Carrier Airconditioning Annual Reports, Balance Sheet and Financials

Carrier Airconditioning & Refrigeration Limited Balance Sheet (Rs in Lakhs)

Carrier Airconditioning & Refrigeration Limited Profit & Loss Statement (Rs in Lakhs)

Carrier Airconditioning & Refrigeration Limited Consolidated Cash Flow Statement (Rs in Lakhs)

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

Cash Flows from Operating Activities:

Profit before tax from continuing and discontinuing operations: The company earned a profit before tax of ₹17,545 million from its continuing operations and ₹2,504 million from its discontinuing operations for the year ending March 31, 2024. These figures show an increase from ₹12,413 million and ₹1,769 million, respectively, from the previous year, indicating improved performance.

Adjustments:

Depreciation and Amortization: Non-cash expenses such as depreciation and amortization amounted to ₹2,492 million, up from ₹2,107 million, showing that the company 's assets are depreciating over time.

Share-Based Payments: There was a significant reduction in expenses related to share-based payments, from ₹166 million to ₹5 million.

Profit/Loss on Sale of Assets: A net profit of ₹21 million was realized from the sale of property, plant, and equipment, a slight increase from the previous year.

Interest on Lease Liabilities and Income on Fixed Deposits: The company paid ₹185 million in interest on lease liabilities and earned ₹1,622 million from fixed deposits, reflecting a significant increase in interest income.

Provision for Inventory Obsolescence and Allowance for Doubtful Debts: The company made provisions of ₹525 million for inventory obsolescence and ₹150 million for doubtful debts, indicating potential risks in inventory and receivables.

MTM Loss/Gain on Forward Contracts & Unrealized Foreign Exchange Fluctuations: Minor adjustments were made for these items, showing small variations in financial instruments and foreign exchange rates.

Liabilities Written Back: The company reversed liabilities worth ₹748 million that were no longer required, slightly less than the previous year.

Operating Profit Before Changes in Assets and Liabilities: After adjustments, the operating profit stood at ₹21,053 million, significantly higher than the previous year’s ₹16,017 million.

Changes in Assets and Liabilities:

Inventories and Trade Receivables: There was a substantial increase in inventories (₹5,227 million) and trade receivables (₹3,620 million), which indicates that the company has more goods in stock and more money owed by customers.

Trade Payables: The company’s trade payables increased by ₹19,830 million, suggesting that it owes more to its suppliers.

Other Liabilities and Provisions: Other liabilities and provisions also saw changes, with a notable increase in current and non-current provisions by ₹1,345 million.

Cash Generated from Operating Activities: The company generated ₹33,650 million in cash from operating activities, with a significant increase from the previous year. After paying ₹6,338 million in income tax, the net cash generated was ₹27,312 million, showing a strong operational cash flow.

Cash Flows from Investing Activities:

Purchase and Sale of Property, Plant, and Equipment: The company spent ₹1,755 million on new property, plant, and equipment, with an additional ₹1,837 million purchased from a fellow subsidiary. The proceeds from the sale of assets were minimal at ₹24 million.

Interest Received: The company earned ₹1,401 million in interest from deposits, reflecting a healthy return on its investments.

Net Cash Flow Used in Investing Activities: The overall cash used in investing activities was ₹2,167 million, a higher outflow compared to the previous year, mainly due to increased spending on assets.

Cash Flows from Financing Activities:

Lease Liabilities and Dividend Payments: The company paid ₹1,090 million in lease liabilities and distributed ₹1,071 million in dividends to shareholders, similar to the previous year.

Net Cash Used in Financing Activities: The net cash outflow from financing activities was ₹2,161 million, slightly lower than the previous year, indicating stable financial outflows in this area.

Net Increase in Cash and Cash Equivalents:

The company’s cash and cash equivalents increased by ₹22,984 million during the year, a significant improvement compared to the previous year’s increase of ₹13,336 million.

Opening and Closing Balances: The cash balance at the beginning of the year was ₹19,835 million, which increased to ₹42,826 million by the end of the year, demonstrating a strong liquidity position.

Financial Ratios of Carrier Airconditioning & Refrigeration Limited

Here is a summary of the financial and operational metrics for Carrier Airconditioning & Refrigeration Limited for the years 2024 and 2023:

Current Ratio (1.43 in 2024 vs. 1.39 in 2023):

The current ratio improved slightly from 1.39 to 1.43. This ratio measures the company’s ability to meet its short-term liabilities with its short-term assets. A ratio above 1 indicates that the company can cover its short-term obligations.

The small increase shows the company has become marginally more liquid, improving its ability to manage its short-term debt while still maintaining an efficient balance between current assets and liabilities.

Return on Equity (ROE) (30% in 2024 and 2023):

ROE remained steady at 30%. This ratio indicates how efficiently the company is using its shareholders ' equity to generate profits.

A 30% ROE suggests that the company is consistently providing strong returns to its shareholders. Maintaining this high percentage year-over-year is a positive sign of stability and effective capital management.

Inventory Turnover Ratio (3.52 in 2024 vs. 3.89 in 2023):

The inventory turnover ratio decreased from 3.89 to 3.52. This ratio shows how many times the company sold and replaced its inventory over the period.

A decrease suggests that inventory is moving more slowly compared to the previous year, which could imply either an increase in inventory levels or slower sales. The company may need to monitor inventory management closely to prevent potential excess stock or obsolescence issues.

Trade Receivables Turnover Ratio (6.38 in 2024 vs. 6.84 in 2023):

The trade receivables turnover ratio declined from 6.84 to 6.38, indicating that the company is collecting its receivables at a slightly slower pace.

While the ratio is still reasonably high, the slower collection cycle may suggest that customers are taking longer to pay, or that there is more credit being extended to customers. This could affect cash flow and needs to be managed to ensure receivables do not accumulate excessively.

Trade Payables Turnover Ratio (2.42 in 2024 vs. 3.1 in 2023):

The trade payables turnover ratio dropped significantly from 3.1 to 2.42. This ratio measures how quickly the company is paying its suppliers.

A lower ratio suggests that the company is taking longer to settle its payables, which could be a strategy to improve short-term liquidity. While this can help cash flow, it’s important to ensure that supplier relationships are not strained by delayed payments.

Net Capital Turnover Ratio (7.21 in 2024 vs. 9.91 in 2023):

The net capital turnover ratio fell from 9.91 to 7.21. This ratio indicates how efficiently the company uses its working capital to generate revenue.

A decrease suggests that the company’s ability to generate revenue from its working capital has reduced. This could be tied to the slower inventory and receivables turnover, highlighting the need to optimize working capital management.

Net Profit Ratio (6% in 2024 vs. 5% in 2023):

The net profit ratio improved from 5% to 6%. This ratio reflects the company 's ability to convert revenue into profit after all expenses.

The increase indicates better profitability, suggesting that the company is managing its costs more effectively or generating higher revenue growth relative to its expenses.

Return on Capital Employed (ROCE) (31% in 2024 and 2023):

ROCE remained constant at 31%. This ratio measures how well the company is generating profits from its capital employed (equity and debt).

A consistent 31% return demonstrates efficient use of capital and suggests that the company is maintaining strong profitability relative to its overall capital base.

Dividend History

Carrier Airconditioning & Refrigeration Limited Recent Financial Performance

Dividend per Share: The specific dividend per share figure for 2024 is Rs. 9.5 per share. Dividend per share represents the portion of a company 's earnings that is distributed to shareholders in the form of dividends. A higher dividend per share may indicate that the company is sharing more of its profits with shareholders.

Retained Earnings: Retained earnings for 2024 amounted to Rs 38,375 Lakhs, while in 2023, they were Rs. 24,495 lakhs. Retained earnings represent the portion of a company 's profits that is reinvested in the business rather than distributed as dividends. An increase in retained earnings suggests that the company has retained more of its profits for reinvestment or future growth.

To provide a more comprehensive analysis, it would be necessary to consider additional financial metrics such as revenue, net profit, assets, liabilities, and cash flows. Additionally, an analysis of trends over multiple years and a comparison to industry benchmarks and competitors would help in assessing the company 's financial health and performance.