Budge Budge Company Annual Reports, Balance Sheet and Financials

Budge Budge Company Ltd Balance Sheet (Rs in Lakhs)

 Budge Budge Company Ltd Profit & Loss Statement (Rs in Lakhs)

 Budge Budge Company Ltd 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

Profit Before Tax: The company reported a profit before tax of ₹441.27 lakhs for 2023-24, which is higher than ₹137.24 lakhs in 2022-23, showing an increase in profitability before tax adjustments.

Adjustments:

Depreciation/Amortization: Depreciation and amortization expense increased slightly from ₹520.77 lakhs in 2022-23 to ₹540.9 lakhs in 2023-24. This represents non-cash expenses that add back to cash flow as they reduce taxable income without affecting actual cash.

Interest Expenses: Interest expense has increased significantly to ₹1,017.5 lakhs in 2023-24 from ₹743.61 lakhs in 2022-23, indicating higher debt costs or additional financing.

Rent, Dividend, and Interest Income: These items, particularly dividend and interest income, are deducted from the cash flow as they are non-operating income sources.

Other Adjustments: Includes provisions, fair value adjustments, and gains/losses on the sale of assets, which are also non-cash or non-operating items adjusted to find the true operating cash flow.

Operating Profit Before Working Capital Changes: This subtotal reflects the operating cash flow before changes in working capital, which increased significantly from ₹919.62 lakhs in 2022-23 to ₹1,470.96 lakhs in 2023-24.

Changes in Working Capital:

Trade Receivables, Advances, and Other Assets: An increase in these assets (₹1,579.19 lakhs) in 2023-24 compared to a decrease in 2022-23 indicates higher credit sales or asset buildup, which reduces cash flow.

Trade Payables, Other Liabilities, and Provisions: A decrease of ₹2,896.65 lakhs in 2023-24, compared to an increase in 2022-23, indicates that the company paid down its liabilities, impacting cash negatively.

Inventories: Inventory adjustments indicate a cash inflow of ₹695.23 lakhs in 2023-24, suggesting that inventory levels were reduced, possibly due to increased sales or inventory optimization.

Net Cash Flow from Operating Activities: After tax adjustments, the net cash from operating activities is ₹761.53 lakhs in 2023-24, up from ₹669.4 lakhs in 2022-23, indicating a stronger cash flow from core operations.

Cash Flows from Investing Activities

Capital Expenditure: The company spent ₹658.70 lakhs on property, plant, equipment, and intangibles in 2023-24, indicating continued investment in assets, though this is higher than ₹443.65 lakhs in 2022-23.

Proceeds from Sale of Assets: Proceeds from asset sales were ₹202.93 lakhs in 2023-24, a significant increase compared to ₹26 lakhs in the prior year.

Other Investments: The company made a substantial investment in Anglo India Jute & Textile Industries for ₹1,080 lakhs in 2023-24, indicating a strategic investment.

Net Cash Flow from Investing Activities: The net cash flow from investing activities is negative at ₹-788.43 lakhs in 2023-24, compared to ₹-175.16 lakhs in 2022-23, reflecting a higher outflow due to increased asset purchases and investments.

Cash Flows from Financing Activities

Proceeds from Borrowings: In 2023-24, the company received ₹1,011.57 lakhs from non-current borrowings, whereas in 2022-23, it had a repayment trend, with a net borrowing outflow of ₹-120.45 lakhs.

Interest Paid: Interest payments increased to ₹993.6 lakhs in 2023-24 from ₹718.73 lakhs in 2022-23, aligning with the increase in debt levels.

Net Cash Flow from Financing Activities: The net cash flow from financing activities was a small positive at ₹32.80 lakhs in 2023-24, whereas it was negative at ₹-547.50 lakhs in 2022-23, primarily due to the higher proceeds from new borrowings in 2023-24.

Net Change in Cash and Cash Equivalents

The net increase in cash and cash equivalents was ₹5.90 lakhs for 2023-24, showing a slight improvement compared to a decrease of ₹-53.26 lakhs in 2022-23.

The opening cash balance at the beginning of 2023-24 was ₹17.45 lakhs, leading to a closing cash balance of ₹23.35 lakhs.

 Financial Ratios of Budge Budge Company Ltd

Here is a summary of the financial and operational metrics for Budge Budge Company Ltd for the year 2024 and 2023:

Current Ratio

2024: 0.61

2023: 0.67

The current ratio measures the company’s ability to cover short-term obligations with current assets. A ratio below 1 indicates that the company has fewer current assets than current liabilities. The decline from 0.67 to 0.61 suggests that the company’s liquidity position has weakened, which may indicate difficulties in covering short-term obligations.

Debt to Equity Ratio

2024: 1.52

2023: 1.61

The debt to equity ratio measures the level of debt financing relative to equity. A ratio greater than 1 means that the company relies heavily on debt financing. The decrease from 1.61 to 1.52 indicates a slight reduction in reliance on debt relative to equity, which may suggest efforts to strengthen the company’s capital structure.

Debt Service Coverage Ratio (DSCR)

2024: 1.34

2023: 1.69

The DSCR measures the company’s ability to service debt from operating income. A DSCR greater than 1 indicates that the company generates enough cash to cover its debt payments. The decrease from 1.69 to 1.34 shows a reduced ability to meet debt obligations, which might signal cash flow constraints or increased interest costs.

Return on Equity (ROE)

2024: 21%

2023: 17%

ROE measures the return generated on shareholders ' equity. An increase from 17% to 21% indicates improved profitability and efficient use of equity capital, which is positive for shareholders.

Inventory Turnover Ratio

2024: 5.85

2023: 9.12

This ratio shows how often inventory is sold and replaced over a period. A decline from 9.12 to 5.85 suggests slower inventory movement, possibly due to reduced demand or overstocking. This could lead to higher holding costs and potential obsolescence.

Trade Receivables Turnover Ratio

2024: 15.51

2023: 13.83

This ratio measures how efficiently the company collects receivables. An increase from 13.83 to 15.51 indicates faster collection of receivables, which improves cash flow and reduces the risk of bad debts.

Trade Payables Turnover Ratio

2024: 1.83

2023: 2.93

This ratio shows how quickly the company pays its suppliers. A decline from 2.93 to 1.83 suggests slower payment to suppliers, possibly as a cash flow management strategy. However, it may strain relationships with suppliers if payment terms are not favorable.

Net Capital Turnover Ratio

2024: -6.24

2023: -7.51

This ratio measures the efficiency of using working capital to generate sales. Negative values indicate that the company’s current liabilities exceed its current assets. The less negative value in 2024 (-6.24 compared to -7.51 in 2023) suggests a slight improvement but still reflects challenges in managing working capital effectively.

Net Profit Ratio

2024: 0.02 (or 2%)

2023: 0.01 (or 1%)

The net profit ratio measures profitability after all expenses. The increase from 1% to 2% shows an improvement in profitability, though it remains relatively low, indicating room for margin improvement.

Return on Capital Employed (ROCE)

2024: 0.25 (or 25%)

2023: 0.2 (or 20%)

ROCE measures the returns generated from total capital employed. The increase from 20% to 25% indicates a more efficient use of capital in generating profits, which is favorable for both debt and equity holders.

Return on Investment (ROI)

2024: 86.2%

2023: -0.09%

The ROI measures the profitability of investments made. The substantial increase from -0.09% to 86.2% is a positive indicator, reflecting high returns on the company’s investments in 2024, suggesting that investment strategies or asset utilization improved significantly.