LJ international Annual Reports, Balance Sheet and Financials

L.J International Limited Balance Sheet (Rs in Lakhs)

 L.J International Limited Profit & Loss Statement (Rs in Lakhs)

 L.J International Limited Cash Flow Statement (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the year 2023:

Cash Flow from Operating Activities:

In 2023, the net cash from operating activities surged to Rs. 647.94 lakhs, a substantial increase compared to Rs. 185.96 lakhs in 2022. This rise is mainly attributed to the extraordinary items amounting to Rs. 563.25 lakhs in 2023, compared to Rs. 27.02 lakhs in 2022. The company 's net profit before tax and extraordinary items declined from Rs. 186.82 lakhs in 2022 to Rs. 77.54 lakhs in 2023. Adjustments such as depreciation (Rs. 22.79 lakhs in 2023) and a profit on the sale of assets (-Rs. 0.72 lakhs) impacted cash flow, along with interest income (-Rs. 75.79 lakhs) and income from investments (-Rs. 0.22 lakhs).

The company’s working capital adjustments included a significant increase in trade payables and other current liabilities (Rs. 145.18 lakhs), offset by a decrease in trade receivables (-Rs. 24.35 lakhs) and inventories (-Rs. 2.60 lakhs). This contributed to cash generated from operations amounting to Rs. 145.05 lakhs. After taxes paid (Rs. 60.36 lakhs) and extraordinary items, the operating activities reflected a healthy net cash inflow.

Cash Flow from Investing Activities:

In 2023, the net cash from investing activities amounted to Rs. 80.00 lakhs, slightly lower than Rs. 100.54 lakhs in 2022. The company made purchases of fixed assets worth Rs. 10.41 lakhs, similar to Rs. 7.36 lakhs in 2022, while it generated Rs. 2.42 lakhs from the sale of fixed assets. Additionally, there was a small profit on the sale of assets (Rs. 0.72 lakhs). The company redeemed or made investments totaling Rs. 12.36 lakhs in 2023, compared to Rs. 72.50 lakhs in 2022. The largest source of cash from investing activities was interest received, which increased to Rs. 75.79 lakhs in 2023 from Rs. 34.81 lakhs in 2022, reflecting a shift toward interest income.

Despite the relatively modest scale of investing activities, the company generated positive cash flow from this segment both years, indicating prudent investment management and asset utilization.

Cash Flow from Financing Activities:

There were no significant financing activities in 2023, leading to no cash inflow or outflow from this segment. This is a contrast to 2022, where the company had a net outflow of Rs. 94.70 lakhs, primarily due to short-term borrowings being repaid. The absence of financing activities in 2023 shows that the company did not engage in new borrowings or repayments, indicating financial stability or self-sufficiency.

Net Increase in Cash and Cash Equivalents:

Overall, the company saw a net increase in cash and cash equivalents of Rs. 727.94 lakhs in 2023, a notable rise from Rs. 191.80 lakhs in 2022. This sharp increase was primarily driven by the extraordinary items and robust operating cash flow. As a result, the company’s cash and cash equivalents at the end of the year stood at Rs. 1,329.17 lakhs, compared to Rs. 601.23 lakhs at the beginning of the year, reflecting a strengthened liquidity position.

Financial Ratios of L.J International Limited

Here is a summary of the financial and operational metrics for L.J International Limited for the year 2023 & 2022:

Current Ratio:

The current ratio measures the company’s ability to cover its short-term liabilities with its short-term assets. In 2024, the current ratio declined to 5.2 from 7.43 in 2023, indicating a reduction in liquidity.

Debt Service Coverage Ratio:

The debt service coverage ratio (DSCR) is a measure of the company 's ability to meet its debt obligations, including interest and principal payments. In 2024, this ratio increased dramatically to 499.04 from 106.43 in 2023, signaling a significant improvement in the company’s capacity to service its debt

Return on Equity (ROE):

The return on equity (ROE) reflects how efficiently the company is using shareholders ' equity to generate profit. The ROE increased sharply to 25.97% in 2024 from 11.65% in 2023. This indicates that the company has significantly improved its profitability, generating higher returns for its shareholders.

Inventory Turnover Ratio:

The inventory turnover ratio measures how efficiently a company turns its inventory into sales. In 2024, the ratio slightly decreased to 12.68 from 13.7 in 2023, indicating a marginally slower inventory movement.

Trade Receivables Turnover Ratio:

The trade receivables turnover ratio indicates how efficiently a company collects revenue from its credit customers. The ratio dropped from 5.13 in 2023 to 4.21 in 2024, suggesting the company took longer to collect receivables in 2024.

Trade Payables Turnover Ratio:

The trade payables turnover ratio measures how quickly a company pays off its suppliers. The ratio decreased from 2.61 in 2023 to 1.02 in 2024, indicating that the company took longer to pay its suppliers.

Net Capital Turnover Ratio:

The net capital turnover ratio measures how efficiently a company uses its working capital to generate sales. In 2024, the ratio dropped significantly to 0.96 from 2.61 in 2023.

Net Profit Ratio:

The net profit ratio represents the percentage of revenue that translates into net profit. In 2024, this ratio saw a significant increase to 43% from 17% in 2023.

Return on Capital Employed (ROCE):

The return on capital employed (ROCE) measures the company 's profitability relative to its total capital employed (both equity and debt). The ROCE improved slightly from 0.12% in 2023 to 0.26% in 2024.

Dividend History:

The Board of Directors in its meeting on 9th August 2023, have proposed a final dividend of Rs.5 Per Equity Share for financial year ended 31st March 2023.