Hemadri Cements Annual Report | Balance Sheet for FY 2023-24

Hemadri Cements Limited Balance Sheet (Rs in Lakhs)

 Hemadri Cements Limited Profit & Loss Statement (Rs in Lakhs)

 Hemadri Cements 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:

In FY 2024, the company reported a total income for the period (PBT) of Rs. -1,281.49 lakh, an improvement from the previous year’s loss of Rs. -2,046.32 lakh. This suggests a reduction in operating losses, but the company is still operating at a loss.

The adjustments for non-cash items showed mixed results:

Depreciation and amortization expense remained high at Rs. 188.19 lakh, only slightly lower than Rs. 194.74 lakh in 2023, indicating ongoing asset depreciation.

The provision for doubtful advances increased significantly to Rs. 726.27 lakh from Rs. 520.00 lakh in 2023, which is a negative sign suggesting higher risk in receivables.

There was a profit on the sale of property, plant, and equipment of Rs. 1.35 lakh in FY 2024, which is a minor inflow compared to the previous year’s absence of such a transaction.

The changes in working capital showed:

A significant decrease in trade receivables of Rs. -216.89 lakh, implying improved collection efforts, but still a negative cash impact.

Increase in other financial assets and bank deposits by Rs. 219.94 lakh, a positive cash inflow, but it reflects higher liquidity tied up in financial instruments.

Decrease in inventories (Rs. -17.57 lakh) and a small increase in other current assets (Rs. 178.21 lakh) both reflect some improvement in working capital management.

Decrease in trade payables of Rs. 161.41 lakh suggests that the company paid off some liabilities, possibly straining cash flow.

Despite the net positive changes, the company generated Rs. 160.88 lakh in cash from operations, a recovery from the Rs. -1,139.68 lakh used in operations in the previous year. This is a significant improvement, but the company still faces challenges in generating positive cash flow.

After accounting for income taxes paid (Rs. 3.09 lakh in FY 2024 vs. Rs. 100.20 lakh in 2023), the net cash generated from operations was Rs. 160.88 lakh, a positive movement from the negative cash flow in 2023.

Cash Flow from Investing Activities:

The company spent Rs. 20.60 lakh on purchasing property, plant, and equipment, a decrease from Rs. 53.05 lakh in FY 2023, indicating lower capital expenditures.

It earned Rs. 1.75 lakh from the sale of property, plant, and equipment, though the sale volume was minimal.

Interest received was Rs. 22.17 lakh, a reduction from Rs. 37.48 lakh in 2023, showing slightly lower interest income.

The net cash generated from investing activities was Rs. 3.32 lakh in FY 2024, a significant improvement from the outflow of Rs. -15.57 lakh in 2023. The decrease in capital expenditure and minimal asset disposals contributed to this improvement.

Cash Flow from Financing Activities:

The company repaid borrowings (Rs. -18.29 lakh) compared to borrowing inflows of Rs. 676.26 lakh in 2023, indicating reduced reliance on debt financing.

Bank guarantee commissions and interest expenses amounted to Rs. 139.10 lakh in FY 2024, up from Rs. 76.80 lakh in 2023, reflecting higher financing costs.

As a result, the company had a net cash outflow of Rs. -157.39 lakh from financing activities in 2024, a significant shift from the net inflow of Rs. 599.46 lakh in 2023. This outflow indicates a reduced capacity to raise funds or pay off debt, which could be indicative of tighter financial conditions.

Net Change in Cash and Cash Equivalents:

The overall increase in cash and cash equivalents for FY 2024 was Rs. 6.81 lakh, compared to a decrease of Rs. 555.78 lakh in FY 2023. This small positive change in cash reflects the improvement in cash flow from operations, even though cash outflows in financing activities limited the growth.

At the end of the period, the company’s cash and cash equivalents stood at Rs. 34.90 lakh, compared to Rs. 28.09 lakh at the end of FY 2023, indicating a modest improvement in liquidity despite a challenging financial position.