June Industries Limited operating cash flow turns negative

June Industries Limited reported Rs 35.96 lakh of net cash used in operating activities for the half year ended 30 September 2026, despite posting Rs 11.99 lakh of profit before tax. A Rs 17.40 lakh rise in trade receivables and Rs 27.29 lakh cash outflow from current liabilities and other payables outweighed the reported profit.

Why did June Industries report negative operating cash flow?

June Industries reported negative operating cash flow because working-capital movements exceeded its Rs 11.99 lakh profit before tax for the half year ended 30 September 2026. After deducting Rs 0.32 lakh of interest income, the cash-flow statement shows operating profit before working-capital changes of Rs 11.67 lakh.

Trade receivables used Rs 17.40 lakh of cash, movement in other assets used Rs 2.21 lakh, and changes in current liabilities and other payables used Rs 27.29 lakh. These three items totalled Rs 46.90 lakh of outflows, turning the Rs 11.67 lakh operating profit before working-capital changes into Rs 35.23 lakh of cash used in operations.

Income taxes paid added a further Rs 0.73 lakh outflow in the six-month period. Net cash used in operating activities therefore reached Rs 35.96 lakh, showing that the profit recorded under the financial-results statement did not translate into operating cash during the period.

How did June Industries’ working capital change?

June Industries recorded trade receivables of Rs 17.40 lakh at 30 September 2026, while the 31 March 2026 balance-sheet column does not show an amount for trade receivables. The cash-flow statement records the Rs 17.40 lakh change as an operating-cash outflow for the half year.

Other financial liabilities declined to Rs 16.50 lakh at 30 September 2026 from Rs 43.85 lakh at 31 March 2026. The cash-flow statement separately records a Rs 27.29 lakh outflow under changes in current liabilities and other payables, while the balance-sheet movement in other financial liabilities was Rs 27.35 lakh; the filing does not provide a reconciliation between the two classifications.

June Industries reports a single segment, trading of pharmaceuticals, hygiene and cleanroom products. The filing does not disclose customer collections, payment terms, inventory balances or management’s explanation for the receivables movement, so it identifies the cash-flow items without specifying their commercial causes.

How does the latest cash flow compare with the prior year?

June Industries moved from Rs 58.50 lakh of net operating cash inflow in the year ended 31 March 2026 to Rs 35.96 lakh of net operating cash outflow in the half year ended 30 September 2026. The comparison is not like-for-like because the earlier period covers 12 months and the latest period covers six months, but the reported cash-flow direction changed.

The prior-year operating cash result included Rs 65.43 lakh from changes in other receivables and Rs 41.49 lakh from current liabilities and other payables. In the latest half year, trade receivables, other assets, and current liabilities and other payables instead produced combined cash outflows of Rs 46.90 lakh.

June Industries also moved from a Rs 46.06 lakh pre-tax loss in the year ended 31 March 2026 to a Rs 11.99 lakh pre-tax profit in the latest half year. Revenue from operations was Rs 35.00 lakh for the six months ended 30 September 2026, compared with Rs 19.70 lakh for the full year ended 31 March 2026; the filing does not provide a prior-year half-year revenue comparator.

What happened to June Industries’ cash and investments?

June Industries’ cash and cash equivalents fell by Rs 10.42 lakh during the half year, closing at Rs 14.62 lakh on 30 September 2026 compared with Rs 25.04 lakh on 31 March 2026. The Rs 35.96 lakh operating outflow was partly offset by Rs 25.54 lakh reported as net cash flow from investing activities, while no financing cash flow is shown.

The investing section records Rs 25.22 lakh for purchase of investments and Rs 0.32 lakh of interest received, resulting in reported net investing cash flow of Rs 25.54 lakh. Investments on the balance sheet declined to Rs 10.49 lakh at 30 September 2026 from Rs 35.72 lakh at 31 March 2026, but the filing does not explain the relationship between the balance-sheet change and the investing-cash-flow description.

Total current assets fell to Rs 46.08 lakh at 30 September 2026 from Rs 61.39 lakh at 31 March 2026. Total assets declined to Rs 46.42 lakh from Rs 61.73 lakh, while total equity increased to Rs 29.87 lakh from Rs 17.88 lakh as other equity improved to negative Rs 4.47 crore from negative Rs 4.59 crore.

What do June Industries’ quarterly results show?

June Industries recorded a Rs 2.46 lakh loss before tax in the quarter ended 30 September 2026, following a Rs 14.46 lakh profit before tax in the quarter ended 30 June 2026. The September-quarter loss reduced first-half profit before tax to Rs 11.99 lakh.

Revenue from operations was Rs 15.00 lakh in the September 2026 quarter, down from Rs 20.00 lakh in the June 2026 quarter. Other expenses rose to Rs 16.88 lakh from Rs 4.78 lakh, while employee-benefit expense was Rs 0.75 lakh in both quarters, taking total expenses to Rs 17.63 lakh from Rs 5.70 lakh.

For the six months ended 30 September 2026, total revenue was Rs 35.32 lakh, including Rs 0.32 lakh of other income, and total expenses were Rs 23.33 lakh. June Industries reported no tax expense, leaving profit for the period equal to profit before tax at Rs 11.99 lakh; basic and diluted earnings per share were Rs 0.025.

Conclusion

June Industries’ half-year accounts show a difference between accrual profit and operating cash generation. The Rs 11.99 lakh profit before tax was outweighed by Rs 46.90 lakh of disclosed working-capital outflows and Rs 0.73 lakh of taxes paid, resulting in Rs 35.96 lakh of net operating cash used and a Rs 10.42 lakh reduction in cash.

The next financial results should indicate whether June Industries collects its Rs 17.40 lakh trade-receivables balance and whether the reported cash outflow from current liabilities and other payables continues. Readers can also monitor whether quarterly revenue rises from Rs 15.00 lakh and whether other expenses remain near the Rs 16.88 lakh reported for the September 2026 quarter.