Deepak Houseware and Toys Limited (Urban Tots) Latest Annual Report, Balance Sheet and Financials

Deepak Houseware and Toys Limited Balance Sheet (Rs in Lakhs)

 Deepak Houseware and Toys Limited Profit & Loss Statement (Rs in Lakhs)

 Deepak Houseware and Toys Limited Consolidated Cash Flow Statement (Rs in Lakhs)

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

Cash Flow from Operating Activities

The Net Profit before Tax and extraordinary items increased from Rs. 498.46 lakhs in 2023 to Rs. 822.73 lakhs in 2024, indicating improved profitability. Adjustments such as depreciation, interest paid, and other adjustments raised the operating profit before working capital changes to Rs. 1,306.96 lakhs in 2024, up from Rs. 847.00 lakhs in 2023.

Changes in working capital affected the cash flow significantly. Trade and other receivables and inventories increased (indicating cash outflows) by Rs. 890.50 lakhs and Rs. 627.91 lakhs, respectively, in 2024. However, increases in trade payables and other current liabilities provided an inflow. The net cash generated from operations in 2024 was Rs. 530.05 lakhs, but after direct taxes paid, the net cash from operating activities amounted to Rs. 443.80 lakhs, an improvement compared to the negative Rs. 648.77 lakhs in 2023.

Cash Flow from Investing Activities

The investing activities primarily involved the purchase of fixed assets, resulting in a cash outflow of Rs. 1,487.23 lakhs in 2024, higher than Rs. 1,291.28 lakhs in 2023. Additionally, sale of fixed assets brought in Rs. 59.00 lakhs, up from Rs. 17.00 lakhs in the previous year, which helped mitigate the outflow to some extent. Overall, there was a net cash outflow from investing activities of Rs. 1,426.80 lakhs in 2024, slightly higher than the outflow of Rs. 1,285.30 lakhs in 2023, indicating continued investment in assets.

Cash Flow from Financing Activities

Financing activities provided a strong cash inflow in 2024, with proceeds from long-term and short-term borrowings totaling Rs. 976.04 lakhs, an increase over the previous year’s Rs. 808.96 lakhs. Additionally, share capital and securities premium of Rs. 220.00 lakhs contributed to the inflow, though this was lower than the Rs. 1,192.48 lakhs raised in 2023. After adjusting for interest paid, the net cash inflow from financing activities amounted to Rs. 1,025.08 lakhs in 2024, compared to Rs. 1,874.36 lakhs in 2023. This indicates a continued reliance on external financing, although slightly reduced from the previous year.

Net Increase/(Decrease) in Cash and Cash Equivalents

The overall net increase in cash and cash equivalents was Rs. 42.08 lakhs in 2024, a turnaround from the decrease of Rs. 59.72 lakhs in 2023. This change reflects improved cash inflows from operations and financing, despite ongoing investments in fixed assets.

Financial Ratios of Deepak Houseware and Toys Limited

Here is a summary of the financial and operational metrics for Deepak Houseware and Toys Limited for the year 2024 and 2023:

Current Ratio

2024: 1.29 | 2023: 1.49

The current ratio measures the company 's ability to cover its short-term liabilities with its short-term assets. A decrease from 1.49 to 1.29 suggests a slight reduction in liquidity, meaning the company has fewer current assets available per unit of current liabilities. Despite the decrease, a ratio above 1 indicates that the company still has adequate liquidity to meet its short-term obligations.

Debt-to-Equity Ratio

2024: 0.82 | 2023: 0.74

This ratio indicates the relative proportion of debt and equity used to finance the company’s assets. An increase from 0.74 to 0.82 suggests a slightly higher reliance on debt in 2024. While this might signal greater financial risk, it can also mean that the company is leveraging debt to fund growth without heavily diluting equity.

Debt Service Coverage Ratio (DSCR)

2024: 2.81 | 2023: 4.07

DSCR measures the company 's ability to service its debt with its operating income. A decrease from 4.07 to 2.81 reflects reduced capacity to cover debt obligations, possibly due to higher debt payments or lower cash flows. A DSCR above 1, however, still indicates sufficient earnings to cover debt payments, though the drop warrants monitoring.

Return on Equity (ROE)

2024: 0.2 (or 20%) | 2023: 0.16 (or 16%)

ROE measures the profitability of shareholders ' equity. An increase from 16% to 20% indicates improved efficiency in generating profits from shareholders ' investments. This increase in ROE suggests that the company has been more effective in using equity financing to generate earnings.

Inventory Turnover Ratio

2024: 5.55 | 2023: 6.62

This ratio shows how quickly inventory is sold and replaced over a period. A decrease from 6.62 to 5.55 indicates a slower turnover of inventory in 2024, which could suggest either a build-up in inventory or slower sales. Efficient inventory management is crucial to avoid excess stock, which can lead to higher holding costs.

Trade Receivables Turnover Ratio

2024: 4.97 | 2023: 6.17

This ratio reflects the efficiency with which the company collects payments from its customers. A decrease from 6.17 to 4.97 suggests slower collection of receivables in 2024, which could impact cash flow if prolonged. A lower turnover can also indicate lenient credit policies or delays in customer payments.

Trade Payables Turnover Ratio

2024: 3.93 | 2023: 4.79

This ratio measures how quickly the company pays its suppliers. A decrease from 4.79 to 3.93 suggests a slower rate of payment to suppliers, which might indicate cash flow management strategies or extended payment terms. However, consistently low turnover could strain supplier relationships.

Net Capital Turnover Ratio

2024: 6.97 | 2023: 4.65

This ratio reflects the efficiency with which the company generates sales from its net working capital. An increase from 4.65 to 6.97 suggests that the company has improved its ability to generate revenue from its working capital in 2024, indicating more effective use of short-term assets and liabilities.

Net Profit Ratio

2024: 0.09 (or 9%) | 2023: 0.09 (or 9%)

This ratio measures profitability as a percentage of revenue. It remained steady at 9% in both years, suggesting stable profitability relative to sales. This stability indicates that while revenue or expenses might have fluctuated, the company maintained its profit margin.

Return on Capital Employed (ROCE)

2024: 0.15 (or 15%) | 2023: 0.14 (or 14%)

ROCE assesses the company’s ability to generate returns from its capital employed. An increase from 14% to 15% indicates a slightly more effective use of capital in generating operating profits, which is a positive indicator of operational efficiency.

Return on Investment (ROI)

2024: 0.33 (or 33%) | 2023: 0.22 (or 22%)

ROI measures the profitability of investments. An increase from 22% to 33% shows that the company achieved higher returns on its investments in 2024, suggesting successful investment strategies and better capital allocation.