Electronica Plastic Machines Annual Report and Financials

Electronica Plastic Machines Limited Balance Sheet (Rs in lakhs)

Electronica Plastic Machines Limited Profit & Loss Statement (Rs in lakhs)

Electronica Plastic Machines Limited Consolidated Cash Flow Statement (Rs in lakhs)

Operating Activities:

The company generated a net cash flow from operating activities of 1,002.65 in 2023, compared to 547.21 in 2022. This increase indicates improved cash generation from core business operations.

Factors contributing to the increase include higher operating profit before working capital changes and a decrease in income tax paid.

Working capital changes had a mixed effect on cash flow. While there were increases in trade payables and long-term provisions, there were also decreases in inventories and short-term provisions.

Investing Activities:

The company had a net cash outflow from investing activities of 1,014.91 in 2023, compared to 227.01 in 2022. This significant increase in cash outflow suggests higher investment in fixed assets and non-current investments.

Notable transactions include a substantial purchase of tangible fixed assets and a decrease in sale proceeds from non-current investments.

Financing Activities:

There was a net cash outflow from financing activities of 155.08 in 2023, compared to 276.7 in 2022. This decrease in cash outflow suggests a reduction in borrowing activities and interest expenses.

While there was a decrease in long-term borrowings, there was no change in short-term borrowings.

Net Increase in Cash & Cash Equivalents:

The company experienced a net decrease in cash and cash equivalents of 167.34 in 2023, compared to an increase of 43.54 in 2022. This indicates a decrease in liquidity or available cash reserves during the period.

Despite generating more cash from operating activities, the significant cash outflow from investing activities contributed to the decrease in cash reserves.

Cash & Cash Equivalents at the End of the Period:

Cash and cash equivalents at the end of the period decreased to 4,670.20 in 2023 from 4,837.53 in 2022. This decrease aligns with the net decrease in cash and cash equivalents during the period.

Financial Ratios of Electronica Plastic Machines Limited

Current Ratio:

The current ratio measures a company's ability to cover its short-term liabilities with its short-term assets. An increase from 1.89 to 2.13 indicates an improvement in liquidity, suggesting EPM has a stronger ability to meet its short-term obligations in 2023 compared to 2022.

Debt-Equity Ratio:

A decrease from 0.08 to 0.05 indicates a reduction in financial leverage, implying EPM relied less on debt financing relative to equity in 2023. This could signify improved financial stability and lower risk.

Debt Service Coverage Ratio:

A slight decrease from 3.22 to 3.15 suggests a slightly lower ability to cover debt service obligations with operating income in 2023 compared to 2022. However, both ratios indicate a strong ability to meet debt obligations.

Return on Equity Ratio:

A decrease from 0.17 to 0.11 indicates a lower return on equity in 2023, suggesting EPM generated less profit relative to shareholder equity compared to the previous year. This could be a result of lower profitability or increased equity investment.

Inventory Turnover Ratio:

An increase from 3.6 to 4.14 suggests EPM improved its efficiency in managing inventory, indicating that it sold inventory more frequently in 2023 compared to 2022.

Trade Receivables Turnover Ratio:

A decrease from 13.9 to 11.97 indicates a decrease in the number of times receivables turned over during the year, suggesting a slower collection of receivables in 2023 compared to 2022.

Trade Payables Turnover Ratio:

An increase from 6.04 to 7 suggests EPM improved its efficiency in paying its suppliers in 2023 compared to 2022, indicating a shorter payment cycle.

Net Capital Turnover Ratio:

An increase from 3.57 to 3.81 suggests EPM generated more revenue per unit of working capital in 2023 compared to 2022, indicating improved efficiency in asset utilization.

Net Profit Ratio:

A decrease from 0.08 to 0.05 indicates a lower net profit margin in 2023, suggesting EPM generated less profit per unit of revenue compared to the previous year.

Return on Capital Employed:

A decrease from 0.25 to 0.15 indicates a lower return on capital employed in 2023, suggesting EPM generated less profit relative to its total capital employed compared to the previous year.

Return on Investment (Assets):

A decrease from 0.11 to 0.07 indicates a lower return on investment in assets in 2023, suggesting EPM generated less profit relative to its total assets compared to the previous year.