Badra Estates Annual Reports, Balance Sheet and Financials

Badra Estates & industries Limited Consolidated Balance Sheet (Rs in Thousands)

Particulars	31-03-2025	31-03-2024
Shareholders Fund
Share Capital	3,515	3,515
Other Equity	2,30,925	2,11,237
Non-Current Liabilities
Long term borrowings	1,243	-
Current Liabilities
Short term borrowings	75,874	59,057
Trade payables	10,220	11,878
Advance From Customer	7,186
Other Financial Liabilities	7,831	6,961
Total Equity and Liabilities	3,36,794	2,92,648
Non-Current Assets
Property plant and equipment	1,20,090	1,04,678
Investment	12,306	12,306
Other financial assets	6,487	6,327
Current Assets
Inventories	1,76,258	1,40,586
Trade Receivable	688	2,789
Cash and cash equivalents	8,861	12,248
Short-term loans and advances	12,124	13,714
Total Aseets	3,36,794	2,92,648

 

Badra Estates & industries Limited Consolidated Profit & Loss Statement (Rs in Thousands)

Particulars	31-03-2025	31-03-2024
Income
Revenue from operations	2,41,959	2,20,531
Other Income	6,659	5,190
Total Revenue	2,48,618	2,25,721
Expenses
Cost of Materials Consumed	17,783	15,825
Purchase of stock in trade	68,149	55,472
Changes in inventories of finished goods	-35,980	10,656
Employee Benefits Expenses	1,29,789	1,09,018
Other Expenses	50,945	40,421
Total Expenses	2,30,686	2,31,392
EBIT	17,932	-5,671
Depreciation and amortisation expenses	5,652	5,393
Finance costs	4,792	7,174
Loss Before Tax	7,488	-18,238
Current Tax	-	2,600
Deferred Tax	-19	-67
Profit / (Loss) for the period	7,507	-20,771
Earnings per Equity Share (Face value of Rs. 10 each)
Basic & diluted	0.02	-0.05

 Badra Estates & industries Limited Consolidated Cash Flow Statement (Rs in Thousands)

Particulars	31-03-2025	31-03-2024
Cash Flow from Opearting Activities
Profit / Loss as per Profit and loss account	7,488	-18,238
Add: interest paid	4,792	7,174
Depreciation	5,652	5,393
Less:
Dividend received	-1,979	-1,850
Interest received	-486	-703
Sale of timber	-9,480	-11,770
Miscellaneous Receipts	-1	-27
Increase / decrease in Investment	-	78,209
Operating Profit Before Working Capital Charges	5,986	58,188
Working capital changes;
Increase/(Decrease) in Trade payables	-1,658	-1,059
Increase/(Decrease) in Inventories	-35,672	9,150
Increase/(Decrease) in Debtors	2,121	759
Increase/(Decrease) in short-term loans and advances	1,589	-5,398
Increase/(Decrease) in long term advances	-160	-195
Cash generation from operations	-27794	61,445
Excess/short provision	19	67
Taxes paid	-	-2,600
Cash used for Operating Activates	-27,775	58,912
Cash Flow from Investing Activities
Acquisition of fixed assets	-21,064	-9,620
Interest received	486	703
Dividend received	1,979	1,850
Sale of timber	9,480	11,770
Miscellaneous Receipts	1	27
Cash used for Investing Activities	3,064	4,730
Cash Flow from Financing Activities
Repayment/ proceeds long-term borrowings	1,243	-1,921
Repayment/ proceeds short-term borrowings	16,817	-51,753
Repayment/ proceeds from other unsecured loans	8,055	-117
Interest paid	-4,792	-7,174
Net Cash Flow from Financing Activities	21,323	-60,965
Net Increase in Cash and Cash Equivalents
Cash & cash equivalent opening balance	-3,388	2,677
Cash & cash equivalent closing balance	12,248	9,571
Cash and cash equivalents (year-end)	8,860	12,248
Cash in hand	3,388	-2,677
Balance with Banks	100	106
Total	8,760	12,142

 

Here is a summary of the Cash Flow Statement for the years 2025 and 2024:

1. Operating Activities

The Company reported a net cash outflow from operating activities of ₹27,775 (‘000) in FY 2025, as compared to a strong inflow of ₹58,912 (‘000) in FY 2024.

The Company recorded a profit of ₹7,488 (‘000) during FY 2025, against a loss of ₹18,238 (‘000) in the previous year. However, after adjusting for non-operating incomes such as sale of timber (₹9,480 (‘000)), dividend income (₹1,979 (‘000)), and interest income (₹486 (‘000)), the operating profit remained moderate at ₹5,986 (‘000).

Working capital movements had a significant adverse impact on cash flows:

• Substantial increase in inventories (₹35,672 (‘000)) led to major cash outflow.

• Decrease in trade payables (₹1,658 (‘000)) further reduced liquidity.

• Partial offset came from reduction in debtors (₹2,121 (‘000)) and increase in short-term loans and advances (₹1,589 (‘000)).

As a result, cash generated from operations turned negative at ₹27,794 (‘000).

Overall Interpretation:
Despite reporting accounting profits, the Company experienced negative operating cash flows, primarily due to heavy inventory buildup and unfavorable working capital changes, indicating inefficiencies in cash conversion and operational management.

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2. Investing Activities

The Company generated a net cash inflow of ₹3,064 (‘000) from investing activities in FY 2025, compared to ₹4,730 (‘000) in FY 2024.

Key components include:

• Capital expenditure of ₹21,064 (‘000) on fixed assets.

• Inflows from sale of timber (₹9,480 (‘000)), dividend income (₹1,979 (‘000)), and interest income (₹486 (‘000)).

Overall Interpretation:
Investing activities reflect a balanced approach, with continued capital expenditure alongside realization of income from timber sales and investments. However, the relatively modest net inflow suggests limited surplus generation after reinvestment.

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3. Financing Activities

The Company reported a net cash inflow of ₹21,323 (‘000) from financing activities, in contrast to a net outflow of ₹60,965 (‘000) in FY 2024.

This was driven by:

• Increase in short-term borrowings (₹16,817 (‘000)) and other unsecured loans (₹8,055 (‘000)).

• Marginal increase in long-term borrowings (₹1,243 (‘000)).

• Interest payments of ₹4,792 (‘000).

Overall Interpretation:
The positive financing cash flow indicates increased reliance on external borrowings, likely undertaken to support operational requirements and offset negative operating cash flows.

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4. Net Cash Movement & Liquidity Position

• The Company recorded an overall increase in cash and cash equivalents during FY 2025.

• Closing cash and cash equivalents stood at ₹12,248 (‘000), compared to ₹9,571 (‘000) in FY 2024.

Overall Interpretation:
Despite negative operating cash flows, the Company maintained a positive liquidity position, primarily supported by financing inflows. However, dependence on borrowings for liquidity may pose sustainability concerns if operational cash flows do not improve.

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Conclusion

Badra Estates & Industries Limited has shown improvement in profitability during FY 2025, but this has not translated into operating cash flows due to significant working capital pressures, particularly inventory buildup. The Company’s liquidity has been supported by increased borrowings, reflecting a reliance on external funding. Going forward, efficient inventory management and stronger operational cash generation will be critical for improving financial stability and reducing dependence on financing activities. 

Financial Ratios of Badra Estates & industries Limited

Particulars	2024-25	2023-24
Current Ratio	1.96	2.17
Debt Equity ratio	0.33	0.28
Debt service coverage ratio	2.56	-1.54
Return on equity ratio (%)	0.03	-0.11
Inventory turnover ratio	1.57	1.52
Trade Payables Turnover ratio	1.60	5.75
Net capital turnover ratio	2.57	3.35
Net profit ratio (%)	0.030	-0.08
Return on capital employed	0.027	-0.67

 Here is a summary of the financial and operational metrics for Badra Estates & industries Limited for the year 2025 and 2024:

Financial & Operational Ratio Analysis

1. Liquidity Ratio

Current Ratio: 1.96 (FY 2025) vs 2.17 (FY 2024)

The current ratio has marginally declined but remains close to 2, indicating that the Company continues to maintain a comfortable short-term liquidity position. The slight moderation suggests relatively higher current liabilities or slower current asset growth, but overall liquidity remains adequate to meet short-term obligations.

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2. Leverage Ratios

Debt-Equity Ratio: 0.33 vs 0.28

The increase in the debt-equity ratio reflects a higher reliance on borrowings during the year, consistent with the cash flow trend where financing inflows supported operations. However, the ratio remains at a moderate level, indicating a still conservative capital structure.

Debt Service Coverage Ratio (DSCR): 2.56 vs (1.54)

The DSCR has improved significantly from a negative level to a healthy positive ratio, indicating that the Company is now adequately generating earnings to service its debt obligations, supported by improved profitability.

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3. Profitability Ratios

Return on Equity (ROE): 3% vs (11%)

The Company has turned profitable, resulting in a positive ROE compared to a negative return in the previous year. However, the return remains relatively low, indicating limited efficiency in generating returns for shareholders.

Net Profit Ratio: 3.0% vs (8.0%)

The improvement from negative to positive margins reflects recovery in operational performance. However, margins remain thin, suggesting limited pricing power or high operating costs.

Return on Capital Employed (ROCE): 2.7% vs (67%) negative

The ROCE has turned positive, indicating better utilization of capital employed. Nevertheless, the low percentage highlights that overall capital efficiency remains subdued.

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4. Efficiency Ratios

Inventory Turnover Ratio: 1.57 vs 1.52

A slight improvement in inventory turnover indicates better inventory management and movement of goods, although the ratio still suggests relatively slow inventory cycles, which aligns with the high inventory buildup observed in cash flows.

Trade Payables Turnover Ratio: 1.60 vs 5.75

A sharp decline in this ratio indicates that the Company is taking longer to pay its suppliers, or that payables have reduced significantly. This may reflect strained working capital conditions or changes in credit terms.

Net Capital Turnover Ratio: 2.57 vs 3.35

The decline suggests reduced efficiency in utilizing working capital to generate revenue, possibly due to higher inventory levels and lower operational throughput.

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Overall Interpretation

Badra Estates & Industries Limited has demonstrated a notable turnaround in profitability, with key ratios such as ROE, ROCE, and net profit margin shifting from negative to positive territory. The Company also shows improved debt servicing capability, reflecting better financial stability.

However, several concerns persist:

• Decline in working capital efficiency, as seen in net capital turnover and payables turnover.

• Low profitability margins, indicating limited operational efficiency.

• Increased reliance on debt, though still within manageable levels.

Conclusion:
While the Company is on a recovery path, sustained improvement will depend on enhancing operational efficiency, improving margins, and optimizing working capital management to support long-term financial stability.