HELLA India Limited Annual Reports, Balance Sheet and Financials

Hella India Lighting Limited Balance Sheet (Rs in Lakhs)

Hella India Lighting Limited Profit & Loss Statement (Rs in Lakhs)

Hella India Lighting Limited Consolidated Cash Flow Statement (Rs in Lakhs)

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

Cash from Operating Activities:

Profit before tax for the year ending March 31, 2024, is ₹3,918.92 Lakhs compared to ₹3,939.95 Lakhs in the previous year.

Various adjustments are made, including:

Depreciation and amortization expenses: ₹1,329.03 Lakhs (up from ₹1,065.74 Lakhs).

Interest expenses: ₹454.19 Lakhs.

Adjustments for other items like interest income, foreign exchange losses/gains, and provisions.

After these adjustments, the Operating Profit before Working Capital Changes amounts to ₹5,590.79 Lakhs.

Changes in working capital involve:

A significant increase in trade receivables (₹1,496.59 Lakhs) and inventories (₹585.79 Lakhs), indicating a use of cash.

A decrease in other current assets (₹595.86 Lakhs), which contributes positively to cash flow.

After considering these changes, the cash generated in operations is ₹3,705.83 Lakhs.

Deducting income tax paid (₹1,271.87 Lakhs), the Net Cash from Operating Activities is ₹2,433.96 Lakhs.

Cash from Investing Activities:

The company invested ₹1,854.68 Lakhs in capital expenditure (property, plant, and equipment).

There were some inflows from the sale of assets (₹5.51 Lakhs) and interest received (₹185.89 Lakhs).

Overall, the Net Cash Used in Investing Activities is ₹1,663.28 Lakhs, reflecting substantial outflows mainly due to capital expenditure.

Cash from Financing Activities:

Significant inflows from the issuance of share capital (₹5,445.80 Lakhs).

The company also raised funds through both long-term (₹74 Lakhs) and short-term borrowings (₹384.74 Lakhs).

However, there were outflows due to the repayment of borrowings (₹625 Lakhs), lease rentals (₹208.07 Lakhs), and interest payments (₹501.39 Lakhs).

The Net Cash from Financing Activities is a strong inflow of ₹4,570.08 Lakhs, largely driven by the share issuance.

Net Increase/Decrease in Cash and Cash Equivalents:

The combined impact of operating, investing, and financing activities results in a net increase of ₹5,340.76 Lakhs in cash and cash equivalents.

Starting with ₹700.99 Lakhs at the beginning of the year, the company ends with ₹6,041.75 Lakhs in cash and cash equivalents.

Breakdown of Cash and Cash Equivalents:

Current accounts: ₹292.41 Lakhs.

EEFC (Exchange Earners ' Foreign Currency) accounts: ₹303.34 Lakhs.

Short-term fixed deposits: ₹5,446.00 Lakhs.

Financial Ratios of Hella India Lighting Limited

Here is a summary of the financial and operational metrics for Hella India Lighting Limited for the years 2024 and 2023:

Current Ratio:

2024: 2.31

2023: 2.31

Insight: The current ratio remains unchanged at 2.31, indicating consistent liquidity levels. The company has the same level of short-term assets relative to its short-term liabilities as in the previous year, suggesting stable short-term financial health.

Debt – Equity Ratio:

2024: 0.11

2023: 0.03

Insight: The debt-to-equity ratio has increased from 0.03 to 0.11, signalling a higher reliance on debt relative to equity. This rise could indicate increased borrowing or a change in the capital structure. However, the ratio remains low, indicating relatively low financial risk and a conservative use of debt.

Debt Service Coverage Ratio:

2024: 234.90%

2023: 119.55%

Insight: This ratio has improved significantly, indicating that the company’s ability to cover its debt obligations with operating cash flow has increased. The high ratio in 2024 suggests strong financial health and the company’s ability to comfortably meet its debt payments.

Return on Equity Ratio:

2024: 21.75%

2023: 14.48%

Insight: A substantial increase in return on equity (ROE) from 14.48% to 21.75% reflects improved profitability relative to shareholders’ equity. This indicates effective use of shareholders ' funds and a strong return on investments made by the equity holders.

Current Ratio (1.97 in 2024 vs. 1.23 in 2023):

The current ratio has improved, indicating better liquidity. A ratio of 1.97 suggests the company has nearly twice the current assets as current liabilities, reflecting a stronger position to meet short-term obligations compared to the previous year.

Debt-Equity Ratio (0.04 in 2024 vs. 0.14 in 2023):

The significant reduction in the debt-equity ratio highlights that the company has reduced its reliance on debt financing in 2024. With lower debt, the company is less exposed to financial risk, contributing to a more stable financial structure.

Debt Service Coverage Ratio (6.7 in 2024 vs. 3.45 in 2023):

The substantial improvement in the debt service coverage ratio indicates that the company has enhanced its ability to cover debt obligations. With a ratio of 6.7, the company is generating much more earnings relative to its debt payments, reflecting better financial management.

Return on Equity (ROE) (16.68% in 2024 vs. 29.61% in 2023):

The decline in ROE suggests that the company is generating lower returns on shareholder equity in 2024. Although 16.68% is still a healthy return, the significant drop from 29.61% may indicate lower profitability or a higher equity base without a proportionate increase in earnings.

Inventory Turnover Ratio (4.38 in 2024 vs. 5.11 in 2023):

The decrease in inventory turnover ratio implies that inventory is moving slower in 2024 compared to the previous year. This could point to either reduced sales or higher inventory levels, which may need closer management to avoid potential excess or obsolescence.

Trade Receivables Turnover Ratio (5.42 in 2024 vs. 6.21 in 2023):

The lower trade receivables turnover ratio indicates a slower collection cycle in 2024. It suggests that customers are taking longer to pay, which could affect cash flow and increase the need for working capital.

Trade Payables Turnover Ratio (4.04 in 2024 vs. 3.95 in 2023):

A slight increase in this ratio indicates that the company is paying its suppliers a bit faster in 2024. While faster payments may strengthen supplier relationships, it could also indicate more stringent payment terms or reduced cash flow flexibility.

Net Capital Turnover Ratio (3.87 in 2024 vs. 13.68 in 2023):

The sharp decline in the net capital turnover ratio is concerning, as it suggests the company is generating significantly less revenue for each unit of working capital. This could be due to increased working capital requirements or inefficiencies in asset utilization.

Net Profit Ratio (7.08% in 2024 vs. 7.03% in 2023):

The net profit ratio remained stable with a slight improvement. This consistency shows that the company is maintaining its profitability levels, with effective cost management relative to revenue.

Return on Capital Employed (ROCE) (24.55% in 2024 vs. 42.98% in 2023):

The drop in ROCE indicates reduced efficiency in generating returns from capital employed. This could suggest lower profitability or increased capital without a corresponding increase in returns.

Return on Investment (ROI) (21.94% in 2024 vs. 34.68% in 2023):

The decline in ROI reflects lower returns from investments compared to the previous year. This could result from reduced profitability or less lucrative investments.

Dividend History

Hella India Lighting Limited Recent Financial Performance

Dividend per Share: The specific dividend per share figure for 2024 and 2023 is not provided. Dividend per share represents the portion of a company 's earnings that is distributed to shareholders in the form of dividends. A higher dividend per share may indicate that the company is sharing more of its profits with shareholders.

Retained Earnings: Retained earnings for 2024 amounted to Rs 7,732.87 Lakhs, while in 2023, they were Rs. 4,822.35 Lakhs. Retained earnings represent the portion of a company 's profits that is reinvested in the business rather than distributed as dividends. An increase in retained earnings suggests that the company has retained more of its profits for reinvestment or future growth.

To provide a more comprehensive analysis, it would be necessary to consider additional financial metrics such as revenue, net profit, assets, liabilities, and cash flows. Additionally, an analysis of trends over multiple years and a comparison to industry benchmarks and competitors would help in assessing the company 's financial health and performance.