NSDL Annual Report, Balance Sheet & Financials

 National Securities Depository Limited Balance Sheet (Rs in Lakhs)

 National Securities Depository Limited Profit & Loss Statement (Rs in Lakhs)

 National Securities Depository Limited Consolidated Cash Flow Statement (Rs in Lakhs)

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

Cash Flow from Operating Activities:
The company saw a notable increase in profit before tax, rising to ₹35,494.95 million from ₹23,325.15 million in 2023. Adjustments for non-cash items and provisions were substantial, including higher depreciation and amortization expenses of ₹2,412.41 million, compared to ₹1,667.19 million previously. Provisions and write-offs, including for compensated absences, investor awareness, doubtful trade receivables, and bad debts, were significantly higher, reflecting increased operational and financial risks.

The fair value gain on investments in mutual funds was a negative adjustment of ₹-1,700.73 million, up from ₹-400.54 million. This indicates a substantial loss in the value of investments. Interest income, a major cash inflow, increased to ₹-7,510.66 million from ₹-4,624.61 million, reducing net cash flow from operating activities.

Operating profit before working capital changes improved to ₹31,674.26 million from ₹21,877.05 million. However, changes in working capital had mixed effects. There were notable decreases in other financial assets and trade receivables, coupled with increases in trade payables and other liabilities. Overall, cash generated from operations was ₹19,186.64 million, down from ₹38,799.57 million in 2023, and after accounting for net income tax payments, net cash generated from operating activities was ₹11,288.28 million, a decrease from ₹32,700.36 million.

Cash Flow from Investing Activities:
The cash flow from investing activities showed a net outflow of ₹-17,256.76 million, compared to ₹-37,480.29 million in 2023. Significant capital expenditures on property, plant, and equipment, as well as intangible assets, increased to ₹-24,385.42 million from ₹-4,364.08 million. This suggests aggressive investment in growth or replacement of assets.

Proceeds from the sale of property, plant, and equipment were negligible, while there were notable transactions in non-current investments. The company purchased non-current investments worth ₹-20,954.88 million and sold/redeemed investments totaling ₹17,518.68 million, resulting in substantial net cash outflow from investments. Despite receiving interest of ₹7,501.41 million and some proceeds from current investments, the overall investing activities resulted in a significant net outflow.

Cash Flow from Financing Activities:
Cash flow from financing activities was stable, with a net outflow of ₹-2,000.00 million, identical to the previous year. This outflow was entirely attributed to dividend payments, reflecting a consistent return of profits to shareholders without any additional financing or debt changes.

Net Increase/ (Decrease) in Cash and Cash Equivalents:
Overall, the net decrease in cash and cash equivalents was ₹-7,968.48 million, worsening from the previous year 's decrease of ₹-6,779.93 million. Despite the negative cash flows from investing and financing activities, cash and cash equivalents at the end of the year increased to ₹10,601.24 million from ₹7,666.04 million at the beginning of the year. This increase suggests that the company had sufficient cash reserves to offset the net outflows, reflecting a strong cash position despite the outflows from operational and investing activities.

Financial Ratios of National Securities Depository Limited

Here is a summary of the financial and operational metrics for National Securities Depository Limited for the year 2024 and 2023:

Current Ratio: The current ratio decreased to 1.00 in 2024 from 1.25 in 2023. This decline indicates that the company 's ability to cover its short-term liabilities with its short-term assets has weakened. A ratio of 1.00 suggests that the company’s current assets are just sufficient to meet its current liabilities, reflecting potential liquidity concerns or a tighter working capital situation.

Return on Equity (ROE): The ROE improved to 18.60% from 17.90% year-over-year. This increase reflects a higher return on shareholders ' equity, indicating improved profitability relative to the equity invested by shareholders. The positive movement demonstrates effective utilization of equity capital to generate profits.

Trade Receivables Turnover Ratio: The ratio increased to 7.21 from 5.17, suggesting that the company has become more efficient in collecting receivables. A higher turnover ratio indicates faster collection of accounts receivable, which enhances cash flow and reduces the risk associated with overdue accounts.

Trade Payables Turnover Ratio: The trade payables turnover ratio decreased slightly to 5.15 from 5.48. This decrease implies that the company is paying its suppliers somewhat less frequently. While the ratio still indicates that payables are managed effectively, the lower figure may suggest either improved payment terms or extended payment periods with suppliers.

Net Profit Ratio: The net profit ratio increased to 54.60% from 51.50%, reflecting a stronger profit margin relative to sales. This improvement indicates that the company is generating a higher percentage of profit from its revenue, showcasing enhanced operational efficiency and cost control.

Return on Capital Employed (ROCE): The ROCE slightly improved to 21.70% from 21.40%. This indicates that the company is effectively using its capital to generate profits, with a marginally better return on the capital employed. The consistency in ROCE shows stable operational efficiency and capital utilization.

Return on Investment (ROI): The ROI increased to 7.20% from 5.90%, reflecting better returns on the investments made by the company. This improvement indicates successful investment strategies and better capital allocation, resulting in higher profitability from invested capital.