Teesta Valley Tea Unlisted Share Price

Teesta Valley Tea Company Limited Standalone Balance Sheet (Rs. in Thousand)

Teesta Valley Tea Company Limited Standalone Profit and Loss Account (Rs. in Thousand)

Teesta Valley Tea Company Limited Standalone Cash Flow Statement (Rs. in Thousand)

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

Cash Flow from Operating Activities

For the year ending 31st March 2024, the company recorded a negative cash flow of ₹10,662.17 thousand from operating activities, compared to a positive ₹8,531.95 thousand in 2023. Even though there was some help from depreciation (₹4,056.67 thousand) and interest expenses (₹10,044.68 thousand), large increases in inventories (₹27,395.27 thousand) and biological assets (₹14,201.05 thousand) pulled cash out of the business. The decrease was also affected by lower trade receivables collection.

Cash Flow from Investing Activities

The company had a net outflow of ₹8,798.98 thousand in 2024, better than the outflow of ₹17,371.92 thousand in 2023. The main cash usage was for fixed asset purchases (₹8,432.69 thousand) and investment purchases (₹315.13 thousand), with very little inflow from other sources.

Cash Flow from Financing Activities

Financing activities generated ₹19,870.08 thousand in 2024, up from ₹8,785.29 thousand in 2023. The inflow was largely from short-term borrowings (₹29,034.51 thousand) and interest received (₹197.61 thousand), which outweighed outflows from interest paid (₹9,096.59 thousand) and small repayments of long-term loans.

Net Change in Cash and Cash Equivalents

Overall, the company’s cash position increased by ₹408.94 thousand in 2024, compared to a decrease of ₹54.67 thousand in 2023.The closing cash balance stood at ₹4,809.53 thousand, up from ₹4,400.59 thousand the year before, indicating a small but positive improvement in liquidity despite negative operating cash flow.

Teesta Valley Tea Company Limited Financial Ratios

Here is a summary of the Financial Ratios for the years 2024 and 2023:

Current Ratio

The current ratio remained unchanged at 0.63 in both 2023 and 2024. This is well below the ideal benchmark of 1, meaning the company’s current assets are not sufficient to cover its short-term liabilities. This weak liquidity position suggests the company may face challenges in meeting immediate financial obligations without raising additional funds.

Debt-Equity Ratio

The debt-equity ratio increased slightly from 0.10 to 0.12. While the change is small, it shows a slight increase in the use of debt compared to equity. However, the overall debt level remains low, which reduces the financial risk from borrowings.

Debt Service Coverage Ratio

The ratio improved from –0.21 in 2023 to –0.09 in 2024. Even though this is a small improvement, the ratio remains negative, meaning the company is still not generating enough operating earnings to cover its debt obligations, which can be a serious concern for lenders and investors.

Return on Equity (ROE)

ROE fell slightly from –0.17 to –0.19, indicating that the losses relative to shareholders’ equity have worsened. A negative ROE means the company is not delivering value to shareholders and instead is eroding equity.

Inventory Turnover Ratio

This ratio dropped significantly from 0.76 to 0.24, showing that inventory is moving at a much slower pace than before. Slow inventory turnover can lead to higher storage costs, potential obsolescence, and tied-up capital.

Trade Receivables Turnover Ratio

The ratio is reported as extremely high at 402.24 in 2024, with no data for 2023. Such an unusually high figure might indicate that the company is collecting payments from customers almost instantly or has minimal receivables, which could be due to advance payments or cash sales.

Trade Payables Turnover Ratio

The ratio improved slightly from 0.13 to 0.15, showing that the company is paying its suppliers a little faster. While faster payments can strengthen supplier relationships, it can also reduce available cash if not managed properly.

Net Capital Turnover Ratio

The ratio improved from –1.81 to –1.17, but it remains negative. This indicates the company is not efficiently using its capital to generate sales, and performance is still below healthy levels.

Net Profit Ratio

The net profit ratio worsened from –0.13 to –0.15, meaning the company’s losses as a percentage of sales have increased. This shows declining profitability and the need for better cost and revenue management.

Return on Capital Employed (ROCE)

ROCE improved slightly from –1.07 to –0.88. Despite the improvement, the negative figure indicates the company is still not generating positive returns from the total capital employed in the business.