Overview

The fiscal year 2023-24 has been a transformative period for the Electrical and Electronic Waste Recycling Industry in India, marking its inaugural phase. This was highlighted by the Prime Minister’s emphasis on e-waste recycling in his Mann Ki Baat address on January 29, 2023. Eco Recycling Ltd received national recognition for its innovative mobile application, BookMyJunk, which enhances recycling efficiency. The new E-waste Management Rules 2023, effective April 1, 2023, introduced an online portal for issuing Extended Producer Responsibility (EPR) Certificates, streamlining the process and addressing previous technical issues.

In response to increased demand for EPR Certificates and forthcoming Environmental Compensation (EC) policies, Eco Recycling Ltd has expanded its recycling capacity by 18,000 MTPA at our Vasai facility with a Rs. 50 Crore investment, fully funded through internal accruals. Our commitment to leading the industry with advanced technologies and maintaining a debt-free status positions us for significant growth, while we continue to advocate for supportive policies and incentives to drive further advancements in e-waste management.

Balance Sheet Overview: Assets

Eco Recycling Limited has experienced a substantial increase in its current assets, which rose to ₹3.04 lakh crore as of March 31, 2024, from ₹1.45 lakh crore in the previous year. This remarkable growth is primarily driven by a significant boost in investments, which more than doubled to ₹1.16 lakh crore. Inventories also saw a notable increase, reaching ₹62.82 thousand crore, indicating a buildup in stock levels. Trade Receivables and Cash and Cash Equivalents both experienced healthy growth, reflecting stronger operational efficiency and liquidity. However, the most striking change is observed in Other Financial Assets, which surged to ₹66.08 thousand crore, a clear sign of the company’s strategic financial positioning. These enhancements in current assets underscore Eco Recycling Limited's robust financial health and readiness for future growth.

Balance Sheet Overview: Liabilities and Equity of Eco Recycling Ltd

Eco Recycling Limited’s financial position has seen significant changes in equity and liabilities as of March 31, 2024. The total equity has decreased to ₹4.71 lakh crore, down from ₹6.75 lakh crore in the previous year, primarily due to a reduction in other equity to ₹2.65 lakh crore. Non-controlling interests have also decreased, reflecting a consolidation of ownership and control.

On the liabilities side, non-current liabilities have more than doubled to ₹71.65 thousand crore, driven largely by a substantial increase in lease liabilities, which jumped to ₹45.36 thousand crore. This indicates a strategic decision to take on long-term lease obligations. Current liabilities, however, have reduced significantly to ₹59.28 thousand crore, reflecting better short-term financial management and reduced trade payables. Overall, these shifts point to a strategic restructuring in the company’s financial framework, focusing on long-term stability while optimizing short-term

Income Overview for Eco Recycling Ltd: FY 2023-24 Financial Highlights

Eco Recycling Limited has reported a significant increase in its total income, which surged to ₹3.53 lakh crore for the year ending March 31, 2024, compared to ₹2.15 lakh crore in the previous year. This growth is predominantly driven by a substantial rise in revenue from operations, which grew by over ₹1.02 lakh crore, reaching ₹2.80 lakh crore. The increase in other income, which nearly doubled to ₹72.64 thousand crore, also contributed to the overall revenue boost. This strong performance indicates the company’s ability to enhance its operational efficiency and capitalize on additional income streams, reflecting a robust financial year.

Comprehensive Expense Report for Eco Recycling Ltd: FY 2023-24

Eco Recycling Limited’s total expenses for the year ending March 31, 2024, stood at ₹1.31 lakh crore, reflecting a slight increase compared to ₹1.49 lakh crore in the previous year. The cost of materials consumed rose to ₹46.10 thousand crore, indicating higher production activity. Purchases of stock-in-trade also saw a notable rise to ₹33.31 thousand crore, reflecting an increase in direct procurement.

However, the most significant change occurred in the inventory adjustments, where a negative adjustment of ₹21.70 thousand crore was recorded, indicating an increase in inventory levels. Employee benefits and finance costs have also increased, with the latter seeing a sharp rise to ₹6.97 thousand crore, likely due to higher borrowing or interest costs. Depreciation and amortization expenses decreased slightly, and other expenses reduced significantly to ₹25.56 thousand crore, showing improved cost management.

Overall, despite the rise in some expense categories, the total expenses remain well-managed, allowing the company to maintain a strong bottom line amidst growing operations.

Profit and Loss Statement Analysis for Eco Recycling Ltd

Eco Recycling Limited has reported a significant improvement in profitability for the year ending March 31, 2024. The profit before tax surged to ₹2.22 lakh crore, up from ₹66.04 thousand crore the previous year, reflecting a robust performance despite higher operational costs.

Tax expenses also increased, with current tax rising to ₹38.70 thousand crore, indicating higher taxable income. However, deferred tax has reversed to a positive figure of ₹1.11 thousand crore from a negative adjustment of ₹7.95 thousand crore, which contributed to the overall profit.

The net profit for the year is ₹1.82 lakh crore, a substantial increase from ₹61.94 thousand crore in the previous year. This impressive rise underscores the company's successful expansion and improved financial performance, demonstrating effective management and operational efficiency.

Cash Flow Analysis: Operating, Investing, and Financing Activities for FY 2023-24

Eco Recycling Limited’s cash flow statement reveals significant changes in their financial operations for the year ending March 31, 2024. The company saw a net increase in cash and cash equivalents to ₹11.57 thousand crore, down from ₹15.16 thousand crore the previous year.

Operating activities generated ₹1.63 lakh crore in cash, a sharp improvement from a negative cash flow of ₹25.76 thousand crore in the previous year. This positive shift is due to effective management of working capital and a significant increase in operating profit. However, cash flows from investing activities saw a major outflow of ₹2.42 lakh crore, driven by higher investments and purchases of fixed assets, compared to a positive cash flow of ₹32.94 thousand crore the previous year. Financing activities also saw a net outflow, reflecting repayment of borrowings.

AI View on Eco Recycling Ltd’s Financial Performance

Eco Recycling Ltd has showcased impressive financial health for FY 2023-24, reflecting strong revenue growth and strategic investments. With revenue reaching ₹2,80,146 crore, the company has significantly improved its financial performance compared to the previous year. Their expansion of recycling capacity at the Vasai facility, backed by a ₹50 crore investment, illustrates a robust commitment to scaling operations and enhancing environmental sustainability.

The company’s strategic focus on incorporating advanced technologies, including AI-driven insights, positions it well for future growth. By addressing emerging regulatory requirements and leveraging technological advancements, Eco Recycling Ltd is poised to lead the e-waste recycling industry. Their prudent financial management and debt-free status further reinforce their stability and readiness to capitalize on upcoming market opportunities, ensuring continued success and industry leadership.