Malankara Plantations Latest Annual Report, Balance Sheet and Financials

Malankara Plantations Limited Balance Sheet (Rs in Lakhs)

Malankara Plantations Limited Profit & Loss Statement (Rs in Lakhs)

 Malankara Plantations 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 include the core operations of the business, such as production and sales. In the financial year ending on March 31, 2024, the company reported a net loss before tax of ₹312.93 lakhs, in contrast to the profit of ₹188.75 lakhs in the previous year (March 2023). Several non-cash adjustments are made to this figure, such as depreciation and amortization, which increased to ₹283.64 lakhs in 2024 from ₹223.02 lakhs in 2023. These are added back because they don’t involve actual cash outflow.

The company also earned interest and dividends from investments, which are deducted from operating cash flows since they are part of investing activities. The interest on investments increased significantly in 2024 (₹120.17 lakhs) compared to ₹49.94 lakhs in 2023, indicating higher earnings from investments.

Provisions for bonus and gratuity saw fluctuations, with a decrease in bonus provision by ₹21.5 lakhs in 2024, while gratuity provision rose by ₹56.41 lakhs. After these adjustments, the operating profit before working capital changes was negative in 2024 at ₹-178.17 lakhs, compared to ₹346.27 lakhs in 2023.

Working Capital Adjustments:

The company experienced notable shifts in working capital components. Trade receivables decreased by ₹793.94 lakhs in 2024, improving cash flow, as compared to an increase of ₹489.83 lakhs in 2023, which had reduced cash flow. Inventories also grew significantly by ₹1191.19 lakhs in 2024, indicating stock accumulation. This may represent a strategic stock buildup but would consume cash. Loans and advances reduced in 2024 by ₹89.06 lakhs compared to an increase in the prior year.

Trade payables increased slightly in 2024 by ₹19.72 lakhs, which improved cash flow, as did reductions in current liabilities. These adjustments resulted in a net cash generation from operations of ₹1082.85 lakhs in 2024, a substantial increase from ₹676.71 lakhs in 2023. After accounting for income tax payments, the net cash from operating activities amounted to ₹1112.83 lakhs in 2024, an improvement from ₹633.10 lakhs in 2023.

Cash Flow from Investing Activities:

Investing activities cover expenditures on long-term assets and returns from investments. The company’s outflow on the purchase of property, plant, and equipment decreased to ₹476.21 lakhs in 2024 from ₹904.18 lakhs in 2023, which suggests reduced capital investment.

The company also received dividends from investments (₹63.62 lakhs) and interest on investments (₹120.17 lakhs), both of which contributed positively to cash flow. However, there were no significant proceeds from the sale of investments in 2024, compared to ₹241.28 lakhs in 2023.

Additionally, proceeds from the sale of fixed assets were higher in 2024 at ₹34.38 lakhs compared to ₹3.86 lakhs in the previous year. Income from old rubber trees contributed ₹239.78 lakhs to cash flow in 2024, up from ₹37.9 lakhs in 2023. Overall, the net cash flow from investing activities in 2024 was slightly positive at ₹21.82 lakhs, a significant recovery from the negative ₹551.51 lakhs in 2023.

Cash Flow from Financing Activities:

Financing activities involve transactions with creditors and shareholders. In 2024, the company faced significant outflows, with a notable repayment of working capital loans amounting to ₹1515.02 lakhs, compared to an inflow of ₹529.57 lakhs in 2023. This suggests a reduction in reliance on borrowed funds for working capital needs in 2024.

There was also a repayment of term loans, but the amount decreased to ₹61.83 lakhs in 2024 from ₹66.63 lakhs in 2023. Dividend payments reduced to ₹72.25 lakhs in 2024 compared to ₹108.38 lakhs in the previous year, which slightly mitigated the cash outflow. Overall, the net cash outflow from financing activities in 2024 was significant at ₹-1649.10 lakhs, contrasting with a positive cash inflow of ₹354.56 lakhs in 2023.

Net Change in Cash Equivalents:

In summary, the company 's cash position weakened in 2024. The net decrease in cash equivalents was ₹514.45 lakhs, a sharp reversal from the net increase of ₹436.15 lakhs in 2023. The cash and cash equivalents at the beginning of 2024 stood at ₹1766.15 lakhs, but this declined to ₹1251.70 lakhs by the end of the year, reflecting the overall negative cash flow situation.

Financial Ratios of Malankara Plantations Limited

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

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 improved to 2.25 from 1.61 in 2023, indicating that the company has strengthened its liquidity position. A current ratio above 1.0 means the company has more current assets than current liabilities, and an improvement suggests that the company is better positioned to meet its short-term obligations.

Debt-Equity Ratio:

This ratio indicates the proportion of debt used in financing the company relative to shareholders ' equity. A lower ratio suggests that the company is less reliant on debt financing. The debt-equity ratio dropped significantly from 0.23 in 2023 to 0.05 in 2024, indicating a sharp reduction in the company 's leverage.

Debt Service Coverage Ratio (DSCR):

The DSCR measures the company’s ability to cover its debt-related obligations, such as interest and principal repayments, from its operating income. The company’s DSCR improved from 4.14 in 2023 to 5.4 in 2024, showing a greater ability to service its debt. A higher DSCR indicates that the company generates enough cash flow to comfortably meet its debt commitments, which is a positive signal for creditors.

Return on Equity (ROE):

ROE shows how effectively the company is using its shareholders ' equity to generate profits. In 2024, the ROE turned negative, dropping to -0.01 from 0.03 in 2023. A negative ROE indicates that the company has reported losses for the year and is not generating sufficient returns for its shareholders.

Inventory Turnover Ratio:

This ratio measures how efficiently the company manages its inventory by showing how many times the inventory is sold and replaced over a period. The inventory turnover ratio increased slightly to 11.3 in 2024 from 10.71 in 2023, indicating a faster movement of inventory.

Trade Receivables Turnover Ratio:

This ratio shows how quickly the company collects cash from its customers. The trade receivables turnover ratio jumped significantly from 25.83 in 2023 to 79.03 in 2024. This sharp increase suggests that the company has improved its credit collection process, reducing the amount of time it takes to collect payments from customers.

Net Capital Turnover Ratio:

This ratio measures how efficiently the company uses its net working capital (current assets minus current liabilities) to generate revenue. In 2024, the net capital turnover ratio increased slightly to 11 from 10.56 in 2023, reflecting a marginal improvement in the company’s ability to generate revenue from its working capital.

Net Profit Ratio:

The net profit ratio shows the percentage of profit earned on the company 's total revenue. In 2024, the company’s net profit ratio turned negative, dropping to -0.003 from 0.01 in 2023, signaling that the company incurred losses after accounting for all expenses.

Return on Capital Employed (ROCE):

ROCE measures how efficiently the company uses its capital (both equity and debt) to generate profit. The ROCE fell to 0.02 in 2024 from 0.05 in 2023, indicating that the company is earning lower returns on its capital. This decline is consistent with the company’s overall profitability challenges in 2024, as reflected by the negative net profit and return on equity

Return on Investment (ROI):

The ROI measures the profitability of the company’s investments relative to the cost of those investments. In 2024, the ROI turned negative, dropping to -0.01 from 0.03 in 2023. This indicates that the company’s investments are not yielding positive returns, which could be a reflection of overall poor profitability or underperformance in investment returns.