Hindustan Auto Finance Limited Annual Reports, Balance Sheet and Financials

Hindustan Auto Finance Limited Balance Sheet (Rs in Lakhs)

Hindustan Auto Finance Limited Profit & Loss Statement (Rs in Lakhs)

 Hindustan Auto Finance Limited Consolidated 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:

Profit/(Loss) Before Tax:

31-03-2024: Rs. 0.82 lakhs, 31-03-2023: Rs. -5.35 lakhs

The company moved from a loss of Rs. 5.35 lakhs in FY 2022-23 to a profit of Rs. 0.82 lakhs in FY 2023-24, indicating an improvement in its profitability before tax.

Operating Profit Before Working Capital Changes:

This is the same as Profit Before Tax since no further adjustments are made here. It reflects the company's operating income before considering changes in working capital.

Change in Operating Assets and Liabilities:

Increase in Other Non-Current Financial Assets: There was an increase of Rs. -40.69 lakhs in FY 2023-24 (compared to Rs. -0.05 lakhs in FY 2022-23), indicating the company’s investment in non-current financial assets.

Decrease in Trade Receivables: A decrease of Rs. 9.55 lakhs in FY 2023-24, compared to a larger decrease of Rs. 15.4 lakhs in FY 2022-23. This suggests better management of receivables, with the company collecting more outstanding debts during the year.

Increase in Other Current Assets: A minor increase of Rs. -0.62 lakhs, similar to Rs. -0.06 lakhs in the prior year, indicating a small rise in current assets.

Decrease in Other Current Liabilities: There was a reduction in current liabilities by Rs. 0.71 lakhs, compared to a larger reduction of Rs. 6.45 lakhs in the previous year.

Increase in Other Current Financial Liabilities: A significant increase of Rs. 940 lakhs, compared to a decrease of Rs. 259 lakhs in FY 2022-23, which indicates an increase in short-term financial liabilities.

Increase in Current Tax Liabilities: There was a small increase of Rs. 0.13 lakhs in FY 2023-24, suggesting a slight rise in tax liabilities.

Cash Generated from Operations:

In FY 2023-24, the cash generated from operations was negative, amounting to Rs. -8.1 lakhs, compared to a positive Rs. 8.93 lakhs in FY 2022-23. This decrease indicates that while the company showed a profit before tax, working capital changes, especially the increase in financial liabilities, led to lower cash generation.

Income Taxes Paid/Refund:

There was no significant income tax paid or refunded in FY 2023-24 (Rs. -0.01 lakhs), similar to the previous year.

Net Cash Flows from Operating Activities:

As a result of the above adjustments, the company had a negative net cash flow from operating activities of Rs. -8.1 lakhs in FY 2023-24, compared to a positive Rs. 8.92 lakhs in FY 2022-23. This suggests that operational activities resulted in an outflow of cash in FY 2023-24, primarily due to working capital changes and financial liabilities.

Net Decrease in Cash and Cash Equivalents:

31-03-2024: Rs. -8.1 lakhs, 31-03-2023: Rs. 8.92 lakhs

There was a decrease of Rs. 8.1 lakhs in cash and cash equivalents in FY 2023-24, which is the same as the net cash used in operating activities. In FY 2022-23, the company had an increase of Rs. 8.92 lakhs in cash, reflecting better cash flow performance in the previous year.

Opening and Closing Cash and Cash Equivalents:

Opening Balance of Cash and Cash Equivalents:

The opening cash balance for FY 2023-24 was Rs. 14.16 lakhs, significantly higher than the Rs. 5.24 lakhs in FY 2022-23, indicating a strong cash position at the start of FY 2023-24.

Closing Balance of Cash and Cash Equivalents:

The closing balance of cash and cash equivalents for FY 2023-24 was Rs. 6.05 lakhs, a decrease from Rs. 14.16 lakhs in FY 2022-23. This reduction is primarily due to negative cash flow from operating activities during FY 2023-24.

 Financial Ratios of Hindustan Auto Finance Limited

Here is a summary of the financial and operational metrics for Hindustan Auto Finance Limited for the year 2024 and 2023:

Current Ratio:

The current ratio measures the company’s ability to cover its short-term liabilities with its short-term assets. In 2024, the ratio decreased to 5.47 from 19.66 in 2023, indicating a significant decline in liquidity. A high current ratio in 2023 may have reflected an excess of current assets or underutilization of cash and resources.

Debt-Equity Ratio:

The debt-equity ratio indicates the proportion of debt relative to equity used to finance the company's assets. The increase from 3.88% in 2023 to 12.88% in 2024 suggests that the company has taken on more debt in relation to its equity base.

Debt Service Coverage Ratio (DSCR):

The debt service coverage ratio measures the company's ability to service its debt obligations (interest and principal) from its operating income. A ratio of 2.60% in 2024 indicates that the company can meet its debt obligations, whereas the negative value in 2023 (-56.60%) signals that the company had serious issues in covering its debt expenses that year.

Return on Equity (ROE):

Return on equity (ROE) measures the profitability of a company in relation to shareholders' equity. The increase from -2.17% in 2023 to 0.34% in 2024 suggests a slight positive return on shareholders’ investments.

Trade Receivables Turnover Ratio:

The trade receivables turnover ratio measures how quickly a company collects its receivables. The ratio of 7.72% in 2024, down slightly from 7.99% in 2023, suggests a marginal decline in the efficiency of collecting receivables.

Net Working Capital Turnover Ratio:

The net working capital turnover ratio measures how efficiently the company uses its working capital (current assets minus current liabilities) to generate sales. The slight increase from 8.02% in 2023 to 8.22% in 2024 indicates that the company has slightly improved in utilizing its working capital to generate sales.

Net Profit Ratio:

The net profit ratio represents the percentage of revenue that turns into profit after all expenses. The significant increase from -35.41% in 2023 to 6.00% in 2024 indicates a dramatic turnaround in profitability.

Return on Capital Employed (ROCE):

Return on capital employed (ROCE) measures the company’s ability to generate profits from its capital. The dramatic increase from -2.20% in 2023 to 33.00% in 2024 indicates a significant improvement in how effectively the company is using its capital to generate returns.