Shree Refrigeration Annual Reports, Balance Sheet and Financials

CASH FLOW FROM OPERATING ACTIVITIES

Net profit before tax for the year ended 31.03.2024 was Rs. 1,685.95 Lakhs, significantly higher than the Rs. 423.36 Lakhs recorded in the previous year. The adjustments for depreciation & amortisation, interest paid, and interest received further increased the operating profit before working capital changes to Rs. 2,499.89 Lakhs for the current year, compared to Rs. 1,202.70 Lakhs in the previous year.

In terms of working capital changes, there was a Rs. 230.07 Lakhs increase in inventories and a significant Rs. 3,198.71 Lakhs increase in trade receivables in 2024, which led to a reduction in cash flow from operations to Rs. (511.83) Lakhs, compared to a positive Rs. 103.09 Lakhs in the previous year. The net cash flows from operating activities were Rs. (511.83) Lakhs in 2024, indicating a cash outflow.

CASH FLOW FROM INVESTING ACTIVITIES

The cash flow from investing activities reflects a cash outflow of Rs. 119.97 Lakhs in 2024, compared to Rs. 575.74 Lakhs in 2023. This outflow was primarily due to the purchase of fixed assets amounting to Rs. (143.09) Lakhs in the current year, compared to Rs. (62.86) Lakhs last year. Additionally, no non-current investments were made in 2024, unlike Rs. (531.01) Lakhs spent in the previous year. Interest and dividend received contributed a cash inflow of Rs. 22.15 Lakhs in 2024, compared to Rs. 18.14 Lakhs in 2023.

CASH FLOW FROM FINANCING ACTIVITIES

Cash flow from financing activities showed an inflow of Rs. 564.04 Lakhs in 2024, compared to Rs. 856.12 Lakhs in 2023. This inflow was mainly driven by the proceeds from the allotment of shares (including securities premium) amounting to Rs. 1,591.07 Lakhs in 2024, slightly lower than the Rs. 2,000.00 Lakhs raised in 2023. Other key changes include a net redemption of optionally convertible preference shares amounting to Rs. (1,193.34) Lakhs, a loan repayment of Rs. (366.36) Lakhs, and a significant Rs. 410.64 Lakhs increase in short-term borrowings.

TOTAL CASH FLOW FOR THE YEAR

The company experienced a negative total cash flow of Rs. (67.76) Lakhs in 2024, compared to a positive cash flow of Rs. 383.48 Lakhs in 2023. Cash and cash equivalents at the end of the year decreased to Rs. 518.24 Lakhs in 2024, compared to Rs. 586.00 Lakhs in the previous year.

Shree Refrigeration Limited Financial Ratios

Insights:

The Current Ratio has improved from 1.83 in FY 2023 to 2.01 in FY 2024, indicating a stronger short-term liquidity position. This suggests that the company has increased its current assets relative to current liabilities, enhancing its ability to meet short-term obligations.

The Debt-Equity Ratio declined from 0.70 in FY 2023 to 0.63 in FY 2024, showing a reduction in reliance on debt financing. This is a positive sign as it reflects lower financial risk and an improved capital structure.

The Debt-Service Coverage Ratio saw a significant improvement, rising from 2.25 in FY 2023 to 4.74 in FY 2024. This indicates a stronger ability to service debt obligations through earnings, which may be attributed to improved profitability or reduced debt levels.

The Return on Equity has increased considerably from 16.61% to 23.41%, reflecting higher returns for shareholders. This improvement highlights better utilization of equity capital to generate profits, potentially driven by enhanced operational efficiency or revenue growth.

The Inventory Turnover Ratio increased from 1.74 in FY 2023 to 2.59 in FY 2024, indicating improved inventory management. Higher turnover suggests that inventory is moving faster, reducing holding costs and improving cash flow efficiency.

The Trade Receivable Turnover Ratio declined slightly from 1.91 to 1.69, which may point to slower collection of receivables compared to the previous year. This can indicate challenges in cash collection, potentially requiring a review of credit policies.

The Trade Payables Turnover Ratio improved from 2.30 in FY 2023 to 3.64 in FY 2024. This signifies faster repayment to suppliers, which may strengthen supplier relationships but could also impact liquidity if not managed carefully.

The Net Capital Turnover Ratio remained nearly stable, showing a marginal decline from 1.83 to 1.81. This indicates that the company’s ability to generate revenue relative to net working capital has not changed significantly.

The Net Profit Ratio increased significantly from 6.66% in FY 2023 to 12.85% in FY 2024. This sharp rise reflects improved profitability margins, likely resulting from increased revenues, cost optimization, or both.

The Return on Capital Employed improved from 24.74% to 30.04%, showcasing better returns on the overall capital invested in the business. This indicates improved operational performance and efficient use of capital resources.