How has been the historical performance of the Sparc Electrex?
Sparc Electrex has shown mixed financial performance, with fluctuating profits and significant declines in working capital and cash flow, resulting in a net cash inflow of Rs 1.00 crore in March 2024, an improvement from the previous year. Despite losses in prior years, cash flow from financing activities has notably increased.
Answer:The historical performance of Sparc Electrex shows a mixed trend in its financial metrics over the past few years.Breakdown:
Sparc Electrex has experienced fluctuations in its profit before tax, with a notable profit of Rs 2.00 crore in March 2022, followed by a loss of Rs 2.00 crore in March 2021, and returning to zero in March 2023 and March 2024. The adjustments made during this period have been minimal, with a slight adjustment of Rs -1.00 crore in March 2022. Changes in working capital have shown a negative trend, with a significant decrease of Rs -9.00 crore in March 2024, compared to Rs -1.00 crore in March 2023. Consequently, cash flow after changes in working capital has also declined, resulting in Rs -8.00 crore in March 2024, down from Rs -1.00 crore in March 2023. Cash flow from operating activities mirrors this decline, showing Rs -8.00 crore in March 2024. However, cash flow from financing activities has improved significantly, with an inflow of Rs 10.00 crore in March 2024, compared to Rs 0.00 crore in the previous year. This has resulted in a net cash inflow of Rs 1.00 crore in March 2024, marking a positive shift from Rs 0.00 crore in March 2023. The closing cash and cash equivalents have increased to Rs 1.00 crore in March 2024, indicating a slight improvement in liquidity.
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