Indian Potash Annual Reports, Balance Sheet and Financials

Indian Potash Limited Balance Sheet (Amt. in Lakhs)

Indian Potash Limited Profit & Loss Statement (Amt. in Lakhs)

Indian Potash Limited Consolidated Cash Flow Statement (Amt. in Lakhs)

Let 's break down the Cash Flow Statement for the years 2023 and 2022, activity-wise:

1. Operating Activities:

   - Profit before tax: The profit before tax increased significantly from INR 2,03,213.17 lakhs in 2022 to INR 2,70,767.78 lakhs in 2023, indicating improved operational performance.

   - Adjustments: Various adjustments such as depreciation, finance costs, unrealized differences on translation, provisions, share of profits of associates, and others are made to arrive at operating profit.

   - Operating Profit Before Working Capital Changes: This figure increased from INR 90,315.42 lakhs in 2022 to INR 1,04,961.24 lakhs in 2023.

   - Change in Operating Assets and Liabilities: Significant changes are noted in trade receivables, loans, financial assets, inventories, trade payables, and other liabilities, impacting cash flow from operations negatively in 2023, leading to a net outflow of INR 5,11,462.20 lakhs compared to an inflow of INR 4,19,957.61 lakhs in 2022.

   - Income Taxes Paid: The company paid more income taxes in 2023, resulting in a higher outflow compared to the previous year.

2. Investing Activities:

   - Payments and Proceeds: Investments in property, plant, equipment, intangible assets, and capital work in progress increased significantly. There were also notable changes in investments in current investments. Despite these investments, the company managed to receive net cash inflow from investing activities in 2023, which was a reversal from the outflow in 2022.

3. Financing Activities:

   - Borrowings and Payments: There was a significant increase in repayment of short-term borrowings and cane bills payable to banks in 2023, compared to proceeds in 2022. Repayment of long-term borrowings also increased. This resulted in a net outflow from financing activities in 2023.

   - Dividends and Finance Costs: Payments for dividends on shares and finance costs increased in 2023, contributing to the outflow in financing activities.

4. Net Increase/(Decrease) in Cash and Cash Equivalents:

   - The net decrease in cash and cash equivalents in 2023 was significant (INR -3,71,485.15 lakhs) compared to the net increase in 2022 (INR 3,77,026.73 lakhs).

   - The company ended the year with lower cash and cash equivalents (INR 1,21,330.80 lakhs) compared to the previous year (INR 4,92,725.02 lakhs).

5. Reconciliation:

   - The reconciliation confirms the cash and cash equivalents figures as per the statement of cash flows and the balance sheet, indicating the accuracy of the cash flow statement.

Financial Ratios of Indian Potash Limited:

Here 's a breakdown of each parameter:

1. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): EBITDA margin is 39.29%, indicating that the company 's operating profitability before accounting for non-operating expenses is strong.

2. Net-worth: Net worth represents 16.03% of the total assets, suggesting that a significant portion of the company 's assets is financed by equity.

3. Debt/Equity Ratio: The debt/equity ratio is 0.73, implying that the company relies more on equity financing rather than debt, which is generally considered favorable as it indicates lower financial risk.

4. Return on Equity (ROE): The return on equity is 13.88%, indicating that the company generates a profit of 13.88% for every unit of equity invested by shareholders, which is a favorable return.

5. Total Assets: Total assets decreased by 21.93% compared to the previous period. A decrease in total assets could signify divestment or efficiency in asset management.

6. Fixed Assets: Fixed assets increased by 8.77%, indicating investment in long-term productive assets, which could potentially enhance operational capacity.

7. Current Assets: Current assets decreased by 25.63%, suggesting a decrease in short-term assets like cash, accounts receivable, and inventory. This could be due to changes in operating or investment activities.

8. Current Liabilities: Current liabilities decreased by 34.57%, indicating a reduction in short-term obligations such as accounts payable and short-term debt, which may positively impact liquidity.

9. Trade Receivables: Trade receivables increased by 187.04%, indicating a significant increase in outstanding receivables, which might impact cash flow if not managed efficiently.

10. Trade Payables: Trade payables decreased by 37.84%, indicating a reduction in the amount owed to suppliers, which could positively impact cash flow and liquidity.

11. Current Ratio: The current ratio is 1.3, indicating that the company 's current assets are 1.3 times its current liabilities, suggesting a healthy liquidity position.

Dividend History of Indian Potash Limited: