Bhatkawa Tea Annual Reports, Balance Sheet and Financials

Bhatkawa Tea Industries Limited Balance Sheet (Rs in Lakhs)

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

 Bhatkawa Tea Industries 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

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

 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.