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 Cash Flow Statement (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flows from Operating Activities

The net cash flow from operating activities increased from ₹1,002.65 lakhs in 2023 to ₹1,107.90 lakhs in 2024. This positive change is primarily driven by a rise in the net profit before taxation, which grew slightly from ₹1,356.73 lakhs to ₹1,375.63 lakhs. The company’s ability to generate cash from operations was further enhanced by higher depreciation and amortization expenses and lower interest expenses. However, this was partially offset by reduced interest income and higher dividend income adjustments.

Notable working capital changes significantly influenced cash flows. The substantial decrease in inventories and other current assets contributed to increased cash flow, while increases in trade payables and reductions in short-term provisions also played a role. Conversely, the company faced outflows due to increased trade receivables, long-term provisions, and other current liabilities. Despite these mixed effects, the overall cash generated from operations improved, resulting in the higher net cash flow from operating activities.

Cash Flows from Investing Activities

The cash flow from investing activities showed a net outflow of ₹2,066.18 lakhs in 2024, compared to ₹1,014.91 lakhs in 2023. This increase in outflows was driven by a significant rise in capital expenditures for tangible fixed assets, which surged from ₹458.07 lakhs in 2023 to ₹1,716.24 lakhs in 2024. The substantial investment in fixed assets reflects the company 's expansion or upgrading efforts.

On the inflow side, the sale of tangible fixed assets and proceeds from interest and dividend income provided some cash inflow, but these were insufficient to offset the higher capital expenditures and net outflows from the sale or purchase of non-current investments. The net cash outflow from investing activities indicates a considerable investment in the company 's asset base and a reduction in available cash reserves.

Cash Flows from Financing Activities

In 2024, the cash flow from financing activities showed a modest net inflow of ₹51.87 lakhs, compared to an outflow of ₹155.08 lakhs in 2023. This improvement was driven by an increase in short-term borrowings and a reduction in interest expenses. The slight increase in long-term borrowings and the stabilization in short-term borrowings helped to counterbalance the outflows from interest payments.

Net Change in Cash and Cash Equivalents

Overall, the company experienced a significant net decrease in cash and cash equivalents of ₹906.41 lakhs in 2024, compared to a smaller decrease of ₹167.34 lakhs in 2023. This sharp decline is a result of substantial cash outflows from investing activities, despite the positive contributions from operating and financing activities. The ending cash balance decreased from ₹4,670.20 lakhs at the beginning of the period to ₹3,763.79 lakhs, indicating a reduced liquidity position due to increased capital expenditures and investment activities.

 Financial Ratios of Electronica Plastic Machines Limited

Here is a summary of the financial and operational metrics for Electronica Plastic Machines Limited for the year 2024 and 2023:

Debt-Equity Ratio

The debt-equity ratio decreased from 0.05 in 2023 to 0.04 in 2024. This ratio, which measures the company 's financial leverage by comparing its total debt to shareholders ' equity, indicates a very low level of debt relative to equity. A lower ratio suggests that the company is primarily financed through equity rather than debt, reflecting a conservative approach to leverage and potentially reducing financial risk.

Debt Service Coverage Ratio

The debt service coverage ratio slightly decreased from 14.69 in 2023 to 14.25 in 2024. This ratio measures the company 's ability to cover its debt obligations from its operating income. Despite the minor decline, the ratio remains very high, indicating a strong ability to service debt obligations comfortably. This high ratio reflects robust cash flow relative to debt payments, suggesting that the company is in a solid position to meet its interest and principal payments.

Return on Equity (ROE)

Return on Equity fell slightly from 0.11 (or 11%) in 2023 to 0.10 (or 10%) in 2024. This ratio assesses how effectively the company is using shareholders ' equity to generate profits. The small decrease indicates a slight reduction in profitability relative to equity. While still positive, the decrease might reflect challenges in generating higher returns on equity or changes in profit margins.

Inventory Turnover Ratio

The inventory turnover ratio decreased from 4.18 in 2023 to 3.41 in 2024. This ratio measures how efficiently the company manages its inventory by comparing the cost of goods sold to average inventory. The decline suggests that the company is selling and replacing its inventory less frequently, which could indicate slower-moving stock or potential issues with inventory management.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio dropped from 11.97 in 2023 to 8.1 in 2024. This ratio measures how efficiently the company collects its receivables. The significant decrease suggests that the company is taking longer to collect payments from customers, which could impact liquidity and reflect changes in credit policies or customer payment behaviors.

Trade Payables Turnover Ratio

The trade payables turnover ratio decreased from 7.00 in 2023 to 5.74 in 2024. This ratio assesses how quickly the company pays its suppliers. The decline might indicate that the company is taking longer to settle its trade payables, which could be part of a strategic cash flow management approach or due to changes in payment terms with suppliers.

Net Capital Turnover Ratio

The net capital turnover ratio slightly increased from 3.81 in 2023 to 3.85 in 2024. This ratio measures how effectively the company is using its capital to generate sales. The modest increase indicates a slight improvement in sales efficiency relative to the capital employed, suggesting effective utilization of capital to generate revenue.

Net Profit Ratio

The net profit ratio improved from 0.05 (or 5%) in 2023 to 0.06 (or 6%) in 2024. This ratio measures the proportion of revenue that is converted into net profit. The increase reflects improved profitability, indicating that a higher percentage of sales is being retained as profit, which could be due to better cost control or higher revenue.

Return on Capital Employed (ROCE)

The return on capital employed decreased slightly from 0.15 (or 15%) in 2023 to 0.14 (or 14%) in 2024. This ratio measures the company 's ability to generate profit from its capital employed. The slight decline suggests a marginal reduction in the efficiency of using capital to generate profits, though it remains relatively high, indicating continued effective capital management.

Return on Investment (Assets)

The return on investment (assets) increased from 0.07 (or 7%) in 2023 to 0.08 (or 8%) in 2024. This ratio measures the return generated on total assets. The improvement indicates a better return on assets, reflecting enhanced efficiency in utilizing assets to generate profits.