Pace Automation Limited Annual Report, Balance Sheet and Financials

Pace Automation Limited Standalone Balance Sheet (In Rs)

Pace Automation Limited Standalone Profit & Loss Statement (In Rs)

Pace Automation Limited Standalone Cash Flow Statement (In Rs)

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

Cash Flow from Operating Activities:
The company reported a net profit before tax and extraordinary items of ₹1,13,57,675 in FY 2025, slightly lower than ₹1,14,91,362 in FY 2024. After adjusting for non-cash and non-operating items such as depreciation of ₹11,07,203, deferred tax and other income of (-₹28,58,665), interest income of (-₹26,31,173), and finance cost of ₹8,903, the operating profit before working capital changes stood at ₹69,83,943, improving from ₹60,72,453 in the previous year.

Working capital adjustments contributed positively overall, with a decrease in sundry debtors of ₹14,94,345 and other current assets of ₹17,34,531, along with an increase in current liabilities of ₹22,21,750. However, loans and advances increased by ₹14,29,731, partially offsetting the gains. As a result, cash generated from operations rose significantly to ₹1,10,04,839 compared to ₹82,75,281 in FY 2024. After accounting for direct taxes paid amounting to ₹42,65,836 (as against a tax refund of ₹2,04,375 in FY 2024), the net cash flow from operating activities stood at ₹67,39,003, lower than ₹84,79,656 in the previous year due to higher tax outflow.

Cash Flow from Investing Activities:
The company witnessed a net cash outflow of ₹23,70,463 from investing activities in FY 2025, compared to an inflow of ₹30,41,240 in FY 2024. This shift is primarily due to higher capital expenditure, including purchase of property, plant, and equipment amounting to ₹28,95,794 and capital work-in-progress of ₹21,05,842. These outflows were partially offset by interest income of ₹26,31,173. In contrast, the previous year saw lower capital expenditure of ₹5,45,907 and additional inflows from sale of fixed assets amounting to ₹1,48,667, resulting in a positive cash flow.

Cash Flow from Financing Activities:
Cash flow from financing activities remained minimal, with a small outflow of ₹8,903 in FY 2025 compared to ₹17,630 in FY 2024, both attributable to interest paid on borrowings. The absence of any major borrowings or repayments indicates that the company is not significantly reliant on external financing and maintains a stable capital structure.

Net change in Cash Position:
Despite lower operating cash flow and negative investing cash flow, the company maintained a healthy cash position. Cash and cash equivalents increased by ₹43,59,636 during FY 2025, reaching ₹4,73,79,654 at the end of the year, compared to ₹4,30,20,017 at the beginning. However, the increase is notably lower than the rise of ₹1,15,03,266 recorded in FY 2024, mainly due to higher capital expenditure and tax payments.

Financial ratios of Pace Automation Limited

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

Current Ratio

The current ratio improved significantly from 2.77 in FY24 to 4.22 in FY25, indicating a strong enhancement in short-term liquidity. The company now holds more than adequate current assets to cover its current liabilities. While this reflects financial stability and lower liquidity risk, such a high ratio may also suggest inefficient utilization of working capital, with excess funds possibly lying idle in cash, receivables, or inventory.

Debt-Equity Ratio

The debt-equity ratio declined from 0.86 to 0.68, signaling a reduction in financial leverage. This indicates that the company is becoming less reliant on external borrowings and strengthening its balance sheet through internal accruals or equity. While this reduces financial risk and interest burden, it may also imply that the company is not fully leveraging debt to enhance returns, especially if growth opportunities exist.

Return on Equity

ROE declined from 31.77% in FY24 to 24.39% in FY25, which is a notable drop. Despite remaining at a healthy level, the decline suggests lower efficiency in generating returns for shareholders. This could be due to higher equity base, reduced profit growth, or suboptimal capital allocation. It is important to assess whether this is due to temporary factors or structural inefficiencies.

Trade Receivables Turnover Ratio

The receivables turnover improved from 4.08 to 4.84, indicating better collection efficiency. The company is now converting receivables into cash faster, which enhances liquidity and reduces credit risk. This improvement reflects better credit management practices or stronger customer quality, which is a positive operational signal.

5. Net Capital Turnover Ratio

This ratio dropped sharply from 22.39 in FY24 to 2.91 in FY25, which is a major red flag. It indicates that the company is generating significantly lower revenue per unit of working capital employed. This could be due to a substantial increase in working capital (inventory or receivables) or a slowdown in sales growth. Such a drastic decline suggests inefficiency in working capital utilization and requires deeper investigation.

Net Profit Ratio

The net profit margin remained almost stable at 19.54% in FY25 vs 19.57% in FY24, indicating consistent profitability. This stability suggests that the company has maintained control over costs despite changes in operations or scale. It reflects strong pricing power or cost discipline, which is a positive sign for long-term sustainability.

Return on Capital Employed

ROCE declined from 37.61% to 29.07%, indicating reduced efficiency in utilizing total capital (debt + equity). While still strong, the drop suggests that incremental capital deployed is generating lower returns, possibly due to expansion, underutilized assets, or increased working capital. This aligns with the deterioration seen in capital turnover.

Return on Investments

ROI decreased from 27.42% to 21.74%, showing a decline in returns generated from investments. This could indicate lower yields on invested funds or suboptimal investment decisions. The trend suggests that capital allocation efficiency has weakened compared to the previous year.