Hero FinCorp Annual Report

Hero FinCorp Limited (Hero Fincorp) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40
Hero FinCorp Limited

Hero Fincorp Balance Sheet (Rs in Crore)

Particulars	31-03-2024	31-03-2023
Assets
Financial Assets
Cash and Cash equivalents	98.78	750.01
Bank Balance other than cash and cash Equivalents	59.07	41.22
Derivative Financial instruments	133.72	115.82
Trade receivables	4.92	1.3
Loans	49,880.47	39,871.27
Investments	1,895.96	1747.49
Other financial assets	192.01	189.63
Non-Financial Liabilities
Current Tax assets (net)	155.54	147.41
Deferred Tax assets (net)	369.02	376.15
Property, plant and equipment	181	67.59
Right to use assets	118.27	45.55
Intangible assets	27.17	19.15
Intangible assets under development	0.75	2.76
Other Non-financial assets	87.98	75.74
Total Assets	53,204.66	43,451.22
Equity And Liabilities
Equity share capital	127.31	127.31
Other Equity	5,638.66	5,116.13
Non-controlling interests	6.06	4.39
Financial Liabilities
Payables	439	498.5
Borrowings	35,840.39	26,612.99
Subordinated liabilities	3,625.37	3,267.79
Debt securities	6,703.72	6,747.08
lease liabilities	127.24	52.4
Other Financial liabilities	511.33	902.72
Non-Financial Liabilities
Tax Liabilities	40.85	1.03
Provisions	69.86	54.87
Other Non-financial liabilities	74.87	66.01
Total Equity And Liabilities	53204.67	43,451.22

Hero Fincorp Profit & Loss Statement (Rs in Crore)

Particulars	31-03-2024	31-03-2023
Cash Flow from Operating Activities
Profit/ (loss) before tax	960.55	735.22
Adjustment for:
Interest Income	-7,477.66	-5,717.89
Finance Cost	3,097.36	2,173.96
Depreciation and Amortisation Expense	65.96	37.93
Impairment on financial instruments	1,722.40	1,212.23
Dividend income from investments	-0.71	-0.74
Discount on commercial paper	11.15	4.91
Employee share based payment expense	19.28	0.94
Net loss on sale of property, plant & equipment	0.74	1.6
Gain on de-recognition of financial instruments under amortized cost category	-21.28	-23.13
Net loss/(gain) on fair value changes	338.52	299.71
Profit on sale of investments	-64.7	-85.63
Cash Inflow from interest on loans	7,218.91	5,379.03
Cash Inflow from interest on fixed deposits	8.93	21.24
Cash Outflow towards finance costs	-2,758.68	-1,805.09
Operating Profit Before Working Capital Changes	3,120.77	2,234.29
Working Capital adjustments
Increase/Decrease in trade receivables	-8.77	0.67
Increase in loans	-11,580.68	-9,472.32
(Increase)/ decrease in bank balance other than cash and cash equivalents	-18.46	118.84
(Increase)/ decrease in other financial assets	18.92	-55.34
Increase in derivative financial instruments	-51.51	-115.13
Increase in other non financial assets	-16.54	-6.27
Increase/(decrease) in other financial liabilities	-395.06	393.3
Increase/(decrease) in trade payables	-54.38	193.74
Increase in other non financial liabilities	8.88	9.9
Increase in Provisions	13.78	7.22
Net cash used in operating activities before income tax	-8,963.05	-6,691.10
Income Tax Paid (Net of refund)	-275.78	-227.42
Net cash used in Operating activities	-9,238.83	-6,918.52
Cash Flow from Investing Activities
Purchase of Property, Plant, Equipment, and Other Intangible Assets	-160.65	-50.98
Proceeds from sale of property, plant and equipment	4.28	2.7
Dividend received	0.71	0.74
Interest received on Investments	114.14	51.94
Purchase of investments	-14,832.31	-17,590.26
Sale of investments	14,744.04	17,111.73
Net Cash generated from/ (Used in) Investing Activities	-129.79	-474.13
Cash Flow from Financing Activities
Proceeds from conversion of partly paid equity shares to fully paid	0.02	-
Proceeds from the issue of equity Shares of subsidiary to non-controlling interest	0.61	1.81
Proceeds from issue of compulsorily convertible preference shares	-	2,000
Share issue expensed paid	-0.25	-6
Proceeds from issue of debt securities	5,349	5,105.90
Repayment of debt securities	-5,623.76	-4,548.15
Proceeds from issue of borrowings (other than debt securities)	23,907.37	19,005.10
Repayment of borrowings (other than debt securities)	-14,785.74	-14,555.20
Proceeds from issue of subordinated liabilities	55.07	279.91
Repayment of lease liability	-34.61	-15.07
Dividend paid on equity shares	-102.94	-
Dividend paid on compulsorily convertible preference shares	-47.51	-
Net Cash Generated from Financing Activities	8,717.26	7,268.30
Net decrease in cash and cash equivalents	-651.36	-124.35
Cash and cash equivalents balances with banks (current accounts)	28.5	222.68
deposits with banks	70.28	527.46
Cash and cash equivalents at the end of the year	98.78	750.14

Hero Fincorp Consolidated Cash Flow Statement (Rs in Crore)

Particulars	31-03-2024	31-03-2023
CASH FLOW FROM OPERATING ACTIVITES
Net Profit before Tax and after Extraordinary Items	-7868.32	-24505.24
Depreciation	8046.15	8458.19
Investment written off	0	2287.33
Loss on sale of Vehicles	0	8.26
against	3.34	28.26
Prior period expense paid (written off against GR)	-3.21	-1899.16
Profit on sale of Fixed Asset	-58.7	-937.11
Operating Profit before Working Capital Charges	119.26	-16559.47
Add/ (Less): (increase)/ Decrease in Current Assets
Debtors	511.28	17856.74
Inventories	87.85	-583.78
Loan & Advances	16.11	512.85
Add/ Less: Increase/ (Decrease) in Current Liabilities
Current Liabilities and Provisions	-119.5	-2273.11
Net Cash Flow from Operating Activates	615	-1046.77
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Investments	-184.63	-
Sales of Vehicles	-	30.35
Sales of Fixed Assets	235.23	1033.97
Net Cash Flow from Investing Activities	50.6	1064.32
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from Borrowings	-1024.37	272.85
Proceeds From Unsecured Loans Interest paid	43.54	-
Dividend & Dividend Tax Paid	-3.34	-28.26
Net Cash Flow from Financing Activities	-984.17	244.59
NET INCREASE IN CASH AND CASH EQUIVALENTS	-318.57	262.14
CASH & CASD EQUIVALENTS AT THE BEGINNING OF THE YEAR	658.75	396.61
CASH & CASH EQUIVALENTS AT THE END OF THE YEAR	340.18	658.75

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

Cash Flow from Operating Activities: The company experienced a net cash outflow of ₹9,238.83 crore, an increase from ₹6,918.52 crore in the previous year. Despite a profit before tax of ₹960.55 crore, cash flows were heavily influenced by significant adjustments and working capital changes. Major outflows included increases in loans, trade receivables, and other financial assets, which more than offset cash inflows from interest and gains. The result was substantial net cash used in operating activities.

Cash Flow from Investing Activities: There was a net cash outflow of ₹129.79 crore in 2024, an improvement from the previous year 's outflow of ₹474.13 crore. The primary outflows were for purchasing property, plant, and equipment, and investments. These were partially offset by proceeds from the sale of investments and interest received, indicating a reduced but ongoing investment in capital and financial assets.

Cash Flow from Financing Activities: The company generated a net cash inflow of ₹8,717.26 crore, up from ₹7,268.30 crore in 2023. Significant inflows came from issuing borrowings and debt securities, as well as proceeds from issuing compulsorily convertible preference shares. These inflows were partly used for repaying debt securities and borrowings and paying dividends. This robust inflow reflects strong financing activities that helped mitigate the cash outflows from operating and investing activities.

Overall Cash Position: The net decrease in cash and cash equivalents for the year was ₹651.36 crore, compared to a smaller decrease of ₹124.35 crore the previous year. At the end of the year, cash and cash equivalents were ₹98.78 crore, down from ₹750.14 crore, indicating a significant reduction in liquidity due to heavy cash outflows.