The Methoni Tea Annual Reports, Balance Sheet and Financials

The Methoni Tea Company Limited Balance Sheet (Rs in Thousands)

The Methoni Tea Company Limited Profit & Loss Statement (Rs in Thousands)

The Methoni Tea Company Limited Cash Flow Statement (Rs in Thousands)

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

Cash Flow from Operating Activities:

For the fiscal year 2024, the company reported a profit before tax from continuing operations of Rs. 146,966 thousand, a significant increase compared to Rs. 21,151.59 thousand in the previous year. However, the adjustments for non-cash items and other factors resulted in an operating loss before working capital changes of Rs. 2,885.87 thousand, worsening from the loss of Rs. 1,152.05 thousand in 2023. The significant adjustments included a substantial loss on the sale of investments and bonds, which contributed to the overall loss.

Working capital changes showed notable movements: an increase in inventories by Rs. 28,384.13 thousand (a reversal from the previous year’s decrease), and a significant decrease in other current assets by Rs. 4,284.42 thousand. Trade payables were stable, while other current liabilities increased by Rs. 493.79 thousand. Despite these adjustments, the cash generated from operations was Rs. 21,707.63 thousand, a decrease from Rs. 87,590.80 thousand in 2023. After accounting for net income tax paid (Rs. 2,967.82 thousand), the net cash flow from operating activities was Rs. 18,739.81 thousand, down from Rs. 88,032.47 thousand in the prior year.

Cash Flow from Investing Activities:

In investing activities, the company experienced a net outflow of Rs. 19,340.46 thousand in 2024, compared to an outflow of Rs. 96,905.39 thousand in 2023. Significant cash flows included:

Loan and Advances Received Back: Rs. 136,100 thousand in 2023, with no similar transactions in 2024.

Investment in Partnership Firm: A reduction of Rs. 80,250 thousand in 2024, compared to Rs. 224,500 thousand in 2023.

Investment in Fixed Deposits: Rs. 373,500 thousand in 2024, reflecting a new investment compared to the absence of such transactions in 2023.

Purchase and Sale of Investments: The company purchased investments worth Rs. 28,384.13 thousand but also generated Rs. 294,606.63 thousand from the sale of investments.

Debentures, Mutual Funds, and Bonds: Purchases of debentures, mutual funds, and bonds, and their subsequent sales were significant activities, with notable proceeds from the sale of bonds (Rs. 176,523.01 thousand) and mutual funds (Rs. 103,011.79 thousand), highlighting active investment management.

Cash Flow from Financing Activities:

The financing activities showed a net decrease in cash and cash equivalents of Rs. 600.65 thousand for 2024, a slight improvement from the decrease of Rs. 8,872.93 thousand in 2023. Key factors include:

No New Share Issuances or Major Financing Activities: There were no significant new financing activities, and the net cash used was primarily due to operational and investing outflows.

Net Increase/(Decrease) in Cash and Cash Equivalents:

The company’s cash and cash equivalents decreased by Rs. 600.65 thousand in 2024, following a larger decrease of Rs. 8,872.93 thousand in 2023. This reduction is largely attributed to the outflows in investing activities and relatively lower net cash inflows from operating activities. The ending balance of cash and cash equivalents at the end of 2024 was Rs. 64.39 thousand, down from Rs. 665.03 thousand at the beginning of the year.

Financial Ratios of The Methoni Tea Company Limited

Here is a summary of the financial and operational metrics for The Methoni Tea Company Limited for the year 2024 and 2023:

Current Ratio

The current ratio measures a company’s ability to cover its short-term liabilities with its short-term assets. A ratio of 29.92 in 2023-24 indicates an exceptionally strong liquidity position. However, the previous year’s ratio of 2059.1 suggests an even more extraordinary liquidity position.

Return on Equity (ROE) Ratio

The Return on Equity ratio measures the profitability of a company in relation to its shareholders ' equity. A ROE of 18.9% in 2023-24 represents a strong return, indicating that the company generated nearly 19% profit for every unit of equity. This is a significant improvement from the 3.34% ROE in 2022-23.

Inventory Turnover Ratio

The Inventory Turnover Ratio measures how efficiently a company manages its inventory by comparing cost of goods sold to average inventory.

Net Capital Turnover Ratio

The Net Capital Turnover Ratio assesses how efficiently a company utilizes its capital to generate revenue. A ratio of 6.5 in 2023-24 signifies that the company generated Rs. 6.5 in revenue for every unit of capital employed, showing a significant increase from the previous year’s ratio of 1.03.

Net Profit Ratio

The Net Profit Ratio indicates the percentage of revenue that remains as profit after all expenses are deducted. A net profit ratio of 1.17% in 2023-24 is a notable improvement over the 0.12% in 2022-23.

Return on Capital Employed (ROCE)

The Return on Capital Employed measures how efficiently a company uses its capital to generate profits. A ROCE of 18.39% in 2023-24 indicates a strong return on the capital invested in the business, significantly up from 3.33% in 2022-23.

Return on Investment (ROI)

The Return on Investment measures the profitability of investments relative to their cost.