Usha Shriram Financials, Balance Sheet & Revenue

Usha Shriram Private Limited Balance Sheet (Rs in Lakhs)

Usha Shriram Private Limited Profit & Loss Statement (Rs in Lakhs)

Usha Shriram Private Limited Cash Flow Statement (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Operating Activities:

Operating Profit Before Working Capital Changes: In 2024, the operating profit before working capital changes significantly increased to 136.65 from 42.15 in 2023. This improvement primarily reflects higher profitability before adjustments related to changes in working capital.

Working Capital Adjustments: There were substantial changes in various components of working capital:

Trade Receivables: There was a significant increase in trade receivables, leading to a negative impact on cash flow (-114.67 in 2024 compared to -9.43 in 2023), indicating slower collection of sales proceeds.

Inventories: There was a decrease in inventories, resulting in a positive impact on cash flow (-2.99 in 2024 compared to an increase of 13.87 in 2023), suggesting efficient inventory management.

Other Current Assets: A substantial increase in other current assets (-926.10 in 2024) affected cash flow negatively, possibly due to investments or acquisitions.

Trade Payables: An increase in trade payables (-160.52 in 2024 compared to -22.64 in 2023) indicates extended payment terms with suppliers, benefiting cash flow.

Short-Term Provisions: There was an increase in short-term provisions, contributing positively to cash flow (32.31 in 2024).

Net Cash Inflow from Operating Activities: Despite the increase in operating profit, the net cash inflow from operating activities was negative (-1,078.08 in 2024), primarily due to the substantial negative impact from changes in working capital items. In contrast, in 2023, it was also negative but to a lesser extent (-195.65).

Investing Activities:

Additions to Fixed Assets: Investments in fixed assets resulted in a cash outflow (-37.43 in 2024).

Interest Income: Income from investments partially offset the outflow (9.31 in 2024).

Net Cash Outflow: Overall, there was a net cash outflow from investing activities (-28.12 in 2024).

Financing Activities:

Equity Issuance: Significant cash inflow was generated from the issuance of equity shares and premiums (2,300.47 in 2024), indicating capital raised from investors.

Loans and Advances: There was a notable cash outflow related to loans to directors (-554.28 in 2024) and loans & advances to related parties (-554.28 in 2024), indicating financial support extended.

Net Cash Inflow (Outflow): The overall cash inflow from financing activities was positive (1,837.66 in 2024), which includes proceeds from equity issuance and loans received, net of financial costs.

Net Increase (Decrease) in Cash and Cash Equivalents:

Beginning and Ending Cash Balance: The cash and cash equivalents increased significantly during the year (817.55 at the end of 2024 compared to 86.09 at the beginning), driven by the net increase in cash flow from operating, investing, and financing activities.

Comparison with Previous Year: The net increase in cash and cash equivalents in 2024 was 731.46, much higher than the increase of 56.88 in 2023.

In summary, despite a substantial increase in operating profit before working capital changes, the company experienced a significant negative impact on cash flow from changes in working capital items in 2024. However, strong inflows from financing activities, particularly equity issuance, contributed to a substantial increase in cash and cash equivalents by the end of the year. This indicates strategic financing activities to support growth and operational needs despite challenges in working capital management during the period.

Financial Ratios of Usha Shriram Private Limited

Here is a summary of the financial and operational metrics for Usha Shriram Private Limited for the year 2024 & 2023:

Current Ratio:

2024: 9.52

2023: 0.70

Insight: The current ratio measures the company 's ability to cover short-term liabilities with its current assets. A current ratio of 9.52 in 2024 indicates a significant improvement from 0.70 in 2023, suggesting a much stronger liquidity position. This could be due to increased current assets relative to current liabilities, which is generally positive for financial stability.

Debt-Equity Ratio:

2024: 0.39

2023: -13.48

Insight: A debt-equity ratio of 0.39 in 2024 indicates that the company has significantly reduced its reliance on debt financing compared to equity. The negative ratio in 2023 suggests a complex financial situation, possibly due to unusual accounting treatments or financial restructuring. The improvement to a positive and lower ratio in 2024 suggests a more stable and sustainable capital structure.

Debt Service Coverage Ratio:

2024: 0.70

2023: 0.79

Insight: The debt service coverage ratio (DSCR) of 0.70 in 2024 indicates that the company 's operating income is just sufficient to cover its debt obligations. While slightly lower than 0.79 in 2023, the ratio still indicates moderate ability to service debt from operating cash flows.

Return on Equity (ROE) Ratio:

2024: 0.05%

2023: -0.49%

Insight: ROE, though positive at 0.05% in 2024, remains very low, indicating minimal returns generated relative to shareholders ' equity. The improvement from a negative -0.49% in 2023 is positive, but the ratio suggests that profitability relative to shareholders ' equity remains a challenge.

Inventory Turnover Ratio:

2024: 84.84

2023: 49.87

Insight: The inventory turnover ratio increased significantly to 84.84 in 2024 from 49.87 in 2023. This indicates that inventory is being sold and replaced at a much faster rate in 2024, which could imply efficient inventory management and potentially improved cash flow from operations.

Trade Receivables Turnover Ratio:

2024: 5.83

2023: 8.32

Insight: The trade receivables turnover ratio decreased from 8.32 in 2023 to 5.83 in 2024. A lower ratio suggests that the company took longer to collect payments from customers in 2024 compared to 2023, which could impact cash flow and liquidity.

Trade Payables Turnover Ratio:

2024: 3.03

2023: 1.70

Insight: An increase in the trade payables turnover ratio from 1.70 in 2023 to 3.03 in 2024 indicates that the company took longer to pay its suppliers in 2024. While this could imply better cash flow management, it could also indicate strained supplier relationships.

Net Capital Turnover Ratio:

2024: 0.61

2023: -10.15

Insight: The net capital turnover ratio turned positive at 0.61 in 2024, indicating that the company generated revenue from its total capital employed. This is a significant improvement from a negative -10.15 in 2023, suggesting better utilization of capital to generate sales.

Net Profit Ratio:

2024: 0.10%

2023: 0.03%

Insight: The net profit ratio improved slightly to 0.10% in 2024 from 0.03% in 2023. While still very low, this indicates a slight increase in profitability relative to sales. Continued focus on improving operational efficiency and controlling costs will be important to further enhance profitability.

Return on Capital Employed (ROCE):

2024: 0.04%

2023: 0.06%

Insight: ROCE decreased slightly to 0.04% in 2024 from 0.06% in 2023. This ratio measures the efficiency of capital utilization in generating profits. The decrease suggests that while there is revenue from capital employed, the profitability relative to the capital invested declined marginally.