Panasonic Appliances Annual Reports, Balance Sheet and Financials

Panasonic Appliances India Company Limited Balance Sheet (Rs in Lakhs)

Panasonic Appliances India Company Limited Profit & Loss Statement (Rs in Lakhs)

Panasonic Appliances India Company Limited Cash Flow Statement (Rs in Lakhs)

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

Cash Flow from Operating Activities:

The company experienced a net cash inflow from its operating activities for both years, though the amount decreased significantly from ₹2,085.43 lakhs in FY 2023 to ₹994.68 lakhs in FY 2024. The primary contributor to this cash inflow is the operating profit, adjusted for non-cash items like depreciation (₹685.64 lakhs in FY 2024) and interest income, as well as changes in working capital. Notably, the operating cash flow was bolstered by a decrease in inventories and trade receivables, which freed up cash. However, these positive effects were partly offset by a decrease in trade payables, reducing the overall working capital benefit.

Cash Flow from Investing Activities:

Investing activities show a net cash outflow for both years, amounting to ₹1,960.07 lakhs in FY 2024 and ₹2,532.13 lakhs in FY 2023. The primary reason for this outflow is the significant investment in the purchase of property, plant, and equipment (₹2,016.69 lakhs in FY 2024), indicating capital expenditure aimed at business expansion or upgrading assets. The company managed to partially offset these outflows with proceeds from the sale of property and equipment, though these were minimal in comparison to the expenses.

Cash Flow from Financing Activities:

The financing activities section shows a net cash inflow of ₹3,702.93 lakhs in FY 2024, a sharp increase from ₹507.66 lakhs in FY 2023. This increase is mainly due to the proceeds from the issue of share capital (₹7,000.00 lakhs) and long-term borrowings. However, these inflows were somewhat offset by repayments of both long-term and short-term borrowings and payments related to dividends and finance costs.

Net Increase in Cash and Cash Equivalents:

As a result of the above activities, the company's cash and cash equivalents saw a significant increase of ₹2,737.54 lakhs in FY 2024, compared to a marginal increase of ₹60.96 lakhs in FY 2023. Consequently, the year-end cash balance increased from ₹158.98 lakhs in FY 2023 to ₹2,896.52 lakhs in FY 2024, reflecting the company’s improved liquidity position.

Financial Ratios of Panasonic Appliances India Company Limited

Here is a summary of the financial and operational metrics for Panasonic Appliances India Company Limited for the year 2024 and 2023:

Current Ratio:

The current ratio, which is calculated as current assets divided by current liabilities, measures the company’s ability to cover its short-term obligations with its short-term assets. In 2024, the current ratio increased to 2.18 from 1.31 in 2023, indicating an improved liquidity position. A higher ratio suggests that the company has a stronger ability to pay off its short-term debts, which can be seen as a positive sign of financial health.

Debt-Equity Ratio:

This ratio compares the company’s total debt to its shareholders' equity, providing a measure of financial leverage. The debt-equity ratio dropped significantly from 0.57 in 2023 to 0.02 in 2024. This sharp decrease indicates that the company has reduced its reliance on debt financing, likely paying off a significant portion of its debt, which reduces financial risk but also may indicate less aggressive expansion strategies.

Debt Service Coverage Ratio (DSCR):

The DSCR measures the company's ability to service its debt with its operating income. A DSCR above 1 indicates that the company generates sufficient earnings to cover its debt obligations. In 2024, the DSCR improved to 1.24 from a low 0.24 in 2023, suggesting that the company is now better positioned to meet its debt obligations, which is crucial for long-term solvency.

Return on Equity (ROE):

ROE measures the profitability of a company in relation to shareholders’ equity. In 2024, the ROE was -4.01%, a sharp decline from 0.92% in 2023. The negative ROE indicates that the company is generating a loss, which diminishes shareholder value. This decline could be due to lower profitability or higher equity base without a corresponding increase in net income.

Inventory Turnover Ratio:

This ratio indicates how efficiently a company manages its inventory by showing how many times the inventory is sold and replaced over a period. The ratio improved to 9.67 in 2024 from 8.04 in 2023, meaning the company is managing its inventory more efficiently, turning it into sales faster, which is generally a positive indicator of demand and operational efficiency.

Trade Receivables Turnover Ratio:

The trade receivables turnover ratio measures how effectively a company collects its receivables. The increase from 8.75 in 2023 to 10.33 in 2024 indicates that the company is collecting payments from its customers more efficiently, improving cash flow and reducing the risk of bad debts.

Trade Payables Turnover Ratio:

This ratio measures the rate at which a company pays off its suppliers. The increase from 4.08 in 2023 to 4.96 in 2024 suggests that the company is paying its suppliers more quickly, which could be due to better cash flow or more favorable terms with suppliers.

Net Capital Turnover Ratio:

This ratio shows how effectively a company uses its working capital to generate sales. A significant drop from 14.12 in 2023 to 6.31 in 2024 suggests that the company’s efficiency in using its working capital to generate revenue has decreased, potentially indicating less aggressive sales or inefficiencies in working capital management.

Net Profit Ratio:

The net profit ratio, which measures profitability as a percentage of revenue, declined from 0.17% in 2023 to -1.09% in 2024. This negative ratio indicates that the company incurred a net loss in 2024, which could be due to increased costs, decreased revenues, or a combination of both.

Return on Capital Employed (ROCE):

ROCE measures the returns that a company generates from its capital employed, indicating efficiency and profitability. The ROCE dropped to -1.54% in 2024 from 3.42% in 2023, reflecting a decline in the company’s ability to generate profits from its capital base, which is concerning as it suggests a less efficient use of resources.

Return on Investment (ROI):

ROI measures the return generated on the investments made by the company. The ROI fell to -2.29% in 2024 from 0.39% in 2023, indicating that the company’s investments are not generating positive returns, leading to losses. This decline in ROI could discourage future investments or indicate that current investments are not yielding the expected benefits.