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
Bhatkawa Tea Industries Limited

Bhatkawa Tea Industries Limited Standalone Balance Sheet (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Non-Current Assets
Property, plant and equipment	1,232.20	1,153.66
Capital work-in-progress	-	34.55
Investments	924.73	1,084.13
Other Financial assets	56.37	56.36
Deferred Tax Assets (Net)	21.93	-
Current Assets
Inventories	231.85	245.19
Financial assets:
Investments	3,460.05	2,907.17
Trade receivables	212.62	188.22
Cash and cash equivalents	105.53	248.34
Bank balance other than above	3.68	4.46
Loans	682.00	582.00
Other Financial assets	85.01	67.18
Other Current Assets	165.91	147.26
Total Assets	7,181.88	6,718.52
Equity
Equity Share capital	224.00	224.00
Other Equity	5,529.69	5,016.73
Non-Current Liabilities
Borrowings	32.87	46.60
Provisions	519.94	501.36
Deferred Tax Liabilities (net)	-	92.33
Other Non-Current Liabilities	1.21	1.45
Current liabilities
Borrowings	27.90	21.56
Trade payables
total outstanding dues of micro enterprises and small enterprise	1.82	12.20
total outstanding dues of creditors other than micro enterprises and small enterprise	85.31	91.74
Other financial Liabilities	201.58	175.63
Provisions	549.76	522.49
Other current liabilities	7.80	12.43
Total Equity and Liabilities	7,181.88	6,718.52

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

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operations	4,110.12	4,073.67
Other Income	199.04	354.29
Total Income	4,309.16	4,427.96
Expenses
Change in inventories of Finished Goods	-3.57	45.05
Employee Benefit Expenses	2,410.87	2,516.07
Finance Costs	42.41	35.60
Depreciation & amortization expense	132.39	89.38
Other Expenses	1,139.90	1,062.38
Total Expenses	3,722.00	3,748.48
Profit/(loss) Before Tax	587.16	679.48
Current Tax	103.63	68.68
MAT Credit Entitlement	-	-7.95
Deferred Tax	-119.03	-20.82
Profit/(Loss) for the period	602.56	639.57
Other Comprehensive Income/(Expenses)
Re measurement gains/ (losses) on defined benefit plans	100.35	108.15
Tax effect	-27.92	-30.09
Net (loss)/gain on FVTOCI equity securities	-185.18	652.41
Tax effect	23.15	-67.85
Other Comprehensive Income/(Expenses) (OCI), net of taxes	-89.60	662.62
Total Comprehensive Income /(Loss) for the year	512.96	1,302.19
Earnings per share
Basic	26.90	28.55
Diluted	26.90	28.55

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

Particulars	31-03-2025	31-03-2024
Cash Flow From Operating Activities
Net Profit/(Loss) before tax	587.16	679.48
Adjustments for :
Depreciation & Amortization Expense	132.39	89.38
Finance Costs	42.41	35.60
Re measurement gains/(losses) on defined benefit plans	100.35	108.15
Loss on Uprooting of Plants	-	0.62
Profit on Sale of Fixed Asset (Net)	-2.30	-0.51
Profit on Sale of Mutual Funds	-	-212.37
Deferred Government Grants	-0.24	-0.25
Dividend Income	-11.25	-8.52
Interest Income	-115.82	-105.46
Operating Profit before Working Capital Changes	732.70	586.12
Adjustments for:
(Increase)/Decrease in Inventories	13.34	53.06
(Increase)/Decrease in Trade and other receivables	-24.40	38.08
Increase/(Decrease) in Trade and other payables	16.81	23.76
Cash Generated from Operations	738.45	701.02
Tax Paid	-46.41	-36.66
Net Cash (Outflow)/Inflow from Operating Activities	692.04	664.35
Cash Flow From Investing Activities
Acquisition of Property, Plant & Equipment	-196.20	-290.79
Work In Progress of Bearer Plant	-	-29.38
Sale of Property, Plant & Equipment	2.30	6.23
Maturity of Term Deposit	-	175.00
Dividend Received	11.25	8.52
Sale/(Acquisition) of Investments(Net)	-837.79	-610.59
Interest Received	185.53	132.70
Net Cash (Outflow)/Inflow from Investing Activities	-834.91	-608.33
Cash Flow From Financing Activities
Proceeds/ (Repayment) of Long-Term Borrowings	7.38	68.15
Interest and Other Finance charges paid	-7.31	-0.37
Net Cash Inflow/(Out flow) from Financing Activities	0.07	67.78
Net Increase/ (Decrease) in Cash & Cash Equivalents	-142.81	123.82
Cash & Cash Equivalents as at Opening	248.34	124.52
Cash & Cash Equivalents as at Closing	105.53	248.34

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

Cash Flow from Operating Activities

The company generated net cash inflow from operating activities of ₹692.04 lakhs in FY25 compared to ₹664.35 lakhs in FY24, showing a modest improvement in core cash generation. Although profit before tax declined from ₹679.48 lakhs to ₹587.16 lakhs, higher non-cash adjustments such as depreciation and re-measurement expenses supported operating profit before working capital changes (₹732.70 lakhs in FY25 vs ₹586.12 lakhs in FY24).

Working capital movements were mixed. Inventory levels slightly improved, generating positive cash flow, but trade receivables increased, resulting in cash blockage. Trade payables also increased marginally, supporting liquidity. Overall, the company demonstrates strong operational cash generation capacity, reflecting stable core business performance.

Cash Flow from Investing Activities

Investing activities resulted in a net cash outflow of ₹834.91 lakhs in FY25 compared to ₹608.33 lakhs in FY24, indicating significantly higher investment during the year. The company invested heavily in investments (₹837.79 lakhs), which is the primary reason for the outflow.

Capital expenditure on property, plant and equipment reduced compared to the previous year, suggesting controlled spending on fixed assets. In FY24, the company had inflow from maturity of term deposits and profit on sale of mutual funds, which did not recur in FY25. Interest and dividend income provided some positive inflow but were insufficient to offset large investment outflows. Overall, the company appears to be deploying surplus operational funds into investments.

Cash Flow from Financing Activities

Financing activities recorded a negligible net inflow of ₹0.07 lakhs in FY25 compared to ₹67.78 lakhs in FY24. The company repaid/raised minimal long-term borrowings and paid finance costs, reflecting its very low debt position. The limited activity under this head indicates financial stability and low reliance on external borrowings.

Net Increase / Decrease in Cash & Cash Equivalents

Due to substantial investing outflows, cash and cash equivalents decreased by ₹142.81 lakhs in FY25, compared to an increase of ₹123.82 lakhs in FY24. Closing cash balance stood at ₹105.53 lakhs as against ₹248.34 lakhs in the previous year. The reduction is not due to weak operations but primarily due to higher investment deployment.

Financial ratios of Bhatkawa tea Industries Limited

Particulars	31-03-2025	31-03-2024
Current ratio	5.66	5.25
Debt equity ratio	0.01	0.01
Debt service coverage ratio	154.38	2,144.48
Return on equity ratio	10.47%	12.20%
Inventory turnover ratio	17.23	14.99
Trade receivables turnover ratio	20.51	19.66
Net capital turnover ratio	100.92%	114.63%
Net profit ratio	14.66%	15.70%
Return on capital employed	11.09%	12.72%
Return on Investments	3.03%	9.71%

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

Current Ratio

The current ratio improved from 5.25 in FY24 to 5.66 in FY25, indicating very strong short-term liquidity. The company has more than sufficient current assets to meet its current liabilities. However, such a high ratio may also suggest excess idle funds or inefficient working capital utilization.

Debt-Equity Ratio

The debt-equity ratio remained extremely low at 0.01 in both years, reflecting a nearly debt-free capital structure. This indicates low financial risk and high financial stability. The company relies predominantly on equity funding, which reduces interest burden but may limit the benefits of financial leverage.

Debt Service Coverage Ratio

The DSCR declined significantly from 2,144.48 in FY24 to 154.38 in FY25. Although still very high and indicating excellent ability to meet debt obligations, the sharp drop suggests either an increase in debt servicing commitments or a decline in operating earnings relative to debt payments. Despite the fall, the ratio remains comfortably strong.

Return on Equity

ROE decreased from 12.20% to 10.47%, showing a slight reduction in profitability from shareholders’ perspective. This suggests that the company generated lower returns on its equity base in FY25 compared to the previous year, possibly due to reduced margins or higher capital employed.

Inventory Turnover Ratio

The inventory turnover ratio improved from 14.99 to 17.23, indicating better inventory management and faster movement of stock. This reflects improved operational efficiency and reduced holding costs.

Trade Receivables Turnover Ratio

The receivables turnover ratio increased from 19.66 to 20.51, showing improved collection efficiency. The company is collecting payments from customers more quickly, which strengthens liquidity and cash flow management.

Net Capital Turnover Ratio

The net capital turnover ratio declined from 114.63% to 100.92%, indicating slightly lower efficiency in using working capital to generate revenue. While still healthy, the drop suggests that sales growth may not have kept pace with the increase in working capital.

Net Profit Ratio

The net profit ratio decreased from 15.70% to 14.66%, indicating a marginal decline in profitability. This could be due to higher operating costs, raw material price fluctuations, or other expense pressures.

Return on Capital Employed

ROCE fell from 12.72% to 11.09%, reflecting slightly lower efficiency in generating profits from total capital employed. This aligns with the decline seen in ROE and net profit ratio.

Return on Investments

ROI dropped significantly from 9.71% to 3.03%, suggesting that income generated from investments reduced considerably during FY25. This may indicate lower dividend/interest income or reduced gains from investment activities.