Lloyds Metals and Energy Ltd

Lloyds Metals and Energy Ltd maintains a capital structure characterized by significant leverage, with long-term debt of INR 207.16 billion against total equity of INR 138.71 billion, resulting in a debt-to-equity ratio of 1.49. The company’s liquidity position is constrained, evidenced by a current ratio of 0.81 and cash and equivalents of INR 21.18 billion, which is insufficient to cover total liabilities of INR 277.79 billion. The negative net cash position, highlighted by the key flag that net cash is negative after subtracting total debt, underscores the reliance on external financing to sustain operations.

Profitability metrics indicate strong returns on capital employed, with a return on equity of 26.54% and a return on assets of 8.84%. The company generated a gross profit of INR 152.94 billion on revenue of INR 171.13 billion, yielding a gross margin of approximately 89.4%, which suggests a trading or low-cost-of-goods-sold business model typical of certain metal trading entities. Operating income stood at INR 55.98 billion, leading to a net income of INR 36.81 billion, demonstrating effective cost control and operational efficiency despite the high leverage.