Hardoli Paper Annual Reports, Balance Sheet and Financials

Hardoli Paper Mills Limited Balance Sheet (Rs in Lakhs)

Hardoli Paper Mills Limited Profit & Loss Statement (Rs in Lakhs)

 Hardoli Paper Mills Limited 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:

For the year ending March 31, 2024, the company reported a negative profit before tax of Rs. -687.2 lakh, which was a larger loss compared to the previous year (Rs. -497.75 lakh). Despite this, there was a positive adjustment for non-cash items, including depreciation, actuarial gains/losses, and finance costs, which totaled Rs. 366.80 lakh. These adjustments helped to offset the losses and resulted in an operating profit before working capital changes of Rs. -320.40 lakh (worsened from Rs. -226.52 lakh in FY 2023).

However, changes in working capital had a significant positive impact, contributing Rs. 867.88 lakh (up from Rs. 277.91 lakh in FY 2023). This was mainly driven by increased inventories, higher trade receivables, and changes in financial liabilities and current liabilities. After accounting for income tax payments of Rs. -4.61 lakh, the net cash inflow from operating activities stood at Rs. 542.87 lakh, a notable improvement from Rs. 39.11 lakh in the previous year.

Cash Flow from Investing Activities:

The company spent Rs. 498.88 lakh on acquiring property, plant, and equipment, which is a significant outflow. There were no proceeds from asset disposals during the year. As a result, the net cash outflow from investing activities was Rs. -498.88 lakh, a decrease in cash compared to the previous year when the outflow was Rs. -907.52 lakh. The lower outflow suggests a reduction in capital expenditures in FY 2024.

Cash Flow from Financing Activities:

In financing activities, the company raised Rs. 112.85 lakh through borrowings (compared to Rs. 1,039.23 lakh in FY 2023). However, there was a repayment of borrowings (Rs. -83.35 lakh), and interest paid amounted to Rs. -156.45 lakh. Overall, the net cash outflow from financing activities was Rs. -43.60 lakh, significantly lower than the Rs. 870.01 lakh inflow in the previous year. This reflects reduced borrowing activities and higher interest payments.

Net Cash Movement:

The overall net increase in cash and cash equivalents was Rs. 0.40 lakh for FY 2024, which is a minimal change compared to Rs. 1.61 lakh in FY 2023. Cash at the beginning of the year stood at Rs. 2.40 lakh and increased slightly to Rs. 2.79 lakh by the end of the year, indicating stable liquidity but limited cash growth despite positive operational cash flow.

Financial Ratios of Hardoli Paper Mills Limited

Here is a summary of the financial and operational metrics for Hardoli Paper Mills Limited for the year 2024 and 2023:

Current Ratio (0.53 in 2024 vs. 0.98 in 2023)

The current ratio measures a company's ability to pay its short-term liabilities using its short-term assets. A ratio of 0.53 in 2024 means that the company has only Rs. 0.53 in current assets for every Rs. 1 of current liabilities, indicating liquidity problems. In 2023, the ratio was better at 0.98, but it was still below the ideal threshold of 1, which suggests the company may have had difficulty meeting short-term obligations in both years.

Debt Equity Ratio (1.85 in 2024 vs. 1.37 in 2023)

The debt-equity ratio indicates the proportion of debt to equity in financing the company’s assets. A ratio of 1.85 in 2024 means the company has Rs. 1.85 of debt for every Rs. 1 of equity, signifying higher financial leverage and risk. This is a sharp increase from 1.37 in 2023, suggesting that the company has become more reliant on debt to finance its operations, which could be a concern if it struggles to generate profits.

Debt Service Coverage Ratio (−0.61 in 2024 vs. −0.94 in 2023)

The debt service coverage ratio (DSCR) measures the company's ability to meet its debt obligations from operating cash flows. A negative ratio indicates that the company is not generating enough cash flow to cover its debt service (interest and principal payments). In both years, the company has a negative DSCR, worsening from -0.94 in 2023 to -0.61 in 2024, highlighting ongoing financial distress and an inability to cover its debt obligations from operations.

Return on Equity (−24.21% in 2024 vs. −14.82% in 2023)

The return on equity (ROE) measures the profitability of a company in relation to shareholders' equity. A negative ROE of -24.21% in 2024 means the company is generating a loss on its equity capital, which is worse than the -14.82% in 2023. This signals poor financial performance and the inability to generate positive returns for shareholders.

Inventory Turnover Ratio (17.81 in 2024 vs. 28.08 in 2023)

The inventory turnover ratio indicates how efficiently a company is managing its inventory. A higher ratio signifies faster inventory turnover. In 2024, the ratio dropped to 17.81 from 28.08 in 2023, suggesting a slower rate of inventory turnover. While still relatively high, this decrease may indicate that the company is holding inventory for longer periods, which could tie up working capital and affect cash flow.

Trade Receivables Turnover Ratio (5.98 in 2024 vs. 7.45 in 2023)

The trade receivables turnover ratio measures how effectively the company collects its receivables. A ratio of 5.98 in 2024 means the company collects its receivables approximately 6 times per year, a decrease from 7.45 times in 2023. The decline suggests that the company may be taking longer to collect payments from customers, potentially impacting cash flow and increasing the risk of bad debts.

Trade Payables Turnover Ratio (3.89 in 2024 vs. 9.23 in 2023)

The trade payables turnover ratio measures how quickly the company pays its suppliers. A ratio of 3.89 in 2024 means the company is paying its trade creditors around 4 times a year, which is a significant decrease from 9.23 times in 2023. This suggests the company is taking longer to settle its payables, which could indicate cash flow pressures or more lenient payment terms with suppliers.

Net Capital Turnover Ratio (−5.46 in 2024 vs. −141.76 in 2023)

The net capital turnover ratio measures the efficiency of the company in generating sales from its invested capital. A negative ratio indicates the company is not generating positive sales relative to its capital base. The significant improvement from -141.76 in 2023 to -5.46 in 2024, though still negative, suggests a reduction in capital inefficiency, but the negative value still points to poor capital utilization.

Net Profit Ratio (−8.67% in 2024 vs. −3.59% in 2023)

The net profit ratio shows the percentage of revenue that translates into net profit. A negative net profit ratio of -8.67% in 2024 means that the company is incurring losses, as it is losing Rs. 8.67 for every Rs. 100 in revenue. This is worse than the -3.59% in 2023, indicating that the company’s profitability has deteriorated.

Return on Capital Employed (−17.78% in 2024 vs. −11.61% in 2023)

The return on capital employed (ROCE) measures the profitability relative to the capital invested in the company. A negative ROCE of -17.78% in 2024 suggests that the company is not effectively generating returns on its capital base. This is a worsening trend from -11.61% in 2023, further highlighting the company’s operational and financial difficulties.