Hicks Thermometers India Limited | Balance Sheet and Financials

Hicks Thermometers (India) Limited Standalone Balance Sheet (in Rs)

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

The company generated a strong cash flow from operations during FY 2024-25. Net profit before tax increased to ₹4,65,00,098.46 from ₹3,31,24,897.58, reflecting improved profitability. After adjusting for non-cash items such as depreciation (₹28,04,752.00), finance cost (₹44,21,701.00), and interest income (₹1,08,85,596.15), the operating profit before working capital changes stood at ₹4,28,05,815.31, significantly higher than ₹2,86,93,598.96 in the previous year.

Working capital adjustments positively impacted cash flow. Trade receivables decreased by ₹74,98,568.39, and trade payables increased by ₹2,01,15,614.62, both contributing to improved liquidity. However, inventories increased by ₹96,50,292.87, leading to some cash blockage. Other current liabilities increased by ₹1,06,28,646.64, further supporting cash flow. As a result, net cash generated from operating activities rose sharply to ₹6,79,70,765.76, compared to ₹2,94,17,295.85 in FY 2023-24. This indicates strong operational efficiency and improved cash realization during the year.

Cash Flow from Investing Activities

The company reported a substantial cash outflow from investing activities amounting to ₹9,68,30,257.25 in FY 2024-25, compared to a minimal outflow of ₹6,34,480.70 in the previous year. The major outflow was due to investment in non-current investments of ₹4,05,47,572.03 and a significant other cash outflow of ₹7,07,07,698.00, indicating heavy deployment of funds into investments or other strategic uses.

Although the company received ₹1,08,85,596.15 as interest income, ₹40,20,127.18 from recovery of loans/advances, and ₹35,140.00 as dividend income, these inflows were insufficient to offset the large investment-related outflows. Purchase of tangible assets was relatively low at ₹6,42,808.94, suggesting limited capital expenditure on fixed assets. Overall, the high negative investing cash flow indicates aggressive investment activity during the year.

Cash Flow from Financing Activities

Financing activities resulted in a net cash inflow of ₹60,62,327.63 in FY 2024-25, compared to a net outflow of ₹1,84,00,108.02 in FY 2023-24. The company raised ₹2,00,17,156.00 through short-term borrowings and ₹22,98,701.63 through long-term borrowings, which improved liquidity.

Finance cost of ₹44,21,701.00 was paid during the year. Other financing outflows amounted to ₹1,18,31,829.00. Despite these payments, the additional borrowings helped the company maintain a positive financing cash flow. This suggests reliance on external funds to support investing activities.

Net Change in Cash & Cash Equivalents

Due to heavy investing outflows, total cash and cash equivalents declined by ₹2,27,97,163.86 during FY 2024-25, whereas the previous year saw an increase of ₹1,03,82,707.13. Cash balance reduced from ₹18,63,19,917.75 at the beginning of the year to ₹16,35,22,753.89 at the end of the year.

Financial ratios of Hicks Thermometers (India) Limited 

Summary of the Financial Ratios for the years 2025 and 2024:

Current Ratio

The current ratio decreased significantly to 4.46 in FY 2024-25 from 13.62 in FY 2023-24. Although the ratio has declined sharply, it still remains well above the ideal benchmark of 2:1, indicating strong short-term liquidity. The fall suggests better utilization of current assets or reduction in excess idle current assets. In the previous year, the very high ratio indicated surplus liquidity, whereas the current level reflects more efficient working capital management while maintaining adequate solvency.

Debt-Equity Ratio

The debt-equity ratio increased slightly to 0.16 from 0.12. This indicates a marginal rise in borrowings during the year. However, the ratio remains very low, showing that the company is minimally leveraged and largely financed through shareholders’ funds. The low gearing position suggests low financial risk and strong long-term solvency.

Return on Equity 

Return on equity improved to 13% (0.13) from 7% (0.07) in the previous year. This indicates better profitability and more efficient utilization of shareholders’ funds. The improvement reflects growth in net profit during the year and enhanced value generation for equity shareholders.

Inventory Turnover Ratio

The inventory turnover ratio increased to 9.16 times from 7.26 times, indicating faster movement of inventory. This suggests improved inventory management and better sales performance. Higher turnover reduces holding costs and risk of obsolescence, contributing positively to profitability and liquidity.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio improved to 9.53 times from 8.00 times, showing that the company collected receivables more efficiently during the year. This indicates better credit management and faster cash realization from customers, strengthening liquidity.

Trade Payables Turnover Ratio

The trade payables turnover ratio slightly increased to 16.55 times from 16.44 times. This indicates that the company is paying its suppliers at a consistent and slightly faster rate compared to the previous year. The stability in this ratio reflects disciplined payment practices and healthy supplier relationships.

Net Capital Turnover Ratio

The net capital turnover ratio improved to 2.75 from 1.90, indicating more efficient utilization of working capital to generate revenue. The increase suggests that the company is generating higher sales per unit of working capital employed, reflecting operational efficiency.

Net Profit Ratio

The net profit ratio increased to 6% (0.06) from 4% (0.04). This improvement shows better cost control and improved profitability margins. The company is earning higher profit per rupee of sales, indicating improved operational performance.

Return on Capital Employed

ROCE improved marginally to 11% (0.11) from 10% (0.10). This reflects slightly better utilization of total capital employed in generating profits. The consistent improvement indicates stable operational efficiency and effective capital deployment.