The Highland Produce Company limited (Highland Produce) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40
The Highland Produce Company limited

Balance Sheet (INR Lakhs)

Particulars	31-03-2024	31-03-2023
Equity and Liabilities
Shareholders ' Funds
Share Capital	54.00	54.00
Reserves and Surplus	2,675.53	2,194.95
Non-current Liabilities
Long-term Borrowings	63.47	65.32
Deferred Tax Liabilities (Net)	49.67	37.47
Long-term Provisions	11.17	9.41
Current Liabilities
Short-term Borrowings	781.49	978.58
Trade Payables	63.64	61.95
Other Current Liabilities	1,500.91	1,280.05
Short-term Provisions	370.52	423.96
Total Equity and Liabilities	6,934.19	6,392.34
Assets
Non-current Assets
Property, Plant, and Equipment	1,995.46	1,739.68
Capital Work-in-Progress	230.36	240.04
Non-current Investments	58.33	8.33
Long-term Loans and Advances	13.67	29.59
Other Non-current Assets	41.76	38.89
Current Assets
Inventories	1,396.72	1,227.29
Trade Receivables	2,404.16	2,175.15
Cash and Cash Equivalents	183.43	54.41
Short-term Loans and Advances	551.31	864.08
Total Assets	6,934.19	6,392.34

Statement of Profit and Loss (INR Lakhs)

Particulars	31-03-2024	31-03-2023
Revenue from Operations	11,930.56	10,263.92
Other Income	254.57	269.94
Total Income	12,185.13	10,533.86
Expenses
Cost of Materials Consumed	4,830.21	4,292.22
Other Manufacturing Expenses	2,310.03	2,055.31
Purchase of Stock-in-Trade - Tea	0.97	1.41
Change in Inventory	(312.18)	(147.09)
Employee Benefit Expenses	3,730.83	3,086.53
Finance Costs	106.95	116.55
Depreciation & Amortization	212.13	198.11
Other Expenses	659.41	616.89
Total Expenses	11,538.35	10,219.93
Profit Before Tax (PBT)	646.78	820.67
Tax Expenses
Current Tax (CIT)	100.00	200.00
Deferred Tax	12.20	6.22
Profit for the Period	534.58	614.45
Earnings per Share (Rs.)
Basic	99.00	113.79
Diluted	99.00	113.79

The Highland Produce Company Limited Cash Flow Statement (INR Lakhs)

Particulars	31-03-2024	31-03-2023
A. Cash Flow from Operating Activities
Net Profit Before Tax and Extraordinary Items	646.78	313.93
Adjustments for:
Depreciation	212.13	198.11
Provision for Leave Encashment	10.99	4.17
Provision for Gratuity	35.75	49.73
Profit on Sale of Investments/Assets	(1.39)	(4.98)
Interest/Dividend Received	106.95	116.55
Operating Profit Before Working Capital Changes	982.06	645.44
Adjustments for:
Trade and Other Receivables	(229.01)	(183.66)
Inventories	(169.43)	(272.83)
Trade Payables	299.69	58.96
Other Current Assets	(26.23)	21.35
Cash Generated from Operations	857.08	269.26
Taxes Paid	(168.46)	(142.10)
Cash Flow Before Extraordinary Items	688.62	127.16
Extraordinary Items	506.74	506.74
Net Cash from Operating Activities	688.62	633.90
B. Cash Flow from Investing Activities
Purchase of Fixed Assets	(503.70)	(198.04)
Purchase of Investments	(50.00)	Nil
Sale of Fixed Assets	2.77	23.51
Interest Received	18.39	21.40
Dividend Received	10.76	10.67
Net Cash Used in Investing Activities	(521.78)	(142.46)
C. Cash Flow from Financing Activities
Public Deposits/Loan from Directors	500.00	(180.00)
Term Loan	6.05	(93.48)
ICD	300.00	(300.00)
Cash Credit	(704.99)	282.82
Capital Advance	15.92	(29.59)
Interest Paid	(106.95)	(117.02)
Dividend Paid	(54.00)	(54.00)
Net Cash Used in Financing Activities	(43.97)	(491.27)
Net Decrease in Cash and Cash Equivalents	122.87	0.17

Summary of Cash Flow Statement
Cash Flow from Operating Activities

The net profit before tax and extraordinary items increased to INR 646.78 lakhs in 2024 (from INR 313.93 lakhs in 2023), reflecting improved operational performance. Adjustments include higher depreciation (INR 212.13 lakhs vs. INR 198.11 lakhs) and increased provisions for employee benefits, indicating rising non-cash expenses and liabilities.

Working capital adjustments show higher trade receivables (INR 229.01 lakhs) and inventory buildup (INR 169.43 lakhs), which negatively impacted cash flow. However, increased trade payables (INR 299.69 lakhs) provided a positive boost. Overall, cash generated from operations improved to INR 857.08 lakhs (from INR 269.26 lakhs in 2023), showcasing better cash management despite higher working capital requirements.

Cash Flow from Investing Activities

The company invested heavily in fixed assets (INR 503.70 lakhs) and purchased investments worth INR 50.00 lakhs, signaling a focus on long-term growth. Proceeds from the sale of fixed assets were minimal (INR 2.77 lakhs), and interest/dividend income remained steady. The net cash used in investing activities increased to INR 521.78 lakhs (from INR 142.46 lakhs in 2023), reflecting higher capital expenditure.

Cash Flow from Financing Activities

The company raised funds through public deposits and loans from directors (INR 500.00 lakhs) and inter-corporate deposits (INR 300.00 lakhs). However, repayments of cash credit (INR 704.99 lakhs) and term loans (INR 6.05 lakhs) reduced cash inflows. Interest and dividend payments remained consistent. The net cash used in financing activities decreased to INR 43.97 lakhs (from INR 491.27 lakhs in 2023), indicating reduced reliance on external financing.

Net Change in Cash and Cash Equivalents

The net decrease in cash and cash equivalents was INR 122.87 lakhs, compared to a minimal decrease of INR 0.17 lakhs in 2023. This reflects higher cash outflows due to increased investments and working capital requirements.

Financial Ratios

Ratio	2024	2023
Current Ratio	1.11	1.07
Debt Equity Ratio (times)	1.54	1.84
Debt Service Coverage Ratio	8.45	9.19
Return on Equity Ratio	21%	29%
Inventory Turnover Ratio	9.09	9.41
Trade Receivable Turnover Ratio	5.21	4.93
Trade Payable Turnover Ratio	3.69	3.82
Net Capital Turnover Ratio	32.03	326.99
Net Profit Ratio (%)	4%	6%
Return on Capital Employed (%)	26%	39%
Return on Investment (%)	32%	128%

Insights for 2024

Current Ratio (1.11): Improved slightly, indicating marginally better liquidity.
Debt Equity Ratio (1.54): Reduced, showing less reliance on debt financing.
Debt Service Coverage Ratio (8.45): Slight decline but still indicates strong debt servicing capacity.
Return on Equity (21%): Decreased significantly, suggesting lower profitability.
Inventory Turnover Ratio (9.09): Declined slightly, pointing to a marginal slowdown in inventory management.
Trade Receivable Turnover Ratio (5.21): Improved, showing better collection efficiency.
Trade Payable Turnover Ratio (3.69): Declined, indicating longer payment cycles.
Net Capital Turnover Ratio (32.03): Sharp drop, indicating higher working capital requirements.
Net Profit Ratio (4%): Decreased, reflecting lower profitability.
Return on Capital Employed (26%): Declined, indicating reduced efficiency in capital utilization.
Return on Investment (32%): Fell sharply, suggesting weaker investment profitability.