Honeywell Electrical Devices Annual Report and Financials

Honeywell Electrical Devices And Systems India Limited Balance Sheet (Rs in Lakhs)

Honeywell Electrical Devices And Systems India Limited Profit & Loss Statement (Rs in Lakhs)

Honeywell Electrical Devices And Systems India Limited Consolidated Cash Flow Statement (Rs in Lakhs)

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

Profit for the Year:

For the year ending 31-3-2024, the profit is 1,144. This is a decrease compared to the profit of 1,596 for the year ending 31-3-2023. This reduction indicates a drop in net profitability year-over-year.

Adjustments for Income Tax, Depreciation, and Other Items:

Income Tax Expense: The income tax expense increased to 405 from 369. This shows a higher tax burden in the current year.

Depreciation and Amortization: Depreciation and amortization increased to 506 from 437, reflecting higher costs associated with the use of noncurrent assets.

Gain/Loss on Sale/Writeoff of Assets: There was a minor loss of 2 in 2024 compared to a loss of 14 in 2023. This slight reduction in loss indicates fewer asset disposals or lower write-offs.

Interest Income: Interest income increased to 179 from 146, reflecting higher earnings from investments or other interest-generating activities.

Employee Stock Options Provisions: The provision decreased slightly to 10 from 12.

Unrealized Exchange Gains/Losses: There was a small unrealized gain of 1 compared to a loss of 16 in the previous year, indicating improved currency exchange impacts.

Other Interest Costs: Increased to 51 from 34, suggesting higher costs related to borrowed funds or other financial instruments.

Liabilities Written Back: There were no liabilities written back in 2024, whereas 2023 had 5 written back.

Interest on Financial Assets: Increased to 6 from 5, indicating slightly higher returns on financial assets.

Bad Debts Written Off: Decreased to 16 from 48, suggesting improved credit collection or lower write-offs for bad debts.

Movements in Working Capital:

Receivables: Increased by 723 in 2024 compared to a decrease of 433 in 2023, showing that more money is tied up in receivables.

Other Financial Assets: Decreased to 7 from 302, indicating reduced investments or a change in asset management.

Inventories: Increased slightly to 52 from 37, showing a higher stock level.

Other Assets: Increased significantly to 241 from 32, indicating substantial investments or changes in asset holdings.

Trade Payables: Decreased by 383 compared to an increase of 1,096 in 2023, reflecting changes in payments to suppliers.

Provisions: Increased to 267 from 177, indicating a rise in estimated future liabilities.

Other Current Liabilities: Decreased by 115 compared to an increase of 106 in the previous year.

Cash Generated from Operations:

The total cash generated from operations is 2,056 for 2024, down from 3,046 in 2023. This reduction in cash generation from core business activities reflects the changes in profitability and working capital management.

Income Taxes Paid:

The amount paid in income taxes increased to 504 from 133, indicating a higher cash outflow for taxes in the current year.

Net Cash Generated from Operations:

Net cash from operations is 1,552 for 2024, which is significantly lower than 2,913 in 2023, highlighting a drop in cash inflows from operational activities.

Cash Flow from Investing Activities:

Payments for Property, Plant, and Equipment: Reduced to 465 from 672, suggesting lower capital expenditure.

Proceeds from Disposal of Property, Plant, and Equipment: Slightly increased to 3 from 2.

Interest Received: Increased to 179 from 146.

Net Cash Used in Investing Activities: Improved to -283 from -524, indicating reduced cash outflows in investing activities.

Cash Flow from Financing Activities:

Repayment of Lease Liabilities: Slightly decreased to 89 from 94.

Net Cash Used in Financing Activities: Remained the same at -89, showing consistent cash outflow for financing.

Net Change in Cash and Cash Equivalents:

The net change in cash and cash equivalents is 1,180 for 2024 compared to 2,295 in 2023, reflecting a decrease in the increase of cash.

Cash and Cash Equivalents:

The cash and cash equivalents increased to 9,750 from 8,570. This growth in cash reserves indicates improved liquidity despite the decreased cash flow from operations.

Financial Ratios of Honeywell Electrical Devices And Systems India Limited

Here is a summary of the financial and operational metrics for HONEYWELL ELECTRICAL DEVICES AND SYSTEMS INDIA Limited for the years 2024 and 2023:

Current Ratio (2024: 2.53, 2023: 2.42)

The current ratio, which measures the company 's ability to meet its short-term obligations with its current assets, has improved slightly from 2.42 to 2.53. A higher current ratio suggests that the company has a stronger liquidity position in 2024, meaning it is better positioned to cover its short-term liabilities with its current assets.

Return on Equity (ROE) Ratio (2024: 10.00%, 2023: 16.00%)

The ROE has decreased significantly from 16% in 2023 to 10% in 2024. This decline indicates a reduction in profitability relative to shareholder equity. It could be due to lower net profit margins or changes in equity. The company generated less return for its shareholders in 2024 compared to the previous year, reflecting potential challenges in profit growth.

Inventory Turnover Ratio (2024: 4.41, 2023: 4.05)

The inventory turnover ratio has improved to 4.41 from 4.05, meaning the company is selling and replacing its inventory more quickly in 2024. This could indicate better inventory management, increased sales, or more efficient production processes. Higher turnover generally signals strong product demand or efficient stock management.

Trade Receivables Turnover Ratio (2024: 3.81, 2023: 4.21)

The trade receivables turnover ratio has decreased from 4.21 to 3.81, suggesting that the company is taking longer to collect payments from customers. A lower ratio indicates that receivables are turning into cash more slowly, which could impact cash flow and liquidity if the trend continues.

Trade Payables Turnover Ratio (2024: 2.66, 2023: 2.6)

The trade payables turnover ratio has increased slightly to 2.66 from 2.6, showing that the company is paying its suppliers a bit faster in 2024. This suggests better management of supplier payments, though faster payments could strain liquidity if not balanced with receivables.

Net Capital Turnover Ratio (2024: 1.7, 2023: 1.93)

The net capital turnover ratio has declined from 1.93 to 1.7, indicating that the company is generating less revenue for each unit of capital employed. This could signal less efficient use of capital or a slower growth in revenue relative to capital employed in 2024 compared to 2023.

Net Profit Ratio (2024: 7.00%, 2023: 11.00%)

The net profit ratio has fallen from 11% to 7%, showing that the company 's profitability has decreased. This means that for every unit of revenue, the company retains less profit in 2024 compared to 2023. It could be due to higher costs or lower margins, signaling potential issues in cost management or revenue generation.

Return on Capital Employed (ROCE) (2024: 13.00%, 2023: -28.00%)

The ROCE has dramatically improved from -28% in 2023 to 13% in 2024. This significant positive change suggests that the company is now generating positive returns on the capital it employs. The negative ROCE in 2023 indicated losses or inefficient capital use, while the positive figure in 2024 points to much better performance and utilization of capital in generating profits.

Dividend History

 Honeywell Electrical Devices And Systems India Limited Recent Financial Performance

Dividend per Share: The specific dividend per share figure for 2024 and 2023 is not provided. Dividend per share represents the portion of a company 's earnings that is distributed to shareholders in the form of dividends. A higher dividend per share may indicate that the company is sharing more of its profits with shareholders.Retained Earnings: Retained earnings for 2024 amounted to Rs 12083 Lakhs, while in 2023, they were Rs. 10939 Lakhs. Retained earnings represent the portion of a company 's profits that is reinvested in the business rather than distributed as dividends. An increase in retained earnings suggests that the company has retained more of its profits for reinvestment or future growth.To provide a more comprehensive analysis, it would be necessary to consider additional financial metrics such as revenue, net profit, assets, liabilities, and cash flows. Additionally, an analysis of trends over multiple years and a comparison to industry benchmarks and competitors would help in assessing the company 's financial health and performance