Dr M Induscorp Ltd Annual Reports, Balance Sheet and Financials

Dr M Induscorp Limited Balance Sheet (Rs. in Thousands)

Dr M Induscorp Limited Profit & Loss Statement (Rs. in Thousands)

 Dr M Induscorp 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 Net Profit recorded in the profit and loss account for 2024 is ₹805.54 thousand, compared to ₹751.81 thousand in 2023. However, several deductions were made for non-operating incomes, including:

Interest Income of ₹2580.24 thousand and Dividend Income of ₹30.43 thousand, along with Capital Gains of ₹924.65 thousand, were subtracted since they are not core operating cash inflows.

Depreciation of ₹98.67 thousand was added back as a non-cash expense to reflect the actual cash flow.

There was an addition of ₹115.67 thousand for reserves transferred, while a deduction of ₹282.14 thousand was made for the amount transferred from reserves.

Adjustments to working capital include changes in current assets, provisions, inventories, and other payables, which had a significant effect. The net impact resulted in an outflow of ₹14,528.2 thousand from operating activities in 2024, contrasting sharply with the inflow of ₹11,113.53 thousand in 2023, reflecting an overall cash strain.

Cash Flow from Investing Activities

Key investing activities include:

Interest Income of ₹2580.24 thousand and Dividend Income of ₹30.43 thousand as inflows.

The sale of shares generated ₹5340.53 thousand, while the purchase of shares led to an outflow of ₹5997.91 thousand.

This resulted in a positive cash flow from investing activities of ₹1953.28 thousand in 2024, slightly lower than ₹2942.72 thousand in 2023, indicating less favorable returns from investment activities this year.

Cash Flow from Financing Activities

There were no inflows from financing activities in 2024, similar to last year, as indicated by the lack of short-term loans or secured loan reductions. This inactivity reflects a neutral financing stance without additional leverage or repayment adjustments. However, in 2023, a cash outflow of ₹5979.44 thousand was recorded due to loan repayment.

Net Change in Cash Position

The cumulative effect of cash flows from operating, investing, and financing activities resulted in a net cash outflow of ₹12,574.92 thousand in 2024, in contrast to the net inflow of ₹8076.81 thousand in 2023. This significant outflow reflects a challenging year with higher cash usage, especially in operations.

Financial Ratios of Dr M Induscorp Limited

Here is a summary of the financial and operational metrics for Dr M Induscorp Limited for the year 2024 and 2023:

Current Ratio

The current ratio of 122.2 in 2024 versus 129.09 in 2023 suggests a high level of liquidity, indicating that the company has ample current assets compared to its current liabilities. However, such an unusually high ratio might imply an excess of idle assets, which could instead be invested or used to improve operational efficiency.

Return on Equity (ROE) Ratio

The Return on Equity ratio remained steady at 0.03 for both years, which reflects a very low return relative to the equity base. This low ratio could mean that while the company is maintaining equity levels, it is not generating substantial profits in proportion to shareholder equity, which might not be attractive to investors seeking higher returns.

Inventory Turnover Ratio

The Inventory Turnover decreased from 19.43 in 2023 to 14.02 in 2024, indicating a slower pace in selling or utilizing inventory. This may suggest inefficiencies in inventory management or lower sales demand, potentially leading to higher holding costs and reduced cash floA decrease in the Trade Receivables Turnover Ratio from 0.35 in 2023 to 0.23 in 2024 indicates that receivables are being collected more slowly, possibly signifying lenient credit policies or challenges in collecting outstanding receivables. This might affect cash flow and reflects an area for potential improvement in credit management practices.

Trade Payables Turnover Ratio

The Trade Payables Turnover Ratio fell from 2.1 to 1.18 over the year, indicating a slower rate of paying suppliers. While this may improve short-term cash flow, it could strain supplier relationships and affect terms of trade.

Net Capital Turnover Ratio

The Net Capital Turnover Ratio dropped from 0.19 in 2023 to 0.11 in 2024, showing that the company is generating less revenue per unit of net capital. This reduction could indicate declining efficiency in utilizing capital to generate sales, which may be a warning sign if not addressed.

Net Profit Ratio

An increase in the Net Profit Ratio from 0.19 to 0.34 signifies an improvement in profitability, indicating that the company is retaining more profit from its revenue. This positive trend is a sign of better cost management or increased operational efficiency.

Return on Capital Employed (ROCE)

The ROCE remained consistent at 0.03 for both years, indicating a minimal return relative to the capital employed. This suggests that the company is not generating substantial returns from its capital base, potentially limiting attractiveness to investors focused on capital efficiency.