Malayalam Communications Latest Annual Report, Balance Sheet and Financials

Malayalam Communications Limited Balance Sheet (Rs in Hundreds)

 Malayalam Communications Limited Profit & Loss Statement (Rs in Hundreds)

 Malayalam Communications Limited Cash Flow Statement (Rs in Hundreds)

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flows from Operating Activities: The net cash flow from operating activities decreased from ₹19,32,721.57 in FY 2023 to ₹16,16,693.75  in FY 2024. Despite an increase in net profit before tax and extraordinary items from ₹1,88,436.23 to ₹2,74,029.27,the operating cash flow was impacted by several factors. Depreciation decreased significantly from ₹11,09,193.32 - to ₹9,30,212.15 -, while finance charges paid increased from ₹6,70,570.72 to ₹7,43,584.93. Interest received also saw a substantial decrease, contributing to the reduced cash flow. The net adjustments for working capital changes included a decrease in programmed software and an increase in various assets and liabilities, which collectively led to a lower cash flow from operating activities.

Cash Flows from Investing Activities: Net cash used in investing activities increased from ₹5,23,365.28  in FY 2023 to ₹6,45,515.30  in FY 2024. This increase is primarily due to higher purchases of fixed assets, which rose from ₹6,00,155.18 to ₹7,38,437.38. While there were some inflows from the sale of fixed assets and interest received, these were not sufficient to offset the outflows. The increased investment in assets and the significant net cash used in investing activities reflect a focus on capital expenditures and possibly strategic investments.

Cash Flows from Financing Activities: The cash flow from financing activities showed a net outflow of ₹7,23,504.73 in FY 2024, compared to a larger outflow of ₹16,28,604.13 in FY 2023. This decrease in outflows was due to a shift in financing sources, with proceeds from long-term borrowings significantly increasing to ₹1,10,931.62 from an outflow of ₹8,65,733.09 in the previous year. However, the company also had substantial outflows from short-term borrowings and finance charges paid. The reduction in net cash used in financing activities indicates a shift in the company’s financing strategy, potentially focusing more on long-term debt and reducing short-term financing needs.

Net Increase/(Decrease) in Cash and Cash Equivalents: The net increase in cash and cash equivalents before the effect of exchange rate changes was ₹2,47,673.71 in FY 2024, a turnaround from a decrease of ₹2,19,247.84 in FY 2023. After accounting for the effect of exchange rate changes, the net increase in cash and cash equivalents for FY 2024 was ₹3,00,597.42, compared to a slight increase of ₹22,176.80 in FY 2023. This significant increase in cash reserves reflects a positive cash flow position for the year, largely attributed to improved operational cash flows and adjustments in investment and financing activities.

 Financial Ratios of Malayalam Communications Limited

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

Current Ratio: The current ratio has improved from 0.86 in 2023 to 0.95 in 2024. This ratio measures a company 's ability to cover its short-term liabilities with its short-term assets. A ratio below 1 indicates that current liabilities exceed current assets, which implies potential liquidity issues. The increase to 0.95 shows a slight improvement in the company’s short-term financial health, indicating better liquidity but still below the ideal level of 1.0. This improvement suggests that the company is making progress in managing its short-term obligations.

Debt-Equity Ratio: The debt-equity ratio remains constant at 0.37 for both years. This ratio indicates the proportion of debt used relative to shareholders ' equity. A consistent ratio suggests stability in the company 's capital structure. The ratio of 0.37 shows a relatively low level of debt compared to equity, indicating a conservative approach to leveraging and a lower financial risk due to reduced reliance on debt financing.

Debt Service Coverage Ratio (DSCR): The DSCR increased from 2.88 in 2023 to 3.92 in 2024. This ratio measures the company 's ability to service its debt (principal and interest payments) from its operating income. A higher DSCR indicates greater ability to meet debt obligations. The improvement suggests that the company has enhanced its capacity to cover debt service costs with its operating income, reflecting stronger financial stability and reduced risk of default.

Trade Receivables Ratio: The trade receivables ratio decreased slightly from 188.86 in 2023 to 183.31 in 2024. This ratio represents the average number of days it takes for the company to collect payments from its customers. The decrease indicates a slight improvement in the efficiency of collecting receivables, meaning the company is taking marginally less time to collect payments, which can enhance liquidity and reduce the risk of bad debts.

Trade Payables Ratio: The trade payables ratio improved from 2.43 in 2023 to 2.17 in 2024. This ratio measures the average number of days the company takes to pay its suppliers. A lower ratio indicates faster payment to suppliers, which can reflect better supplier relationships or improved cash management. The reduction suggests the company is paying its suppliers more promptly, which may enhance supplier relations and possibly lead to better terms or discounts.

Net Capital Turnover Ratio: The net capital turnover ratio improved from -0.19 in 2023 to -0.06 in 2024. This ratio assesses the efficiency with which a company utilizes its capital to generate sales. A negative value in both years indicates that the company is not generating sufficient revenue relative to its capital base, but the improvement suggests a reduction in inefficiency. While still negative, the reduced magnitude reflects some progress in capital utilization.

Net Profit Ratio: The net profit ratio increased slightly from 5.22% in 2023 to 5.45% in 2024. This ratio measures the percentage of revenue that remains as profit after all expenses are deducted. The increase indicates a slight improvement in profitability, meaning that a higher proportion of sales is being converted into net profit, reflecting better cost control or improved revenue generation.

Return on Equity (ROE): The ROE increased from 2.51% in 2023 to 2.64% in 2024. This ratio measures the return generated on shareholders ' equity. The slight increase suggests that the company is delivering marginally better returns on equity investments. While the ROE remains relatively low, the improvement indicates a modest enhancement in profitability relative to shareholders’ equity.

Return on Capital Employed (ROCE): The ROCE improved from 1.33% in 2023 to 1.89% in 2024. This ratio evaluates the return generated from the total capital employed in the business. The increase reflects better utilization of capital to generate profits, indicating improved operational efficiency and better capital investment performance.