Vam Holdings Annual Reports, Balance Sheet and Financials

Vam Holdings Limited Balance Sheet (Rs in Lakhs)

Vam Holdings Limited Profit & Loss Statement (Rs in Lakhs)

 Vam Holdings Limited Consolidated Cash Flow Statement (Rs in Lakhs) 

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

Net Profit Before Tax

2024: ₹572.92 lakhs

2023: ₹530.75 lakhs

The company’s net profit before tax has increased from the previous year, indicating an improvement in profitability.

Adjustment: Provision No Longer Required Written Back

2024: ₹-0.16 lakhs

2023: Nil

A small amount of provision was written back, slightly adjusting the net profit for the year 2024.

Interest Income

2024: ₹74.48 lakhs

2023: ₹35.87 lakhs

Interest income has more than doubled, contributing positively to the cash flow from operations.

Dividend Received

2024: ₹-501.69 lakhs

2023: ₹-501.69 lakhs

A significant dividend amount was received both years, impacting the operating profit but considered in cash flow separately.

Operating Profit Before Working Capital Changes

2024: ₹145.55 lakhs

2023: ₹64.93 lakhs

There was a noticeable increase in operating profit before adjustments for working capital, showing a better operational performance.

Adjustment: (Increase)/Decrease in Loans & Advances and Other Assets

2024: ₹-133.24 lakhs

2023: ₹-38.87 lakhs

The increase in loans and advances and other assets has been higher in 2024, reducing the cash generated from operations.

Adjustment: Increase/(Decrease) in Liabilities and Provisions

2024: ₹79.13 lakhs

2023: ₹-0.86 lakhs

There was an increase in liabilities and provisions in 2024, contributing positively to the cash flow, unlike the slight decrease in 2023.

Cash Generated from Operations

2024: ₹91.44 lakhs

2023: ₹25.2 lakhs

The overall cash generated from operations was higher in 2024, reflecting improved cash management and operational efficiency.

Direct Taxes Paid (Net)

2024: ₹181.05 lakhs

2023: ₹170.03 lakhs

Direct taxes paid have increased, which might be due to higher profits or changes in tax policies, reducing the net cash from operating activities.

Net Cash (Used in) Operating Activities

2024: ₹-89.61 lakhs

2023: ₹-144.83 lakhs

The net cash outflow from operating activities was lower in 2024 compared to 2023, indicating a relative improvement, though it still represents a cash outflow.

Cash Flow from Investing Activities: Dividend Received

2024: ₹501.69 lakhs

2023: ₹501.69 lakhs

The same amount of dividend was received in both years, providing a significant inflow to the investing activities.

Cash Flow from Investing Activities: Interest Income

2024: ₹-74.48 lakhs

2023: ₹-35.87 lakhs

Interest income was accounted for, reducing the cash flow from investing activities.

Cash Flow from Investing Activities: Purchase of Long-Term Investment

2024: Nil

2023: ₹-3610 lakhs

In 2023, there was a significant outflow due to the purchase of long-term investments, but there was no such purchase in 2024.

Cash Flow from Investing Activities: Redemption of Long-Term Investments

2024: Nil

2023: ₹3610 lakhs

The redemption of long-term investments in 2023 offset the purchase, but there were no such activities in 2024.

Cash Flow from Investing Activities: Movement in Fixed Deposits (Net)

2024: ₹-280.49 lakhs

2023: ₹-887.08 lakhs

A lesser amount was moved into fixed deposits in 2024 compared to 2023, contributing to a higher net cash from investing activities.

Net Cash (Used in)/Generated from Investing Activities

2024: ₹146.72 lakhs

2023: ₹-421.26 lakhs

In 2024, there was a positive net cash inflow from investing activities, a significant improvement from the negative cash flow in 2023.

Cash Flow from Financing Activities: Interest Paid

2024: Nil

2023: Nil

No interest payments were made in either year, so there was no impact on cash flow from financing activities.

Net Cash from Financing Activities

2024: Nil

2023: Nil

There were no financing activities in either year, so no cash flow was generated or used from this segment.

Net Increase/(Decrease) in Cash & Cash Equivalents

2024: ₹57.11 lakhs

2023: ₹-566.09 lakhs

The company saw an increase in cash and cash equivalents in 2024, in contrast to a significant decrease in 2023, indicating a stronger liquidity position at the end of 2024.

Cash & Cash Equivalents at the Beginning of the Year

2024: ₹6.99 lakhs

2023: ₹573.08 lakhs

The starting cash balance in 2024 was significantly lower than in 2023, reflecting the cash outflow experienced in the previous year.

Cash & Cash Equivalents at the End of the Year

2024: ₹64.1 lakhs

2023: ₹6.99 lakhs

By the end of 2024, the cash and cash equivalents had increased, showing a much healthier cash position compared to the end of 2023.

Financial Ratios of Vam Holdings Limited

Here is a summary of the financial and operational metrics for Vam Holdings Limited for the years 2024 and 2023:

Current Ratio

2024: 17.11

2023: 679.79

Insight:

The current ratio has significantly decreased from 679.79 in 2023 to 17.11 in 2024. While a current ratio of 17.11 still indicates that the company has ample current assets to cover its current liabilities, the sharp decline suggests that there has been a considerable reduction in current assets, an increase in current liabilities, or both. This shift might indicate that the company is utilizing its current assets more effectively or possibly that it has taken on more short-term obligations. However, such a drastic drop may also suggest the need for closer monitoring of liquidity management.

Return on Equity (ROE) Ratio

2024: 4.6%

2023: 4.4%

Insight:

The ROE ratio has increased slightly from 4.4% in 2023 to 4.6% in 2024. This indicates that the company has generated a slightly higher return on shareholders ' equity compared to the previous year. While the improvement is modest, it shows that the company is becoming more efficient in generating profits from the equity invested by shareholders. However, a ROE of 4.6% might still be considered low, depending on the industry standards, suggesting there could be room for further improvement in profitability.

Net Profit Ratio

2024: 89.22%

2023: 109.52%

Insight:

The net profit ratio has decreased from 109.52% in 2023 to 89.22% in 2024. Despite the decline, the ratio is still very high, indicating that the company retains a significant portion of its revenue as profit after all expenses. The decrease could be due to increased expenses, reduced revenue, or a combination of both. While the ratio remains strong, the decline suggests that profit margins are tightening, which may require the company to control costs more effectively or find ways to boost revenue.

Return on Capital Employed (ROCE)

2024: 6.84%

2023: 6.63%

Insight:

The ROCE has increased slightly from 6.63% in 2023 to 6.84% in 2024. This indicates that the company has improved its efficiency in generating profits from its capital employed. A higher ROCE suggests that the company is using its capital more effectively to generate returns. Although the increase is modest, it reflects a positive trend in the company 's ability to generate higher returns on the resources it employs.