The Bhavani Tea Annual Reports | Balance Sheet | Financials

The Bhavani Tea And Produce Co Ltd (Bhavani Tea) Return Comparision with Primex 40 Index

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The Bhavani Tea And Produce Co Ltd

The Bhavani Tea And Produce Co Ltd Balance Sheet (Rs in Thousands)

Particulars	31-03-2024	31-03-2023
Equity
Share Capital	2,499.90	2,499.90
Reserve and Surplus	59,746.35	5,948.98
Non Current Liabilities
Long term Borrowings	30,108.09	39,100.35
Long-term Provisions	12,048.84	12,016.78
Current Liabilities
Short term Borrowings	30,203.93	49,400.21
Trade Payable
Due to others	138.00	510.34
Other current liabilities	9,008.14	6,485.25
Total Equity and Liabilities	1,43,753.25	1,15,961.81
Non-Current Assets
Property, Plant and Equipment	92,061.43	87,468.42
Capital work in progress	9,293.31	7,713.46
Deferred Tax Assets (Net)	7,040.93	5,981.33
Other non-current assets	257.66	223.77
Current Assets
Inventories	8,943.43	8,371.43
Trade Receivable	2,011.33	764.55
Cash And Cash Equivalents	15,330.23	335.43
Short term Loans and Advances	5,659.64	3,512.08
Other current assets	3,155.30	1,591.35
Total Assets	1,43,753.26	1,15,961.82

The Bhavani Tea And Produce Co Ltd Profit & Loss Statement (Rs in Thousands)

Particulars	2023-24	2022-23
Income
Revenue from Operation	1,64,610.08	85,829.43
Other Income	101.75	66.96
Total Revenue	1,64,711.83	85,896.39
Expenses
Changes in Inventories	-196.05	-1,342.05
Employee benefit expenses	65915.17	51,282.70
Finance Costs	5548.13	6036.78
Depreciation and Amortization Expenses	5342.3	4648.87
Other Expenses	35149.75	22556.44
Total Expenses	1,11,759.30	83,182.74
Profit before Tax	52,952.52	2,713.66
Deferred tax asset provided (Reversed)	1,059.60	-685.81
Prior tax adjustments	214.75	-
Profit / (Loss) for the period	53,797.37	2,027.86
Earnings per Equity Share:
Basic	215.2	8.11
Diluted	215.2	8.11

The Bhavani Tea And Produce Co Ltd Consolidated Cash Flow Statement (Rs in Thousands)

Particulars	31-03-2024	31-03-2023
Cash Flow from Operating Activities
Net Profit before Tax	52,952.52	2,713.66
Adjustment for:
Depreciation	4,977.53	4,418.47
Profit on sale of Property, Plant & Equipment	-70.05	-28.24
Loss on sale of Property, Plant & Equipment	253.35	-
Interest received	-14.46	-19.20
Interest Payments	4,768.68	5,318.66
Operating Profit before Working Capital Charges	62,867.57	12,403.35
Adjustment for:
Trade & other receivables	-4,815.17	1,214.19
Inventories	-572.00	-2,759.61
Trade Payables	-340.28	-394.17
Current Liabilities	2,522.89	-2,686.35
Cash generated from Operations	59,663.02	7,777.40
Direct taxes paid	-177.00	109.00
Exception item	-214.75	-
Net Cash From Operating Activates	59,271.26	7,886.40
Cash Flow from Investing Activities
Purchase of property, plant and equipment	-12,052.26	-2,436.99
Sale of property, plant and equipment	718.56	60.00
Interest received	14.46	19.20
Net Cash From Investing Activities	11,319.24	-2,357.79
Cash Flow from Financing Activities
Long term borrowings	-8,992.26	-213.27
Other borrowings	-19,196.28	-61.28
Interest paid	-4,768.68	-5,318.66
Net Cash From Financing Activities	-32,957.22	-5,593.21
Net Increase /(Decrease) In cash & Cash Equivalents	14,994.80	-64.59
Cash & Cash equivalents at the beginning of the Year	335.43	400.02
Cash & Cash equivalents at the end of the Year	15,330.23	335.43

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

Cash Flow from Operating Activities

Net Profit Before Tax for the year ending March 31, 2024 was Rs 52,952.52, a significant increase compared to Rs 2,713.66 in 2023. This substantial rise in profits is the primary driver of improved cash flow from operations.

After adjusting for non-cash and non-operational items such as depreciation (Rs 4,977.53), profit and loss on the sale of assets, and interest payments (Rs 4,768.68), the operating profit before working capital adjustments increased to Rs 62,867.57 from Rs 12,403.35 in 2023.

Working capital adjustments contributed mixed effects:

Trade & other receivables increased by Rs 4,815.17, which reduced the cash flow.

Inventories saw a small decrease of Rs 572.00, improving cash flow.

Trade payables and current liabilities provided a net increase of Rs 2,182.61, improving liquidity.

After adjusting for taxes and exceptions, net cash from operating activities surged to Rs 59,271.26 in 2024, compared to Rs 7,886.40 in 2023. This dramatic improvement indicates strong operational performance and cash generation during the year.

Cash Flow from Investing Activities

Purchase of property, plant, and equipment amounted to Rs 12,052.26, a significant increase from Rs 2,436.99 in 2023. This reflects higher capital expenditures, possibly for business expansion or modernization.

Proceeds from the sale of property and equipment contributed Rs 718.56, compared to Rs 60.00 in 2023, providing some relief to the outflows.

Overall, net cash from investing activities was Rs -11,319.24 in 2024, reflecting a significant increase in outflows compared to Rs -2,357.79 in 2023. This indicates higher investment activity, although it is funded primarily through operating cash flows.

Cash Flow from Financing Activities

Repayments of long-term borrowings and other borrowings together amounted to Rs -28,188.54, reflecting significant debt repayments in 2024. The repayments were higher than in 2023 when long-term borrowings stood at Rs -213.27 and other borrowings at Rs -61.28.

Interest paid decreased slightly to Rs 4,768.68, down from Rs 5,318.66 in the previous year.

The overall net cash outflow from financing activities was Rs -32,957.22 in 2024, compared to Rs -5,593.21 in 2023. The large outflow suggests that the company is focusing on reducing its debt levels.

Net Increase in Cash & Cash Equivalents

Despite increased investment and debt repayments, the company ended the year with a net increase in cash of Rs 14,994.80, compared to a decrease of Rs -64.59 in 2023. This positive movement in cash is driven by strong operating performance.

Financial Ratios of The Bhavani Tea And Produce Home Finance Limited

Particulars	2024	2023
Current ratio	0.89	0.26
Debt-equity ratio	0.97	10.47
Debt service coverage ratio	7.62	1.34
Return on equity ratio	1.52	0.27
Inventory turnover ratio	43.07	28.12
Trade receivables turnover ratio	118.6	113.26
Trade payables turnover ratio	60.11	15
Net capital turnover ratio	-7.15	-1.94
Net profit ratio	0.33	0.02
Return on capital employed	0.68	0.19

Here is a summary of the financial and operational metrics for The Bhavani Tea And Produce Co Ltd for the year 2024 & 2023:

Current Ratio

The current ratio measures a company 's ability to meet its short-term obligations with its short-term assets. A significant improvement from 0.26 in 2023 to 0.89 in 2024 suggests the company’s liquidity position has improved considerably. Although still below the ideal ratio of 1, the increase indicates that the company is now better equipped to cover its short-term liabilities with available assets.

Debt-Equity Ratio

The debt-equity ratio indicates the proportion of debt used to finance the company compared to shareholders ' equity. A dramatic reduction from 10.47 in 2023 to 0.97 in 2024 reflects a substantial decrease in the company 's reliance on debt. This significant improvement lowers financial risk and indicates a more balanced capital structure, signaling better financial health and reduced leverage.

Debt Service Coverage Ratio (DSCR)

The DSCR measures the company 's ability to cover its debt payments with operating income. The significant increase from 1.34 in 2023 to 7.62 in 2024 indicates a much stronger ability to service debt. This suggests that the company is generating sufficient cash flow to comfortably meet its debt obligations, greatly reducing the risk of default.

Return on Equity (ROE)

The ROE measures the profitability generated from shareholders ' equity. The increase from 0.27% in 2023 to 1.52% in 2024 indicates that the company has improved its efficiency in using shareholders ' equity to generate profit. Although the percentage is still relatively low, it reflects a positive trend in profitability and value creation for shareholders.

Inventory Turnover Ratio

The inventory turnover ratio indicates how efficiently the company is managing and selling its inventory. The increase from 28.12 to 43.07 shows that the company is moving its inventory more quickly in 2024, reflecting stronger demand or better inventory management. Higher inventory turnover is a positive indicator of operational efficiency and sales performance.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio measures how efficiently the company collects receivables. The improvement from 113.26 in 2023 to 118.6 in 2024 indicates that the company is collecting payments from customers slightly faster, improving its cash flow and reducing the risk of bad debts.

Trade Payables Turnover Ratio

The trade payables turnover ratio reflects how quickly the company is paying its suppliers. The significant increase from 15 to 60.11 indicates that the company is paying its suppliers much faster in 2024. While this shows the company’s improved liquidity, it may also suggest stricter credit terms from suppliers or better financial management.

Net Capital Turnover Ratio

The net capital turnover ratio measures how effectively a company is using its working capital to generate sales. The negative ratio in both years indicates inefficiencies in capital management. However, the decline from -1.94 to -7.15 in 2024 suggests that the company 's performance in using its capital has worsened, highlighting operational challenges.

Net Profit Ratio

The net profit ratio shows how much of each rupee of revenue is converted into profit. The improvement from 0.02% in 2023 to 0.33% in 2024 indicates that the company has become more profitable, though the margin remains slim. This suggests better cost control or higher revenue generation, contributing to improved profitability.

Return on Capital Employed (ROCE)

The ROCE measures how efficiently the company uses its capital (both equity and debt) to generate profits. The improvement from 0.19% to 0.68% reflects better overall efficiency and utilization of resources to generate returns. While still low, this upward trend suggests positive progress in capital management and profitability.