Crescent Finstock Limited Annual Report, Balance Sheet, and Financials.

Crescent Finstock Consolidated Balance Sheet (Rs in Lakhs)

  Crescent Finstock Profit and Loss Statement (Rs in Lakhs)

Crescent Finstock 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:

 Net Profit Before Tax:

 There has been a significant increase in net profit before tax in 2024 compared to 2023, indicating a substantial improvement in the company’s profitability.

 Adjustments for Non-Cash Items:

 Depreciation:

. Depreciation has increased considerably, reflecting a higher depreciation expense, likely due to new assets or changes in depreciation policies.

 Profit/(Loss) on Sale of Investments:

. The company experienced a higher loss from the sale of investments in 2024, which negatively impacts cash flow.

Interest Income:

. Interest income has slightly increased, indicating higher returns on investments.

Provisions for Gratuity & Leave Salary:

. The provisions for gratuity and leave salary remain relatively stable.

Dividend from Investments:

. Dividend income has increased, contributing positively to cash flow.

Interest Expenses:

. Interest expenses have increased, suggesting a higher cost of borrowing.

Operating Loss Before Working Capital Changes:

. The company transitioned from an operating loss to a positive operating profit before changes in working capital, reflecting improved operational efficiency.

Changes in Working Capital:

Trade Receivables:

. Trade receivables have increased, suggesting either higher sales or slower collection of receivables.

Other Financial Assets/Other Assets:

. There’s a slight decrease in the increase of other financial assets, indicating a reduction in asset growth.

Other Current Assets:

. Other current assets have increased significantly, possibly due to investments or prepayments.

Inventories:

. The increase in inventories suggests either a buildup of stock or a reduction in inventory turnover.

Trade Payables:

. A decrease in trade payables might indicate quicker payments to suppliers or reduced procurement.

Other Changes:

Changes in other working capital components are relatively minor but contribute to the overall changes in cash flow from operations.

Cash from/(Used in) Operations:

. There’s a significant positive cash flow from operations in 2024 compared to a negative cash flow in 2023, reflecting improved operational performance.

Less: Tax Paid:

. A significant increase in tax payments aligns with the increased profitability.

Net Cash from Operating Activities:

. The company’s net cash flow from operating activities has improved substantially, indicating better cash generation from core operations.

2. Cash Flow from Investing Activities:

Purchase of Property, Plant, and Capital Work in Progress:

. Investment in property and capital has decreased, suggesting reduced capital expenditure or completion of major projects.

Purchase of Investments:

. A substantial increase in investments indicates a significant outflow for acquiring new investments.

Proceeds from Sale of Investments:

. Higher proceeds from the sale of investments suggest successful divestments or a strategic shift in the investment portfolio.

Proceeds of Loans Recovered:

. A slight decrease in loan recoveries shows less inflow from this source.

Dividend from Investments:

. Dividend receipts have increased, providing additional cash inflow.

Deposit Paid:

. Payments for deposits have slightly decreased.

Interest Income:

. Increased interest income enhances cash flow from investing activities.

Net Cash (Used in)/From Investing Activities:

. There’s a significant net outflow in investing activities in 2024 due to increased investments and capital expenditures.

3. Cash Flow from Financing Activities:

Proceed from Issue of Equity Share Capital:

. The company raised funds through equity issuance, which positively impacts cash flow.

Increase/Decrease in Borrowings:

. A decrease in borrowings in 2024 suggests repayment of debt or reduced need for external financing.

Net Cash Flows from Financing Activities:

. Higher net cash inflow from financing activities in 2024 reflects successful capital raising and financing strategies.

4. Net Cash Flows During the Year:

. The company experienced a net decrease in cash flow for both years, with a higher outflow in 2024 compared to 2023. This indicates that despite improvements in operational cash flow, investing activities and other cash outflows have had a significant impact.

. The closing balance of cash and cash equivalents decreased in 2024, reflecting the net outflow during the year.

 Financial Ratios of Crescent Finstock

 Here is a summary of the financial and operational metrics for Crescent Finstock for the year 2024 & 2023:

Debt Service Coverage Ratio (DSCR):

The Debt Service Coverage Ratio measures a company 's ability to cover its debt obligations with its operating income. A negative ratio indicates that the company 's operating income is insufficient to meet its debt service requirements. The improvement from -3.35 in 2023 to -1.08 in 2024, while still negative, suggests that the company 's ability to service its debt has improved, likely due to an increase in operating income or a decrease in debt obligations.

Return on Equity (ROE):

Return on Equity indicates the profitability relative to shareholders ' equity, reflecting how effectively the company is using its equity to generate profit. The significant increase from 1.28% in 2023 to 7.60% in 2024 highlights a substantial improvement in profitability and efficiency. This suggests that the company has become more effective at converting equity into profits, likely due to higher net income or improved operational efficiency.

Trade Receivables Turnover Ratio:

This ratio measures how efficiently the company collects its receivables. A lower ratio in 2024 compared to 2023 indicates a slower collection period for receivables, which could suggest a decrease in the efficiency of collecting payments from customers or an increase in outstanding receivables. Despite the decrease, the ratio remains relatively high, suggesting that the company is still efficient in managing trade receivables.

Trade Payables Turnover Ratio:

The Trade Payables Turnover Ratio measures how quickly the company pays off its suppliers. An increase from 0.20 in 2023 to 0.23 in 2024 indicates a slight improvement in the company 's ability to pay its trade payables. This could mean that the company is paying its suppliers more promptly or managing its payables more effectively, which can enhance supplier relationships and potentially secure better terms.

Net Profit Margin:

The Net Profit Margin shows the percentage of revenue that translates into profit after all expenses have been deducted. The dramatic increase from 4.88% in 2023 to 28.28% in 2024 reflects a significant improvement in profitability. This could be due to increased revenues, better cost management, or other factors that have led to a more favorable profit outcome.

EBITDA Margin:

The EBITDA Margin represents earnings before interest, taxes, depreciation, and amortization as a percentage of total revenue. A negative margin indicates that the company is experiencing an operating loss. However, the improvement from -8.59% in 2023 to -3.30% in 2024 shows a reduction in operating losses, suggesting that the company has improved its operational efficiency or reduced its operating expenses.

EBIT Margin:

The EBIT Margin indicates the percentage of revenue that remains after covering operating expenses but before interest and taxes. A negative EBIT Margin signifies an operating loss, and the increase in the negative margin from -8.86% in 2023 to -9.95% in 2024 suggests that operating losses have worsened. This could be due to increased operating expenses or lower revenues, highlighting a need for better cost control or revenue enhancement strategies.