T Stanes Annual Reports, Balance Sheet and Financials

T Stanes and Company Limited  Balance Sheet (Rs in Lakhs)

 T Stanes and Company Limited  Profit & Loss Statement (Rs in Lakhs)

 T Stanes and Company 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

Operating activities reflect the company’s core business operations and how much cash it generated or used from its day-to-day activities. In 2024, the company reported a profit after tax of ₹1,902.83 lakhs, up slightly from ₹1,743.38 lakhs in 2023.

To arrive at the cash generated from operations, several adjustments were made to account for non-cash transactions and non-operating items:

Depreciation and Amortization Expense: ₹581.06 lakhs in 2024 (₹508.12 lakhs in 2023), represents the non-cash expense of depreciating assets.

Profit on Sale of Property and Equipment: A profit of ₹60.96 lakhs was recorded, reducing the cash outflow in 2024, compared to ₹11.35 lakhs in 2023.

Rental and Dividend Income: ₹238.51 lakhs in rental income and ₹32.37 lakhs in dividend income were received in 2024, both subtracted from the operating cash flow as they are investing activities.

Finance Costs and Interest Income: Finance costs (₹60.06 lakhs in 2024) were added back, while interest income (₹164.79 lakhs) was subtracted as it doesn 't reflect operational performance.

After these adjustments, the operating profit before working capital changes was ₹2,762.20 lakhs in 2024, slightly lower than ₹2,814.29 lakhs in 2023, but still strong.

Changes in working capital had a notable impact on cash flows:

Inventories increased by ₹2,519.18 lakhs in 2024, significantly reducing cash flow. This increase indicates that more cash was tied up in stock, possibly due to lower sales or preparation for future demand.

Trade Receivables decreased by ₹1,121.89 lakhs, improving cash flow, as the company collected more payments from customers in 2024.

Trade Payables increased by ₹586.19 lakhs in 2024, reflecting delayed payments to suppliers, which improved cash flow.

After accounting for these working capital changes, the company generated ₹1,475.13 lakhs from operations in 2024, lower than ₹3,263.62 lakhs in 2023, reflecting more cash tied up in inventory.

After paying income taxes of ₹640.51 lakhs in 2024 (₹734.84 lakhs in 2023), the net cash flow from operating activities was ₹834.62 lakhs, compared to ₹2,528.78 lakhs in 2023. This decrease is primarily due to increased working capital requirements, especially higher inventory levels.

Cash Flow from Investing Activities

Investing activities capture the cash used or generated from investments in long-term assets such as property, equipment, and financial instruments. In 2024, the company spent ₹1,124.69 lakhs on purchasing property, plant, and equipment (PPE), a higher outflow compared to ₹813.28 lakhs in 2023, reflecting continued investment in its asset base.

The company generated cash inflows from:

Proceeds from Sale of Property, Plant, and Equipment: ₹73.05 lakhs in 2024, a sharp increase from ₹15.33 lakhs in 2023.

Rental Income: The company received ₹238.51 lakhs in rental income in 2024, up from ₹155.14 lakhs in 2023, contributing positively to cash flows.

However, significant outflows occurred due to:

Other Bank Balances: The company spent ₹17.64 lakhs in 2024, compared to a significant outflow of ₹1,611.58 lakhs in 2023, representing the company’s bank-related activities.

Sale/Purchase of Investments: The net sale of investments contributed a positive inflow of ₹44.96 lakhs in 2024, compared to a net outflow of ₹39.39 lakhs in 2023.

Overall, the net cash flow from investing activities was ₹-584.45 lakhs in 2024, an improvement compared to the significant outflow of ₹-2,186.44 lakhs in 2023, driven by lower cash outflows related to other bank balances and higher proceeds from asset sales.

Cash Flow from Financing Activities

Financing activities represent the company’s cash flows related to borrowing, debt repayments, dividend payments, and other financing-related costs. In 2024, the company took on ₹3.88 lakhs in current borrowings, which wasn’t present in 2023. However, the financing activities primarily show outflows:

Dividends Paid: The company paid ₹414.08 lakhs in dividends in 2024, compared to ₹354.93 lakhs in 2023, reflecting a commitment to shareholder returns.

Payment of Lease Liabilities: ₹131.04 lakhs was paid in 2024, up from ₹96.29 lakhs in 2023, showing higher lease-related payments.

Finance Costs Paid: The company incurred ₹52.41 lakhs in finance costs in 2024, compared to ₹30.04 lakhs in 2023.

As a result, the net cash flow from financing activities was ₹-593.65 lakhs in 2024, compared to an outflow of ₹-481.26 lakhs in 2023, driven by higher dividend payments and lease liabilities.

Net Increase/Decrease in Cash and Cash Equivalents

The company’s cash position decreased in 2024, with a net cash outflow of ₹343.48 lakhs, compared to a smaller outflow of ₹138.92 lakhs in 2023. The main reasons for this decrease include higher working capital requirements (especially inventory), significant capital investments, and increased dividend payments.

At the beginning of 2024, the company had ₹773.04 lakhs in cash and cash equivalents. By the end of the year, the closing balance stood at ₹429.56 lakhs, indicating a reduction in liquidity.

Financial Ratios of T Stanes and Company Limited

Here is a summary of the financial and operational metrics for T Stanes and Company Limited  for the year 2024 and 2023:

Current Ratio
The current ratio measures a company’s liquidity, indicating its ability to pay short-term obligations. A ratio of 2.39 in 2024 means the company has ₹2.39 in current assets for every ₹1 of current liabilities, slightly lower than 2023 (2.44). This suggests a small decrease in liquidity but the company remains in a healthy financial position to meet short-term liabilities.

Return on Equity (ROE)

ROE measures the profitability of the company relative to shareholders ' equity. The decrease from 12.03% in 2023 to 10.44% in 2024 indicates a reduction in the company 's ability to generate profit from shareholders’ equity, possibly due to lower net profits or higher equity levels.

Inventory Turnover Ratio

This ratio shows how efficiently the company manages its inventory by measuring how often inventory is sold and replaced. The drop in 2024 to 3.96 from 5.83 in 2023 suggests slower inventory turnover, which could mean higher stock levels or slower sales during the year.

Trade Receivables Turnover Ratio

This ratio measures how quickly the company collects payments from customers. The slight increase from 6.06 in 2023 to 6.1 in 2024 shows stable efficiency in collecting receivables, meaning there was no significant change in the time it took to collect payments.

Trade Payables Turnover Ratio

This ratio reflects how quickly the company pays its suppliers. The decrease from 6.87 in 2023 to 6.06 in 2024 indicates that the company took longer to pay its suppliers in 2024, possibly due to cash flow management strategies or delayed payments.

Net Capital Turnover Ratio

This ratio measures how efficiently the company uses its working capital to generate revenue. The decline from 4.42 in 2023 to 3.72 in 2024 suggests a reduction in efficiency in utilizing working capital, possibly due to higher operating expenses or lower sales relative to working capital.

Net Profit Ratio

The net profit ratio indicates the percentage of revenue that becomes profit after all expenses. The increase from 4.20% in 2023 to 4.54% in 2024 shows improved profitability, meaning the company is retaining more profit from its revenues.

Return on Capital Employed (ROCE)

ROCE measures how efficiently a company generates profits from its capital. The decline from 15.59% in 2023 to 13.09% in 2024 suggests lower efficiency in generating returns from the company’s capital, which may indicate a decrease in operational profitability.

Return on Investment (ROI)

ROI reflects the return generated on the company’s investments. The significant improvement to 14.25% in 2024 from a negative ROI in 2023 (-18.23%) indicates much better performance of investments, likely due to stronger market conditions or better investment decisions during the year.