Sakuma Exports operating cash flow drops 47% in half year

Sakuma Exports Limited reported consolidated net operating cash inflow of Rs 65.22 crore for the half year ended September 30, 2026, down 47% from Rs 123.85 crore a year earlier, while a Rs 79.57 crore investing outflow reduced cash and cash equivalents to Rs 33.26 crore.

Why did Sakuma Exports’ operating cash flow fall?

Sakuma Exports’ net cash flow from operating activities fell to Rs 65.22 crore in the half year ended September 30, 2026 from Rs 123.85 crore in the corresponding 2025 period. Cash generated from operations before income-tax payments was Rs 65.60 crore, compared with Rs 126.11 crore, and net income tax paid was Rs 0.39 crore against Rs 2.27 crore a year earlier.

The lower operating cash flow came despite consolidated profit before tax increasing to Rs 6.60 crore from Rs 2.57 crore. Operating profit before working-capital changes was Rs 4.78 crore, down from Rs 20.00 crore. The cash-flow reconciliation included a Rs 4.90 crore net gain on sale of investments in 2026, against a Rs 1.33 crore gain in 2025, and a Rs 2.27 crore net unrealised exchange loss, compared with Rs 17.36 crore previously.

Depreciation and amortisation was Rs 1.02 crore in the 2026 half year, down from Rs 1.35 crore, while finance costs included in the reconciliation were Rs 0.27 crore against Rs 1.07 crore. Interest income deducted from profit was Rs 0.49 crore in both periods. These adjustments, together with the higher gain on sale of investments, resulted in a lower cash-flow starting point before changes in operating assets and liabilities.

How did working capital change Sakuma Exports’ cash generation?

Sakuma Exports’ working-capital movements contributed Rs 60.82 crore of cash in the 2026 half year, below the Rs 106.11 crore contribution in the prior-year half. Inventory generated Rs 159.36 crore, reversing a Rs 26.02 crore cash use a year earlier. Trade receivables supplied Rs 93.25 crore, compared with Rs 97.76 crore in the corresponding 2025 period.

The principal offset was a Rs 128.01 crore cash use under other current assets, whereas that line provided Rs 8.89 crore in the previous half year. Trade payables also used Rs 51.52 crore of cash, compared with a Rs 1.07 crore source of cash in 2025. Other current liabilities used Rs 10.72 crore, while they generated Rs 23.05 crore in the comparative period.

The consolidated balance sheet recorded other current assets of Rs 194.48 crore at September 30, 2026, up from Rs 66.47 crore at March 31, 2026. Trade payables declined to Rs 73.69 crore from Rs 125.21 crore over the same period. Consolidated trade receivables decreased to Rs 354.82 crore from Rs 448.08 crore, consistent with their positive cash contribution in the half-year cash-flow statement.

Consolidated inventories were Rs 0.59 crore at September 30, 2026, compared with Rs 159.96 crore at March 31, 2026. The cash-flow statement also showed Rs 0.43 crore of cash used by non-current loans, advances and deposits and Rs 1.65 crore used by other financial assets. Those uses were Rs 0.03 crore and Rs 0.46 crore, respectively, in the prior-year half.

What drove Sakuma Exports’ investing cash outflow?

Sakuma Exports recorded a Rs 79.57 crore investing cash outflow in the half year ended September 30, 2026, compared with Rs 23.64 crore a year earlier. The group purchased current investments not considered cash and cash equivalents for Rs 309.55 crore and received Rs 229.50 crore from their sale. The net purchase-and-sale movement was therefore a Rs 80.05 crore outflow, against Rs 21.63 crore in the 2025 half year.

Interest received was Rs 0.49 crore, compared with Rs 0.30 crore in the corresponding 2025 period. Capital expenditure on fixed assets, including capital advances, was Rs 83,000 in 2026 and Rs 2.39 lakh in 2025. The prior-year investing cash flow also included a Rs 2.29 crore foreign-currency translation difference relating to property, plant and equipment; no corresponding line was reported for 2026.

Other investments on the consolidated balance sheet rose to Rs 193.34 crore at September 30, 2026 from Rs 108.39 crore at March 31, 2026. The filing identifies the cash-flow purchases and sales as current investments not considered cash and cash equivalents. It does not separately reconcile the period-end other-investment balance to the individual cash-flow movements.

Why did Sakuma Exports’ cash balance decrease?

Sakuma Exports’ cash and cash equivalents decreased by Rs 5.93 crore during the half year ended September 30, 2026, compared with an increase of Rs 38.50 crore in the year-earlier half. The group started the period with Rs 39.19 crore and ended it with Rs 33.26 crore. The Rs 65.22 crore operating inflow and Rs 8.43 crore financing inflow did not cover the Rs 79.57 crore investing outflow.

Financing activities turned to an inflow of Rs 8.43 crore in 2026 from an outflow of Rs 61.71 crore a year earlier. Proceeds from other short-term borrowings were Rs 8.70 crore, whereas the prior-year half recorded Rs 60.38 crore of repayments. Finance costs paid were Rs 0.27 crore, down from Rs 1.01 crore, and dividends paid were Rs 1.04 lakh, compared with Rs 73,000.

Consolidated current borrowings stood at Rs 15.97 crore at September 30, 2026, up from Rs 7.27 crore at March 31, 2026. Cash and cash equivalents were also below Rs 63.94 crore at September 30, 2025. The balance sheet separately reported Rs 11.30 lakh of bank balances other than cash equivalents and Rs 193.34 crore of other investments, so these amounts are not included in the Rs 33.26 crore cash-and-cash-equivalents total.

Conclusion

Sakuma Exports remained cash-positive from operations in the six months to September 30, 2026, but its Rs 65.22 crore inflow was 47% below the prior-year result. Lower operating profit before working-capital changes and a smaller net working-capital contribution outweighed cash released from inventory and receivables, while increased other current assets and lower trade payables absorbed cash.

The filing does not disclose a forward target, investment plan or next reporting date. The key unresolved items to watch in subsequent disclosures are the composition of Rs 194.48 crore of other current assets, the movement in Rs 193.34 crore of other investments and whether current borrowings, which rose to Rs 15.97 crore, continue to fund cash requirements.