Himatsingka Seide Limited operating cash flow falls 63%

Himatsingka Seide Limited generated Rs 67.1069 crore of net cash from operating activities in the six months ended 30 September 2026, down 63% from Rs 180.6534 crore a year earlier, as trade receivables absorbed Rs 108.7826 crore and trade payables absorbed Rs 81.1723 crore.

Why did Himatsingka Seide’s operating cash flow fall?

Himatsingka Seide’s operating cash flow fell because working-capital movements reduced cash generated from operations to Rs 68.1903 crore in the six months ended 30 September 2026, from Rs 186.3790 crore in the corresponding prior-year period. Before working-capital changes, operating cash flow was Rs 220.1226 crore, compared with Rs 241.2240 crore a year earlier.

Trade receivables were the largest adverse movement in the latest half year. They used Rs 108.7826 crore of cash, compared with a Rs 19.6481 crore cash inflow in the six months ended 30 September 2025. This was a Rs 128.4307 crore year-on-year swing in the cash-flow statement’s receivables line.

Inventories used Rs 48.9047 crore in the six months ended 30 September 2026, compared with Rs 54.5601 crore in the prior-year period. The inventory outflow was therefore Rs 5.6554 crore lower year on year, but remained a use of cash. Trade payables used Rs 81.1723 crore, versus Rs 8.5837 crore a year earlier, increasing their adverse cash effect by Rs 72.5886 crore.

How did receivables and inventory balances change?

Himatsingka Seide reported trade receivables of Rs 1,271.7492 crore at 30 September 2026, up from Rs 1,191.6874 crore at 31 March 2026. The balance increased by Rs 80.0618 crore over six months, alongside the Rs 108.7826 crore receivables outflow reported in the consolidated cash-flow statement.

Inventories stood at Rs 1,281.1510 crore at 30 September 2026, compared with Rs 1,223.7196 crore at 31 March 2026. The Rs 57.4314 crore increase in the balance is consistent with inventory consuming cash during the half year, although the cash-flow statement’s working-capital line need not equal the change between two reported balance-sheet dates.

The debtors’ turnover ratio was 1.98 for the six months ended 30 September 2026, down from 2.16 in the corresponding 2025 period. Inventory turnover was 1.25, compared with 1.40 a year earlier. Both measures changed alongside higher closing receivables and inventory balances.

Other working-capital lines partly offset the outflows. Other operating assets generated Rs 25.3339 crore, compared with using Rs 17.1239 crore a year earlier, while other liabilities provided Rs 59.3327 crore, against Rs 6.5769 crore in the prior period. Provisions supplied Rs 2.2607 crore of cash, compared with a Rs 0.7523 crore outflow previously.

What happened to profit and operating cash conversion?

Himatsingka Seide’s profit before tax declined to Rs 13.0844 crore in the six months ended 30 September 2026 from Rs 78.3326 crore a year earlier. Revenue from operations decreased to Rs 1,245.8270 crore from Rs 1,286.5085 crore, while the operating margin fell to 11.83% from 17.56%.

Non-cash and financing-related adjustments lifted operating cash before working-capital movements. Finance costs added back Rs 134.3449 crore, compared with Rs 146.4281 crore in the earlier period, and depreciation and amortisation added back Rs 55.0059 crore, against Rs 75.6617 crore. The filing also records a Rs 44.8578 crore loss allowance on financial assets, up from Rs 5.9880 crore.

A provision no longer required was written back by Rs 18.8050 crore in the latest half year, compared with Rs 10.0024 crore in the prior-year period. Net unrealised foreign-exchange gains on operating activities were Rs 5.2804 crore, lower than Rs 52.5797 crore a year earlier. Net income taxes paid were Rs 1.0834 crore, versus Rs 5.7256 crore.

Profit after tax was Rs 19.1893 crore for the six months ended 30 September 2026, down from Rs 52.8933 crore, and the net profit margin was 1.05%, compared with 6.09%. Himatsingka Seide identifies textiles as its single operating segment, so the filing does not provide separate cash-flow data by product line or geography.

How did cash, investment and funding movements change?

Himatsingka Seide recorded a Rs 24.0674 crore net decrease in cash and cash equivalents in the six months ended 30 September 2026, compared with a Rs 5.1044 crore net increase a year earlier. Cash and cash equivalents were Rs 24.3657 crore at 30 September 2026, down from Rs 46.6556 crore at 31 March 2026.

Investing activities used Rs 25.8486 crore in the latest period, compared with generating Rs 2.9254 crore in the prior-year half. Acquisition of property, plant and equipment and intangible assets used Rs 22.3837 crore, up from Rs 13.0903 crore. Bank-deposit redemptions were reported as a Rs 5.9751 crore outflow, compared with a Rs 12.3870 crore inflow a year earlier.

Financing activities used Rs 65.3257 crore, less than the Rs 178.4744 crore used in the six months ended 30 September 2025. Himatsingka Seide received Rs 306.0290 crore from non-current borrowings, repaid Rs 191.1982 crore of such borrowings and paid Rs 168.8840 crore of interest.

During the half year, Himatsingka Seide issued 34,000 senior, unsecured, rated, listed, redeemable and taxable non-convertible debentures, or NCDs, at Rs 10,000 each through private placement. The NCD issue aggregated Rs 34 crore and was listed on BSE Limited, according to the filing.

Conclusion

Himatsingka Seide’s lower operating cash generation reflected both weaker reported profitability and a marked working-capital draw. Revenue fell by Rs 40.6815 crore year on year, while the movement in trade receivables shifted from a Rs 19.6481 crore cash inflow to a Rs 108.7826 crore outflow and the trade-payables outflow rose to Rs 81.1723 crore.

The next financial-results filing will show whether receivables of Rs 1,271.7492 crore and inventories of Rs 1,281.1510 crore at 30 September 2026 convert into cash. It will also update borrowings, which totalled Rs 2,715.2636 crore across current and non-current borrowings at that date, after the Rs 34 crore NCD issue during the half year.