Deepak Industries Annual Reports, Balance Sheet and Financials

Deepak Industries Limited Balance Sheet (Rs in Lakhs)

Deepak Industries Limited Profit & Loss Statement (Rs in Lakhs)

Deepak Industries Limited 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

The Operating Activities section begins with the Net Profit Before Tax, which stands at ₹15,546.87 lakhs in 2024, showing a slight decrease from ₹15,640.05 lakhs in 2023. Various adjustments are made to this figure to remove non-cash items and account for changes in working capital:

Depreciation and Amortization Expense increased slightly from ₹2,941.46 lakhs in 2023 to ₹3,089.43 lakhs in 2024. Depreciation is added back to profit as it is a non-cash expense, representing a loss in asset value over time.

The company recorded a Profit on Sale/Discard of Property, Plant, and Equipment of ₹5.73 lakhs, which reduces cash inflow.

Interest Income was higher in 2024 at ₹2,275.95 lakhs compared to ₹1,369.10 lakhs in 2023, indicating increased income from financial investments.

There was a write-back of liabilities no longer required amounting to ₹255.97 lakhs, which was subtracted as it does not involve actual cash inflow.

Finance Costs of ₹647.28 lakhs were added back, as interest expenses are non-operating in nature and do not affect operational cash flow.

After these adjustments, Operating Profit Before Working Capital Changes is calculated at ₹17,105.71 lakhs for 2024. Additional working capital adjustments include:

Trade and Other Receivables adjustment shows a positive inflow of ₹4,522.40 lakhs, indicating a reduction in receivables.

Inventories adjustment shows an inflow of ₹208.80 lakhs, implying a slight decrease in inventory levels.

Loans and Advances increased cash flow by ₹701.29 lakhs.

Trade Payables and Other Liabilities reflect a cash outflow of ₹3,258.19 lakhs, showing that some payables were settled.

After these adjustments, the Cash Generated from Operations was ₹19,280.01 lakhs. Following a tax payment of ₹4,509.04 lakhs, the Net Cash Flow from Operating Activities stood at ₹14,770.97 lakhs in 2024, significantly up from ₹8,788.53 lakhs in 2023, indicating improved operational efficiency.

Cash Flow from Investing Activities

In the Investing Activities section, the company’s activities involved both cash outflows and inflows related to long-term assets:

Purchase of Property, Plant, and Equipment, Intangible Assets, Right of Use Assets, and Capital Work in Progress amounted to a significant outflow of ₹3,602.82 lakhs in 2024, slightly less than ₹3,712.62 lakhs in 2023.

The company generated a small cash inflow of ₹15.40 lakhs from the sale of Property, Plant, and Equipment.

Deposits with Banks with original maturity over three months required a substantial outflow of ₹6,286.23 lakhs.

Interest Received was a substantial inflow of ₹1,882.12 lakhs, up from ₹1,064.20 lakhs in 2023, reflecting better returns on financial assets.

The net result is an outflow from Investing Activities totaling ₹8,291.53 lakhs in 2024. However, this is an improvement compared to the significant outflow of ₹8,055.05 lakhs in 2023.

Cash Flow from Financing Activities

In the Financing Activities section, the cash flow related to borrowing and shareholder returns are detailed:

Interest Paid was ₹649.01 lakhs, reflecting the cost of debt servicing.

There was a Repayment of Long-Term Borrowings from Banks amounting to ₹614.14 lakhs, while Short-Term Borrowings saw a net repayment of ₹1,679.21 lakhs, indicating the company reduced its debt burden.

Dividends Paid remained consistent at ₹395.64 lakhs, reflecting a commitment to shareholder returns.

The Net Cash Flow from Financing Activities was a negative ₹3,357.19 lakhs in 2024, compared to a smaller outflow of ₹448.49 lakhs in 2023. This change indicates that the company reduced its reliance on external financing in 2024, which could be due to stronger operating cash flows.

Net Change in Cash and Cash Equivalents

The net result of these activities led to an increase in Cash and Cash Equivalents by ₹3,122.25 lakhs, a substantial improvement from the previous year’s increase of ₹284.99 lakhs. This brought the Cash and Cash Equivalents at the beginning of the year from ₹1,545.07 lakhs to ₹4,667.32 lakhs by the end of 2024. This increase signifies improved liquidity, largely supported by strong cash inflows from operating activities despite significant investing outflows and repayments in financing.