Midland Rubber And Produce Annual Report and Financials

Midland Rubber and Produce Company Limited Consolidated Balance Sheet (Rs. in crores).

Midland Rubber and Produce Company Limited Consolidated Profit & Loss Statement (Rs. in crores).

Midland Rubber and Produce Company Limited Consolidated Cash Flow Statement (Rs. in crores).

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

Cash Flow from Operating Activities

Midland Rubber and Produce Company Limited showed a strong improvement in operating cash flow in FY25 compared to FY24. Net profit before tax increased slightly to ₹30.72 crore from ₹28.41 crore, reflecting stable profitability. After adjustments for non-cash items such as depreciation, provisions, and investment-related gains, operating performance remained healthy. A key driver of improvement was better working capital management, particularly a reduction in inventory build-up (₹0.41 crore outflow compared to ₹3.38 crore last year) and improved movement in other current assets. Although some items like trade payables increased modestly, overall efficiency in operations improved significantly. As a result, cash generated from operations rose to ₹32.72 crore from ₹20.79 crore, and net operating cash flow increased strongly to ₹32.03 crore compared to ₹19.56 crore in FY24, indicating robust core cash generation.

Cash Flow from Investing Activities

The company’s investing activities show a continued and substantial cash outflow in both years, reflecting ongoing investment activity. In FY25, net investing cash outflow increased to ₹28.42 crore from ₹15.63 crore, mainly due to a sharp rise in purchase of investments (₹39.92 crore versus ₹32.13 crore). Although inflows from sale of investments (₹8.57 crore) and dividend/investment income (₹5.53 crore) provided partial support, they were not sufficient to offset the higher investment spending. Capital expenditure on assets remained stable at around ₹2.74 crore, indicating limited expansion in fixed assets. Overall, the company continued to aggressively deploy funds into investments, leading to higher cash absorption in investing activities.

Cash Flow from Financing Activities

Financing activities remained stable and limited in scale during both years. The company primarily used cash for dividend payments of ₹3.89 crore, along with a small interest outflow of ₹0.01 crore. There were no major borrowings or equity funding changes during the period, indicating a conservative financing structure. As a result, net cash outflow from financing activities remained constant at ₹3.90 crore in both FY25 and FY24, reflecting stable shareholder payout and minimal reliance on external funding.

Net Increase/decrease in Cash & cash equivalents

Despite strong operating cash inflows, overall cash position declined slightly due to heavy investment outflows. The company recorded a net cash decrease of ₹0.29 crore in FY25 compared to a marginal increase of ₹0.02 crore in FY24. Cash and cash equivalents at year-end stood at ₹0.50 crore, down from ₹0.79 crore in the previous year. This indicates that strong operational performance was largely reinvested into investment activities, resulting in a slight reduction in overall liquidity.

Financial ratios of Midland Rubber and Produce Company Limited.

Summary of Financial Ratio of the year 2025 and 2024.

Current Ratio

The current ratio declined to 5.62 in FY25 from 6.94 in FY24, indicating a reduction in liquidity levels. However, the ratio still remains very strong, suggesting that the company continues to hold a highly comfortable buffer of current assets over current liabilities, with no short-term solvency concerns.

Debt Service Coverage Ratio

The debt service coverage ratio improved significantly to 2,722.27 from 1,823.66, reflecting an exceptionally strong ability to meet debt obligations from operating earnings. This indicates very low debt servicing risk and a highly stable repayment capacity.

Return on Equity

Return on equity declined to 6% from 7%, indicating a slight reduction in shareholder returns. This suggests that despite stable operations, equity efficiency has weakened marginally, possibly due to lower profitability or higher equity base.

Inventory Turnover Ratio

The inventory turnover ratio decreased to 7.42 from 8.60, indicating slower inventory movement compared to the previous year. This suggests a slight weakening in inventory efficiency and stock utilisation.

Trade Account Receivables Ratio

The trade receivables ratio improved to 20.72 from 17.53, indicating faster collection of receivables. This reflects better credit management and improved efficiency in converting credit sales into cash.

Trade Account Payables Ratio

The trade payables ratio increased to 7.86 from 4.88, indicating that the company is taking longer to pay its suppliers compared to the previous year. This may reflect improved working capital management or better credit terms from suppliers.

Net Capital Turnover Ratio

The net capital turnover ratio improved to 0.98 from 0.76, indicating better utilisation of capital to generate revenue. This suggests improved operational efficiency and better deployment of capital resources.

Net Profit Ratio

Net profit ratio declined to 19% from 24%, indicating reduced profitability. This suggests that cost pressures or lower margins have impacted overall earnings efficiency during the year.

Return on Capital Employed

Return on capital employed declined to 6% from 8%, indicating reduced efficiency in generating returns from total capital employed. This reflects lower profitability relative to the capital base used in operations.

Return on Investment

Return on investment decreased to 7% from 10%, indicating a decline in returns generated from invested funds. This suggests reduced investment efficiency, despite overall stable operations.