Liberty Shoes cash drops to Rs 1.17 crore on inventory

Liberty Shoes Ltd ended the half year to 30 September 2026 with cash and cash equivalents of Rs 1.17 crore, down from Rs 2.99 crore at 31 March 2026, after inventories increased by Rs 14.88 crore and net operating cash flow declined to Rs 18.25 crore from Rs 26.67 crore a year earlier.

Why did Liberty Shoes' cash balance fall to Rs 1.17 crore?

Liberty Shoes' cash and cash equivalents fell by Rs 1.82 crore between 31 March 2026 and 30 September 2026, reaching Rs 1.17 crore from Rs 2.99 crore. The closing balance comprised Rs 69.84 lakh of cash in hand, including imprest, and Rs 47.02 lakh in scheduled-bank current accounts.

The cash-flow statement records a Rs 1.69 crore net decrease in cash and cash equivalents during the half year, followed by a Rs 12.55 lakh unrealised foreign-exchange difference. Its opening cash-equivalent balance was Rs 2.99 crore, while the comparable closing balance at 30 September 2025 was Rs 1.33 crore.

Operating activities generated Rs 18.25 crore of net cash, while investing activities used Rs 6.94 crore. Financing activities used Rs 13.01 crore, resulting in the Rs 1.69 crore cash decrease before the foreign-exchange difference; the filing does not separately identify a dividend payment in the cash-flow statement.

How much operating cash did Liberty Shoes' inventory increase use?

Liberty Shoes' inventories rose by Rs 14.88 crore in the half year ended 30 September 2026, taking the balance-sheet amount to Rs 195.59 crore from Rs 180.71 crore at 31 March 2026. The cash-flow statement records this movement as a Rs 14.88 crore increase in inventories, reducing cash generated from operations.

The inventory-related cash use was Rs 1.50 crore higher than the Rs 13.38 crore outflow in the corresponding half year ended 30 September 2025. Revenue from operations nevertheless increased to Rs 360.33 crore from Rs 347.02 crore, while the filing provides no explanation of the inventory build by season, product type or stock location.

Liberty Shoes reports a single operating segment, footwear, under Indian Accounting Standard 108. This means the results do not provide separate inventory or revenue disclosure for footwear categories, retail formats, brands or geographies.

What else changed in Liberty Shoes' working capital?

Liberty Shoes' trade receivables declined to Rs 106.78 crore at 30 September 2026 from Rs 108.52 crore at 31 March 2026. In cash-flow terms, receivables released Rs 1.38 crore during the half year, compared with a Rs 7.62 crore use of cash in the corresponding 2025 period.

Trade and other payables generated Rs 6.07 crore of cash in the 2026 half year, down from Rs 13.69 crore a year earlier. This lower cash contribution, together with the larger inventory outflow, reduced cash generated from operations before direct taxes to Rs 19.65 crore from Rs 28.92 crore.

At the balance-sheet date, amounts due to micro and small enterprises were Rs 35.23 crore, compared with Rs 26.81 crore at 31 March 2026. Amounts due to creditors other than micro and small enterprises fell to Rs 24.25 crore from Rs 41.86 crore, while other current liabilities increased to Rs 38.63 crore from Rs 24.33 crore.

Why was Liberty Shoes' operating cash flow lower than last year?

Liberty Shoes generated net operating cash flow of Rs 18.25 crore in the half year ended 30 September 2026, Rs 8.42 crore below the Rs 26.67 crore reported in the prior-year half. Cash generated from operations declined by Rs 9.28 crore, while direct taxes paid fell to Rs 1.40 crore from Rs 2.26 crore.

Profit before income tax from continuing operations was Rs 3.03 crore in the cash-flow statement, down from Rs 7.58 crore a year earlier. Depreciation and amortisation was broadly unchanged at Rs 16.09 crore versus Rs 16.00 crore, and finance cost rose to Rs 8.58 crore from Rs 7.81 crore.

Other working-capital movements were also less favourable in comparison with the prior-year half. Provision for doubtful debts added Rs 35.64 lakh in 2026, compared with Rs 4.07 crore in 2025, while other non-current assets used Rs 1.48 crore, compared with Rs 39.11 lakh a year earlier.

How did Liberty Shoes' assets, borrowings and investment spending change?

Liberty Shoes' total assets increased to Rs 527.57 crore at 30 September 2026 from Rs 522.65 crore at 31 March 2026. Current assets rose by Rs 12.93 crore to Rs 337.06 crore, led by the Rs 14.88 crore inventory increase, whereas non-current assets declined by Rs 8.01 crore to Rs 190.51 crore.

Right-of-use assets fell to Rs 77.74 crore from Rs 86.54 crore, while property, plant and equipment declined to Rs 96.40 crore from Rs 97.09 crore. In the cash-flow statement, payments for purchases or accrual of non-current assets, including capitalisation of leasehold rights under Indian Accounting Standard 116, totalled Rs 7.11 crore.

Current borrowings decreased to Rs 75.26 crore from Rs 75.99 crore, while non-current borrowings increased to Rs 8.62 crore from Rs 3.78 crore. Liberty Shoes reported Rs 5.90 crore of long-term borrowing proceeds and Rs 1.05 crore of long-term borrowing repayments during the six months.

What financing and investing cash payments did Liberty Shoes report?

Liberty Shoes reported Rs 6.94 crore of net investing cash outflow in the half year ended 30 September 2026, compared with Rs 13.61 crore in the prior-year half. The company received Rs 17.84 lakh from the sale of non-current assets and Rs 4.95 lakh in bank and other interest, while Rs 5.63 lakh was used for fixed deposits held as margin money against letters of credit and bank guarantees.

Financing cash outflow was Rs 13.01 crore, compared with Rs 15.07 crore in the corresponding 2025 half year. The disclosed components included Rs 9.28 crore of lease-liability payments, Rs 8.58 crore of interest paid, Rs 5.90 crore of long-term borrowing proceeds and Rs 1.05 crore of long-term borrowing repayments.

Total equity rose to Rs 235.89 crore from Rs 233.78 crore over the six months. Other equity increased to Rs 218.85 crore from Rs 216.74 crore, while equity share capital remained unchanged at Rs 17.04 crore.

Conclusion

Liberty Shoes closed September 2026 with Rs 1.17 crore of cash and cash equivalents after a Rs 14.88 crore inventory build absorbed operating cash. Although receivables released Rs 1.38 crore of cash, lower pre-tax profit, a smaller cash contribution from payables and higher inventory absorption contributed to an Rs 8.42 crore year-on-year reduction in net operating cash flow.

The next financial results will show whether the Rs 195.59 crore inventory balance converts into revenue and cash, and whether current borrowings of Rs 75.26 crore change after 30 September 2026. This filing discloses Rs 7.11 crore of non-current asset purchases and changes in long-term borrowings, but does not provide an inventory, liquidity or capital-expenditure target.