RNIT Solutions Annual Report, Balance Sheet & Financials

RNIT Solutions and Services Limited Balance Sheet (Rs in Lakhs)

 RNIT Solutions and Services Limited Profit & Loss Statement (Rs inLakhs)

 RNIT Solutions and Services 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

For the year ending 31st March 2024, the company recorded a profit before tax of ₹408.16 lakhs, which shows a substantial increase compared to ₹247.77 lakhs in the previous year (31st March 2023). After adjusting for non-cash items such as depreciation and amortization (₹144.15 lakhs in 2024 vs ₹41.51 lakhs in 2023), interest on fixed deposits, interest on loans, and minor balances written off, the operating profit before working capital changes increased to ₹551.31 lakhs from ₹288.02 lakhs the previous year.

However, significant movements in working capital had a notable impact on the operating cash flow. Trade receivables increased by ₹632.29 lakhs in 2024, suggesting that more credit sales were made but not yet collected, further reducing cash available. Similarly, an increase in other current assets by ₹687.34 lakhs contributed to lower cash generation. On the positive side, there were increases in trade payables (₹162.07 lakhs) and other current liabilities (₹199.28 lakhs), helping to offset the negative impact. The net cash generated from operations before tax came in at a negative ₹324.8 lakhs, as compared to a negative ₹290.34 lakhs in 2023.

After paying income taxes of ₹77.92 lakhs, the net cash flow from operating activities stood at negative ₹402.72 lakhs for 2024, worsening slightly from negative ₹364.65 lakhs in 2023.

Cash Flow from Investing Activities

Investing activities were largely negative for the year. The company made significant capital expenditures with the purchase of property, plant, and equipment costing ₹6.23 lakhs in 2024, though lower compared to ₹46.58 lakhs in 2023. In addition, a significant investment was made in intangible assets, with ₹595.72 lakhs spent in 2024 compared to only ₹26.83 lakhs in 2023, indicating a focus on expanding intangible resources, possibly for technology or intellectual property. Interest received from fixed deposits amounted to ₹4.94 lakhs.

Overall, the net cash flow from investing activities was negative ₹597.01 lakhs in 2024, substantially more negative than negative ₹72.15 lakhs in 2023. This indicates significant outflow for capital expansion.

Cash Flow from Financing Activities

Financing activities in 2024 saw a significant inflow of funds. The company raised ₹896 lakhs from the issue of shares, compared to only ₹100 lakhs in the previous year. Additionally, borrowings contributed ₹179.72 lakhs in 2024, though this was lower than ₹364 lakhs in 2023. Interest paid on loans amounted to ₹4.04 lakhs.

As a result, the net cash flow from financing activities was a strong positive ₹1071.68 lakhs in 2024, a notable increase from ₹464 lakhs in 2023. This influx of funds largely offset the negative cash flows from operating and investing activities.

Net Increase in Cash and Cash Equivalents

After combining the cash flows from all activities, the net increase in cash and cash equivalents for 2024 was ₹71.94 lakhs, a significant increase compared to ₹27.2 lakhs in 2023. The company started the year with cash and equivalents of ₹52.73 lakhs and ended with ₹124.67 lakhs by 31st March 2024, showcasing a strong year-end cash position despite negative operating and investing cash flows, primarily due to successful financing efforts.

 Financial Ratios of RNIT Solutions and Services Limited

Here is a summary of the financial and operational metrics for RNIT Solutions Limited for the year 2024 and 2023:

Current Ratio: The current ratio increased from 2.89 in 2023 to 3.2 in 2024, indicating improved liquidity and the company 's ability to meet short-term obligations. A higher current ratio implies better financial health, showing that the company has more current assets relative to current liabilities. However, a very high ratio could suggest inefficient use of assets.

Debt-Equity Ratio: The debt-equity ratio decreased from 0.4 in 2023 to 0.19 in 2024, which indicates a reduction in financial leverage. The company has lowered its dependence on debt to finance its operations and projects, potentially reducing financial risk. A lower ratio is generally favorable as it shows the company is not heavily reliant on borrowing.

Debt Service Coverage Ratio: The debt service coverage ratio (DSCR) was 25.81 in 2024, indicating the company’s strong ability to cover its debt obligations. A DSCR of 25.81 is quite high, showing that the company generates sufficient income to comfortably meet its debt repayment commitments.

Return on Equity (ROE): The ROE declined from 0.40 in 2023 to 0.22 in 2024. This drop signifies a reduced efficiency in generating profits from shareholders ' equity. A lower ROE could indicate lower profitability or higher equity levels relative to profits.

Trade Receivables Turnover Ratio: The trade receivables turnover ratio fell from 4.48 in 2023 to 2.69 in 2024, suggesting a slower collection of receivables. This decline indicates that the company is taking longer to collect money from its customers, which could lead to cash flow challenges if not managed properly.

Net Capital Turnover Ratio: The net capital turnover ratio, which measures the efficiency of using working capital to generate revenue, decreased from 1.65 in 2023 to 1.21 in 2024. A lower ratio suggests that the company’s working capital was less efficiently used to generate sales.

Net Profit Ratio: The net profit ratio slightly improved from 14% in 2023 to 15% in 2024, indicating better profitability. This slight increase implies that the company was able to convert a greater portion of its revenues into profits, reflecting stronger cost control or improved margins.

Return on Capital Employed (ROCE): ROCE decreased from 0.31 in 2023 to 0.21 in 2024, indicating a lower efficiency in using capital to generate profits. This decline may signal that the company has not utilized its capital as effectively in 2024, potentially due to increased investment or lower operating income relative to capital employed.

Dividend:

Dividend During the year under review, the Board has not recommended any dividend.