LandMarc Leisure Corporation Ltd Annual Report and Financials

LandMarc Leisure Corporation Limited Balance Sheet (Rs in Lakhs)

LandMarc Leisure Corporation Limited Profit & Loss Statement (Rs in Lakhs)

 LandMarc Leisure Corporation 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:

Operating activities refer to the core business operations and indicate how much cash the company is generating or using from its day-to-day functions.

In 2024, the company reported a net loss before tax and extraordinary items of ₹-74.76 lakhs, an improvement from ₹-350.47 lakhs in 2023. This indicates that while the company is still operating at a loss, the scale of the loss has decreased significantly compared to the previous year.

Adjustments are made to the net profit figure to reflect non-cash transactions such as depreciation, which increased slightly from ₹0.70 lakhs in 2023 to ₹0.81 lakhs in 2024. Other adjustments include provisions for employee benefits (₹0.41 lakhs in 2024) and interest and dividend income, which increased to ₹2.69 lakhs in 2024 from ₹1.96 lakhs in 2023. After these adjustments, the operating profit before working capital changes remains negative at ₹-70.85 lakhs in 2024, though better than ₹-344.41 lakhs in 2023.

Working Capital Adjustments:

The company experienced several working capital changes in both years:

There was a slight increase in stock-in-trade in 2024 by ₹2.67 lakhs, consuming cash.

The company improved its receivables position, with a decrease in trade and other receivables contributing ₹11.68 lakhs to cash flow in 2024.

A significant increase in loans & advances (₹60.20 lakhs) in 2024 negatively impacted cash flow, indicating that more cash was tied up in these accounts.

Current liabilities increased by ₹10.36 lakhs in 2024, which added positively to cash flow.

The company also saw an increase in trade payables by ₹15.74 lakhs in 2024, contributing to better cash flow management compared to the previous year where trade payables decreased.

However, there was an outflow of ₹15.09 lakhs from increases in other current and non-current assets, which negatively impacted cash flow.

Despite these adjustments, the net cash flow from operating activities remained negative at ₹-111.04 lakhs in 2024, though an improvement from ₹-317.83 lakhs in 2023. The company continues to face challenges in generating positive cash flow from its core operations.

Cash Flow from Investing Activities:

Investing activities capture cash flows related to the acquisition and disposal of long-term assets and investments.

In 2024, the company made a modest purchase of fixed assets worth ₹0.10 lakhs. On the other hand, the company generated ₹20.02 lakhs from the sale of investments, compared to a purchase of investments worth ₹7.29 lakhs in 2023, showing an improvement in cash inflow from investments.

Another positive cash inflow came from an increase in capital work in progress (WIP), with an inflow of ₹1.57 lakhs in 2024 compared to an outflow of ₹45.89 lakhs in 2023. However, interest and dividend income remained negative, as the company earned ₹2.69 lakhs from investments but this was deducted from cash flows as it is part of investing activities.

As a result, the company saw a positive net cash flow from investing activities of ₹18.80 lakhs in 2024, compared to a negative cash flow of ₹-55.14 lakhs in 2023. This improvement indicates better management of investments and a reduction in capital expenditures.

Cash Flow from Financing Activities:

Financing activities include cash flows from loans and repayments, as well as transactions with shareholders.

In 2024, the company did not take any new loans, in contrast to 2023, when it took on loans worth ₹121.6 lakhs. However, it repaid a substantial amount of loans, with ₹52.00 lakhs repaid in 2024, compared to ₹216.35 lakhs repaid in 2023. The net result of these activities was a positive cash inflow of ₹52.00 lakhs from financing activities in 2024, though lower than the ₹94.75 lakhs in 2023. This positive cash flow indicates that the company is actively managing its debt obligations and is in a position to make repayments without taking on additional debt.

Net Increase / (Decrease) in Cash & Cash Equivalents:

The net result of operating, investing, and financing activities shows a net decrease in cash and cash equivalents of ₹-40.24 lakhs in 2024, an improvement from a much larger decrease of ₹-278.22 lakhs in 2023. This indicates that while the company is still facing cash flow challenges, the overall cash position has improved.

At the beginning of 2024, the company had ₹58.14 lakhs in cash and cash equivalents, which reduced to ₹17.89 lakhs by the end of the year. Although the company’s overall cash position has weakened, it is in a better situation than in 2023 when it started with negative cash equivalents

Financial Ratios of LandMarc Leisure Corporation Limited

Here is a summary of the financial and operational metrics for LandMarc Leisure Corporation Limited for the year 2024 and 2023:

Current Ratio (2024: 1.85, 2023: 1.92)

The current ratio measures the company’s ability to meet its short-term obligations with its current assets. A ratio of 1.85 in 2024 indicates that for every ₹1 of current liabilities, the company has ₹1.85 in current assets. This is slightly lower than the 1.92 in 2023, suggesting a small decline in liquidity, but the ratio is still above 1, which implies the company can cover its short-term liabilities comfortably.

Debt-Equity Ratio (2024: 0.49, 2023: 0.45)

The debt-equity ratio shows the proportion of a company’s debt relative to shareholders ' equity. A ratio of 0.49 in 2024 means that for every ₹1 of equity, the company has ₹0.49 in debt, which has slightly increased from 0.45 in 2023.

Return on Equity (ROE) (2024: -0.03, 2023: -0.13)

The return on equity ratio measures the profitability relative to shareholders ' equity. A negative ROE of -0.03 in 2024 indicates a slight improvement from -0.13 in 2023, but the company is still generating losses relative to its equity base.

Inventory Turnover Ratio (2024: 0.11, 2023: 0.03)

The inventory turnover ratio measures how efficiently a company manages its inventory by comparing sales to inventory. A ratio of 0.11 in 2024 indicates that the company is turning over its inventory faster than it did in 2023 (when the ratio was 0.03).

Trade Receivables Turnover Ratio (2024: 1.35, 2023: 2.91)

The trade receivables turnover ratio indicates how quickly a company collects cash from its credit sales. A ratio of 1.35 in 2024, down from 2.91 in 2023, suggests that the company is taking longer to collect its receivables.

Net Capital Turnover Ratio (2024: 0.10, 2023: 0.20)

The net capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A ratio of 0.10 in 2024, down from 0.20 in 2023, suggests that the company is generating less revenue for each unit of working capital.

Net Profit Ratio (2024: -1.51%, 2023: -3.26%)

The net profit ratio indicates the percentage of profit earned on each rupee of sales. A negative net profit ratio of -1.51% in 2024, though an improvement from -3.26% in 2023, means the company is still incurring losses relative to its total revenue.

Return on Capital Employed (ROCE) (2024: -0.02, 2023: -0.10)

The return on capital employed measures the company’s profitability in relation to its total capital employed (debt + equity). A ratio of -0.02 in 2024, compared to -0.10 in 2023, indicates a slight improvement, but the company is still generating negative returns on its total capital.