CASH FLOW ANALYSIS:

Cash Flow in Rs. Crore

Mar '21 Mar '20 Mar '19 Mar '18 Mar '17 Mar '21 Mar '20 Mar '19 Mar '18
Net Profit Before Tax 5159.4 7064.8 10465.6 11003.4 9960.3 -26.97 -32.50 -4.89 10.47
Net Cash From
Operating Activities 8838.8 3405.1 6593.2 11785 10279.3 159.58 -48.35 -44.05 14.65
Net Cash (used in)/from
Investing Activities -7283.9 -463.9 -3538.3 -8282.1 -9177.9 1470.14 -86.89 -57.28 -9.76
Net Cash (used in)/from
Financing Activities -1540.8 -3100 -2947.8 -3446 -1129.3 -50.30 5.16 -14.46 205.14
Net (decrease)/increase
In Cash and Cash
Equivalents 14.1 -158.8 107.1 56.9 -27.9 -108.88 -248.27 88.22 -303.94
Opening Cash & Cash
Equivalents 18.2 177 69.9 13 40.9 -89.72 153.22 437.69 -68.22
Closing Cash & Cash
Equivalents 32.3 18.2 177 69.9 13 77.47 -89.72 153.22 437.69

OPERATING ACTIVITY ANALYSIS:

 The company has maintained a positive and gradual increase in cash flow from operating
activities which indicates that there is a huge potential and ability to carry out core
business activities effectively and efficiently.
 The positive measure also indicates profitability potential of the company.
 A huge increase in non-current asset, current asset and trade receivables and decrease in
trade payables, non-current provisions, current provisions and other current liabilities has
accounted for the huge increase in operating cash flow from 2017 to 2018.
 There are no significant changes found between the year 2018 and 2019.
 A massive increase in current assets, non-current assets and notably inventories and a
decrease in non-current liabilities has marked a noteworthy increase in operating activity
cash flows in the year ended, 2020.
 An increase in non-current assets and decrease in current liabilities has led to the increase
in cash flow from operating activities in the year ended, 2021.

INVESTING ACTIVITY ANALYSIS:

 It is evident that the company has adopted and implemented different strategies in terms
of investing activities as there are no linear progresses seen in investing activities.
 There is an increase in negative cash flow from investing activity in the year ended, 2018.
This is because of the huge investments made in the purchase of current investments.
 In the year ended, 2019, there is a huge investment in the purchase of current
investments. At the same time, there is massive proceeds from sale of current
 investments. This balance between the purchase and sale has significantly decreased the
cash flow from investing activities while still maintain a negative figure.
 The purchases and sales in current investments is very less in the year ended, 2020 when
compared with 2019. This has resulted in positive cash flow from investing activities.
The positive figures show that the company had made no investments for the long-term
growth and expansion of the business.
 An enormous increase in intangible asset of the company has proved to be the key
contributor for the negative cash flow from investing activity in the year ended, 2021.

FINANCING ACTIVITY ANALYSIS:

 The company is consistently maintaining negative cash flow from financing activities
which indicates that the company has paid out capital and made dividend payment to its
shareholders.
 In all the five consecutive years, the company has focused on paying back to its
shareholders which has become the major contributor in cash outflow under financing
activity.
 In the year ended, 2020 and 2021, principal repayment of lease liabilities was also made
which was again a factor for cash outflow in financing activity which further led to
negative figure in financing activity.
The net change in cash and cash equivalents was increasing but at different rates till the year
ended, 2020 which shows that the company’s flow of cash was well managed to make necessary
future investments and cover day to day expenses.

However, there is a net decrease in cash and cash equivalents in the year ended, 2021. This is
because of the massive investments made in purchase of intangible asset that has resulted in huge
cash outflow and has also converted the positive figure to negative figure in investing activity
which is often considered a growth sign in terms of cash flows from investing activities.