Travancore Rubber Annual Reports, Balance Sheet and Financials

Travancore Rubber and Tea Limited Consolidated Balance Sheet (Rs in Lakhs)

Travancore Rubber and Tea Limited Consolidated Profit & Loss Statement (Rs in Lakhs)

Travancore Rubber and Tea Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

The company reported a profit before tax of ₹335.92 lakhs in FY25 as against a loss of ₹508.01 lakhs in FY24, indicating a strong turnaround in operational performance. After adjusting for non-cash items such as depreciation (₹167.96 lakhs), finance costs (₹56.54 lakhs), and write-back of provisions (₹304.05 lakhs), the operating profit before working capital changes stood at ₹251.92 lakhs compared to a negative ₹335.94 lakhs in the previous year.

Cash Flow from Investing Activities

Net cash flow from investing activities turned negative at ₹133.85 lakhs in FY25 compared to a positive ₹135.02 lakhs in FY24. During FY25, the company invested ₹138.43 lakhs in property, plant and equipment, indicating capital expenditure for business operations. In contrast, FY24 saw significant inflows from sale of investments (₹164.89 lakhs) and property, plant and equipment (₹21.18 lakhs), which supported liquidity.

The absence of major asset sales in FY25 and higher capital expenditure led to net cash outflow under investing activities. Interest and dividend income remained minimal and stable across both years.

Cash Flow from Financing Activities

Financing activities resulted in a net cash outflow of ₹32.87 lakhs in FY25 compared to a larger outflow of ₹101.06 lakhs in FY24. During FY25, the company had a small net increase in borrowings (₹23.67 lakhs) but paid ₹56.54 lakhs towards interest, leading to an overall negative cash flow.

In FY24, borrowings were largely repaid (₹97.72 lakhs) though partially offset by loans from related parties (₹60 lakhs), along with interest payments. The reduced financing outflow in FY25 indicates relatively stable debt management and lower repayment pressure compared to the previous year.

Net Change in Cash and Cash Equivalents

Overall, the company recorded a marginal decrease in cash and cash equivalents of ₹1.67 lakhs in FY25, compared to an increase of ₹12.59 lakhs in FY24. The closing cash balance stood at ₹40.49 lakhs as of March 31, 2025, slightly lower than ₹42.16 lakhs in the previous year. 

Financial ratios of Travancore Rubber and Tea Limited 

Summary of the financial ratios for the years 2025 and 2024:

Current Ratio:
The current ratio improved from 0.17 in FY24 to 0.25 in FY25. Although this indicates a marginal improvement in short-term liquidity, the ratio remains significantly below the ideal benchmark of 1:1, suggesting that the company continues to face working capital constraints and may struggle to meet its short-term obligations comfortably.

Debt-Equity Ratio:
The debt-equity ratio remained stable at 0.02 in both years, reflecting a very low level of external borrowing. This indicates that the company is minimally leveraged and largely financed through equity. While this reduces financial risk, it may also suggest limited use of debt for growth or expansion.

Debt Service Coverage Ratio:
The DSCR improved substantially from -4.31 in FY24 to 9.91 in FY25. The negative ratio in FY24 indicated inability to cover debt obligations due to losses. However, the sharp recovery in FY25 reflects improved operating performance and strong capacity to meet interest and principal repayment commitments.

Return on Equity:
ROE turned positive at 0.68% in FY25 compared to -1.04% in FY24. This shift indicates that the company moved from losses to profitability, generating a modest return for shareholders. However, the return remains very low, suggesting limited value creation.

Inventory Turnover Ratio:
The inventory turnover ratio improved from -0.09 in FY24 to 0.20 in FY25. The negative ratio in FY24 was due to operational losses. The positive figure in FY25 indicates better inventory management and improved sales generation, though the turnover remains weak, reflecting slow-moving stock.

Trade Receivables Turnover Ratio:
The receivables turnover ratio declined from 201.58 in FY24 to 115.13 in FY25. While still very high, the decline suggests relatively slower collection of receivables compared to the previous year. Nevertheless, the company continues to maintain efficient credit recovery.

Trade Payables Turnover Ratio:
The trade payables turnover ratio improved from -0.57 in FY24 to 1.56 in FY25. The negative ratio in FY24 reflected losses and irregular payment cycles. The positive ratio in FY25 indicates improved ability to settle supplier dues, though the turnover suggests payments may not be very frequent.

Net Capital Turnover Ratio:
The net capital turnover ratio remained negative, moving from -0.88 in FY24 to -1.23 in FY25. This indicates inefficient utilization of working capital in generating revenue and possibly negative working capital conditions, which may signal structural liquidity issues.

Net Profit Ratio:
The net profit ratio showed a significant turnaround from -22.94% in FY24 to 12.40% in FY25. This reflects improved cost management and better operational performance, resulting in profitability. The positive margin indicates stronger earnings generation compared to the previous year.

Return on Capital Employed:
ROCE improved from -0.89% in FY24 to 0.77% in FY25. Though still very low, the positive ratio indicates that the company has begun generating returns from its capital base after experiencing losses in the previous year.

Return on Investments:
Return on investments declined from 0.37 in FY24 to 0.01 in FY25, indicating significantly lower income generated from investment activities. This may be due to reduced investment income or changes in investment portfolio returns.