Mcdowell Holdings Limited Latest Annual Report, Balance Sheet and Financials

Mcdowell Holdings Limited Balance Sheet (Rs in Lakhs)

Mcdowell Holdings Limited Profit & Loss Statement (Rs in Lakhs) 

Mcdowell Holdings Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Here is the analysis of cash flow for year March 2023 and 2022:

Cash Flow from Operating Activities

Profit before Tax for the Year

For the year ending on 31-03-2023, the company reported a profit before tax of 241.7 units. In contrast, for the previous year ending on 31-03-2022, the company experienced a loss before tax amounting to -285.02 units.

Adjustments for:

Depreciation and Amortization Expenses: These non-cash expenses were 0.22 units in 2023, slightly up from 0.08 units in 2022.

Dividend Received: The Company received dividends worth 492.94 units in 2023, significantly higher than the 35.33 units received in 2022.

Interest Expense: The interest expense for 2023 was 5.97 units, down from 187.36 units in 2022.

Provision for Gratuity: There was no provision for gratuity in 2023, while in 2022, there was a small provision of -0.06 units.

Interest on Fixed Deposits: The interest earned on fixed deposits was 3.82 units in 2023, up from 0.06 units in 2022.

Provision No Longer Required Written Back: There were no such provisions in 2023, while in 2022, a provision of 7.25 units was written back.

Operating Cash Flows before Working Capital Changes:

After adjusting for the above items, the operating cash flows before changes in working capital stood at -248.88 units for 2023, compared to -140.89 units for 2022.

Changes in Working Capital:

Increase/Decrease in Current Assets: In 2023, there was an increase in current assets by 75.65 units, compared to an increase of 6.38 units in 2022.

Increase/Decrease in Current Liabilities: Current liabilities increased by 0.13 units in 2023, whereas in 2022, there was a decrease of 131.88 units.

Cash Flow Used in Operations:

After accounting for changes in working capital, the cash flow used in operations was -324.66 units in 2023, compared to -279.15 units in 2022.

Net Cash Generated from Operating Activities:

The net cash generated from operating activities was negative, amounting to -324.66 units for 2023, and -279.15 units for 2022.

Cash Flows from Investing Activities

Dividend Received:

The dividends received were 492.94 units in 2023, a substantial increase from 35.33 units in 2022.

Fixed Deposits:

The company invested 253.59 units in fixed deposits in 2023, while there were no such investments in 2022.

Purchase of Fixed Assets:

There was a purchase of fixed assets worth 2.42 units in 2023, with no such purchases in 2022.

Interest on Fixed Deposits Received:

The interest received on fixed deposits was 3.82 units in 2023, compared to 0.06 units in 2022.

Net Cash Used in/Generated from Investing Activities:

The net cash generated from investing activities was 240.75 units in 2023, as opposed to 35.39 units in 2022.

Cash Flows from Financing Activities

Repayment of Loan:

Loan repayments amounted to 350 units in 2023, up from 238 units in 2022.

Interest Paid:

There were no interest payments in 2023, while in 2022; interest payments amounted to 2.13 units.

Net Cash Generated from Financing Activities:

The net cash generated from financing activities was 350 units in 2023, compared to 235.87 units in 2022.

Net Increase/Decrease in Cash and Cash Equivalents

The net increase in cash and cash equivalents was 266.09 units in 2023, whereas in 2022, there was a decrease of -7.88 units.

Cash and Cash Equivalents at the Beginning and End of the Year

The cash and cash equivalents at the beginning of the year were 6.06 units in 2023 and 13.94 units in 2022.

At the end of the year, cash and cash equivalents increased to 272.15 units in 2023 from 6.06 units in 2022.

Reconciliation of Cash and Cash Equivalents as per the Cash Flow Statement

Balances with Bank: The balances with the bank were 272.1 units in 2023, up from 5.99 units in 2022.

Cash in Hand: Cash in hand remained relatively stable, with 0.05 units in 2023 and 0.07 units in 2022.

Balance as per Statement of Cash Above: The total cash and cash equivalents as per the statement were 272.15 units in 2023 and 6.06 units in 2022.

Financial Ratios of Mcdowell Holdings Limited

Here is the summary of financial and operational metrics for Mcdowell Holdings Limited for year 2023 & 2022:

Current Ratio

2023: 7.94

2022: 24.23

Explanation: The current ratio measures a company 's ability to pay its short-term obligations with its short-term assets. A ratio above 1 indicates that the company has more current assets than current liabilities. The significant decrease from 24.23 in 2022 to 7.94 in 2023 suggests a reduction in the company 's liquidity, although it still maintains a strong ability to cover short-term obligations.

Debt-Equity Ratio

2023: 0.02

2022: 0.02

Explanation: The debt-equity ratio indicates the relative proportion of shareholders ' equity and debt used to finance a company 's assets. A low ratio of 0.02 in both years indicates that the company relies very little on debt financing and is primarily funded through equity.

Debt Service Coverage Ratio (DSCR)

2023: 31.32

2022: -0.521

Explanation: The DSCR measures a company 's ability to service its debt with its operating income. A DSCR of 31.32 in 2023 is exceptionally high, indicating a strong capability to cover debt obligations. In contrast, a negative DSCR in 2022 (-0.521) indicates that the company was not generating enough operating income to cover its debt payments.

Return on Equity (ROE) Ratio

2023: 0.13

2022: -0.2

Explanation: ROE measures the profitability of a company in generating income from its shareholders ' equity. A positive ROE of 0.13 in 2023 shows that the company generated a profit, whereas a negative ROE of -0.2 in 2022 indicates a loss relative to shareholders ' equity.

Net Working Capital Turnover Ratio

2023: 1.05

2022: 0.185

Explanation: This ratio measures how efficiently a company uses its working capital to generate sales. An increase from 0.185 in 2022 to 1.05 in 2023 indicates improved efficiency in utilizing working capital to support sales activities.

Net Profit Ratio

2023: 0.37

2022: -8.07

Explanation: The net profit ratio shows the percentage of revenue that translates into net profit. A positive ratio of 0.37 in 2023 indicates profitability, while a negative ratio of -8.07 in 2022 indicates a net loss relative to revenue.

Return on Capital Employed (ROCE)

2023: 0.003

2022: -0.001

Explanation: ROCE measures a company 's profitability and the efficiency with which its capital is employed. A slight positive return of 0.003 in 2023 suggests a marginal profit, while a negative return of -0.001 in 2022 indicates a loss on the capital employed.

Dividend History

Mcdowell Holdings Limited Recent Financial Performance:

Dividend per Share: The specific dividend per share figure for March 2023 and 2022 is not provided; Dividend per share represents the portion of a company 's earnings that is distributed to shareholders in the form of dividends. A higher dividend per share may indicate that the company is sharing more of its profits with shareholders.

Retained Earnings: Retained earnings for 2023 amounted to Rs. 83,730.54 Lakhs, while in 2022, they were Rs. 87,536.97 Lakhs. Retained earnings represent the portion of a company 's profits that is reinvested in the business rather than distributed as dividends. An increase in retained earnings suggests that the company has retained more of its profits for reinvestment or future growth.

To provide a more comprehensive analysis, it would be necessary to consider additional financial metrics such as revenue, net profit, assets, liabilities, and cash flows. Additionally, an analysis of trends over multiple years and a comparison to industry benchmarks and competitors would help in assessing the company 's financial health and performance.