ABM International Limited operating cash outflow reaches Rs 5.55 crore

ABM International Limited reported a Rs 5.55 crore operating cash outflow for the half year ended 30 September 2026, despite reporting Rs 84.85 lakh profit after tax, because working-capital movements absorbed Rs 6.72 crore. Inventories rose by Rs 2.31 crore, trade receivables increased by Rs 1.85 crore and trade payables declined by Rs 2.01 crore.

Why did ABM International Limited report a Rs 5.55 crore operating cash outflow?

ABM International Limited reported the outflow because its Rs 1.21 crore operating profit before working-capital changes was outweighed by Rs 6.72 crore of disclosed working-capital cash uses in the half year ended 30 September 2026. Cash generated from operations was negative Rs 5.51 crore, and direct tax payments of Rs 4.10 lakh took cash flow from operations to negative Rs 5.55 crore.

The cash-flow statement was prepared using the indirect method under Indian Accounting Standard 7, or Ind AS 7. It starts with Rs 1.14 crore of net profit before tax, adds Rs 2 lakh of depreciation and Rs 9.52 lakh of interest paid, and deducts Rs 5.10 lakh of interest received and Rs 1,000 of dividend income to arrive at the Rs 1.21 crore operating-profit figure.

The filing’s prior comparative column showed Rs 3.25 crore of cash flow from operations after Rs 21.37 lakh of direct tax payments, compared with the current outflow of Rs 5.55 crore. That represents a Rs 8.80 crore movement from operating cash inflow to operating cash outflow, even as first-half profit before tax turned to Rs 1.14 crore from a Rs 49.78 lakh loss in the half year ended 30 September 2025.

Which working-capital items absorbed ABM International Limited’s cash?

ABM International Limited’s largest disclosed cash use was the Rs 2.31 crore inventory increase, followed by a Rs 2.01 crore reduction in trade payables and a Rs 1.85 crore increase in trade receivables. These three movements accounted for Rs 6.17 crore of the Rs 6.72 crore total working-capital outflow recorded in the half-year cash-flow statement.

Other payables decreased by Rs 57.09 lakh, adding to the cash requirement, while other current financial assets increased by Rs 92,000. Other receivables supplied Rs 3.64 lakh of cash, but that inflow was materially smaller than the inventory, receivables and payables movements during the period ended 30 September 2026.

The consolidated balance sheet supports the cash-flow movements. Inventories stood at Rs 4.78 crore on 30 September 2026, up from Rs 2.46 crore on 31 March 2026, while current trade receivables increased to Rs 3.65 crore from Rs 1.79 crore. The respective increases of Rs 2.31 crore and Rs 1.85 crore match the working-capital adjustments in the cash-flow statement.

Trade payables moved in the opposite direction, falling to Rs 98.78 lakh on 30 September 2026 from Rs 3 crore on 31 March 2026. Other current liabilities also declined to Rs 3.03 lakh from Rs 60.12 lakh, consistent with the cash-flow statement’s Rs 57.09 lakh outflow under other payables.

How did ABM International Limited fund the cash requirement?

ABM International Limited reported Rs 3.84 crore of proceeds from borrowings in the half-year cash-flow statement. Current borrowings increased by the same Rs 3.84 crore, reaching Rs 12.20 crore on 30 September 2026 from Rs 8.36 crore at 31 March 2026.

The balance sheet did not report non-current borrowings in either the 30 September 2026 or 31 March 2026 column. Its non-current liabilities were Rs 26.99 lakh at the half-year date, comprising Rs 15 lakh of other non-current liabilities and Rs 11.99 lakh of non-current provisions.

The filing also recorded Rs 5.10 lakh of interest received, Rs 9.52 lakh of interest paid, Rs 1,000 of dividend received and Rs 4.41 lakh for purchase of fixed assets during the current half year. Property, plant and equipment declined to Rs 40.01 lakh at 30 September 2026 from Rs 51.91 lakh at 31 March 2026, while non-current investments rose to Rs 5.32 crore from Rs 4.80 crore.

After the operating, investing and financing movements disclosed in the statement, cash and cash equivalents fell by Rs 1.76 crore. ABM International Limited ended the half year with Rs 2.76 crore of cash and cash equivalents, compared with Rs 4.52 crore at 1 April 2026.

What do ABM International Limited’s earnings and balance sheet show?

ABM International Limited reported revenue from operations of Rs 24.77 crore for the half year ended 30 September 2026, almost unchanged from Rs 24.76 crore in the corresponding half a year earlier. Total expenses fell to Rs 23.86 crore from Rs 25.49 crore, resulting in Rs 1.14 crore of profit before tax against the earlier Rs 49.78 lakh loss.

Profit after tax was Rs 84.85 lakh, compared with a Rs 49.93 lakh loss after tax in the half year ended 30 September 2025. The current-period tax line included a Rs 28.73 lakh deferred-tax credit, while finance costs rose to Rs 10.01 lakh from Rs 9.45 lakh and the share of loss from associates increased to Rs 61,000 from Rs 44,000.

Total consolidated assets were Rs 26.34 crore at 30 September 2026, compared with Rs 23.72 crore at 31 March 2026. Shareholders’ funds increased to Rs 12.85 crore from Rs 11.48 crore, with other equity rising to Rs 3.44 crore from Rs 2.07 crore; equity share capital remained Rs 9.41 crore.

The filing states that ABM International Limited has no reportable separate segment. It therefore does not provide segment-level revenue, profit, inventory or receivables information that would identify the business activity behind the first-half working-capital movements.

Conclusion

ABM International Limited’s half-year accounts show that reported earnings and operating cash flow moved in different directions during the period ended 30 September 2026. Profit after tax was Rs 84.85 lakh, but higher inventories and receivables, along with reductions in trade and other payables, contributed to a Rs 5.55 crore operating cash outflow and a Rs 1.76 crore decline in cash.

The unresolved issue for subsequent disclosures is whether the Rs 4.78 crore inventory and Rs 3.65 crore of trade receivables at 30 September 2026 convert into cash while current borrowings are Rs 12.20 crore. ABM International Limited’s board approved the unaudited consolidated results on 13 November 2026, and the statutory auditor issued a limited-review conclusion on the statement.