East West Hotels Unlisted Share

East West Hotels Limited Balance Sheet (Rs in Thousands)

East West Hotels Limited Profit & Loss Statement (Rs in Thousands)

 East West Hotels Limited Cash Flow Statement (Rs in Thousands)

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flows from Operating Activities: The company generated a net profit before tax of Rs. 33,191, a slight decrease from Rs. 33,305 in the previous year. This marginal decline in net profit was offset by significant adjustments. Depreciation expenses rose substantially to Rs. 3,860 from Rs. 544, reflecting increased capital investment or asset base. Interest income also increased to Rs. -2,855 from Rs. -810, indicating higher earnings from investments or loans. Conversely, interest expenses increased to Rs. 3,899 from Rs. 2,810. After adjusting for these items, the operating profit before working capital changes was Rs. 38,095, up from Rs. 35,850. Changes in working capital included a notable increase in current assets by Rs. -15,195 and an increase in current liabilities by Rs. 22,547, compared to previous year adjustments. These adjustments resulted in a net cash from operating activities of Rs. 45,447, a slight decrease from Rs. 47,653 the previous year, indicating strong operating cash flow despite changes in working capital.

Cash Flows from Investing Activities: In investing activities, the company’s cash outflows were primarily due to the purchase of fixed assets and capital work in progress, totaling Rs. -2,433, a decrease from Rs. -9,034.40 in the previous year. This reduction suggests a slowdown in capital expenditure. Interest received increased to Rs. 2,855 from Rs. 810, contributing positively to cash flows. Tax payments also rose to Rs. -5,830 from Rs. -5,697. The net cash used in investing activities was Rs. -5,408, a decrease from Rs. 13,921.40 in the previous year. This drop indicates reduced investment inflows or capital returns compared to the previous period.

Cash Flows from Financing Activities: In the financing activities segment, there was a significant repayment of loans amounting to Rs. -23,938, a sharp increase from Rs. -1,366 in the previous year, indicating a substantial reduction in debt. Interest payments rose to Rs. -3,899 from Rs. -2,810, reflecting increased borrowing costs. The dividend paid also surged to Rs. -10,688 from Rs. -891, indicating a higher return to shareholders. The net cash used in financing activities was Rs. -38,525, a significant increase from Rs. -5,067, highlighting extensive cash outflows related to debt repayments and dividends.

Net Increase/(Decrease) in Cash & Cash Equivalents: The overall net increase in cash and cash equivalents was Rs. 1,515, compared to a significant increase of Rs. 28,665 the previous year. Despite a decrease in cash inflows, the company ended the year with closing cash and cash equivalents of Rs. 57,929, up from Rs. 56,414 at the beginning of the year. This indicates a stable liquidity position, even with significant cash outflows in investing and financing activities.

Financial Ratios of East West Hotels Limited

Here is a summary of the financial and operational metrics for East West Hotels Limited for the year 2024 and 2023:

Current Ratio: The current ratio decreased to 1.23 in 2023-24 from 1.59 in 2022-23. This reduction indicates a decline in the company 's short-term liquidity position. A current ratio of 1.23 means that the company has Rs. 1.23 of current assets for every Rs. 1 of current liabilities, suggesting that its ability to cover short-term obligations has weakened compared to the previous year.

Debt-Equity Ratio: The debt-equity ratio improved to 0.05 in 2023-24 from 0.15 in 2022-23. This decline in the ratio indicates a significant reduction in the company’s reliance on debt relative to its equity. A lower debt-equity ratio suggests that the company has a stronger equity base and lower financial leverage, reflecting a lower risk associated with debt financing.

Return on Equity (ROE): The return on equity ratio decreased to 0.04 in 2023-24 from 0.12 in 2022-23. This decline indicates a lower return on shareholders ' equity, suggesting reduced profitability relative to the equity invested by shareholders. The drop could imply either decreased net income or increased equity, or both.

Net Capital Turnover Ratio: The net capital turnover ratio remained constant at 0.24 for both 2023-24 and 2022-23. This ratio measures how efficiently the company is utilizing its net capital to generate revenue. The stability in this ratio suggests that the company’s efficiency in using its capital to produce sales has not changed, indicating consistent operational performance in this regard.

Net Profit Ratio: The net profit ratio remained steady at 0.6% in both years. This consistency indicates that the company’s ability to convert revenue into net profit has not changed, reflecting stable profit margins despite other variations in financial performance.

Return on Capital Employed (ROCE): The return on capital employed improved slightly to 0.15 in 2023-24 from 0.14 in 2022-23. This increase suggests a marginally better return on the capital invested in the business. The higher ROCE indicates improved efficiency in utilizing capital to generate profits.

Return on Investment (ROI): The return on investment ratio decreased significantly to 0.2 in 2023-24 from 0.68 in 2022-23. This sharp decline suggests that the returns from the company’s investments have decreased substantially. A lower ROI indicates less effective use of invested capital or lower returns on the investments compared to the previous year.