Philips India Limited (Philips India) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40
Philips India Limited

PHILIPS INDIA Limited Balance Sheet (In Rs. Millions)

PARTICULARS	31st March 2023	31st March 2022
ASSETS
Non-current assets
Property, Plant and Equipment	2,526	3,441
Capital work-in-progress	1,158	269
Investment property Financial Assets	1,334	1,366
Trade Receivables	715	1,186
Investments	-	-
Other Financial Assets	159	409
Deferred tax assets (net)	633	385
Advance income tax (net of provision)	3,724	3,629
Other non-current assets	549	665
Total Non-current assets	10,798	11,350
Current assets
Inventories	7,184	6,861
Contract Assets Financial Assets	710	587
Trade receivables	7,401	7,501
Investments	50	53
Cash and cash equivalents	2,118	13,159
Other Financial Assets	498	415
Other current assets	3,642	3,523
Total Current assets	21,603	32,099
TOTAL ASSETS	32,401	43,449
EQUITY AND LIABILITIES EQUITY
Equity share capital	575	575
Other Equity	11,768	22,200
Equity attributable to equity shareholders LIABILITIES	12,343	22,775
Non-current liabilities
Contract Liabilities	1,099	1,248
Financial Liabilities Lease Liabilities	603	1,204
Other non-current liabilities	146	45
Provisions	2,809	2,378
Total Non-current liabilities	4,657	4,875
Current liabilities
Contract Liabilities Financial Liabilities	4,176	4,137
Lease Liabilities	598	708
Trade Payables
Total outstanding dues of micro enterprises and small enterprises	134	11
Total outstanding dues of creditors other than micro enterprises and small enterprises	7,045	7,460
Other financial liabilities	410	368
Other current liabilities	1,921	1,855
Provision for taxation (net of advances)	313	306
Provisions	804	954
Total Current liabilities	15,401	15,799
TOTAL EQUITY AND LIABILITIES	32,401	43,449

PHILIPS INDIA Limited Profit & Loss Statement (In Rs. Millions)

PARTICULARS	31st March 2023	31st March 2022
Income
Revenue from operations	57,340	54,814
Other income	719	648
Total Income	58,059	55,462
Expenses
Cost of raw materials consumed	4,630	3,905
Purchases of stock-in-trade	19,803	24,460
Changes in inventories of work-in-progress, finished goods	-562	-1,812
and stock-in-trade
Employee benefits expense	20,115	16,590
Finance costs	264	272
Depreciation and amortization expense	1,285	1,384
Other expenses	9,316	8,330
Total expenses	54,851	53,129
Profit before exceptional items and tax	3,208	2,333
Exceptional items (net) Loss / (Profit)	-	-1,309
Profit before tax	3,208	3,642
Profit / (loss) from continuing operations	3,208	3,572
Tax expense
Current tax	-827	-818
Deferred tax expenses - credit / (charge)	219	-161
Profit / (loss) after tax from continuing operations	2,600	2,593
Profit / (loss) from discontinued operations	-	70
Tax expense
Current tax	-	-18
Deferred tax expenses - credit / (charge)	-	14
Profit / (loss) after tax from discontinued operations	-	66
Profit for the year	2,600	2,659
Other Comprehensive Income
Items that will not be reclassified subsequently to profit or Loss
Re-measurement gains / (losses) on defined benefit plans	-120	399
Income tax effect on defined benefit plans continuing operations	30	-301
Income tax effect on defined benefit plans discontinued operations	-	-
Other Comprehensive Income for the year (B)	-90	98
Total Comprehensive income for the year (A+B)	2,510	2,757
Earnings per equity share for continuing and discontinued operations
Basic and diluted earnings per equity share of `10 each (in `)	45	46.23

PHILIPS INDIA Limited Consolidated Cash Flow Statement (In Rs. Millions)

PARTICULARS	31st March 2023	31st March 2022
A. Cash generated from operating activities
Profit before tax from continuing operations	3,208	3,572
Profit before tax from discontinued operations	-	70
Exceptional items	-	-1,309
Profit before tax and exceptional items	3,208	2,333
Adjusted for
Write off & other adjustment of Property, Plant & Equipment	9	2
Profit on sale of property	-16	-
Depreciation and amortization	1,285	1,384
Unrealized foreign exchange (gain) and loss (net)	21	5
Allowances for doubtful trade receivables & loans & advances	158	24
Liabilities no longer required written back	-105	-79
Interest on advances, current accounts and deposits	-506	-454
Lease Rental Income	-109	-51
Finance costs	264	272
Total of Adjustment	1,001	1103
Operating profit before working capital changes	4,209	3436
Changes in
Trade receivables and other loans & advances	289	-1745
Inventories	-323	-3309
Trade payables and other liabilities	107	3781
Cash generated from operations	4,282	2163
Income tax paid (net of refunds)	-869	-846
Net Cash generated from operating activities	3,413	1317
B. Cash generated from investing activities
Purchase of Property, Plant and Equipment	-1,256	-1574
Proceeds from sale of Property, Plant & Equipment	32	1040
Proceeds from redemption of Investments	59	-
Cash Received from subsidiary on Capital Reduction	-	4066
Lease Rental Income	109	51
Investments made during the year	-	-171
Interest received	527	270
Net Cash used in investing activities	-529	3682
C. Cash flow from financing activities
Finance costs	-264	-272
Principal repayment of lease liabilities	-720	-708
Dividend paid	-12,941	-173
Net Cash used in financing activities	-13,925	-1153
Increase / (Decrease) in cash and cash equivalents (A+B+C)	-11,041	3846
D. Cash and cash equivalents - Opening Balance
Cash and cash equivalents	2,524	180
Unpaid dividend	15	15
Deposits with Banks	10,620	9118
Total	13,159	9313
E. Cash and cash equivalents - Closing Balance
Cash and cash equivalents	299	2524
Unpaid dividend	19	15
Deposits with Banks	1,800	10620
Total	2,118	13159
Net increase/(decrease) in cash and cash equivalents (E-D)	-11,041	3846

Let 's break down the Cash Flow Statement for the years FY 2023 and FY 2022.

Cash Flow Analysis - 2023:

Operating Activities: In 2023, Philips India excelled in operating cash generation, with operating profit before working capital changes soaring to 4,209. Improved receivables management and increased operational efficiency led to a substantial increase in cash generated from operations to 4,282. Despite higher income tax payments, net cash from operating activities rose significantly to 3,413.

Investing Activities: The cash flow from investing activities improved in 2023, shifting from net cash used to net cash generated. Positive contributions from the sale of assets and increased interest received led to a notable improvement, resulting in a net cash used in investing activities of -529.

Financing Activities: Philips India experienced a significant increase in net cash used in financing activities, mainly driven by a substantial rise in dividend payments to -12,941. Despite stable finance costs and lease liabilities, the company 's financing decisions led to a net cash used in financing activities of -13,925.

Cash and Cash Equivalents: The closing balance of cash and cash equivalents decreased significantly from 2,524 to 299 at the end of 2023, reflecting the impact of cash flow activities throughout the year.

Cash Flow Analysis - 2022:

Operating Activities: In 2022, Philips India saw a moderate increase in cash generated from operating activities, driven by improved operational efficiency. Despite challenges in receivables management, net cash from operating activities increased to 1,317.

Investing Activities: The cash flow from investing activities saw a notable increase in net cash used in 2022, primarily due to stable investments and interest received. The net cash used in investing activities increased to 3,682.

Financing Activities: Philips India experienced a decrease in net cash used in financing activities in 2022, driven by lower dividend payments. Stable finance costs and lease liabilities contributed to a net cash used in financing activities of -1,153.

Cash and Cash Equivalents: The closing balance of cash and cash equivalents increased significantly from 180 at the beginning of the year to 2,524 at the end of 2022, reflecting the company 's cash flow activities throughout the year.

Philips India Limited Financial Ratios

PARTICULARS	2023	2023	Read in
Return on equity ratio	14.81	11.6	%
Current ratio	1.4	2.1	Times
Inventory turnover ratio	3.4	4.8	Times
Trade receivables turnover ratio	6.82	6.9	Times
Trade payables turnover ratio	3.36	4.55	Times
Net capital turnover ratio	9.14	3.33	Times
Net profit ratio	4.53	4.9	Times
Return on capital employed	23.99	8.9	Times
Return on investment	6.86	6.2	Times

The financial ratios of Philips India provide insight into the company 's financial performance and position For March 31, 2023.

Return on Equity (ROE):

Increased to 14.81% in 2023 from 11.6% in 2022, indicating improved profitability and effective use of shareholders ' investments.

Current Ratio:

Decreased from 2.1 to 1.4 times in 2023, signalling a potential change in short-term liquidity; industry benchmarks need consideration.

Inventory Turnover Ratio:

Improved from 3.4 to 4.8 times in 2023, reflecting efficient inventory management and lower carrying costs.

Trade Receivables Turnover Ratio:

Remained stable at 6.82 times in 2023, suggesting consistent efficiency in collecting receivables.

Trade Payables Turnover Ratio:

Decreased from 4.55 to 3.36 times in 2023, possibly indicating alterations in payment terms or working capital management.

Net Capital Turnover Ratio:

Substantially increased from 3.33 to 9.14 times in 2023, showcasing improved capital utilization and operational efficiency.

Net Profit Ratio:

Slightly decreased from 4.9 to 4.53 times in 2023, indicating maintained profitability relative to sales.

Return on Capital Employed (ROCE):

Significantly increased from 8.9 to 23.99 times in 2023, reflecting higher returns on employed capital.

Return on Investment (ROI):

Increased from 6.2 to 6.86 times in 2023, demonstrating improved returns on total invested capital.

In summary, Philips India displayed positive shifts in efficiency, profitability, and capital utilization in the fiscal year ending March 31, 2023, compared to the previous year. The company made notable improvements across various aspects of financial performance and position.