KAMARHATTY Company Annual Reports, Balance Sheet and Financials

Kamarhatty Company Limited  Balance Sheet (Rs in Lakhs)

Kamarhatty Company Limited  Profit & Loss Statement (Rs in Lakhs)

 Kamarhatty Company 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

The company generated a net profit before tax of ₹795.25 lakhs in 2024, compared to ₹949.99 lakhs in 2023. Key adjustments to this profit include:

Depreciation and amortization expenses of ₹860.48 lakhs (up from ₹745.6 lakhs in 2023).

Finance costs of ₹1287.45 lakhs, reflecting the cost of servicing debt.

Interest income of ₹-15.58 lakhs, a minor addition to cash inflows.

These adjustments brought the operating profit before working capital changes to ₹2911.54 lakhs. Changes in working capital included:

A decrease in trade receivables of ₹344 lakhs, boosting cash inflows.

Reduction in inventories by ₹583.17 lakhs, reflecting better inventory management.

After taxes, the net cash generated from operating activities was ₹1539.09 lakhs, slightly lower than ₹1832.79 lakhs in 2023.

Cash Flow from Investing Activities

Investing activities saw a net outflow of ₹744.22 lakhs, primarily due to:

Purchase of property, plant, and equipment of ₹771.18 lakhs.

A small inflow of ₹15.58 lakhs from interest received.

This was an improvement from the ₹-1145.69 lakhs outflow in 2023, but it still represents a cash outflow due to significant investments.

Cash Flow from Financing Activities

Financing activities resulted in a net outflow of ₹1031.32 lakhs in 2024. Key movements included:

Proceeds from non-current borrowings of ₹576.19 lakhs, offset by repayments.

Interest paid of ₹1287.45 lakhs, which contributed to cash outflows.

This represents a larger outflow compared to ₹524.58 lakhs in 2023, primarily due to higher interest payments.

Net Change in Cash and Cash Equivalents

The company experienced a net decrease in cash and cash equivalents of ₹236.45 lakhs in 2024, compared to an increase of ₹162.52 lakhs in 2023. The opening cash balance was ₹378.29 lakhs, which decreased to ₹141.84 lakhs by the end of the year.

Financial Ratios of Kamarhatty Company Limited

Here is a summary of the financial and operational metrics for Kamarhatty Company Limited  for the year 2024 and 2023:

Current Ratio

The current ratio measures the company 's ability to pay off its short-term liabilities with its short-term assets. It improved slightly from 1.11 in 2022-23 to 1.29 in 2023-24, indicating better liquidity and a stronger ability to meet short-term obligations.

Debt-Equity Ratio

This ratio shows the proportion of debt compared to shareholders ' equity. A decrease from 2.78 to 2.34 signifies a slight reduction in the company’s reliance on debt to finance its assets, indicating an improvement in financial stability, though the ratio remains relatively high.

Debt Service Coverage Ratio (DSCR)

The DSCR measures the company 's ability to service its debt with its operating income. A significant improvement from 0.12 to 1.09 indicates that the company is now generating sufficient income to cover its debt payments, reflecting improved financial health.

Return on Equity (ROE)

The ROE measures how effectively the company is generating profits from shareholders ' equity. It decreased from 12% in 2022-23 to 9.48% in 2023-24, showing a decline in the company’s ability to generate returns for its shareholders.

Inventory Turnover Ratio

This ratio measures how efficiently the company is managing its inventory. A decline from 6.7 to 5.56 indicates that inventory is being sold at a slower rate, which could point to overstocking or reduced sales efficiency.

Trade Receivables Turnover Ratio

An increase from 13.14 to 15.63 indicates that the company is collecting payments from its customers more quickly, which improves cash flow and operational efficiency.

Trade Payables Turnover Ratio

This ratio, which decreased from 2.91 to 2.76, shows that the company is taking slightly longer to pay its suppliers. This could either help cash flow or potentially strain supplier relationships.

Net Capital Turnover Ratio

A significant decrease from 24.56 to 10.58 indicates that the company’s ability to generate revenue from its net capital has reduced. This could be due to changes in operational efficiency or capital management.

Net Profit Ratio

A slight decrease in the net profit ratio from 2.48% to 2.28% suggests a minor decline in profitability, meaning the company is earning less net profit from its sales.

Return on Capital Employed (ROCE)

The ROCE rose from 8.82% to 16.36%, indicating that the company is using its capital more effectively to generate profits.

Return on Investment (ROI)

The ROI dropped significantly from 18.61% to 9.8%, reflecting a decline in the efficiency of the company 's investments in generating returns.