Kores Limited Annual Report and Financials

Kores India Limited Balance Sheet (Rs in Lakhs)

Kores India Limited Profit & Loss Statement (Rs in Lakhs)

 Kores India Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Operating Activities:

The company generated ₹8,038.46 lakhs in cash from operating activities in 2024, up from ₹6,998.15 lakhs in 2023. This increase is attributed to a rise in profit before taxation, which reached ₹5,798.26 lakhs compared to ₹3,838.25 lakhs in the previous year. Significant adjustments included depreciation (₹1,840.39 lakhs) and interest & finance charges (₹1,466.88 lakhs). However, this was offset by interest and dividend income of ₹204.48 lakhs and changes in working capital items. The increase in inventories and sundry debtors resulted in cash outflows of ₹983.50 lakhs and ₹641.43 lakhs, respectively, while a reduction in current liabilities led to an outflow of ₹724.38 lakhs. After accounting for income tax paid of ₹1,583.94 lakhs, the net cash generated from operating activities amounted to ₹6,454.52 lakhs, slightly higher than the previous year’s figure of ₹6,396.79 lakhs.

Investing Activities:

The net cash used in investing activities was ₹3,787.67 lakhs, a larger outflow compared to the previous year’s outflow of ₹2,066.79 lakhs. This was primarily due to significant spending on the purchase of fixed assets and capital work in progress, which amounted to ₹4,161.20 lakhs. There were minor cash inflows from sale proceeds of fixed assets (₹117.83 lakhs) and capital subsidy (₹62.45 lakhs). Despite the interest and dividend income of ₹192.18 lakhs, the heavy investment in fixed assets resulted in a substantial cash outflow in this segment.

Financing Activities:

In financing activities, the company experienced a net cash outflow of ₹2,773.42 lakhs in 2024, compared to ₹4,505.94 lakhs in the previous year. The primary source of outflow was the decrease in cash credit (-₹2,844.04 lakhs) and the payment of interest (₹1,413.46 lakhs). However, the company raised term loans amounting to ₹2,151.54 lakhs, which partially offset the outflows. Additionally, unsecured loans declined by ₹319.46 lakhs, and the company paid dividends of ₹348 lakhs during the year, contributing further to the cash outflow.

Net Change in Cash and Cash Equivalents:

As a result of the company’s operating, investing, and financing activities, there was a net decrease in cash and cash equivalents of ₹106.57 lakhs for the year ending 31st March 2024. The opening cash balance at the start of the year was ₹847.31 lakhs, and by the end of the year, the closing balance stood at ₹740.74 lakhs.

Financial Ratios of Kores India Limited

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

Current Ratio (in times):

2024: 1.3 | 2023: 1.13

The current ratio measures the company’s ability to cover its short-term liabilities with its short-term assets. A ratio above 1 indicates that the company has more current assets than current liabilities. In 2024, the ratio increased to 1.3 from 1.13 in 2023, reflecting improved liquidity and a better ability to cover its short-term obligations.

Debt-Equity Ratio (in times):

2024: 0.81 | 2023: 1.06

This ratio shows the proportion of debt to equity, indicating the company’s financial leverage. A lower debt-equity ratio is generally favorable as it shows less reliance on borrowed funds. In 2024, the ratio improved to 0.81 from 1.06, suggesting a decrease in debt relative to equity, which indicates reduced financial risk and better leverage management.

Debt Service Coverage Ratio:

2024: 0.51 | 2023: 0.37

This ratio measures the company’s ability to cover its debt obligations from its operating profits. A higher ratio indicates a better capacity to meet debt payments. The increase from 0.37 in 2023 to 0.51 in 2024 shows an improvement in the company’s ability to service its debt, though it remains below 1, suggesting some challenges in covering debt payments.

Return on Equity (ROE) Ratio (in %):

2024: 20.51% | 2023: 17.97%

ROE indicates how efficiently a company generates profit from its shareholders’ equity. The rise to 20.51% in 2024 from 17.97% in 2023 signifies that the company has been more effective in generating returns for its shareholders, which is a positive sign for investors.

Inventory Turnover Ratio (times):

2024: 6.66 | 2023: 6.42

The inventory turnover ratio shows how often inventory is sold and replaced during the year. A higher ratio indicates efficient inventory management. The increase from 6.42 to 6.66 means the company improved its ability to sell and restock inventory, reflecting good sales performance and inventory control.

Trade Receivables Turnover Ratio (in times):

2024: 7.00 | 2023: 6.53

This ratio measures how efficiently a company collects its receivables. The higher ratio in 2024 (7.00) compared to 2023 (6.53) indicates that the company is collecting its receivables faster, which is beneficial for cash flow and reduces the risk of bad debts.

Trade Payables Turnover Ratio (in times):

2024: 5.77 | 2023: 5.48

This ratio shows how quickly a company pays off its suppliers. The slight increase from 5.48 in 2023 to 5.77 in 2024 indicates that the company is settling its trade payables faster, which could improve relationships with suppliers and may allow for better credit terms.

Net Capital Turnover Ratio (in times):

2024: 18.31 | 2023: 26.07

This ratio measures how efficiently the company uses its working capital to generate sales. The decrease from 26.07 in 2023 to 18.31 in 2024 suggests that the company’s efficiency in generating sales from working capital has declined, which may indicate increased working capital requirements or reduced operational efficiency.

Net Profit Ratio (in %):

2024: 3.78% | 2023: 2.83%

The net profit ratio indicates the percentage of profit from total revenue. An increase from 2.83% in 2023 to 3.78% in 2024 shows an improvement in profitability, meaning the company was able to retain a higher portion of its revenue as profit.

Return on Capital Employed (ROCE) (in %):

2024: 23.26% | 2023: 21.46%

ROCE measures how effectively a company uses its capital to generate profits. The increase from 21.46% in 2023 to 23.26% in 2024 reflects better capital utilization, showing that the company has been more efficient in using its capital to generate returns.