Lotte India Annual Reports, Balance Sheet and Financials

Lotte India Corporation Limited  Balance Sheet (Rs in Lakhs)

Lotte India Corporation Limited  Profit & Loss Statement (Rs in Lakhs)

 Lotte India 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:

In 2024, the company reported a significant profit before tax of ₹4,545.26 lakhs, a substantial improvement from ₹687 lakhs in 2023. Several non-cash adjustments contributed to this, including depreciation and amortization expenses of ₹3,579.79 lakhs, finance costs of ₹574.57 lakhs, and a net gain/loss on foreign currency transactions of ₹107.46 lakhs. These adjustments reflect the company’s ongoing operational costs and non-cash transactions.

The company also had changes in working capital, with some significant movements. For instance, there was an increase in inventories by ₹994.30 lakhs, indicating higher stock levels, and a decrease in trade payables by ₹1,410.95 lakhs, suggesting that fewer payments were pending to suppliers. Conversely, there was a decrease in trade receivables by ₹30.52 lakhs, reflecting quicker collections from customers. Overall, the company generated ₹5,624.95 lakhs from operations, although net taxes paid amounted to ₹724.53 lakhs, leaving a net cash inflow from operating activities of ₹4,900.42 lakhs for 2024, slightly lower than the ₹6,199.58 lakhs generated in 2023.

Cash Flow from Investing Activities:

Investing activities saw a significant cash outflow of ₹8,880.81 lakhs in 2024, much higher than the outflow of ₹4,898.62 lakhs in 2023. This was primarily due to the investment in property, plant, and equipment (PPE) and intangible assets, which totaled ₹13,117.89 lakhs. The company also redeemed deposits with banks worth ₹3,182.27 lakhs, and it received ₹742.59 lakhs in interest income from bank deposits. Despite these inflows, the large capital expenditure related to PPE investments resulted in a considerable net outflow in 2024.

Cash Flow from Financing Activities:

The company’s financing activities resulted in a net cash outflow of ₹4,067.78 lakhs in 2024, a stark contrast to the net cash inflow of ₹13,713.02 lakhs in 2023. This significant decline is due to the absence of proceeds from fresh equity share issuance, which had contributed ₹17,520.80 lakhs in 2023. Additionally, the company made repayments of borrowings worth ₹3,396.65 lakhs and incurred interest payments of ₹491.79 lakhs. There were also principal and interest payments related to lease liabilities totaling ₹179.34 lakhs. The repayment of debt and absence of fresh capital raised led to a negative financing cash flow.

Net Change in Cash and Cash Equivalents:

The overall cash position of the company decreased significantly in 2024, with a net decrease in cash and cash equivalents of ₹8,048.17 lakhs compared to a significant increase of ₹15,013.98 lakhs in 2023. The company 's cash and cash equivalents at the beginning of the year were ₹15,514.38 lakhs, which dropped to ₹7,466.21 lakhs by the end of the year.

Financial Ratios of Lotte India Corporation Limited

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

Current Ratio:

The current ratio measures a company’s ability to pay off its short-term liabilities with its short-term assets. In 2024, the current ratio was 0.95, down from 1.57 in 2023. A ratio below 1 indicates that the company may have liquidity issues, as it does not have enough current assets to cover its current liabilities.

Debt to Equity Ratio:

The debt-to-equity ratio measures the proportion of debt to equity in a company’s capital structure. In 2024, the ratio was 0.09, down from 0.14 in 2023. This indicates that the company has reduced its reliance on debt financing and has a relatively low level of debt compared to equity

Debt Service Coverage Ratio (DSCR):

The DSCR assesses a company’s ability to meet its debt obligations. In 2024, the ratio improved to 2.16 from 1.53 in 2023. A DSCR above 1 indicates that the company generates enough earnings to cover its debt payments.

Return on Equity (ROE):

The ROE measures the return generated on shareholders’ equity. In 2024, the ROE was 0.03 (3%), up from 0% in 2023. This indicates that the company started generating a small return for its shareholders in 2024. While still modest, the positive ROE shows that the company is becoming more profitable in terms of equity utilization.

Inventory Turnover Ratio:

The inventory turnover ratio reflects how efficiently a company manages its inventory by showing how many times inventory is sold and replaced over a period. In 2024, the ratio was 4.43, compared to 5.81 in 2023.

Trade Receivables Turnover Ratio:

The trade receivables turnover ratio indicates how quickly a company collects cash from its customers. In 2024, the ratio increased to 20.86 from 15.64 in 2023. This improvement suggests that the company is collecting its receivables faster, leading to better cash flow management and reduced credit risk.

Trade Payables Turnover Ratio:

The trade payables turnover ratio measures how quickly a company pays its suppliers. In 2024, the ratio was 3.82, slightly lower than 3.88 in 2023. This indicates that the company’s payment cycle to suppliers remained relatively stable, with only a minor change in how fast it settles its payables.

Net Capital Turnover Ratio:

The net capital turnover ratio assesses how efficiently a company uses its working capital to generate sales. In 2024, the ratio dropped drastically to -73.22 from 5.63 in 2023. A negative ratio indicates that the company had negative working capital (i.e., more current liabilities than current assets

Net Profit Ratio:

The net profit ratio shows the percentage of revenue that translates into net profit. In 2024, the ratio was 0.03%, a small improvement from 0% in 2023. This indicates that while the company generated a slight profit in 2024, its net margin remains extremely thin, meaning it retains very little profit after all expenses are paid.

Return on Capital Employed (ROCE):

The ROCE measures how efficiently the company generates profits from its capital. In 2024, the ROCE was 0.07 (7%), up from 0.02 (2%) in 2023. The increase indicates that the company is utilizing its capital more effectively to generate returns, though the overall return remains low.

Return on Investment (ROI):

The ROI measures the return generated on investments made by the company. In 2024, the ROI improved to 0.11 (11%) from 0.04 (4%) in 2023, showing that the company achieved better returns on its investments. This improvement may reflect higher efficiency in capital allocation or better investment performance.