Teesta Valley Tea Annual Reports, Balance Sheet and Financials

Teesta Valley Tea Limited Standalone Balance Sheet (Rs in Thousands)

Teesta Valley Tea Limited Standalone Profit & Loss Statement (Rs in Thousands)

Teesta Valley Tea Limited Standalone Cash Flow Statement (Rs in Thousands) 

Summary of cash flow statement for the year 2025 and 2024:

Cash Flow from Operating Activities

The company reported a negative profit before tax of ₹17,035 thousand in FY 2024–25, though the loss narrowed compared to ₹20,151 thousand in the previous year. After adjusting for non-cash and financing items such as depreciation (₹3,954 thousand) and interest expenses (₹11,971 thousand), the operating loss reduced significantly, resulting in a smaller negative operating profit before working capital changes.

A major improvement came from working capital adjustments. Inventory levels decreased sharply (₹11,481 thousand inflow), indicating better inventory management compared to a heavy buildup last year. Biological assets also contributed positively, unlike the previous year’s significant outflow. Although receivables increased (cash outflow), and payables rose only marginally, the overall working capital movement turned favorable. As a result, cash generated from operations turned positive at ₹10,862 thousand, compared to a negative ₹9,710 thousand last year. After paying taxes, the company reported a net positive operating cash flow of ₹10,189 thousand, marking a strong recovery in operational cash generation despite accounting losses.

Cash Flow from Investing Activities

The investing section shows continued cash outflows, primarily due to capital expenditure on fixed assets amounting to ₹6,633 thousand. This suggests ongoing investment in maintaining or expanding productive capacity, though at a slightly lower level than the previous year.

There was minimal movement in long-term borrowings and no significant investment transactions during the year, unlike the prior year which included some investment outflow. Overall, net cash used in investing activities stood at ₹6,684 thousand, slightly lower than the previous year’s ₹8,799 thousand, indicating a modest reduction in capital spending intensity.

Cash Flow from Financing Activities

Financing activities reflect a shift in the company’s funding pattern. In FY 2024–25, short-term borrowings increased modestly (₹3,525 thousand), but this is significantly lower than the large inflow seen in FY 2023–24. The company also raised long-term loans of ₹4,828 thousand, compared to a net repayment in the previous year.

However, the biggest impact came from high interest payments (₹11,971 thousand), which outweighed inflows from borrowings and interest income. Consequently, the company reported a net cash outflow from financing activities of ₹3,279 thousand, in contrast to a strong inflow of ₹19,870 thousand in the previous year. This indicates reduced reliance on external funding and a heavier burden of finance costs.

Net Change in Cash Position

Despite positive operating cash flow, the outflows from investing and financing activities largely offset the gains. The company recorded only a modest net increase in cash and cash equivalents of ₹226 thousand, compared to ₹409 thousand last year. The closing cash balance stood at ₹5,036 thousand, slightly higher than ₹4,810 thousand in the previous year, indicating stable liquidity but limited cash accumulation.

Financial ratios of Teesta Valley Tea Limited 

Summary of ratios for the year 2025 and 2024: 

Current Ratio

The current ratio slightly declined from 0.67 in 2023–24 to 0.65 in 2024–25. This indicates that the company’s short-term liquidity position remains weak, as current liabilities continue to exceed current assets. The marginal fall shows no significant improvement, suggesting that the company may still face difficulty in meeting its short-term obligations comfortably.

Debt–Equity Ratio

The debt–equity ratio improved considerably from 5.23 to 2.75. This reflects a reduction in financial leverage, indicating that the company has either reduced its debt levels or strengthened its equity base. Although this is a positive sign, the ratio is still on the higher side, implying continued reliance on borrowed funds.

Debt Service Coverage Ratio

The DSCR worsened significantly from -6.01 to -72.28. A negative DSCR indicates that the company is not generating enough operating income to meet its debt servicing requirements. The sharp decline highlights severe financial stress and raises serious concerns about the company’s ability to sustain its debt obligations.

Return on Equity

Return on equity remained unchanged at -0.19 in both years. This indicates that the company continues to incur losses and is unable to generate returns for its shareholders. The consistently negative ROE reflects ongoing erosion of shareholder value.

Inventory Turnover Ratio

The inventory turnover ratio improved from 1.43 to 1.77, indicating better efficiency in managing and selling inventory. This suggests that the company has improved its stock movement and reduced inventory holding periods, which is a positive operational development.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio declined sharply from 402.24 to 93.63. Although still relatively high, the decrease indicates slower collection of receivables compared to the previous year. This may have an adverse impact on liquidity and suggests less efficient credit management.

Trade Payables Turnover Ratio

The trade payables turnover ratio decreased from 0.16 to 0.12, showing that the company is taking a longer time to pay its suppliers. While this may help conserve cash in the short term, it could also reflect financial pressure and may affect relationships with creditors.

Net Capital Turnover Ratio

The net capital turnover ratio remained negative, changing slightly from -1.42 to -1.40. This indicates inefficient use of working capital, likely due to negative working capital or continued operational losses. The minor improvement does not significantly change the overall position.

Net Profit Ratio

The net profit ratio improved from -0.14 to -0.09. Although still negative, this shows that the company has reduced its losses relative to its revenue. This improvement suggests better cost control or operational efficiency during the year.

Return on Capital Employed

ROCE improved substantially from -0.88 to -0.04. This indicates a significant reduction in losses in relation to total capital employed, reflecting better utilization of funds. However, since it remains negative, the company has not yet achieved profitability.