BOAT Annual Reports, Revenue and Financials

Imagine Marketing Limited Balance Sheet (Rs in Millions)

Imagine Marketing Limited Profit & Loss Statement (Rs in Millions)

Imagine Marketing Limited Cash Flow Statement (Rs in Millions)

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

Operating Activities: The company reported a loss before tax of ₹962.53 million for 2024, an improvement from the larger loss of ₹1,637.12 million in 2023. Adjustments for non-cash items included a depreciation and amortization expense of ₹355.86 million, an increase from ₹255.95 million the previous year. The share-based payment expense increased significantly to ₹111.56 million from ₹36.22 million, reflecting more employee stock compensation. The company also recorded finance costs of ₹683.69 million, down from ₹783.58 million, and a significant provision for slow and non-moving inventory at ₹758.33 million compared to ₹330.8 million in 2023.

Despite a net provision for doubtful advances of ₹104.26 million, an increase in inventories, and changes in other financial assets, the operating profit before working capital changes turned positive at ₹837.16 million from a loss of ₹54.99 million in 2023. This improvement is notable given the increase in cash used in operations to ₹3,756.73 million. Taxes paid amounted to ₹47.25 million, slightly lower than ₹98.23 million in 2023. Consequently, the net cash flows from operating activities improved significantly to ₹3,709.48 million from a negative ₹641.79 million in 2023, reflecting a healthier cash generation from core business operations.

Investing Activities: In investing activities, the company had a net cash outflow of ₹149.64 million, which is an improvement over the higher outflow of ₹750.84 million in 2023. Key investments included ₹165 million in equity shares of an associate and joint venture, and capital expenditures on property, plant, and equipment amounting to ₹199.67 million. The company also received ₹78.87 million from the sale of intangible assets, contrasting with the purchase of intangible assets totaling ₹165.36 million. The net movement in fixed deposits showed a smaller outflow of ₹4.6 million compared to ₹354.56 million in 2023. Interest income on fixed deposits increased to ₹215.32 million from ₹164.58 million. Overall, these investments and capital management activities led to a reduced net cash outflow in investing activities.

Financing Activities: The financing activities showed a net outflow of ₹4,485.64 million, reversing the inflow of ₹2,335.71 million in 2023. This substantial outflow was primarily due to repayments of short-term borrowings totaling ₹3,767.94 million, compared to ₹1,881.46 million in the previous year. There were also repayments of lease liabilities and interest payments on borrowings. Proceeds from the issuance of equity shares and preference shares were relatively modest at ₹7.09 million and ₹5,000 million, respectively. The significant repayment of financial liabilities and borrowing costs highlights a focus on debt reduction and financial restructuring.

Overall Cash Position: The net increase in cash and cash equivalents for the year was a decrease of ₹869.6 million, compared to an increase of ₹870.25 million in 2023. Cash and cash equivalents at the end of 2024 were ₹604.45 million, down from ₹1,474.03 million at the beginning of the year. This decline in cash reserves is partly due to the higher net cash outflows from financing activities, despite improvements in cash flows from operating activities. The components of cash and cash equivalents include a slight increase in cash on hand and a decrease in deposits with an original maturity of less than three months, reflecting tighter liquidity management during the year.

 Financial Ratios of Imagine Marketing Limited

Here is a summary of the financial and operational metrics for Imagine Marketing Limited for the year 2024 and 2023:

Current Ratio: The current ratio for 2024 stands at 1.71, up from 1.54 in 2023. This ratio measures the company’s ability to meet short-term liabilities with short-term assets. An increase in the current ratio indicates improved liquidity, suggesting that the company has a better cushion of current assets relative to its current liabilities.

Debt-Equity Ratio: The debt-equity ratio decreased significantly from 0.72 in 2023 to 0.37 in 2024. This ratio compares the company’s total debt to its shareholders ' equity. A lower debt-equity ratio indicates reduced financial leverage and a stronger equity base relative to debt.

Debt Service Coverage Ratio (DSCR): The debt service coverage ratio increased from 0.04 in 2023 to 0.08 in 2024. This ratio measures the company 's ability to cover its debt obligations with its operating income. Despite the improvement, a DSCR of 0.08 indicates that the company still faces challenges in generating sufficient operating income to meet its debt service requirements.

Return on Equity (ROE): The return on equity ratio for 2024 is -5.38%, an improvement from -12.43% in 2023. ROE measures the profitability relative to shareholders’ equity. Although still negative, the reduced loss suggests the company is moving towards more effective use of equity to generate profits.

Inventory Turnover Ratio: The inventory turnover ratio increased slightly from 4.97 in 2023 to 5.15 in 2024. This ratio assesses how efficiently the company manages its inventory and converts it into sales. An increase indicates improved efficiency in inventory management and faster sales of inventory.

Trade Receivables Turnover Ratio: The trade receivables turnover ratio improved significantly from 11.01 in 2023 to 14.81 in 2024. This ratio measures how effectively the company collects receivables from customers. A higher ratio indicates that the company is more efficient in collecting payments, which enhances cash flow and reduces the risk of bad debts.

Trade Payables Turnover Ratio: The trade payables turnover ratio decreased from 12.73 in 2023 to 11.97 in 2024. This ratio indicates how quickly the company pays its suppliers. A lower ratio suggests that the company is taking longer to pay its payables, which could imply better negotiation terms with suppliers or a need to manage cash flows more tightly.

Net Capital Turnover Ratio: The net capital turnover ratio increased from 5.59 in 2023 to 6.19 in 2024. This ratio measures how efficiently the company utilizes its net capital (equity plus long-term debt) to generate revenue.

Net Profit Ratio: The net profit ratio improved from -3.10% in 2023 to -1.73% in 2024. This ratio shows the percentage of revenue that translates into net profit. Despite remaining negative, the reduction in the loss percentage suggests better cost management or higher revenue

Return on Capital Employed (ROCE): The return on capital employed decreased from -3.57% in 2023 to -0.60% in 2024. ROCE measures profitability relative to the capital employed. Although still negative, the reduction in the negative percentage indicates a gradual improvement in the efficiency of generating returns from capital.

Return on Investment (ROI): The return on investment ratio increased from 5.24% in 2023 to 6.21% in 2024. ROI measures the return generated on investments relative to their cost. The improvement indicates that the company is generating a higher return on its investments.