Hexaware Technologies Annual Reports, Balance Sheet and Financials

Hexaware Technologies Limited Balance Sheet (Rs. In Millions)

Hexaware Technologies Limited Profit & Loss Statement (Rs. In Millions)

Hexaware Technologies Limited Consolidated Cash Flow Statement (Rs. In Millions)

Let 's delve into a detailed explanation of each section of the Cash Flow Statement for the years 2023 and 2022:

1. Cash Flow from Operating Activities (CFO):

   - The CFO section outlines cash flows generated from the company 's core business operations.

   - It starts with the profit before tax figure, which represents the company 's earnings before accounting for taxes.

   - Adjustments are made to this figure to reflect cash expenses or income items, such as depreciation, employee stock option compensation, and interest income.

   - The adjustment for depreciation and amortization expense is crucial as it represents non-cash expenses that need to be added back to determine actual cash flow.

   - The net gains or losses on investments carried at fair value through profit or loss, gains on redemption/sale of investments, and profits/losses from the sale of property, plant, and equipment are also factored in.

   - Additionally, adjustments for changes in working capital items like trade receivables, trade payables, and other assets and liabilities are made to derive the cash generated from operations.

   - Finally, direct taxes paid are subtracted from the operating cash flows to arrive at the net cash generated from operating activities.

2. Cash Flow from Investing Activities (CFI):

   - This section details cash flows related to investments in assets not directly related to the company 's core operations.

   - It includes cash flows from the purchase and sale of property, plant, and equipment (PPE), intangible assets, and investments.

   - The net cash used in investing activities is calculated by subtracting the cash inflows from the cash outflows, including proceeds from the sale of assets and investments and payments for acquisitions.

   - Interest received on investments is also included in this section.

3. Cash Flow from Financing Activities (CFF):

   - CFF reflects cash flows related to financing activities, including transactions with shareholders and lenders.

   - It encompasses proceeds from issuing shares, repurchase of stock units, payment of lease liabilities, borrowing activities, repayment of borrowings, interest paid, and dividend payments.

   - The net cash used in financing activities is calculated by subtracting cash inflows from cash outflows.

4. Net Increase in Cash and Cash Equivalents:

   - This section summarizes the overall change in cash and cash equivalents during the period.

   - It 's calculated by adding the net cash flows from operating, investing, and financing activities.

   - The net increase in cash and cash equivalents is then added to the cash and cash equivalents at the beginning of the year to derive the closing balance of cash and cash equivalents at the end of the year.

Financial Ratios of Hexaware Technologies Limited:

Insights into the financial health and performance of the company in 2023 and 2022:

1. Current Ratio:

   - Indicates the company 's ability to meet short-term liabilities with its short-term assets.

   - A higher current ratio indicates better liquidity.

   - In 2023, the current ratio is 2.48, slightly lower than 3.06 in 2022, suggesting a decrease in liquidity.

2. Debt-Equity Ratio:

   - Measures the proportion of debt and equity financing in a company 's capital structure.

   - Lower values indicate lower reliance on debt financing.

   - The debt-equity ratio decreased from 0.09 in 2022 to 0.08 in 2023, indicating a slightly reduced dependence on debt financing.

3. Debt Service Coverage Ratio:

   - Measures the company 's ability to cover its debt obligations with its operating income.

   - Higher values indicate better ability to cover debt obligations.

   - The ratio decreased from 15.94 in 2022 to 14.02 in 2023, indicating a slight decrease in the company 's ability to cover its debt service obligations.

4. Return on Equity (ROE) Ratio:

   - Measures the company 's profitability relative to shareholders ' equity.

   - Indicates how much profit a company generates for each rupee of equity.

   - ROE increased from 25.81% in 2022 to 26.24% in 2023, indicating improved profitability relative to shareholders ' equity.

5. Trade Receivables Turnover Ratio:

   - Measures how efficiently a company is managing its accounts receivable.

   - Indicates the number of times receivables are collected during a period.

   - Increased from 3.67 in 2022 to 4.14 in 2023, indicating better management of receivables.

6. Trade Payables Turnover Ratio:

   - Measures how efficiently a company pays its suppliers.

   - Indicates the number of times payables are paid during a period.

   - Increased slightly from 4.06 in 2022 to 4.20 in 2023, suggesting improved efficiency in paying suppliers.

7. Net Capital Turnover Ratio:

   - Measures the efficiency of capital utilization in generating sales.

   - Indicates the amount of sales generated per unit of capital employed.

   - Increased from 2.89 in 2022 to 3.53 in 2023, indicating improved efficiency in generating sales relative to capital employed.

8. Net Profit Ratio:

   - Measures the profitability of the company 's operations relative to its net sales.

   - Indicates the percentage of net profit earned on net sales.

   - Decreased from 16.82% in 2022 to 14.58% in 2023, indicating a decrease in profitability relative to net sales.

9. Return on Capital Employed (ROCE) Ratio:

   - Measures the efficiency of capital utilization in generating profits.

   - Indicates the percentage of profits earned on capital employed.

   - Slightly decreased from 30.62% in 2022 to 30.29% in 2023, indicating a slight decrease in profitability relative to capital employed.

Dividend History of Hexaware Technologies Limited: