Andhra Sugars Ltd

Andhra Sugars Ltd maintains a strong liquidity position with a current ratio of 4.02, indicating the ability to cover short-term obligations fourfold. However, the company reports negative net cash after subtracting total debt, signaling potential liquidity risk despite the high current ratio. Free cash flow is negative at -25.86 million INR, driven by capital expenditures of -957.13 million INR, which suggests ongoing investment in operations. Profitability metrics show a return on equity (ROE) of 1.63% and return on assets (ROA) of 1.23%, both below the typical thresholds for high-performing chemical firms. The company’s operating income of 22.51 million INR is significantly lower than its gross profit of 831.97 million INR, indicating high operating expenses or inefficiencies in cost management. The company operates across four segments: Sugars, Chlor Alkali, Power Generation, and Industrial Chemicals. Revenue concentration data is not disclosed, but the presence of multiple segments suggests diversification. The Sugar segment is likely the largest contributor, given the company’s primary product offering and historical focus. Revenue for the latest period is 20.20 billion INR, with a gross profit margin of 41.03%. The outlook for the current fiscal year shows a modest growth trajectory, though no specific numeric delta is provided. The company’s capital expenditures suggest a focus on maintaining or expanding production capacity, particularly in the chemical and power generation segments. Risk factors include medium liquidity risk due to negative net cash and a low dilution risk, as shares outstanding remain unchanged between basic and diluted measures. The company’s debt-to-equity ratio is 0.01, indicating minimal leverage and low financial risk. Recent filings and transcripts are not provided in the input data, so no specific events can be cited. However, the company’s exposure to the chemical and energy sectors may be influenced by global commodity prices and regulatory changes in India.