Parag Parikh Financial Advisory Services Annual Reports, Balance Sheet and Financials

Consolidated Balance Sheet For Parag Parikh Financial  (INR Lakhs)

Particulars	31-03-2024	31-03-2023
EQUITY AND LIABILITIES
Share Capital	766.81	766.81
Reserves and Surplus	29,865.15	19,376.56
Deferred Tax Liabilities	86.52	74.06
Other Long Term Liabilities	20.98	16.67
Trade Payables	110.29	53.46
Other Current Liabilities	886.00	633.27
Short Term Provisions	60.58	38.43
Total Equity and Liabilities	31,796.33	20,959.26
ASSETS
Property, Plant & Equipment	2,315.27	1,972.93
Intangible Assets	35.25	38.19
Intangible Assets under Development	13.20	1.50
Non-Current Investments	19,204.67	11,940.63
Long Term Loans & Advances	99.05	61.50
Other Non-Current Assets	251.43	198.22
Current Investments	7,107.42	4,956.85
Trade Receivables	2,423.54	1,595.64
Cash & Cash Equivalents	124.20	49.77
Short-Term Loans & Advances	187.87	114.70
Other Current Assets	34.43	29.33
Total Assets	31,796.33	20,959.26

Consolidated Statement For Profit and Loss Of Parag Parikh Financial (INR Lakhs)

Particulars	31-03-2024	31-03-2023
Income
Revenue From Operations	21,247.62	14,480.62
Other Income	316.33	158.17
Total Income	21,563.95	14,638.79
Expenses
Employee Benefit Expenses	4,924.32	2,868.97
Depreciation & Amortization Expenses	213.39	192.40
Other Expenses	1,795.51	1,272.12
Total Expenses	6,933.22	4,333.49
Profit Before Tax & Prior Period Items	14,630.73	10,305.30
Exceptional Items	(1.27)	(0.06)
Profit / (Loss) Before Tax	14,632.00	10,305.36
Tax Expense
Current Tax	3,709.21	2,648.05
Deferred Tax	12.46	5.82
Total Tax Expense	3,721.67	2,653.87
Profit / (Loss) for the Year	10,910.33	7,651.49
Earning Per Equity Share
Basic	142.28	99.87
Diluted	125.27	92.29

Consolidated Cash Flow Statement For Parag Parikh Financial  (INR Lakhs)

Particulars	31-03-2024	31-03-2023
Cash Flow from Operating Activities
Profit Before Tax & Prior Period Items	14,630.73	10,305.30
Adjustments:
Add: Non-Operating Expenses/Items
Depreciation on Fixed Assets	189.66	162.17
Amortization of Fixed Assets	23.73	30.23
Fixed Assets Adjustments	(0.56)	(0.30)
	212.83	192.10
Less: Non-Operating Income/Items
Short Term Capital (Gain)/Loss on Mutual Fund	(224.18)	(145.05)
Long Term Capital (Gain)/Loss on Sale of Shares	(72.85)	(3.47)
Short Term Capital (Gain)/Loss on Sale of Shares	(5.75)	0.40
Interest on Fixed Deposit	(1.25)	-
Dividend on Shares	(1.98)	(1.52)
Dividend on Mutual Fund	(0.05)	(0.04)
Financial Opportunities Forum-Membership Fees	(4.97)	(6.08)
	(311.03)	(155.76)
Operating Profit Before Working Capital Changes	14,532.53	10,341.64
Adjustment for Movement in Working Capital:
Increase / (Decrease) in Long-Term Provisions	4.31	16.67
Increase / (Decrease) in Trade Payables & Other Liabilities	309.56	162.35
(Increase) / Decrease in Trade Receivables	(827.90)	(378.84)
Increase / (Decrease) in Long Term & Short Term Provisions	22.14	2.66
(Increase) / Decrease in Deferred Tax Liabilities	12.46	5.83
(Increase) / Decrease in Long-Term Loans & Advances	(7.11)	66.36
(Increase) / Decrease in Short-Term Loans & Advances	(73.17)	(32.30)
(Increase) / Decrease in Other Current & Non-Current Assets	(58.31)	(9.24)
	(618.02)	(166.51)
Cash Generated from Operations Before Taxes	13,914.51	10,175.13
Less: Taxes Paid	(3,752.11)	(2,757.69)
Cash from Operating Activities Before Prior Period Items	10,162.40	7,417.44
Less: Prior Period Expenses / (Income)	(1.27)	(0.06)
Net Cash from Operating Activities	10,163.67	7,417.50
Cash Flow from Investing Activities
Purchase of Fixed Assets	(563.93)	(309.84)
Purchase / Sale of Investments	(9,414.60)	(7,308.81)
Short Term Capital Gain / (Loss) on Mutual Fund	224.18	145.05
Long Term Capital Gain / (Loss) on Sale of Shares	72.85	3.47
Short Term Capital Gain / (Loss) on Sale of Shares	5.75	0.40
Interest on Fixed Deposit	1.25	-
Dividend on Shares	1.98	1.52
Dividend on Mutual Fund	0.05	0.04
Financial Opportunities Forum-Membership Fees	4.97	6.08
Net Cash from Investing Activities	(9,667.50)	(7,462.89)
Cash Flow from Financing Activities
Issue of Shares	28.76	-
Dividend Paid	(421.74)	-
Net Cash from Financing Activities	(421.74)	28.76
Net Increase / Decrease in Cash & Cash Equivalents	74.43	(16.63)
Add: Cash & Cash Equivalents at the Start of the Year
Cash in Hand	0.93	1.24
Bank Accounts	48.84	65.16
	49.77	66.40
Cash & Cash Equivalents at the End of the Year
Cash in Hand	0.92	0.93
Bank Accounts	123.28	48.84
Total	124.20	49.77

Here is the summary of cash flow statement for the FY 2024 & 2023:                                           

Cash Flow from Operating Activities

The company generated cash from operating activities amounting to ₹10,163.67 lakhs for the year ended 31-03-2024, compared to ₹7,417.50 lakhs in the previous year. The profit before tax and prior period items stood at ₹14,630.73 lakhs, with adjustments for non-operating expenses such as depreciation and amortization amounting to ₹212.83 lakhs. Non-operating income, including capital gains and dividends, reduced the operating cash flow by ₹311.03 lakhs. Adjustments for working capital changes resulted in a net outflow of ₹618.02 lakhs due to movements in provisions, trade payables, receivables, and other assets and liabilities. Taxes paid during the year totalled ₹3,752.11 lakhs, and prior period income adjustments added ₹1.27 lakhs to the cash flow, resulting in a strong operational cash surplus.

Cash Flow from Investing Activities
The cash flow from investing activities reflected a net outflow of ₹9,667.50 lakhs for the year ended 31-03-2024, as against ₹7,462.89 lakhs in the previous year. The company invested significantly in fixed assets, with a total outflow of ₹563.93 lakhs. Additionally, substantial investments in securities and mutual funds resulted in a cash outflow of ₹9,414.60 lakhs. Income from the sale of shares and mutual funds partially offset the cash outflow, contributing ₹302.78 lakhs. Other income sources, including dividends and interest, added a minor inflow of ₹8.25 lakhs. Despite these inflows, the overall cash flow from investing activities remained negative due to high investment volumes.

Cash Flow from Financing Activities
Cash flow from financing activities recorded a net outflow of ₹421.74 lakhs for the year ended 31-03-2024, compared to a net inflow of ₹28.76 lakhs in the prior year. The issuance of shares generated ₹28.76 lakhs, but this was offset by dividend payments amounting to ₹421.74 lakhs. The financing cash flow reflects the company 's commitment to returning value to shareholders while managing its financing needs conservatively.

Net Increase/Decrease in Cash and Cash Equivalents
The net increase in cash and cash equivalents for the year ended 31-03-2024 was ₹74.43 lakhs, as opposed to a decrease of ₹16.63 lakhs in the previous year. The year began with cash and cash equivalents of ₹49.77 lakhs, comprising cash in hand and bank balances. The year ended with a total cash balance of ₹124.20 lakhs, indicating improved liquidity and efficient cash management.

Key Financial Ratios

Particulars	As on 31st March, 2024	As on 31st March, 2023
Current Ratio	9.35	9.30
Return on Equity Ratio	42.97%	46.93%
Net Profit Ratio	51.35%	52.84%
Return on Capital Employed	47.63%	50.97%

Insights for 2024

The Current Ratio of 9.35 indicates strong liquidity, reflecting that the company has sufficient current assets to cover its current liabilities. This shows a marginal improvement from the previous year’s ratio of 9.30, demonstrating consistent financial health and efficient short-term asset management.

The Return on Equity Ratio decreased to 42.97% from 46.93% in the previous year. While the ratio remains robust, indicating significant returns generated on shareholders ' equity, the slight decline suggests a possible increase in equity base or slightly lower profitability relative to equity.

The Net Profit Ratio declined marginally to 51.35% from 52.84% in the prior year. This indicates a slight reduction in the company’s ability to convert revenue into profit, potentially due to increased expenses or competitive pricing pressures.

The Return on Capital Employed (ROCE) also saw a decrease to 47.63% from 50.97% in the previous year. This suggests that the company’s overall efficiency in utilizing its capital to generate returns has slightly reduced, possibly due to increased capital employed or changes in operational profitability.

Overall, the financial ratios for 2024 demonstrate the company’s continued strong performance, with a need to focus on improving profitability and capital efficiency to sustain high returns.