Roots Multiclean Annual Reports, Balance Sheet and Financials

Roots Multiclean Limited Balance Sheet (Rs in lakhs)

Roots Multiclean Limited Profit & Loss Statement (Rs in lakhs)

Roots Multiclean Limited Cash Flow Statement (Rs in lakhs)

Operating Activities:

The company generated cash from operating activities of ₹2,727.83 million in 2023, compared to ₹2,933.69 million in 2022.

The decrease in cash generated from operations may be attributed to changes in working capital components such as trade payables, short-term provisions, and inventories.

Despite the decrease, the company continues to generate substantial cash from its core operations, indicating operational stability.

Investing Activities:

The company invested ₹1,186.95 million in capital expenditure, including capital advances, in 2023, compared to ₹1,273.15 million in 2022.

The proceeds from the sale of assets (net) decreased from ₹35.89 million in 2022 to ₹11.19 million in 2023.

Notably, the company made a significant investment of ₹3,000.00 million in Roots Industries India Private Ltd in 2023.

Overall, the investing activities resulted in a net cash outflow of ₹-4,161.79 million in 2023, compared to ₹-1,151.02 million in 2022.

Financing Activities:

The company saw an increase in current and non-current borrowings, resulting in a net cash inflow of ₹905.24 million in 2023, compared to a net cash outflow of ₹-756.5 million in 2022.

Finance costs paid increased from ₹-360.91 million in 2022 to ₹-597.34 million in 2023.

Equity dividend paid remained consistent at ₹-60 million in both years.

Overall, financing activities resulted in a net cash inflow of ₹247.9 million in 2023, compared to a net cash outflow of ₹-1,177.41 million in 2022.

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

The company experienced a net decrease in cash and cash equivalents of ₹-1,186.06 million in 2023, compared to a net increase of ₹605.26 million in 2022.

Despite the decrease, the company maintained a healthy level of cash and cash equivalents at the end of the period, indicating sufficient liquidity to meet short-term obligations and fund future investments.

Financial Ratios of Roots Multiclean Limited

Current Ratio:

Both years show a current ratio above 1, indicating that the company has sufficient current assets to cover its current liabilities. However, there 's a slight decrease from 2022 to 2023, which could be a point of concern if the trend continues.

Debt-Equity Ratio:

The debt-equity ratio indicates the proportion of debt and equity used to finance the company 's assets. A lower ratio suggests lower financial risk. Roots Multiclean Limited shows a decreasing trend, indicating reduced reliance on debt financing, which is positive for long-term financial health.

Debt Service Coverage Ratio:

This ratio measures the company 's ability to cover its debt obligations with its operating income. A higher ratio suggests better debt-servicing ability. The significant increase from 2022 to 2023 indicates improved capacity to service debt, possibly due to increased profitability or better cash flow management.

Return on Equity (ROE) Ratio:

ROE measures the profitability of a company relative to its shareholders ' equity. An increasing ROE suggests efficient utilization of equity. Roots Multiclean Limited shows an improving trend, indicating enhanced profitability in relation to shareholders ' equity, which is favorable for investors.

Inventory Turnover Ratio:

This ratio measures how efficiently the company manages its inventory. A higher ratio indicates better inventory management. Roots Multiclean Limited shows a slight decrease, suggesting a longer inventory turnover period, which could indicate inventory management challenges or changes in sales patterns

Trade Receivables Turnover Ratio:

This ratio assesses how efficiently the company collects payments from customers. An increasing ratio indicates faster collection of receivables. The improvement from 2022 to 2023 suggests better receivables management and potentially stricter credit policies.

Trade Payables Turnover Ratio:

This ratio evaluates how quickly the company pays its suppliers. An increasing ratio indicates a shorter payment period. Roots Multiclean Limited shows an increasing trend, which may signify better cash flow management or negotiation of favorable payment terms with suppliers.

Net Capital Turnover Ratio:

This ratio measures the efficiency of capital utilization in generating sales. An increasing ratio suggests improved capital efficiency. Roots Multiclean Limited shows a positive trend, indicating better utilization of capital to generate revenue.

Net Profit Ratio:

This ratio measures the profitability of sales. An increasing ratio indicates improved profit margins. Roots Multiclean Limited shows an increasing trend, suggesting improved profitability relative to sales.

Return on Capital Employed (ROCE) Ratio:

ROCE evaluates the efficiency of capital utilization in generating profits. An increasing ratio indicates better utilization of capital. Roots Multiclean Limited demonstrates an improving trend, indicating enhanced profitability from capital employed.

Return on Investment (ROI) Ratio:

ROI measures the return on investment relative to the cost of the investment. An increasing ratio indicates improved investment performance. Roots Multiclean Limited shows an increasing trend, suggesting better returns on investment over time.