Capillary Technologies India Limited Annual Report and Financials

Capillary Technologies India Limited Balance Sheet (Rs in Millions)

Capillary Technologies India Limited Profit & Loss Statement (Rs in Millions)

 Capillary Technologies India Limited Consolidated Cash Flow Statement (Rs in Millions)

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

Cash Flow from Operating Activities:

The company experienced a reduced loss before exceptional items and tax in FY2024 (Rs. 639.02 million) compared to FY2023 (Rs. 1,041.09 million). Adjustments like depreciation, provisions for doubtful debts, stock option expenses, and finance costs were added back to compute the operating profit before working capital changes. Significant working capital adjustments in FY2024 included an increase in trade receivables (Rs. 347.29 million) and trade payables (Rs. 976.17 million). These changes led to a positive cash flow of Rs. 832.12 million in FY2024, compared to a negative cash flow of Rs. 200.52 million in FY2023. This turnaround was primarily driven by higher operating profitability and favorable changes in liabilities.

Cash Flow from Investing Activities:

The company invested heavily in both fiscal years. In FY2024, cash outflows from investing activities amounted to Rs. 1,706.03 million, driven by large expenditures on property, plant, and equipment (Rs. 369.32 million), acquisition of a subsidiary (Rs. 387.82 million), and net purchases of current investments (Rs. 672.11 million). These activities were similar to FY2023, where the company had negative cash flows of Rs. 936.25 million, which included an advance towards the acquisition of a subsidiary (Rs. 696.59 million). Overall, cash flows from investing activities reflect the company’s significant capital expenditures and strategic investments.

Cash Flow from Financing Activities:

In FY2024, financing activities provided a significant inflow of Rs. 2,177.61 million, driven by proceeds from the issue of share capital (Rs. 1,337.43 million), compulsory convertible debentures (CCDs) (Rs. 1,701.50 million), and non-convertible debentures (Rs. 50 million). The company also repaid borrowings and debentures (Rs. 366.82 million and Rs. 237.89 million, respectively) and paid finance costs (Rs. 166.91 million). In FY2023, cash inflows from financing activities were lower, at Rs. 1,365.72 million, mainly driven by share capital proceeds and non-convertible debentures, reflecting a less aggressive approach compared to FY2024.

Financial Ratios of Capillary Technologies India Limited

Here is a summary of the financial and operational metrics for Capillary Technologies India Limited for the year 2024 and 2023:

Current Ratio:

The current ratio improved significantly in 2024 to 1.95 from 0.95 in 2023, indicating better short-term liquidity. A ratio above 1 shows that the company now has sufficient current assets to cover its current liabilities, reflecting a stronger liquidity position compared to the previous year.

Debt-Equity Ratio:

The debt-equity ratio fell from 0.65 in 2023 to 0.16 in 2024, highlighting a substantial reduction in the company’s reliance on debt financing. This lower ratio suggests that the company has either reduced its debt or increased its equity base, leading to a more conservative financial structure with less financial risk.

Debt Service Coverage Ratio (DSCR):

The DSCR, which measures the company’s ability to meet debt obligations, improved but remained negative at -0.2 in 2024, compared to -2.54 in 2023. While still negative, the improvement signifies that the company is moving toward a position where it can cover its debt payments from operating income, but challenges remain in fully servicing its debt.

Return on Equity (ROE):

The ROE ratio saw a notable improvement, rising from -50.70% in 2023 to -15.61% in 2024. While still negative, this indicates that the company is reducing its losses relative to shareholders ' equity. A negative ROE suggests that the company is not generating profits for its shareholders, but the reduction in losses reflects a positive trend.

Trade Receivables Turnover Ratio:

The trade receivables turnover ratio increased from 1.54 in 2023 to 2.31 in 2024, indicating better efficiency in collecting receivables. A higher ratio suggests that the company is quicker in converting its credit sales into cash, which improves its cash flow management.

Trade Payable Turnover Ratio:

The trade payable turnover ratio slightly increased from 1.69 in 2023 to 1.86 in 2024, suggesting that the company is paying its suppliers more frequently. This marginal improvement reflects enhanced management of supplier payments, though the change is not very significant.

Net Capital Turnover Ratio:

The net capital turnover ratio improved dramatically in 2024 to 1.28 from a highly negative -15.42% in 2023. This positive shift means that the company is now generating revenue more efficiently with respect to its working capital. A positive ratio indicates a much healthier operational efficiency compared to the severe inefficiency in 2023.

Net Profit Ratio:

The net profit ratio declined from 59.99% in 2023 to 36.71% in 2024, although still reflecting strong profitability. This ratio shows the percentage of revenue that translates into profit. While the decrease suggests lower profitability compared to 2023, the company is still generating a significant margin on its revenues.

Return on Capital Employed (ROCE):

ROCE dropped from 26.98% in 2023 to 7.36% in 2024, indicating a significant decline in how effectively the company is using its capital to generate profits. This decline reflects a reduced efficiency in capital utilization, but it remains positive, suggesting that the company is still generating returns on its capital employed, albeit at a lower rate.

Return on Investment (ROI):

The ROI improved from 5% in 2023 to 8% in 2024, indicating better performance in generating returns from its investments. This positive change reflects stronger gains from investment activities, signaling enhanced effectiveness in utilizing investment capital.