SK Finance Annual Reports, Balance Sheet and Financials

SK Finance Limited Balance Sheet (Rs in Lakhs)

SK Finance Limited Profit & Loss Statement (Rs in Lakhs)

SK Finance Limited Cash Flow Statement (Rs in Lakhs)

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

Cash Flows from Operating Activities

Profit Before Tax: The cash flow starts with the profit before tax of ₹39,932.13 Lakhs for the year ended March 31, 2024, compared to ₹29,020.82 Lakhs in the previous year. This indicates a strong operating performance.

Adjustments: Several adjustments are made to reconcile profit before tax to net cash from operating activities. These include:

Loss/(Gain) on Sale of Property, Plant, and Equipment: A loss of ₹4.32 Lakhs indicates a slight negative impact from asset sales.

Finance Costs: Significant finance costs of ₹74,685.54 Lakhs were incurred, reflecting the cost of borrowing.

Interest Income: A large outflow of ₹163,283.66 Lakhs due to interest income is subtracted, showing that the cash inflow from interest is not part of operating cash flow.

Impairment and Depreciation: Impairment on financial instruments and depreciation added back ₹11,943.35 Lakhs and ₹3,611.35 Lakhs, respectively, as non-cash expenses.

Cash Generated from Operations: After these adjustments, cash generated from operations before working capital changes is ₹39,173.28 Lakhs.

Working Capital Changes: This section shows significant changes in working capital, notably an increase in loans, which consumed ₹274,563.30 Lakhs, impacting overall cash flow negatively.

Direct Taxes Paid: Direct taxes paid net of refunds were ₹8,119.68 Lakhs, reducing the cash available from operating activities.

Net Cash Used in Operating Activities: The final result shows a net cash outflow of ₹232,160.56 Lakhs from operating activities, which reflects the company 's operational challenges.

Cash Flows from Investing Activities

Capital Expenditures: The purchase of property, plant, equipment, and intangible assets amounted to ₹8,450.44 Lakhs, indicating continued investment in growth.

Investment and Redemption: The company invested ₹972,039.71 Lakhs, while it also redeemed investments amounting to ₹996,064.66 Lakhs, leading to a net cash inflow in this category.

Interest Received: Interest received on investments contributed ₹13,383.90 Lakhs, which is a positive cash flow.

Net Cash Used in Investing Activities: The overall cash used in investing activities was ₹79,156.06 Lakhs, indicating a net outflow due to significant capital expenditures despite the inflows from investment redemptions.

Cash Flows from Financing Activities

Proceeds from Issuance of Shares: The company raised ₹94,952.15 Lakhs through share issuance, reflecting successful capital-raising efforts.

Debt Financing: The proceeds from debt securities and borrowings contributed ₹51,000.00 Lakhs and ₹464,384.69 Lakhs, respectively, facilitating operational financing.

Repayments: There were significant repayments of ₹70,617.33 Lakhs for debt securities and ₹261,376.89 Lakhs for borrowings, impacting cash outflows.

Net Cash Generated from Financing Activities: The net cash generated from financing activities amounted to ₹276,567.55 Lakhs, showcasing the company’s ability to secure funds for its operations.

Summary of Cash Flow

Net Increase/Decrease in Cash and Cash Equivalents: The total net decrease in cash and cash equivalents for the year was ₹34,749.07 Lakhs.

Cash at Beginning of Year: The cash and cash equivalents at the beginning of the year were ₹75,748.71 Lakhs, which decreased significantly.

Cash at End of Year: At the end of the year, the cash and cash equivalents stood at ₹40,999.64 Lakhs, reflecting the net cash flows from all activities.

Components of Cash and Cash Equivalents: The breakdown includes balances with banks, term deposits, and cash on hand, indicating liquidity management.

Financial Ratios of SK Finance Limited

 Here is a summary of the financial and operational metrics for SK Finance Limited for the years 2024 and 2023:

Current Ratio: 1.11 (2024) vs. 1.37 (2023)

Insight: The current ratio has decreased from 1.37 to 1.11, indicating a decline in short-term liquidity. A current ratio below 1.2 may suggest potential challenges in meeting short-term obligations. This could signal a need for improved working capital management or a reassessment of current liabilities.

Debt-Equity Ratio: 2.88 (2024) vs. 3.84 (2023)

Insight: The significant decrease in the debt-equity ratio from 3.84 to 2.88 indicates a reduction in financial leverage. This improvement suggests a stronger equity position relative to debt, enhancing financial stability and reducing risk. Lower debt levels could lead to lower interest expenses and better creditworthiness.

Interest Coverage Ratio: 1.53 (2024) vs. 1.53 (2023)

Insight: The interest coverage ratio remains unchanged at 1.53. This indicates that the company is consistently able to cover its interest expenses with operating income. However, a ratio near 1.5 could be a concern, as it suggests limited buffer for covering interest payments. A decline in operating income could pose risks if not managed carefully.

Operating Profit Margin: 28.85% (2024) vs. 29.06% (2023)

Insight: The operating profit margin has slightly decreased from 29.06% to 28.85%. This indicates a marginal decline in operational efficiency or increased costs relative to sales. While still a healthy margin, this trend may warrant attention to cost control measures and operational efficiencies.

Net Profit Margin: 17.35% (2024) vs. 16.95% (2023)

Insight: The net profit margin has improved from 16.95% to 17.35%, reflecting a positive trend in overall profitability. This increase suggests that the company is effectively managing its expenses relative to revenue, leading to enhanced profitability despite the slight decrease in operating margin.

Dividend History

SK Finance Limited Recent Financial Performance

Dividend per Share: The specific dividend per share figure for 2024 and 2023 is not provided. Dividend per share represents the portion of a company 's earnings that is distributed to shareholders in the form of dividends. A higher dividend per share may indicate that the company is sharing more of its profits with shareholders.

Retained Earnings: Retained earnings for 2024 amounted to Rs 78,475.79 Lakhs, while in 2023, they were Rs. 54,190.65 Lakhs. Retained earnings represent the portion of a company 's profits that is reinvested in the business rather than distributed as dividends. An increase in retained earnings suggests that the company has retained more of its profits for reinvestment or future growth.

To provide a more comprehensive analysis, it would be necessary to consider additional financial metrics such as revenue, net profit, assets, liabilities, and cash flows. Additionally, an analysis of trends over multiple years and a comparison to industry benchmarks and competitors would help in assessing the company 's financial health and performance