How has been the historical performance of the Emerald Tyre?
Emerald Tyre has shown significant improvement in profitability, moving from a loss of Rs -2.00 crore in March 2021 to a profit of Rs 14.00 crore in March 2024, with cash flow increasing to Rs 16.00 crore. Despite worsening working capital, the company has achieved a positive net cash inflow of Rs 1.00 crore in March 2024, indicating improved liquidity.
Answer:The historical performance of Emerald Tyre shows a positive trend in profit and cash flow over the past four years.Breakdown:
Emerald Tyre's profit before tax has improved significantly, rising from a loss of Rs -2.00 crore in March 2021 to a profit of Rs 14.00 crore in March 2024. The adjustments made during this period also reflect growth, increasing from Rs 9.00 crore in March 2021 to Rs 14.00 crore in March 2024. However, changes in working capital have worsened, with negative values increasing from Rs -7.00 crore in March 2021 to Rs -13.00 crore in March 2024. Despite this, the cash flow after changes in working capital has shown a steady increase, reaching Rs 16.00 crore in March 2024, up from Rs 0.00 crore in March 2021. Cash flow from operating activities has also improved, moving from Rs -1.00 crore in March 2021 to Rs 13.00 crore in March 2024. Cash flow from investing activities has remained negative but has decreased in magnitude, from Rs -14.00 crore in March 2022 to Rs -11.00 crore in March 2024. The net cash inflow has turned positive in March 2024 at Rs 1.00 crore, compared to no inflow in the previous years, and the closing cash and cash equivalents have increased to Rs 3.00 crore in March 2024, indicating a strengthening liquidity position.
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