Bhatkawa Tea Industries Limited (BHATKAWA) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40	-15.70 (-0.43%)	-58.84 (-1.59%)	200.37 (5.83%)	590.52 (19.40%)	1204.06 (49.53%)	1425.26 (18.05%)
Bhatkawa Tea Industries Limited	0.00 (0.00%)	0.00 (0.00%)	0.00 (0.00%)	29.00 (21.32%)	29.00 (21.32%)	52.50 (13.62%)

Bhatkawa Tea Industries Limited Balance Sheet (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Non-Current Assets
Property, plant and equipment	1,153.66	919.21
Capital work-in-progress	34.55	111.80
Investments	1,084.13	1,012.34
Other Financial assets	56.36	49.30
Other Non Current Assets	-	10.00
Current Assets
Inventories	245.19	298.25
Investments	2,907.17	1,715.95
Trade receivables	188.22	226.30
Cash and cash equivalents	248.34	124.52
Bank balance other than (iii) above	4.46	180.32
Loans	582.00	342.05
Other Financial assets	67.18	95.18
Other Current Assets	147.26	148.38
Total Assets	6,718.52	5,233.60
Equity
Equity Share capital	224.00	224.00
Other Equity	5,016.73	3,672.28
Non-Current Liabilities
Borrowings	46.60	-
Provisions	501.36	489.32
Deferred Tax Liabilities (net)	92.33	15.22
Other Non-Current Liabilities	1.45	1.70
Current liabilities
Borrowings	21.56	-
Trade Payables
Total outstanding dues of micro enterprises and small enterprises	12.20	5.27
Total outstanding dues of creditors other than micro enterprises and small enterprises	91.74	122.42
Other financial Liabilities	175.63	173.45
Provisions 15	522.49	456.34
Other current liabilities	12.43	73.60
Total Equity and Liabilities	6,718.52	5,233.60

Bhatkawa Tea Industries Limited Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Income
Revenue from operations	4,073.67	3,689.17
Other income	354.29	170.99
Total revenue	4,427.96	3,860.16
Expenses
Change in inventories of Finished Goods	45.05	-2.70
Employee benefits expenses	2,516.07	2,310.22
Finance costs	35.60	34.42
Depreciation and amortization expenses	89.38	94.56
Other expenses	1,062.38	1,157.63
Total expenses	3,748.48	3,594.13
Profit/(Loss) before tax	679.48	266.03
Current tax	68.68	54.40
MAT Credit Entitlement	-7.95	-21.97
Deferred Tax	-20.82	7.76
Profit/(Loss) for the year	639.57	225.84
Other Comprehensive Income/(Expenses) (OCI)
Items that will not be reclassified to profit or loss:
Remeasurement gains/ (losses) on defined benefit plans	108.15	107.75
Less: Tax effect	-30.09	-29.98
Net (loss)/gain on FVTOCI equity securities	652.41	10.31
Less: Tax effect	-67.85	-2.87
Other Comprehensive Income/(Expenses) (OCI), net of taxes	662.62	85.21
Total Comprehensive Income /(Loss) for the year	1,302.19	311.05
Earnings per equity share( Face value Rs. 10 per share)
Basic	28.55	10.08
Diluted	28.55	10.08

Bhatkawa Tea Industries Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Cash Flow From Operating Activities
Net Profit/(Loss) before tax	679.47	266.03
Adjustments for :
Depreciation & Amortization Expense	89.38	94.56
Finance Costs	35.60	34.42
Remeasurement gains/(losses) on defined benefit plans	108.15	107.75
Loss on Uprooting of Plants	0.62	0.60
Profit on Sale of Fixed Asset (Net)	-0.51	-1.40
Profit on Sale of Mutual Funds	-212.37	-28.99
Deferred Government Grants	-0.25	-0.24
Dividend Income	-8.52	-9.59
Interest Income	-105.46	-106.43
Operating Profit before Working Capital Changes	586.11	356.71
Adjustments for:
(Increase)/Decrease in Inventories	53.06	38.48
(Increase)/Decrease in Trade and other receivables	38.08	-196.54
Increase/(Decrease) in Trade and other payables	23.76	-21.53
Cash Generated from Operations	701.01	177.12
Tax Paid	-36.65	-46.33
Net Cash (Outflow)/Inflow from Operating Activities	664.36	223.45
Cash Flow From Investing Activities
Acquisition of Property, Plant & Equipment	-290.79	-143.19
Work In Progress of Bearer Plant	-29.38	-111.80
Sale of property,plant and equipment	6.23	1.40
Maturity of Term Deposit	175.00	210.00
Dividend Received	8.52	9.59
Sale/(acquisition) of Investments (net)	-610.59	-288.29
Interest Received	132.70	114.34
Net Cash (Outflow)/Inflow from Investing Activities	-56.05	15.50
Cash Flow From Financing Activities
Procceds/ (Repayment) of Long-Term Borrowings	68.14	-
Dividend Paid (including tax on dividend)	-	-11.20
Interest and Other Finance charges paid	-0.37	-0.10
Net Cash Inflow/(Out flow) from Financing Activities	67.77	-11.30
Net Increase/ (Decrease) in Cash & Cash Equivalents	123.82	4.21
Cash & Cash Equivalents as at beginning of the year	124.52	-120.31
Cash & Cash Equivalents as at Closing at the end of year	248.34	124.52

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

Cash Flow from Operating Activities

Operating activities represent the cash generated or used by the company’s core business operations. In 2024, the net profit before tax was ₹679.47 lakhs, an increase from ₹266.03 lakhs in 2023, indicating improved profitability.

Various adjustments were made to the net profit to reflect non-cash transactions and non-operating items. Key adjustments include:

Depreciation and Amortization Expense: Non-cash expenses added back to the profit. In 2024, depreciation was ₹89.38 lakhs, slightly lower than ₹94.56 lakhs in 2023.

Finance Costs: Interest expenses incurred, amounting to ₹35.60 lakhs in 2024, similar to ₹34.42 lakhs in 2023.

Remeasurement gains/(losses) on defined benefit plans: An expense of ₹108.15 lakhs in 2024, almost the same as ₹107.75 lakhs in 2023.

Profit on Sale of Fixed Assets and Mutual Funds: The company earned a profit of ₹0.51 lakhs from the sale of fixed assets and ₹212.37 lakhs from mutual fund sales, reducing cash outflows from operations.

The adjustments brought the operating profit before working capital changes to ₹586.11 lakhs in 2024, compared to ₹356.71 lakhs in 2023, reflecting an improvement in cash-generating efficiency from operations.

Changes in working capital also had an impact on the cash flow. The following adjustments were made:

Inventories: There was a decrease in inventory of ₹53.06 lakhs in 2024, indicating more sales or reduced stock, contributing positively to cash flow.

Trade and Other Receivables: The company saw a decrease in receivables by ₹38.08 lakhs in 2024, indicating quicker collection of payments, while there was an increase in receivables of ₹196.54 lakhs in 2023, reducing cash inflows.

Trade and Other Payables: An increase of ₹23.76 lakhs in payables in 2024 reflects delayed payments to suppliers, improving cash reserves.

As a result, the cash generated from operations increased significantly to ₹701.01 lakhs in 2024, compared to ₹177.12 lakhs in 2023. After tax payments of ₹36.65 lakhs in 2024 and ₹46.33 lakhs in 2023, the net cash inflow from operating activities was ₹664.36 lakhs in 2024, substantially higher than ₹223.45 lakhs in 2023. This indicates better cash flow management and improved operational performance.

Cash Flow from Investing Activities

Investing activities show how much cash was used or generated from investments in long-term assets. In 2024, the company spent ₹290.79 lakhs on acquiring property, plant, and equipment (PPE), an increase from ₹143.19 lakhs in 2023. Additionally, ₹29.38 lakhs was spent on work in progress for bearer plants in 2024, though this was lower than the ₹111.80 lakhs spent in 2023.

The company also generated cash inflows from:

Maturity of Term Deposits: The company received ₹175.00 lakhs in 2024, slightly less than the ₹210.00 lakhs in 2023.

Dividend Received: The company earned ₹8.52 lakhs in dividends, slightly lower than ₹9.59 lakhs in 2023.

Interest Received: Interest income increased to ₹132.70 lakhs in 2024, compared to ₹114.34 lakhs in 2023.

However, there were significant outflows due to investments, with ₹610.59 lakhs spent on the acquisition of investments (net) in 2024, compared to ₹288.29 lakhs in 2023. This reflects the company 's continued investment in financial instruments, though it led to higher cash outflows.

As a result, the net cash outflow from investing activities in 2024 was ₹-56.05 lakhs, a reversal from the positive inflow of ₹15.50 lakhs in 2023. The increased spending on capital assets and financial investments caused the negative cash flow.

Cash Flow from Financing Activities

Financing activities represent cash flows related to the company’s borrowings, debt repayments, and dividends. In 2024, the company saw a cash inflow of ₹68.14 lakhs from long-term borrowings, whereas there were no borrowings in 2023. This indicates that the company took on new debt during the year.

Dividend Paid: No dividends were paid in 2024, compared to a payment of ₹11.20 lakhs in 2023, which contributed to a slight improvement in cash flow.

Interest and Finance Costs Paid: Minimal interest payments of ₹0.37 lakhs were made in 2024, compared to ₹0.10 lakhs in 2023.

As a result, the net cash inflow from financing activities was ₹67.77 lakhs in 2024, compared to a cash outflow of ₹-11.30 lakhs in 2023. This reflects a favorable financing situation, with the company raising funds through borrowings without significant repayment obligations.

Net Change in Cash and Cash Equivalents

The net increase in cash and cash equivalents for 2024 was ₹123.82 lakhs, compared to ₹4.21 lakhs in 2023. This increase is driven by the strong cash flow from operating activities and favorable financing activities, despite the negative cash flow from investing activities.

The company started 2024 with ₹124.52 lakhs in cash and cash equivalents. After the year’s cash inflows and outflows, the closing balance at the end of March 31, 2024, stood at ₹248.34 lakhs, indicating improved liquidity compared to ₹124.52 lakhs at the end of 2023.

Financial Ratios of Bhatkawa Tea Industries Limited

Particulars	2024	2023
Current Ratio	5.25	3.77
Debt-Equity Ratio	0.01	-
Debt service coverage ratio	2,144.48	-
Return on Equity Ratio	12.2	5.8
Inventory Turnover Ratio	14.99	11.62
Trade Receivables Turnover Ratio	19.66	21.22
Net Capital Turnover Ratio	1.15	1.6
Net Profit Ratio	15.7	6.12
Return on Capital Employed Ratio	12.72	7.53
Return on Investment	9.71	4.49

Here is a summary of the financial and operational metrics for Bhatkawa Tea Industries Limited for the year 2024 and 2023:

Current Ratio

The current ratio measures the company’s ability to meet its short-term liabilities using its current assets. In 2024, a ratio of 5.25 means the company has ₹5.25 in current assets for every ₹1 of current liabilities, up from ₹3.77 in 2023.

Debt-EquityRatio
The debt-equity ratio measures a company’s financial leverage by comparing its total debt to shareholders ' equity. In 2024, the ratio of 0.01 indicates minimal debt in relation to equity, showing that the company is almost entirely equity-financed.

Debt Service Coverage Ratio (DSCR)

The DSCR indicates the company 's ability to service its debt, measuring how many times the company’s earnings can cover its debt obligations. In 2024, a DSCR of 2,144.48 means the company generates significantly more than enough earnings to cover its debt repayments.

Return on Equity (ROE) Ratio

ROE measures how efficiently a company generates profits from its shareholders ' equity. In 2024, an ROE of 12.2% indicates that the company generated ₹12.20 of profit for every ₹100 of equity.

Inventory Turnover Ratio

The inventory turnover ratio measures how many times a company’s inventory is sold and replaced during the year. A ratio of 14.99 in 2024 means the company sold and replenished its inventory nearly 15 times in the year, up from 11.62 times in 2023.

Trade Receivables Turnover Ratio

This ratio indicates how quickly a company collects payments from its customers. In 2024, the company collected its receivables almost 20 times, slightly lower than the 21.22 times in 2023.

Net Capital Turnover Ratio

The net capital turnover ratio measures how effectively a company uses its working capital to generate revenue. A ratio of 1.15 in 2024 indicates that for every ₹1 of working capital, the company generated ₹1.15 in revenue.

Net Profit Ratio

The net profit ratio measures the percentage of revenue that translates into profit. In 2024, 15.7% of the company’s revenue turned into profit, a significant improvement from 6.12% in 2023.

Return on Capital Employed (ROCE) Ratio

ROCE measures how efficiently a company generates profits from its capital (both equity and debt). In 2024, the company earned a return of 12.72% on its capital employed, up from 7.53% in 2023.

Return on Investment (ROI)

ROI measures the return generated on the company’s investments. In 2024, the company earned 9.71% on its investments, more than double the 4.49% return in 2023. This improvement suggests that the company made better investment decisions, resulting in higher returns.