Orbis Financial Annual Reports, Balance Sheet and Financials

Orbis Financial Corporation Limited Balance Sheet (Rs in Lakhs)

 Orbis Financial Corporation Limited Profit & Loss Statement (Rs in Lakhs)

 Orbis Financial Corporation Limited Consolidated Cash Flow Statement (Rs in Lakhs)

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

Cash Flows from Operating Activities

The company recorded a profit before tax of ₹18,719.17 lakhs in 2024, up from ₹12,189.20 lakhs in 2023. Key adjustments to this profit included:

Depreciation and amortization of ₹364.68 lakhs, showing regular wear and tear of assets.

Share-based payments of ₹2,418.02 lakhs, reflecting compensation to employees through equity.

Finance costs of ₹6,483.52 lakhs, indicating significant interest expenses.

Income from mutual fund investments of ₹-575.57 lakhs, which reduced the operating cash flow.

After adjustments, the operating profit before working capital changes was ₹27,258.13 lakhs. However, changes in working capital significantly impacted the cash flow:

A decrease in trade payables by ₹-1,596.56 lakhs reduced the cash inflow, indicating payments to suppliers.

A decrease in other financial liabilities of ₹-29,304.78 lakhs significantly affected cash flow, suggesting a major reduction in obligations or settlements of liabilities.

Receivables decreased, contributing ₹1,402.68 lakhs, improving liquidity.

As a result, cash generated from operations was ₹7,578.23 lakhs, but after paying income taxes (₹-5,297.53 lakhs), the net cash flow from operating activities stood at ₹2,280.70 lakhs, which marked an improvement from the negative cash flow of ₹-18,212.16 lakhs in 2023.

Cash Flows from Investing Activities

Investing activities resulted in a net cash inflow of ₹6,571.20 lakhs in 2024, compared to a net outflow of ₹-7,663.08 lakhs in 2023. Major inflows came from:

Proceeds from mutual fund investments (₹5,104.40 lakhs).

Sale of government securities (₹1,329.50 lakhs) and bonds (₹591.83 lakhs).

Rental income of ₹10.04 lakhs also contributed positively.

On the other hand, key outflows included:

Purchases of property, plant, and equipment (₹-476.26 lakhs).

Investments in fixed deposits (₹-70.89 lakhs).

Overall, the company generated a strong net inflow from investing activities in 2024, driven by divestments in securities and investments.

Cash Flows from Financing Activities

Financing activities resulted in a net inflow of ₹2,767.40 lakhs in 2024, compared to ₹6,754.10 lakhs in 2023. Key inflows came from:

Proceeds from the issuance of equity share capital (₹10,291.24 lakhs).

Significant outflows included:

Interest paid (₹-6,363.36 lakhs), indicating the cost of servicing debt.

Dividends paid (₹-910.19 lakhs), reflecting shareholder returns.

Despite higher interest payments, the company generated positive cash flow from financing activities due to equity issuance.

Net Increase/(Decrease) in Cash and Cash Equivalents

The company experienced a net increase in cash and cash equivalents of ₹11,619.30 lakhs in 2024, compared to a significant decrease of ₹-19,121.14 lakhs in 2023. This improvement reflects better cash management, particularly in investing activities.

Financial Ratios of Orbis Financial Corporation Limited

Here is a summary of the financial and operational metrics for Orbis Financial Corporation Limited for the year 2024 and 2023:

Current Ratio

The current ratio measures the company’s ability to cover short-term liabilities with short-term assets. The ratio improved slightly from 1.01 in 2023 to 1.14 in 2024, indicating a healthier liquidity position. A ratio above 1 suggests that the company can comfortably meet its short-term obligations, although the increase is modest.

Debt-Equity Ratio

The debt-equity ratio reflects the proportion of debt used in relation to shareholders' equity. The ratio declined from 0.029 in 2023 to 0.015 in 2024, showing a reduction in the company's reliance on debt. This indicates lower financial risk, as the company has decreased its leverage and is relying more on equity financing.

Debt Service Coverage Ratio (DSCR)

The DSCR indicates how well the company can cover its debt payments with operating income. The ratio remained almost steady at 3.08 in 2024 compared to 3.07 in 2023, showing that the company is consistently generating sufficient income to cover its debt obligations. A DSCR above 1 is considered strong, as it means the company can comfortably meet its debt servicing requirements.

Return on Equity (ROE) Ratio

ROE measures the company’s profitability in relation to shareholders' equity. Although the ratio decreased slightly from 27.25% in 2023 to 25.05% in 2024, it remains high, reflecting strong profitability and efficient use of equity to generate returns. The decline indicates that while profitability remains strong, it has slightly decreased compared to the previous year.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio measures how effectively the company collects payments from customers. The ratio decreased from 4.54 in 2023 to 4.35 in 2024, suggesting a slight slowdown in the collection of receivables. While still efficient, this minor decrease could indicate extended payment terms or slower collections from customers.

Trade Payable Turnover Ratio

This ratio shows how quickly the company settles its obligations to suppliers. The ratio fell from 1.67 in 2023 to 1.33 in 2024, suggesting that the company is taking longer to pay its suppliers. While this may improve cash flow in the short term, it could also strain relationships with suppliers if extended payment periods continue.

Net Capital Turnover Ratio

The net capital turnover ratio measures how effectively the company uses its working capital to generate revenue. The ratio dropped significantly from 5.82 in 2023 to 0.72 in 2024, indicating that the company’s revenue generation from working capital has slowed considerably. This could be a sign of inefficiency in managing working capital or lower revenue growth relative to capital.

Net Profit Ratio

The net profit ratio represents the percentage of revenue that translates into profit. The ratio increased from 29.99% in 2023 to 33.06% in 2024, indicating that the company is more profitable, with a higher proportion of revenue resulting in net profit. This reflects stronger cost control and revenue generation, leading to higher margins.

Return on Capital Employed (ROCE) Ratio

ROCE measures how efficiently the company uses its capital to generate profits. The ratio declined slightly from 38.06% in 2023 to 36.50% in 2024, indicating a marginal decrease in the company's ability to generate returns from its capital. While still a strong figure, the slight drop may indicate higher capital costs or lower operational efficiency.

Return on Investment (ROI)

The ROI measures the profitability of the company's investments. The ratio increased from 1.75% in 2023 to 2.79% in 2024, showing improved returns from the company’s investments. This suggests that the company has made more profitable investment decisions or seen better performance from its existing investments.