Bharat Hotels Unlisted Share

  Bharat Hotels Limited Balance Sheet (Rs in Lakhs)

  Bharat Hotels Limited Profit & Loss Statement (Rs in Lakhs)

 Bharat Hotels Limited Consolidated Cash Flow Statement (Rs in Lakhs)

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

Cash Flow from Operating Activities: The company generated a net cash inflow of ₹37,470.40 lakhs from operating activities, a notable increase from ₹31,708.94 lakhs in the previous year. This improvement is driven by higher operating profit before working capital changes, which rose to ₹36,091.99 lakhs from ₹35,339.09 lakhs. Adjustments for non-cash items, such as depreciation, amortization, and finance costs, were significant. The company also benefited from changes in working capital, with increases in trade receivables and trade payables, and decreases in inventories and other assets. This strong operating performance, despite increased tax payments, contributed positively to the cash flow.

Cash Flow from Investing Activities: The cash flow from investing activities resulted in a net inflow of ₹3,716.42 lakhs, an increase from ₹3,290.21 lakhs in the previous year. Key components included payments for the purchase of property, plant, and equipment, and capital work-in-progress amounting to ₹2,586.53 lakhs, up from ₹1,846.39 lakhs last year. However, these outflows were offset by substantial inflows from the sale of property and equipment, totaling ₹4,716.12 lakhs, and net proceeds from bank deposits and interest received. The net positive cash flow from investing activities indicates a successful management of capital expenditures and asset sales.

Cash Flow from Financing Activities: Cash used in financing activities was significant, with a net outflow of ₹42,166.49 lakhs, an increase from ₹36,891.54 lakhs the previous year. The major components included the repayment of long-term borrowings, which significantly outweighed the proceeds from new borrowings. The company also made substantial finance cost payments on borrowings and lease liabilities. Despite some outflows due to dividend payments and lease liabilities, these were relatively small compared to the total financing cash outflows.

Financial Ratios of Bharat Hotels Limited

Here is a summary of the Financial Ratios of Bharat Hotels Limited for the year 2024 & 2023:

Current Ratio: The current ratio measures a company’s ability to meet its short-term obligations with its short-term assets. A decline from 1.24 to 0.88 indicates a decrease in liquidity, suggesting that the company is less capable of covering its current liabilities with its current assets. A ratio below 1 implies potential liquidity concerns, as the company may not have enough short-term assets to cover short-term liabilities.

Debt-Equity Ratio: This ratio compares a company's total debt to its shareholders' equity, reflecting the proportion of debt used to finance the company’s assets. The reduction from 1.46 to 1.06 signifies a decrease in financial leverage and risk, as the company has reduced its reliance on debt relative to equity. This improved ratio suggests a stronger financial position and lower financial risk.

Debt Service Coverage Ratio: This ratio indicates the company’s ability to service its debt obligations from its operating income. A decrease from 2.43 to 2.03 suggests a reduced capacity to cover debt payments from operating cash flows. Although the company can still cover its debt service, the lower ratio implies a tighter margin of safety in terms of debt servicing.

Return on Equity (ROE) Ratio: ROE measures the return generated on shareholders' equity. The significant increase from 4.91% to 11.55% indicates that the company has substantially improved its profitability relative to shareholders' equity. This enhancement suggests effective use of equity to generate profits and a higher return for shareholders.

Inventory Turnover Ratio: This ratio measures how efficiently a company manages its inventory by comparing the cost of goods sold to average inventory. An increase from 46.76 to 50.00 signifies improved inventory management and higher efficiency in converting inventory into sales. This indicates better utilization of inventory and quicker turnover.

Trade Receivables Turnover Ratio: This ratio assesses how efficiently a company collects its receivables by comparing net credit sales to average trade receivables. A slight decrease from 27.78 to 27.45 implies a minor decline in efficiency in collecting receivables. However, the ratio remains relatively high, indicating that the company effectively manages its receivables.

Trade Payable Turnover Ratio: This ratio measures how quickly a company pays its trade payables by comparing cost of goods sold to average trade payables. The minor decrease from 0.92 to 0.91 suggests a slight slowdown in the payment cycle to suppliers. This indicates a marginal change in how the company manages its payables.

Net Capital Turnover Ratio: This ratio evaluates how efficiently a company uses its capital to generate revenue. The dramatic increase from 31.53 to 121.11 indicates a substantial improvement in capital utilization, showing that the company is generating significantly more revenue per unit of capital employed. This reflects highly efficient use of capital.

Net Profit Ratio: This ratio measures the percentage of revenue that translates into net profit. The increase from 5.51% to 13.10% highlights a significant improvement in profitability, with the company converting a higher proportion of revenue into net profit. This reflects better cost management and revenue generation.

Return on Capital Employed (ROCE) Ratio: ROCE assesses the return generated on the total capital employed in the business. The sharp decline from 10.84% to 0.18% indicates a significant drop in the efficiency of capital use in generating profits. This suggests that the company’s return on its invested capital has decreased dramatically, signaling potential concerns about profitability or capital management.

Dividend History of Bharat Hotels  

In view of necessity to conserve cash, the Board of Directors has decided not to recommend any dividend to the shareholders for the Financial Year 2023-24.