Sigachi Laboratories Limited Balance Sheet (Rs in Lakhs)

Sigachi Laboratories Limited Profit & Loss Statement (Rs in Lakhs)

Sigachi Laboratories Limited Cash Flow Statement (Rs in Lakhs)

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

Operating Activities: The net cash flow from operating activities has turned negative, dropping from ₹47.94 lakhs in FY 2023 to -₹190.35 lakhs in FY 2024. This substantial decline is due to several factors. Despite an increase in profit before tax from ₹173.24 lakhs to ₹281.59 lakhs, adjustments for non-cash items and changes in working capital have led to cash outflows. Depreciation and amortization increased, but this was offset by a large fair value loss of ₹193.77 lakhs and significant provisions for impairment and other adjustments. Additionally, changes in working capital, including a notable decrease in other non-current assets and variations in trade receivables and financial liabilities, contributed to the reduced cash flow from operations. The payment of direct taxes also further impacted the cash flow, leading to an overall negative cash position from operating activities.

Investing Activities: The net cash used in investing activities was ₹136.37 lakhs in FY 2024, compared to a net inflow of ₹242.65 lakhs in FY 2023. The increase in outflows is primarily due to higher purchases of property, plant, and equipment, and investments. Although there was some cash inflow from the sale of investments and property, plant, and equipment, it was insufficient to offset the increased expenditures. The decrease in cash due to the net purchase of investments and a reduction in other term deposits highlights significant investment activity. The receipt of dividends and interest income somewhat alleviated the outflows, but the overall effect was still a net cash usage in this area.

Financing Activities: The net cash used in financing activities shows a stark contrast to the previous year, reflecting a net decrease in cash and cash equivalents by ₹326.72 lakhs in FY 2024 compared to a net increase of ₹290.59 lakhs in FY 2023. This significant decrease can be attributed to lower financing inflows or higher financing outflows, such as repayments or dividends paid, although specifics are not detailed. The cash balance at the end of the year dropped sharply from ₹371.25 lakhs to ₹44.53 lakhs, indicating that the company had to draw down its cash reserves significantly over the year.

 Financial Ratios of Sigachi Laboratories Limited

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

Current Ratio: The current ratio has significantly decreased from 69.21 in 2023 to 37.32 in 2024. This ratio measures a company’s ability to cover its short-term liabilities with its short-term assets. A high ratio indicates strong liquidity, while a lower ratio suggests reduced liquidity. The dramatic drop reflects a substantial decrease in the company 's current assets or an increase in current liabilities. Although the ratio remains high, indicating still relatively strong liquidity, the decrease suggests that the company’s short-term financial health may be under more pressure than in the previous year.

Return on Equity (ROE): ROE has increased from 19.4% in 2023 to 29.24% in 2024. This ratio measures the profitability relative to shareholders ' equity. The increase signifies that the company has become more efficient in generating profits from its equity base. This improvement could be due to higher net income or reduced equity, reflecting enhanced profitability and effective use of shareholders ' funds.

Trade Receivables Turnover Ratio: The trade receivables turnover ratio surged from 0.15 in 2023 to 12.83 in 2024. This ratio assesses how efficiently the company collects payments from its customers. The dramatic increase suggests that the company has significantly improved its collections and reduced the time taken to receive payments. This improvement indicates better credit control and management of trade receivables, positively impacting liquidity and cash flow.

Net Capital Turnover Ratio: The net capital turnover ratio rose from 0.33 in 2023 to 1.34 in 2024. This ratio measures how effectively the company utilizes its capital to generate sales. The substantial increase reflects enhanced efficiency in converting capital into revenue. This suggests that the company has optimized its capital deployment to achieve higher sales, indicating improved operational effectiveness.

Net Profit Ratio: The net profit ratio decreased from 0.53 in 2023 to 0.45 in 2024. This ratio represents the proportion of sales that translates into net profit. The decline indicates that while the company remains profitable, the net profit generated per unit of sales has decreased. This could be due to higher costs, lower sales prices, or other factors impacting overall profitability.

Return on Capital Employed (ROCE): ROCE improved from 5.64% in 2023 to 7.82% in 2024. This ratio measures the return generated on capital employed in the business. The increase signifies that the company has become more efficient in utilizing its capital to generate profits. This improvement reflects better capital allocation and operational performance, enhancing overall profitability from capital investments.

Return on Investments (ROI): ROI increased from 5.34% in 2023 to 11.32% in 2024. This ratio evaluates the return on investments made by the company. The significant rise indicates improved returns from investments, suggesting more effective investment decisions or better performance from existing investments. This improvement highlights the company’s enhanced ability to generate returns from its investment activities.

Dividend History

FAQ Related to Sigachi Laboratories Limited

Q.1) Is Sigachi Laboratories Limited is a private or public company?

Sigachi Laboratories Limited is a Public incorporated on 21 November 1994

Q.2) Do Sigachi Laboratories Limited listed or not?

Sigachi Laboratories is an unlisted public company.

Q.3) In which field the work of Sigachi Laboratories Limited is?

Sigachi Laboratories Limited specializes in providing excipients and specialty ingredients for pharmaceutical formulations, contributing to the quality and efficacy of pharmaceutical products.

Q.4) How is Sigachi Laboratories Limited is in liquid category?

Sigachi Laboratories Limited demonstrates strong liquidity based on its ratios for the years ending March 31, 2023, and March 31, 2022. The significant increase in the current ratio from 53.56 in 2022 to 69.21 in 2023 indicates a substantial improvement in the company 's ability to cover its short-term obligations with its current assets. Additionally, the debtor’s turnover ratio has notably increased from 7.71 in 2022 to 15.44 in 2023, indicating that the company is collecting its receivables at a much faster rate in 2023 compared to the previous year, further enhancing its liquidity position. Overall, these ratios suggest that Sigachi Laboratories Limited is in a strong liquid category, indicating its ability to meet its short-term financial obligations efficiently.