Nandini Texcom Latest Annual Report & Financials

Nandini Texcom (India) Limited Balance Sheet (Amt. In Thousands)

Nandini Texcom (India) Limited Profit & Loss Statement (Amt. In Thousands)

Nandini Texcom (India) Limited Consolidated Cash Flow Statement (Amt. In Thousands)

Let 's break down the Cash Flow Statement for the years 2023 and 2022, activity-wise:

1. Operating Activities:

   - In 2023, the company experienced a net loss after taxes of Rs. 318,490 thousand, a significant decline from the profit of Rs. 14,421,680 thousand in 2022. This decline may be attributed to various factors affecting the company 's operational performance.

   - Depreciation increased notably in 2023 to Rs. 1,321,000 thousand from Rs. 571,840 thousand in 2022, indicating a higher level of asset depreciation during the period.

   - Deferred tax adjustments amounted to Rs. 19,470 thousand in 2023, compared to Rs. 120,000 thousand in 2022, reflecting changes in the company 's tax liabilities over the years.

   - Operating profit before working capital changes decreased substantially to Rs. 1,021,980 thousand in 2023 from Rs. 15,113,520 thousand in 2022, indicating a decline in operational efficiency.

   - Changes in current assets and liabilities also had significant impacts on operating cash flows. While there was a positive change in other current assets, such as an increase in inventories and trade receivables, there was a negative change in liabilities, including short-term borrowings and provisions, leading to a net increase in working capital of Rs. 535,860 thousand in 2023, compared to a decrease of Rs. 12,088,140 thousand in 2022.

   - Consequently, cash generated from operations declined to Rs. 1,557,840 thousand in 2023 from Rs. 3,025,380 thousand in 2022, indicating challenges in maintaining cash flows from core business activities.

2. Investing Activities:

   - There were no significant investing activities reported for both 2023 and 2022. No purchases or sales of fixed assets were made, and there were no changes in investments during the period. However, in 2022, there was a substantial cash outflow of Rs. 6,962,530 thousand for the purchase of fixed assets.

3. Financing Activities:

   - In 2023, there was a net cash outflow of Rs. 1,382,790 thousand from financing activities, primarily due to long-term borrowings received or paid during the year. This is in contrast to 2022 when there was a net cash inflow of Rs. 4,026,070 thousand from financing activities, indicating changes in the company 's financing activities and capital structure over the years.

4. Net Increase/(Decrease) in Cash and Cash Equivalents:

   - The net increase in cash and cash equivalents was Rs. 175,050 thousand in 2023, compared to Rs. 88,920 thousand in 2022. This indicates an improvement in the company 's liquidity position in 2023 compared to the previous year.

5. Cash and Cash Equivalents:

   - The cash and cash equivalents at the end of the year amounted to Rs. 283,600 thousand in 2023, compared to Rs. 108,720 thousand at the beginning of the year. This increase reflects the company 's ability to generate and retain cash despite operational and financial challenges during the year.

Financial Ratios of Nandini Texcom (India) Limited:

Insights into the financial health and performance of the company in 2023 and 2022:

1. Interest Coverage Ratio:

   - The interest coverage ratio indicates the company 's ability to cover its interest expenses with its operating income. In 2023, the interest coverage ratio is 0.98, which means that the company 's operating income is only sufficient to cover 98% of its interest expenses. This indicates a weak ability to meet interest obligations from operating income alone. In contrast, in 2022, the interest coverage ratio was higher at 4.92, indicating a stronger ability to cover interest expenses.

2. Net Profit Margin:

   - The net profit margin measures the percentage of each rupee of revenue that translates into net profit after all expenses have been deducted. A negative net profit margin, as seen in 2023 (-0.04%), indicates that the company incurred a net loss, meaning expenses exceeded revenue. In 2022, the net profit margin was positive at 3.07%, indicating that the company was able to generate a net profit equivalent to 3.07% of its total revenue.

3. Debt Equity Ratio:

   - The debt equity ratio compares the company 's total debt to its shareholders ' equity and measures the proportion of debt used to finance the company 's assets relative to equity. In 2023, the debt equity ratio is 1.12, suggesting that the company 's debt level exceeds its equity, indicating a higher reliance on debt financing. In 2022, the ratio was slightly higher at 1.24, indicating a similar trend but with a slightly higher proportion of debt relative to equity.

4. Debt Service Coverage Ratio:

   - The debt service coverage ratio assesses the company 's ability to cover its debt obligations with its operating income. A lower ratio, as seen in 2023 (0.64), indicates a weaker ability to cover debt obligations from operating income alone. In contrast, the higher ratio in 2022 (2.63) suggests a stronger ability to cover debt obligations with operating income.

Dividend History of Nandini Texcom (India) Limited: