Bateli Tea Annual Reports, Balance Sheet and Financials

Bateli Tea Company Limited Standalone Balance Sheet (Rs in Lakhs)

Bateli Tea Company Limited Standalone Profit & Loss Statement (Rs in Lakhs)

Bateli Tea Company Limited Standalone Cash Flow Statement (Rs in Lakhs)

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

In FY25, Bateli Tea Company Limited reported higher profit before tax of ₹949.99 lakhs compared to ₹847.99 lakhs in FY24, reflecting improved accounting performance. Depreciation and finance costs increased due to higher capital investment and borrowings, while biological asset valuation showed a loss adjustment compared to last year’s gain. Consequently, operating profit before working capital changes rose significantly to ₹2,255.50 lakhs from ₹1,903.46 lakhs.

However, working capital movements absorbed substantial cash. Although inventories declined slightly, trade receivables and financial assets increased sharply, leading to major cash outflows, partially offset by higher trade payables and other liabilities. As a result, cash generated from operations stood at ₹592.58 lakhs, and after tax payments, net operating cash flow improved to ₹476.31 lakhs (FY24: ₹260.85 lakhs). Overall, while core operations are generating stronger cash flows, increased funds locked in receivables and investments are limiting liquidity.

Cash Flow from Investing Activities

Investing activities remained significantly negative during FY25, with capital expenditure increasing to ₹2,704.25 lakhs from ₹2,430.55 lakhs in the previous year, indicating continued expansion and asset development. Interest income improved to ₹102.76 lakhs, and changes in financial assets resulted in a small inflow; however, these were insufficient to offset the large capital outlay. Consequently, net cash used in investing activities stood at ₹2,501.04 lakhs, broadly in line with last year’s ₹2,465.34 lakhs. This reflects that the company is in an investment-intensive phase, and sustained high capital expenditure will require strong operating cash flows or continued reliance on debt funding.

Cash Flow from Financing Activities

During FY25, financing activities generated strong cash inflows, primarily driven by an increase in long-term borrowings of ₹2,344.37 lakhs and short-term borrowings of ₹330.99 lakhs, along with additional inflows from loan movements. However, finance costs paid rose significantly to ₹812.72 lakhs, reflecting the higher debt burden. As a result, net cash from financing activities stood at ₹1,939.04 lakhs, slightly lower than ₹2,217.87 lakhs in the previous year but still substantial. This indicates that the company is largely funding its capital expenditure through debt, and the rising finance costs confirm increasing leverage, consistent with the higher debt–equity ratio.

Net Movement in Cash

Despite generating positive operating cash flows, substantial capital expenditure and significant deployment of funds into working capital resulted in a net cash outflow of ₹85.69 lakhs in FY25, compared to a net increase of ₹13.38 lakhs in the previous year. Consequently, the closing cash balance declined sharply to ₹48.16 lakhs from ₹133.85 lakhs. This trend indicates tightening liquidity even as the company continues its expansion efforts.

Financial ratios of Bateli Tea Company Limited

Summary of the financial ratios for the years 2025 and 2024:

Current Ratio

The current ratio improved to 1.48 in FY25 from 1.33 in FY24. This indicates better short-term liquidity and an improved ability to meet current obligations. A ratio above 1 suggests the company has sufficient current assets to cover short-term liabilities. The improvement reflects stronger working capital management, though the level remains moderate rather than highly comfortable.

Debt–Equity Ratio

The debt–equity ratio increased to 0.78 from 0.60, indicating higher reliance on debt financing during FY25. While leverage has increased, the ratio remains within a reasonable range and does not signal excessive financial risk. However, the rising trend suggests the company is moderately increasing its financial gearing, which could increase interest burden in future periods.

Debt Service Coverage Ratio

DSCR declined slightly to 2.07 from 2.14. Despite the marginal drop, the ratio remains comfortably above 1.5, indicating strong capacity to service debt obligations from operating earnings. The slight decline may be due to increased borrowings or slightly lower operating profits.

Return on Equity

ROE improved marginally to 7.90% from 7.78%. This indicates stable profitability for shareholders. However, the return remains moderate and suggests limited value creation compared to higher-yielding opportunities. The improvement, though small, reflects steady earnings performance.

Inventory Turnover Ratio

Inventory turnover declined to 3.72 from 4.20, indicating slower inventory movement during FY25. This could suggest higher stock holding, slower sales, or weaker demand conditions. Lower turnover increases holding costs and may impact margins if inventory aging becomes an issue.

Trade Receivables Turnover Ratio

The receivables turnover improved slightly to 5.43 from 5.38, indicating marginally better collection efficiency. The company appears consistent in managing credit sales and maintaining cash flow discipline.

Trade Payables Turnover Ratio

Payables turnover declined to 16.32 from 19.81, meaning the company is taking slightly longer to pay suppliers compared to last year. This could be a strategic move to improve working capital, but it may also indicate tighter liquidity management.

Net Capital Turnover Ratio

Net capital turnover decreased to 4.38 from 4.81, suggesting reduced efficiency in utilizing capital to generate revenue. This aligns with slower inventory turnover and declining profitability margins.

Net Profit Ratio

Net profit margin fell significantly to 8.17% from 11.11%. This is a key concern. The decline suggests higher operating costs, lower pricing power, or margin compression. Despite stable revenues, profitability has weakened.

Return on Capital Employed

ROCE declined to 6.00% from 6.45%, indicating slightly reduced efficiency in using overall capital. The return remains modest and may be below the company’s cost of capital, which can limit long-term value creation.

Return on Investments

Return on investments dropped sharply to 138.95% from 236.84%. Although still high, the significant decline suggests lower non-operating income or reduced gains on investments compared to the previous year.