DEYS Medical Ltd Annual Reports, Balance Sheet and Financials

Dey’s Medical Store Limited Standalone Balance Sheet (Rs in Lakhs)

Dey’s Medical Store Limited Standalone Profit & Loss Statement (Rs in Lakhs)

Dey’s Medical Store Limited Standalone Cash Flow Statement (Rs in Lakhs)

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

During FY 2024–25, the company reported a Net Profit before tax of ₹554.50 lakhs, significantly lower than ₹1,143.37 lakhs in FY 2023–24, indicating a decline in core profitability. After adjusting for non-cash and non-operating items such as depreciation (₹121.95 lakhs), interest income (₹275.46 lakhs), dividend income (₹95.08 lakhs), profit on sale of assets (₹97.72 lakhs), and interest expense (₹11.50 lakhs), the Operating Profit before Working Capital Changes stood at ₹219.69 lakhs compared to ₹927.91 lakhs in the previous year. The sharp fall reflects weaker operational performance.

Working capital movements had a substantial negative impact. Trade and other receivables increased significantly (₹2,053.67 lakhs outflow), indicating higher credit sales or slower collections. However, inventories reduced by ₹813.57 lakhs, suggesting improved stock management. Trade and other payables increased by ₹749.59 lakhs, providing some liquidity support, while non-current liabilities rose by ₹255.21 lakhs. Despite these adjustments, cash generated from operations turned slightly negative at ₹(15.62) lakhs compared to a strong ₹1,236.97 lakhs in the previous year.

After paying income tax of ₹203.28 lakhs, the company reported a Net Cash Outflow from Operating Activities of ₹218.90 lakhs, a significant decline from the positive ₹909.23 lakhs in FY 2023–24. This indicates pressure on operational cash generation mainly due to high receivables.

Cash Flow from Investing Activities

Investing activities showed a Net Cash Inflow of ₹200.17 lakhs in FY 2024–25 compared to a net outflow of ₹952.67 lakhs in the previous year.

The company invested ₹35.64 lakhs in property, plant and equipment and ₹1,381.98 lakhs in capital work-in-progress (CWIP), indicating ongoing expansion or project development. However, this was offset by maturity or withdrawal of fixed deposits amounting to ₹1,129.90 lakhs and proceeds from sale of assets of ₹127.34 lakhs.

Unlike FY 2023–24, where ₹750.01 lakhs was invested in mutual funds, the current year saw minimal fresh investment (₹9.99 lakhs). The company also received dividend income (₹95.08 lakhs) and interest income (₹275.46 lakhs), strengthening cash inflows. Overall, investing activities reflect restructuring of investments and liquidity management rather than aggressive capital expansion.

Cash Flow from Financing Activities

Financing activities resulted in a Net Cash Outflow of ₹117.80 lakhs, similar to the previous year’s outflow of ₹116.75 lakhs.

The company paid dividends of ₹106.39 lakhs consistently in both years, reflecting a stable dividend policy despite lower profitability. Interest payments amounted to ₹11.50 lakhs. There were no significant borrowings or repayments, suggesting low financial leverage and stable capital structure.

Net Movement in Cash Position

Overall, cash and cash equivalents decreased by ₹136.53 lakhs during FY 2024–25, compared to a decrease of ₹160.19 lakhs in FY 2023–24. The closing cash balance stood at ₹624.14 lakhs as against ₹760.67 lakhs in the previous year.

Although investing activities generated positive cash, the decline in operating cash flow remains a concern. The increase in receivables and reduced operating profit weakened liquidity. However, the company maintains a comfortable cash balance and low financing obligations, indicating moderate financial stability.

Financial ratios of Dey’s Medical Stores Limited

Summary of the financial ratios for the years 2025 and 2024:

Current Ratio

The current ratio declined to 4.28 in FY 2024–25 from 5.62 in FY 2023–24. Although the ratio has reduced, it still remains very strong, indicating that the company has more than adequate current assets to meet its short-term liabilities. However, the decline suggests relatively lower liquidity compared to the previous year, possibly due to changes in working capital components such as receivables and payables.

Return on Equity

ROE decreased to 5% from 8%, reflecting reduced profitability available to shareholders. This decline aligns with the lower net profit reported during the year. The reduced return indicates that the company generated lower earnings on shareholders’ funds compared to the previous year, signaling weakened overall efficiency in utilizing equity capital.

Inventory Turnover Ratio

The inventory turnover ratio improved to 5.89 times from 5.42 times, showing better inventory management. A higher ratio indicates faster movement of inventory and efficient stock control. This suggests that the company has improved its sales relative to inventory levels or reduced holding stock, which is positive for operational efficiency.

Trade Receivables Turnover Ratio

The trade receivables turnover slightly decreased to 9.75 times from 10.00 times, indicating marginally slower collection of receivables. Though the decline is not drastic, it suggests that the company is taking slightly longer to collect payments from customers, which may have contributed to pressure on operating cash flows.

Trade Payables Turnover Ratio

The trade payables turnover ratio significantly declined to 3.31 times from 7.65 times. This indicates that the company is taking longer to pay its suppliers compared to the previous year. While this may support short-term liquidity, it could reflect stretched payment cycles or renegotiated credit terms.

Capital Turnover Ratio

The capital turnover ratio improved to 1.42 from 1.27, suggesting better utilization of capital employed to generate revenue. This indicates improved operational efficiency in terms of asset usage, even though profitability margins have declined.

Net Profit Ratio

The net profit ratio declined sharply to 3.30% from 6.27%, indicating reduced profitability per rupee of revenue. This suggests either increased costs, lower margins, or both. The fall in margin is a key reason behind the decline in ROE and ROCE during the year.

Return on Capital Employed

ROCE decreased to 6.39% from 11.41%, reflecting reduced efficiency in generating profits from total capital employed. The significant decline signals weakening operating performance and reduced overall returns to both equity and debt holders.

Return on Investments

Return on investments declined to 3.13% from 6.67%, indicating lower income generation from invested funds such as mutual funds, deposits, or other financial instruments. This may be due to lower investment yields or changes in the investment portfolio.