Arohan Financial Annual Reports, Balance Sheet and Financials

Balance Sheet of Arohan Financial Services Limited (In Rs. Crore)

Profit & Loss Statement of Arohan Financial Services Limited (In Rs. Lakhs)

Arohan Financial Services Cash Flow Statement for the last three years (In Rs. Crore)

Summary of Arohan Financial Services Limited Cash Flow Statement:

1. Cash Flow from Operating Activities:

   - Net cash from operating activities was -Rs. 923.18 crore in the year ending March 31, 2023, Rs. 224.61 crore in the year ending March 31, 2022, and Rs. 113.73 crore in the year ending March 31, 2021.

   - Net profit before tax and extraordinary items was Rs. 89.95 crore in the year ending March 31, 2023, Rs. 82.94 crore in the year ending March 31, 2022, and -Rs. 217.79 crore in the year ending March 31, 2021.

   - Depreciation expenses and net interest expenses were incurred and adjusted for in each year.

   - Profit/loss on sales of investments, provision and write-off adjustments, and other adjustments were made.

   - Cash generated from operations before working capital changes was -Rs. 1196.21 crore in the year ending March 31, 2023, Rs. 63.98 crore in the year ending March 31, 2022, and -Rs. 113.42 crore in the year ending March 31, 2021.

   - Working capital changes, including trade and other receivables, loans and advances, and other items, contributed to the cash flow from operating activities.

2. Cash Flow from Investing Activities:

   - Net cash used in investing activities was -Rs. 106.82 crore in the year ending March 31, 2023, -Rs. 162.95 crore in the year ending March 31, 2022, and -Rs. 2.02 crore in the year ending March 31, 2021.

   - Activities include the purchase and sale of fixed assets, purchase of investments, and other items.

3. Cash Flow from Financing Activities:

   - Net cash used in financing activities was Rs. 632.93 crore in the year ending March 31, 2023, -Rs. 266.05 crore in the year ending March 31, 2022, and Rs. 357.73 crore in the year ending March 31, 2021.

   - Activities include proceeds from issuing shares (including share premium), debentures, and other long-term borrowings, as well as redemption of debentures, repayments of long-term borrowings and financial liabilities, and other items.

4. Net Increase/ (Decrease) in Cash and Cash Equivalent:

   - The net increase/(decrease) in cash and cash equivalents was -Rs. 397.07 crore in the year ending March 31, 2023, -Rs. 204.39 crore in the year ending March 31, 2022, and Rs. 469.43 crore in the year ending March 31, 2021.

   - Cash and cash equivalents at the end of the year were Rs. 556.56 crore in the year ending March 31, 2023, Rs. 953.63 crore in the year ending March 31, 2022, and Rs. 1158.02 crore in the year ending March 31, 2021.

Funds Flow Statement of Arohan Financial Services Limited (In Rs. Crore)

Key Financial Ratios of Arohan Financial Services

Summary of Key Financial Ratios of Arohan Financial Services:

1. Debt-Equity Ratio:

The debt-equity ratio measures the proportion of debt and equity used to finance the company 's assets. Over the three years, the debt-equity ratio has been gradually decreasing, indicating a reduction in the company 's reliance on debt financing. In 2023, the ratio stands at 3.67, down from 4.31 in 2022 and 4.48 in 2021.

2. Long-Term Debt-Equity Ratio:

This ratio focuses on long-term debt in relation to equity. Similar to the debt-equity ratio, the long-term debt-equity ratio has been declining over the years. This suggests that the company has been reducing its long-term debt and moving towards a more equity-based financing structure.

3. Current Ratio:

The current ratio measures the company 's ability to meet its short-term obligations. Arohan Financial Services has shown a significant decrease in its current ratio from 34.21 in 2021 to 7.7 in 2022 and 5.21 in 2023. While the company still has ample current assets to cover its short-term liabilities, the declining trend may warrant further examination of its liquidity position.

4. Turnover Ratios:

- Fixed Assets Turnover Ratio: The fixed assets turnover ratio indicates how efficiently the company generates revenue from its fixed assets. Arohan Financial Services has maintained a relatively stable ratio, with a slight increase from 29.65 in 2022 to 31.44 in 2023, indicating consistent revenue generation from its fixed asset base.

- Debtors Turnover Ratio: The debtors turnover ratio reflects the efficiency of the company in collecting cash from debtors. The significant fluctuations in this ratio, from 330.19 in 2021 to 584.4 in 2022 and 125.47 in 2023, suggest varying credit management and collection efficiency over the years.

- Total Asset Turnover Ratio: The total asset turnover ratio measures the company 's ability to generate revenue from its total assets. Arohan Financial Services has maintained a relatively stable ratio, indicating consistent revenue generation relative to its asset base.

5. Interest Cover Ratio:

The interest cover ratio evaluates the company 's ability to cover its interest expenses with its operating profit. Arohan Financial Services has maintained a relatively stable interest cover ratio, indicating that the company is generating sufficient operating profit to cover its interest costs.

6. Profitability Ratios:

The profitability ratios for Arohan Financial Services show a positive trend, indicating improving profitability over the years.

- PBIDTM (%): The PBIDTM (Profit Before Interest, Depreciation, and Tax Margin) has increased from 25.34% in 2021 to 53.3% in 2022 and further to 51.64% in 2023, indicating substantial operational profitability.

- PBITM (%): The PBITM (Profit Before Interest and Tax Margin) has also shown improvement, from 24.68% in 2021 to 52.66% in 2022 and 51.2% in 2023.

- PBDTM (%): The PBDTM (Profit Before Depreciation and Tax Margin) has improved from -20.83% in 2021 to 9.65% in 2022 and further to 8.68% in 2023, indicating better profitability after considering depreciation.

7. Return Ratios:

Both the Return on Capital Employed (ROCE) and the Return on Net Worth (RONW) have shown an upward trend, indicating improving returns for capital and shareholders over the years.

- ROCE (%): The ROCE has increased from 4.75% in 2021 to 9.21% in 2022 and further to 10.14% in 2023, indicating better efficiency in generating profits from capital investments.

- RONW (%): The RONW has also shown improvement, from -16.65% in 2021 to 6.15% in 2022 and further to 6.06% in 2023.

Overall, the financial ratios of Arohan Financial Services demonstrate improving profitability and operational efficiency over the years. The company 's efforts to reduce debt and improve liquidity are also evident from the declining debt-equity and long-term debt-equity ratios. However, the fluctuations in certain ratios, such as debtors turnover ratio and current ratio, warrant careful attention. Investors and stakeholders should carefully analyze these ratios to make informed decisions about their involvement with the company.

Arohan Financial Services Dividend History

Performance of Arohan Financial Services

• Revenue from operations of the company increased by 18.60% from Rs. 901.73 Crores in FY 2022 to Rs. 1069.45 Crores in FY 2023.

• Total borrowings of the company increased from Rs. 4127.26 Crores in FY 2022 to Rs. 4533.49 Crores in FY 2023.
• Profit after tax of the company increased by 16.02% from Rs. 60.95 Crores in FY 2022 to Rs. 70.72 Crores in FY 2023.
• The Capital Adequacy Ratio was 28.74% in FY 2023.
• The debt to Equity ratio of the company as of 31st March 2023 was 3.67.
• Arohan Financial Services Limited has not given dividends for the past ten years.
• The book value of the company as of 31st March 2023 was Rs. 100.22.