Malankara Plantations Latest Annual Report, Balance Sheet and Financials

Malankara Plantations Limited Consolidated Balance Sheet (Rs in lakhs)

Malankara Plantations Limited Consolidated Profit & Loss Statement (Rs in lakhs)

Malankara Plantations Limited Consolidated Cash Flow Statement (Rs in lakhs)

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

During FY 2024–25, the company reported a Net Profit before Tax of ₹236.17 lakhs, marking a significant turnaround from the loss of ₹313.31 lakhs recorded in FY 2023–24. After adjusting for non-cash and non-operating items such as depreciation of ₹136.57 lakhs, interest income of ₹82.83 lakhs, dividend income of ₹75.88 lakhs, and changes in provisions, the Operating Profit before Working Capital Changes stood at ₹208.60 lakhs, as against a negative ₹305.65 lakhs in the previous year, reflecting a strong improvement in core operations.

Working capital movements played a crucial role in supporting cash generation during the year. Inventories declined by ₹614.15 lakhs, leading to a release of funds, while loans and advances decreased by ₹141.80 lakhs and other current assets reduced by ₹336.06 lakhs, both contributing positively to liquidity. However, trade receivables increased by ₹80.94 lakhs and other current liabilities decreased by ₹260.20 lakhs, resulting in a use of funds. Consequently, Cash Generated from Operations amounted to ₹983.32 lakhs compared to ₹1,115.42 lakhs in FY 2023–24. After payment of income tax amounting to ₹167.73 lakhs, Net Cash from Operating Activities stood at ₹815.59 lakhs. Although lower than the ₹1,275.95 lakhs reported in the previous year, it continues to reflect healthy operational liquidity, with operating activities remaining the primary source of cash generation for the company.

Cash Flow from Investing Activities

During FY 2024–25, investing activities resulted in a net cash outflow of ₹431.92 lakhs, which is significantly lower than the substantial outflow of ₹1,392.99 lakhs recorded in FY 2023–24. The major cash outflows during the year were attributable to the purchase of Property, Plant and Equipment amounting to ₹483.87 lakhs and investments worth ₹506.71 lakhs. These were partially offset by inflows from the sale of fixed assets amounting to ₹163.66 lakhs and sale proceeds of old rubber trees of ₹224.01 lakhs, along with dividend income of ₹75.88 lakhs and interest income of ₹82.83 lakhs. In contrast, the previous year’s heavy outflow was largely driven by significant investment purchases totaling ₹1,963.66 lakhs. Compared to FY 2023–24, the current year reflects a more balanced capital allocation strategy with moderate capital expenditure and investment activity. Although investing activities continue to result in cash absorption, the magnitude of outflow has reduced considerably year-on-year.

Cash Flow from Financing Activities

During FY 2024–25, financing activities resulted in a net cash outflow of ₹59.06 lakhs, a substantial reduction compared to the significant outflow of ₹1,649.10 lakhs in FY 2023–24. During the year, the company recorded an inflow of ₹31.43 lakhs from an increase in working capital loans, which was offset by the repayment of term loans amounting to ₹57.98 lakhs and dividend payments of ₹32.51 lakhs. In contrast, the previous year’s large outflow was primarily driven by the repayment of working capital loans totaling ₹1,515.02 lakhs. The marked decline in financing cash outflows in FY 2024–25 reflects reduced debt servicing obligations and indicates a more stable and strengthened capital structure.

Financial ratios of Malankara Plantations Limited

Summary of the financial ratios for the years 2025 and 2024:

Current Ratio

The current ratio declined to 2.22 in FY 2024-25 from 2.56 in FY 2023-24. Although there is a slight reduction, the ratio remains comfortably above 1, indicating that the company has adequate current assets to meet its short-term liabilities. The marginal decline suggests comparatively higher current liabilities or lower current assets during the year, but overall short-term liquidity remains strong.

Debt-Equity Ratio

The debt-equity ratio remained stable at 0.05 in both years, reflecting a very low leverage position. This indicates that the company is minimally dependent on borrowed funds and operates largely through shareholders’ equity. Such a conservative capital structure reduces financial risk and interest burden.

Debt Service Coverage Ratio

The DSCR improved to 5.41 in FY 2024-25 from 4.40 in FY 2023-24. This significant improvement indicates a stronger ability to service debt obligations (interest and principal repayments) from operating earnings. A DSCR above 2 is generally considered healthy, and a ratio above 5 reflects a very comfortable debt servicing capacity.

Return on Equity

The return on equity stood at –0.06 in FY 2024-25, whereas it was not meaningful in FY 2023-24 (due to losses). The negative ROE indicates that the company generated losses attributable to shareholders during the year, thereby eroding shareholder value. This suggests that despite improvements in operational areas, profitability remains under pressure at the net level.

Inventory Turnover Ratio

The inventory turnover ratio declined sharply to 2.67 in FY 2024-25 from 11.30 in FY 2023-24. This indicates slower movement of inventory compared to the previous year. A lower ratio may suggest either higher inventory holding, slower sales, or cyclical nature of plantation operations. The steep decline reflects reduced efficiency in inventory management.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio dropped significantly to 7.26 in FY 2024-25 from 78.48 in FY 2023-24. This indicates slower collection of receivables during the year. The exceptionally high ratio in the previous year suggests minimal receivables or faster collections, while the current year reflects relatively relaxed credit terms or higher outstanding receivables.

Trade Payables Turnover Ratio

The trade payables turnover ratio was not reported in FY 2024-25, compared to 190.76 in FY 2023-24. The very high ratio in the previous year indicated very quick payment to suppliers or low outstanding payables. Absence of ratio in the current year may indicate negligible trade credit or changes in reporting structure.

Net Capital Turnover Ratio

The net capital turnover ratio reduced drastically to 1.34 in FY 2024-25 from 9.28 in FY 2023-24. This suggests that the company is generating significantly lower revenue per unit of working capital compared to the previous year. The decline reflects reduced efficiency in utilizing working capital for revenue generation.

Net Profit Ratio

The net profit ratio stood at –0.20 in FY 2024-25, whereas it was not meaningful in FY 2023-24 due to losses. A negative net profit ratio indicates that the company incurred net losses during the year relative to its revenue. Despite improvements in certain operational metrics, bottom-line profitability remains weak.

Return on Capital Employed

ROCE improved to 0.05 in FY 2024-25 from 0.02 in FY 2023-24. Although still modest, the improvement indicates better utilization of total capital employed in generating operating profits. This suggests gradual operational recovery.

Return on Investments

Return on investments declined to –0.22 in FY 2024-25 from –0.01 in FY 2023-24, indicating negative returns from investment activities. This reflects either mark-to-market losses, reduced income from investments, or lower investment performance during the year.