluted |
5.19 |
11.34 |
Anugraha Valve Castings Limited Consolidated Cash Flow Statement (Rs in Lakhs)
|
Particulars |
31-03-2023 |
31-03-2022 |
|
Cash Flow from Operating Activities |
|
|
|
Net Profit before Tax |
287.02 |
536.66 |
|
Adjustments during the year |
|
|
|
Depreciation |
923.44 |
925.76 |
|
Finance Cost |
223.92 |
27.77 |
|
(Profit)/Loss on Sale of Property, Plant and Equipment |
-32.15 |
8.94 |
|
Operating Profit before working capital changes |
1402.23 |
1499.13 |
|
(Increase) / Decrease in Inventories |
-1748.95 |
-1900.5 |
|
(Increase) / Decrease in Sundry Debtors |
-2141.3 |
-867.89 |
|
(Increase) / Decrease in Other Bank Balance |
-0.93 |
-0.11 |
|
(Increase) / Decrease in Other Current Asset |
245.74 |
-306.21 |
|
Increase / (Decrease) in Trade Payables |
1037.06 |
659.73 |
|
Increase / (Decrease) in Current Liabilities |
24.72 |
-150.31 |
|
Increase / (Decrease) in Provisions |
210.49 |
103.74 |
|
Cash flow from Operating Activities |
-969.08 |
-962.42 |
|
Tax Relating to Current Year |
67 |
94 |
|
Tax Relating to earlier years |
-5.11 |
3 |
|
Net Cash flow from Operating Activities |
-1030.97 |
-1059.42 |
|
Cash Flow from Investing Activities |
|
|
|
Purchase of Property, Plant and Equipment |
-1759.61 |
-1919.39 |
|
Proceeds from Sale of Property, Plant and Equipment |
82.92 |
57.91 |
|
(Increase) / Decrease in Long Term Loans and Advances |
50.15 |
0 |
|
(Increase) / Decrease in Non-current Assets |
-198.59 |
84.26 |
|
Net Cash flow from Investing Activities |
-1825.13 |
-1777.22 |
|
Cash Flow from Financing Activities |
|
|
|
Dividend and Distribution Tax |
– |
-70.53 |
|
Increase / (Decrease) in Bank Borrowings – Short Term |
1650.38 |
2137.86 |
|
Increase / (Decrease) in Bank Borrowings – Long Term |
1003.35 |
722.97 |
|
Interest on Bank Borrowings |
-223.92 |
-27.77 |
|
Net Cash Flow from Financing Activities |
2429.81 |
2762.53 |
|
Increase / (Decrease) in Cash and Cash equivalents |
-426.28 |
-74.11 |
|
Cash and Cash equivalents at the beginning of the year |
674.67 |
748.78 |
|
Cash and Cash equivalents at the end of the year |
248.39 |
674.67 |
Here is a summary of the Cash Flow Statement for the years 2023 and 2022:
Cash Flow from Operating Activities
Net Profit Before Tax:
The company reported a net profit before tax of ₹287.02 in 2023, down from ₹536.66 in 2022. This indicates a decline in profitability before tax expenses.
Adjustments during the Year:
Depreciation: Depreciation expense was almost unchanged at ₹923.44 in 2023 compared to ₹925.76 in 2022. Depreciation is a non-cash charge that reduces the value of fixed assets due to wear and tear over time.
Finance Cost: Finance cost increased significantly to ₹223.92 in 2023 from ₹27.77 in 2022, indicating higher interest expenses due to increased borrowing or rising interest rates.
(Profit)/Loss on Sale of Property, Plant, and Equipment: There was a profit of ₹-32.15 on the sale of property, plant, and equipment in 2023, compared to a loss of ₹8.94 in 2022. This shows the company made a gain on selling its fixed assets in 2023.
Operating Profit Before Working Capital Changes:
The operating profit before working capital changes was ₹1,402.23 in 2023, down slightly from ₹1,499.13 in 2022.
Adjustments for Working Capital Changes:
(Increase)/Decrease in Inventories: Inventories increased by ₹-1,748.95 in 2023, compared to an increase of ₹-1,900.5 in 2022. This indicates a higher investment in inventory.
(Increase)/Decrease in Sundry Debtors: Sundry debtors increased by ₹-2,141.3 in 2023, up from ₹-867.89 in 2022, indicating more sales on credit and potentially slower collections.
(Increase)/Decrease in Other Bank Balance: Other bank balances increased slightly by ₹-0.93 in 2023, compared to ₹-0.11 in 2022.
(Increase)/Decrease in Other Current Assets: Other current assets decreased by ₹245.74 in 2023, compared to an increase of ₹-306.21 in 2022.
Increase/(Decrease) in Trade Payables: Trade payables increased by ₹1,037.06 in 2023, up from ₹659.73 in 2022, indicating higher outstanding payments to suppliers.
Increase/(Decrease) in Current Liabilities: Current liabilities increased slightly by ₹24.72 in 2023, compared to a decrease of ₹-150.31 in 2022.
Increase/(Decrease) in Provisions: Provisions increased by ₹210.49 in 2023, compared to ₹103.74 in 2022, indicating more funds set aside for future obligations.
Cash Flow from Operating Activities:
The cash flow from operating activities was negative at ₹-969.08 in 2023, slightly better than ₹-962.42 in 2022. This indicates that the company’s operating activities were not generating sufficient cash flow.
Tax Relating to Current Year and Earlier Years:
Tax relating to the current year was ₹67 in 2023, down from ₹94 in 2022. There was a tax adjustment of ₹-5.11 for earlier years in 2023, compared to ₹3 in 2022.
Net Cash Flow from Operating Activities:
The net cash flow from operating activities was negative at ₹-1,030.97 in 2023, slightly better than ₹-1,059.42 in 2022.
2. Cash Flow from Investing Activities
Purchase of Property, Plant, and Equipment:
The company spent ₹-1,759.61 on purchasing property, plant, and equipment in 2023, compared to ₹-1,919.39 in 2022. This indicates a continued investment in long-term assets.
Proceeds from Sale of Property, Plant, and Equipment:
Proceeds from the sale of property, plant, and equipment were ₹82.92 in 2023, up from ₹57.91 in 2022.
(Increase)/Decrease in Long Term Loans and Advances:
There was a decrease of ₹50.15 in long-term loans and advances in 2023, compared to no change in 2022.
(Increase)/Decrease in Non-current Assets:
Non-current assets increased by ₹-198.59 in 2023, compared to a decrease of ₹84.26 in 2022.
Net Cash Flow from Investing Activities:
The net cash flow from investing activities was negative at ₹-1,825.13 in 2023, slightly worse than ₹-1,777.22 in 2022, indicating continued cash outflows for long-term investments.
3. Cash Flow from Financing Activities
Dividend and Distribution Tax:
There were no dividends or distribution taxes paid in 2023, compared to ₹-70.53 in 2022.
Increase/(Decrease) in Bank Borrowings – Short Term:
Short-term bank borrowings increased by ₹1,650.38 in 2023, compared to an increase of ₹2,137.86 in 2022.
Increase/(Decrease) in Bank Borrowings – Long Term:
Long-term bank borrowings increased by ₹1,003.35 in 2023, compared to ₹722.97 in 2022.
Interest on Bank Borrowings:
Interest on bank borrowings increased to ₹-223.92 in 2023 from ₹-27.77 in 2022.
Net Cash Flow from Financing Activities:
The net cash flow from financing activities was positive at ₹2,429.81 in 2023, down from ₹2,762.53 in 2022. This indicates that the company raised substantial funds through financing, though less than the previous year.
4. Net Increase/(Decrease) in Cash and Cash Equivalents
The net increase in cash and cash equivalents was negative at ₹-426.28 in 2023, compared to ₹-74.11 in 2022. This indicates a larger cash outflow compared to the previous year.
5. Opening and Closing Cash & Cash Equivalents
Opening Cash & Cash Equivalents:
The opening balance of cash and cash equivalents was ₹674.67 in 2023, compared to ₹748.78 in 2022.
Closing Cash & Cash Equivalents:
The closing balance of cash and cash equivalents was ₹248.39 in 2023, down from ₹674.67 in 2022.
Financial Ratios of Anugraha Valve Castings Limited
|
Particulars |
2023 |
2022 |
|
Current Ratio |
1.65 |
1.86 |
|
Debt Equity Ratio |
0.64 |
0.46 |
|
Debt Service Coverage Ratio |
2.3 |
8.87 |
|
Return on Equity Ratio |
0.01 |
0.02 |
|
Inventory Turnover Ratio |
1.85 |
1.88 |
|
Trade Receivables Turnover Ratio |
4.01 |
2.79 |
|
Trade Payables Turnover Ratio |
6.03 |
7.8 |
|
Net Capital Turnover Ratio |
4.67 |
3.32 |
|
Net Profit Ratio |
0.01 |
0.02 |
|
Return on Capital employed |
0.01 |
0.02 |
|
Return on Assets |
0.01 |
0.01 |
Here is a summary of the financial and operational metrics for Anugraha Valve Castings Limited for the year 2023 & 2022:
Current Ratio: The current ratio decreased from 1.86 in 2022 to 1.65 in 2023. Although there is a decline, the ratio remains above 1, indicating the company can still cover its short-term liabilities with its current assets.
Debt Equity Ratio: The debt equity ratio increased from 0.46 in 2022 to 0.64 in 2023. This suggests that the company has increased its leverage, indicating a higher reliance on debt relative to its equity, which could increase financial risk.
Debt Service Coverage Ratio (DSCR): The DSCR decreased significantly from 8.87 in 2022 to 2.3 in 2023. This indicates that the company’s ability to service its debt has weakened, which could be a concern if the ratio continues to decline.
Return on Equity (ROE): The return on equity ratio decreased from 0.02 in 2022 to 0.01 in 2023. This decline indicates that the company is generating lower returns on shareholders’ equity, reflecting reduced profitability.
Inventory Turnover Ratio: The inventory turnover ratio slightly decreased from 1.88 in 2022 to 1.85 in 2023. This suggests that the company is taking slightly longer to sell its inventory, indicating a marginal decrease in efficiency in managing inventory.
Trade Receivables Turnover Ratio: The trade receivables turnover ratio improved from 2.79 in 2022 to 4.01 in 2023. This indicates that the company is collecting its receivables faster, improving cash flow management.
Trade Payables Turnover Ratio: The trade payables turnover ratio decreased from 7.8 in 2022 to 6.03 in 2023. This suggests that the company is taking longer to pay its suppliers, which might be a strategy to manage cash flow more effectively.
Net Capital Turnover Ratio: The net capital turnover ratio improved from 3.32 in 2022 to 4.67 in 2023. This indicates better utilization of net capital to generate revenue, reflecting improved operational efficiency.
Net Profit Ratio: The net profit ratio decreased from 0.02 in 2022 to 0.01 in 2023. This decline indicates reduced profitability and that the company is retaining less profit from its total revenue.
Return on Capital Employed (ROCE): The ROCE decreased from 0.02 in 2022 to 0.01 in 2023. This suggests a decline in the efficiency with which the company is using its capital to generate profits.
Return on Assets (ROA): The return on assets remained stable at 0.01 in both 2022 and 2023. This indicates consistent, albeit low, profitability relative to the company’s total assets.
