Sangameshwar Coffee Estates Limited Annual Report and Financials

Sangameshwar Coffee Estates Limited Balance Sheet (Rs in Lakhs)

Sangameshwar Coffee Estates Limited Profit & Loss Statement (Rs in Lakhs)

 Sangameshwar Coffee Estates 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:

2024: Net cash from operating activities was Rs. 199.16 Lakhs, showing a strong recovery from 2023, where there was a net cash outflow of Rs. -549.53 Lakhs. This improvement is mainly driven by a decrease in inventories, which added significant liquidity in 2023, but was a net use of cash in 2024.

Adjustments included non-cash items like depreciation (Rs. 32.77 Lakhs in 2024) and foreign exchange gains. A notable item is the interest paid, which increased to Rs. 157.22 Lakhs in 2024 from Rs. 94.67 Lakhs in 2023.

Cash Flow from Investing Activities:

2024: A small net cash inflow of Rs. 11.42 Lakhs was generated from investing activities, a stark contrast to 2023, where there was a large net inflow of Rs. 2250.8 Lakhs, due to proceeds from the sale of an estate (Kondadkan Estate), which brought in Rs. 2848.56 Lakhs in 2023.

Purchases of property, plant, and equipment were Rs. -27.49 Lakhs, and there were also investments and sales of fixed assets, alongside foreign exchange gains.

Cash Flow from Financing Activities:

2024: There was a net outflow of Rs. -192.37 Lakhs compared to Rs. -102.04 Lakhs in 2023. This was primarily driven by interest payments (Rs. -140.81 Lakhs) and dividend payments.

There were no significant borrowings during the year, and repayments remained small in both years.

Net Change in Cash and Cash Equivalents:

2024: The company saw a modest net increase of Rs. 18.21 Lakhs in cash and cash equivalents, compared to a large increase of Rs. 1599.23 Lakhs in 2023 due to the sale of assets.

The cash balance at the end of 2024 was Rs. 1673.82 Lakhs, up from Rs. 1655.61 Lakhs in the prior year.

Financial Ratios of Sangameshwar Coffee Estates Limited

Here is a summary of the financial and operational metrics for Sangameshwar Coffee Estates Limited for the year 2024 and 2023:

Current Ratio (2024: 1.68, 2023: 2.03)

The current ratio measures the company’s ability to meet its short-term obligations with its short-term assets. A decrease from 2.03 to 1.68 indicates a decline in liquidity, suggesting the company has fewer current assets available relative to its liabilities. Although 1.68 is still above 1, the lower value points to a tightening in working capital management.

Debt-Equity Ratio (2024: 0.02, 2023: 0.02)

The debt-equity ratio compares the company’s total debt to its equity, showing the extent of financial leverage. With both years at 0.02, it suggests the company has a very low debt burden and is largely financed by equity, reflecting financial stability and minimal reliance on external borrowing.

Debt Service Coverage Ratio (DSCR) (2024: -1.34, 2023: 2.61)

DSCR indicates how well the company’s operating income covers its debt obligations. A negative DSCR in 2024 indicates the company is unable to generate enough income to cover its debt, implying significant financial distress, while a positive ratio of 2.61 in 2023 showed comfortable debt coverage.

Return on Equity (ROE) (2024: -14.02%, 2023: 4.84%)

ROE measures the profitability relative to shareholders ' equity. A negative ROE of -14.02% in 2024 shows that the company incurred losses, eroding shareholder value. In contrast, the positive ROE in 2023 (4.84%) suggested profitable operations and better returns for shareholders.

Inventory Turnover Ratio (2024: 0.99, 2023: 1.8)

The inventory turnover ratio reflects how quickly inventory is sold and replaced. The decrease from 1.8 to 0.99 suggests slower inventory movement, which may indicate inefficiencies in selling products or weaker demand for the company’s offerings.

Trade Payable Turnover Ratio (2024: -1.04, 2023: 2)

Trade payable turnover measures how fast a company pays its suppliers. A negative ratio in 2024 suggests delayed or problematic payments to suppliers, which is a sign of financial strain. In 2023, the ratio of 2.0 indicated a more timely payment cycle.

Net Capital Turnover Ratio (2024: 2.1, 2023: 1.04)

This ratio measures how efficiently the company uses its working capital to generate revenue. The increase from 1.04 to 2.1 suggests improved efficiency in using capital to drive sales in 2024, which is a positive sign.

Net Profit Ratio (2024: -13.34%, 2023: 7.13%)

The net profit ratio shows how much of the revenue remains as profit after all expenses. The sharp decline to -13.34% in 2024 from a positive 7.13% in 2023 indicates that the company faced significant losses, possibly due to higher costs or lower revenue.

Return on Capital Employed (ROCE) (2024: -9.35%, 2023: 7.34%)

ROCE assesses how efficiently the company uses its capital to generate profits. A negative ROCE in 2024 indicates that the company’s capital is not being used effectively, resulting in a loss, whereas the positive value in 2023 suggests better capital efficiency and profitability.