Desi Tea Time Limited Annual Reports, Balance Sheet and Financials

Desi Tea Time Limited Balance Sheet (Rs in Thousand)

 Desi Tea Time Limited Profit & Loss Statement (Rs in Thousand)

Desi Tea Time Limited Cash Flow Statement (Rs in Thousand)

Here is a summary of the Cash Flow Statement for the years 2024 and 2023(₹ In Thousands):

Cash Flow from Operating Activities:

Net Profit After Tax & Extraordinary Items: The company reported a significant increase in net profit for the year, rising from ₹10,461 in 2023 to ₹21,405 in 2024, reflecting improved profitability.

Adjustments for Non-Cash/Non-Operating Items: Depreciation expense increased from ₹6,461 to ₹10,813, highlighting higher usage or addition of fixed assets. Deferred tax adjustments also reversed from a charge of ₹2,448 in 2023 to a credit of ₹1,868 in 2024.

Working Capital Adjustments: Substantial cash outflows were observed due to an increase in trade receivables (₹73,365 in 2024 vs. ₹20,755 in 2023), indicating higher credit sales or delayed collections. Similarly, there were cash outflows from short-term loans and advances and inventory buildup. However, trade payables provided a positive cash flow (₹43,443 in 2024). The overall impact of working capital changes was a significant drain on operating cash flows.

Net Cash from Operating Activities: As a result of these adjustments, the net cash from operating activities showed a higher outflow of ₹64,711 in 2024 compared to ₹37,393 in 2023, indicating reduced operational efficiency in generating cash.

Cash Flow from Investment Activities:

The company spent ₹14,645 on the purchase of fixed assets in 2024, compared to a larger investment of ₹42,050 in 2023. This indicates reduced capital expenditure in 2024.

There were no investments in non-current investments in 2024, whereas a small inflow of ₹27 was seen in 2023.

Net Cash Used in Investment Activities: The overall cash outflow from investing activities was ₹14,645 in 2024, much lower than the outflow of ₹42,023 in 2023.

Cash Flow from Financing Activities:

The company generated significant inflows from borrowings, with ₹56,885 in 2024 compared to ₹34,580 in 2023. This indicates an increased reliance on external financing for meeting cash needs.

Net Cash from Financing Activities: This contributed positively to cash flow, amounting to ₹56,885 in 2024.

Net Change in Cash and Cash Equivalents:

The cumulative effect of cash flows from operating, investing, and financing activities resulted in a net increase of ₹7,879 in cash and cash equivalents for 2024. This is a significant improvement compared to the net decrease of ₹25,465 in 2023.

Opening and Closing Cash Balances:

Opening cash and bank balances totaled ₹2,781 in 2024. After considering the net increase in cash, the total closing cash and bank balances rose to ₹10,660 in 2024, reflecting improved liquidity.

Financial Ratios of Desi Tea Time Limited

Here is a summary of the financial and operational metrics for Desi Tea Time Limited for the years 2024 and 2023:

Current Ratio (1.3):

The company 's current ratio decreased from 1.64 in 2023 to 1.3 in 2024. While it remains above 1 (indicating the company can meet its short-term obligations), the decline suggests reduced liquidity and a lower buffer for covering current liabilities with current assets.

Debt-Equity Ratio (0.17):

The debt-equity ratio improved from 0.22 in 2023 to 0.17 in 2024, reflecting lower reliance on debt relative to equity. This indicates a more conservative capital structure, reducing financial risk.

Debt Service Coverage Ratio (2.56):

The ratio declined from 3.29 in 2023 to 2.56 in 2024. While still above 1, indicating sufficient earnings to cover debt obligations, the reduction highlights a slight drop in the company’s ability to service its debt efficiently.

Return on Equity (ROE) (10.12%):

ROE increased significantly from 7.16% in 2023 to 10.12% in 2024, showing improved profitability for shareholders. This indicates better utilization of equity capital to generate profits.

Trade Receivables Turnover Ratio (57.09 days):

The trade receivables turnover increased from 29.48 days to 57.09 days, signaling longer credit periods extended to customers. This could impact cash flow and indicates a need for better collection strategies.

Trade Payables Turnover Ratio (60.51 days):

The trade payables turnover also increased from 39.41 days to 60.51 days, suggesting that the company is taking longer to pay its suppliers. While this may help with cash flow, prolonged payment terms could strain supplier relationships.

Net Capital Turnover Ratio (-3.42):

The negative ratio improved from -9.93 in 2023 to -3.42 in 2024. Although still negative, this reflects a less pronounced decline in working capital efficiency. The company may need to optimize its working capital management to achieve positive results.

Net Profit Ratio (6.04%):

The net profit ratio remained stable, increasing slightly from 6.03% in 2023 to 6.04% in 2024. This indicates that the company maintained its profitability margins despite other challenges.

Return on Capital Employed (ROCE) (11.09%):

ROCE increased significantly from 7.04% to 11.09%, indicating better efficiency in using capital employed to generate profits. This highlights the company 's strong operational performance in 2024.

Return on Investment (ROI) (5.91%):

ROI improved marginally from 5.10% in 2023 to 5.91% in 2024, suggesting slightly better returns on the company’s total investments.