Denim Developers Limited Annual Reports, Balance Sheet & Financials

Denim Developers Limited Balance Sheet (Rs in Thousands)

 Denim Developers Limited Profit & Loss Statement (Rs in Thousands)

 Denim Developers Limited Consolidated Cash Flow Statement (Rs in Thousands)

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 Profit After Income Tax, which is reported at ₹197,887.45 thousand for 2024, a notable increase from ₹173,397.28 thousand in 2023. Several adjustments are made to account for non-cash and non-operating items to determine the cash flow generated purely from core operations:

Interest Received (₹10,430.92 thousand) is subtracted, and Finance Costs (₹768.79 thousand) are added back, as these represent non-operating items.

Depreciation increased significantly from ₹3,186.38 thousand in 2023 to ₹4,523.24 thousand in 2024, which is added back as it represents a non-cash charge related to asset value reduction.

After adjustments, the Operating Cash Profit Before Working Capital Changes is calculated at ₹192,748.56 thousand for 2024.

The statement then adjusts for changes in operating assets and liabilities:

Non-Current Assets showed a large cash outflow of ₹115,656.81 thousand, indicating an increase in these assets.

Other Current Assets also show an outflow of ₹60,825.97 thousand, reflecting a similar trend.

Inventories generated a significant inflow of ₹28,455.91 thousand, while Trade Receivables also show a large positive cash flow of ₹89,359.82 thousand, indicating efficient receivables collection or a decrease in outstanding customer balances.

Trade Payables show an outflow of ₹14,989.44 thousand, suggesting that the company settled part of its payables.

Other Current Liabilities increased, generating a cash inflow of ₹38,260.22 thousand.

After these working capital adjustments, the Cash Outflow from Operations is ₹144,957.47 thousand. After paying income taxes amounting to ₹37,548.65 thousand, the Net Cash Outflow from Operating Activities totals ₹107,408.82 thousand in 2024, down from ₹261,352.66 thousand in 2023. This indicates a substantial improvement in operational cash flow management.

Cash Flow from Investing Activities

In investing activities, cash flows are primarily related to the acquisition and disposal of assets and investments:

The company made substantial business advances totaling ₹84,800.64 thousand, representing a large cash outflow.

Loan Receipts provided an inflow of ₹25,720.77 thousand, suggesting that previously given loans were repaid.

The company incurred an outflow of ₹37,758.07 thousand related to the purchase of property, plant, and equipment.

Interest Received from investments contributed a cash inflow of ₹10,430.92 thousand.

The Net Cash Flow from Investing Activities shows a negative balance of ₹86,408.51 thousand for 2024, which is an improvement compared to the outflow of ₹164,069.82 thousand in 2023. This decrease in outflows could indicate a reduction in major investments or capital expenditures.

Cash Flow from Financing Activities

The financing activities section shows cash flows related to borrowings and shareholder distributions:

There was no new borrowing or repayment of borrowings reported for 2024, unlike in 2023 where there was an outflow of ₹88,788.00 thousand.

Interest Paid amounted to ₹768.79 thousand.

The Net Cash Outflow from Financing Activities totaled ₹768.79 thousand in 2024, down from ₹90,404.50 thousand in 2023. The absence of major financing outflows indicates that the company relied less on external financing this year.

Net Increase in Cash and Cash Equivalents

The combined impact of these activities resulted in a Net Increase in Cash and Cash Equivalents of ₹20,231.52 thousand in 2024, compared to ₹6,878.34 thousand in 2023. This increase shows improved liquidity, driven largely by better cash management in both operating and investing activities.

The Cash and Cash Equivalents at the beginning of the year were ₹10,518.76 thousand, bringing the ending balance for March 31, 2024, to ₹30,750.28 thousand. This strong cash position indicates a stable financial standing and enhanced liquidity, which could be beneficial for future investments or operational flexibility

 Financial Ratios of Denim Developers Limited

Here is a summary of the financial and operational metrics for Denim Developers Limited for the year 2024 and 2023:

Current Ratio

The Current Ratio measures a company 's ability to meet its short-term obligations with its current assets. In 2024, the current ratio stands at 3.95, a decrease from 8.31 in 2023. While both figures are above the conventional benchmark of 1.5-2, indicating strong liquidity, the significant drop suggests that the company has used more of its current assets, potentially to fund operations or pay off liabilities.

Debt-to-Equity Ratio

The Debt-to-Equity Ratio indicates the proportion of debt financing relative to equity. With ratios of 0.004 in 2024 and 0.005 in 2023, the company has an extremely low level of debt compared to its equity.

Debt Service Coverage Ratio (DSCR)

The Debt Service Coverage Ratio measures the company’s ability to service its debt from its earnings, calculated as earnings before interest and taxes (EBIT) over debt obligations. The DSCR of 20.95 in 2024 and 22.37 in 2023 reflects a strong capacity to cover debt obligations multiple times over

Return on Equity (ROE)

The Return on Equity (ROE) shows the profitability relative to shareholders ' equity, indicating how effectively the company generates profits from shareholders ' investments. ROE decreased from 11.74% in 2023 to 9.75% in 2024, signaling slightly lower profitability or efficiency in generating returns for shareholders.

Inventory Turnover Ratio

The Inventory Turnover Ratio measures how frequently inventory is sold and replaced over a period. The ratio increased from 0.18 in 2023 to 0.37 in 2024. This improvement suggests that the company is managing its inventory more efficiently, potentially reducing storage costs and minimizing the risk of obsolescence

Trade Receivables Turnover Ratio

The Trade Receivables Turnover Ratio indicates how effectively the company collects payments from its customers. A ratio of 36.01 in 2024, down from 43.69 in 2023, implies that the company’s collection period has lengthened slightly.

Trade Payables Turnover Ratio

The Trade Payables Turnover Ratio assesses how quickly the company pays its suppliers. The decrease from 26.07 in 2023 to 22.9 in 2024 suggests that the company is taking slightly longer to pay its suppliers.

Net Capital Turnover Ratio

The Net Capital Turnover Ratio measures the company’s ability to generate revenue relative to its working capital. The slight increase from 0.86 in 2023 to 0.88 in 2024 indicates improved efficiency in using net working capital to generate sales.

Net Profit Ratio

The Net Profit Ratio reflects the percentage of revenue that remains as profit after all expenses. A substantial increase from 30.03% in 2023 to 40.66% in 2024 suggests that the company has become more efficient in controlling costs relative to its revenue, thereby achieving a higher profitability margin.

Return on Capital Employed (ROCE)

The Return on Capital Employed ratio assesses the profitability and efficiency with which the company uses its capital. ROCE declined from 14.78% in 2023 to 12.69% in 2024, indicating a slight decrease in efficiency in generating returns from its capital base.