Patels Airflow Annual Report | Balance Sheet and Financials

Patels Airflow Limited Balance Sheet (Rs in Thousands)

Patels Airflow Limited Profit & Loss Statement (Rs in Thousands)

Patels Airflow Limited Consolidated Cash Flow Statement (Rs in Thousands)

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

Cash Flow from Operating Activities

The company’s net profit before tax for the year was ₹54,075.60 thousand, slightly lower than ₹54,924.81 thousand in the previous year. After adjusting for non-cash items like depreciation and amortization (₹15,631.47 thousand), finance costs (₹9,975.46 thousand), and adjustments for profits and losses on the sale of assets, the operating profit before working capital changes was ₹78,712.82 thousand, up from ₹74,455.78 thousand in 2023.

Adjustments for working capital changes show:

A decrease in trade payables of ₹21,005.92 thousand, which reduced cash inflow.

An increase in other current liabilities by ₹22,004.94 thousand, improving cash flow.

Inventories decreased by ₹7,942.70 thousand, contributing positively to cash flow.

Trade receivables decreased by ₹8,883.86 thousand, showing better collection of dues, further improving cash flow.

After accounting for these changes, cash generated from operations amounted to ₹72,296.36 thousand, compared to ₹36,367.36 thousand in the previous year, reflecting a strong improvement in operational cash flow. However, income taxes paid were higher at ₹11,786.95 thousand, leading to net cash generated from operating activities of ₹72,296.36 thousand.

Cash Flow from Investing Activities

Investing activities resulted in a net cash outflow of ₹26,105.67 thousand, a slight improvement from the previous year's outflow of ₹34,820.30 thousand. The company spent ₹21,136.42 thousand on the purchase of fixed assets, down from ₹33,989.49 thousand in 2023, reflecting reduced capital expenditure. Additionally, ₹5,900.00 thousand was spent on investments.

There were cash inflows from the sale of fixed assets (₹144.07 thousand) and interest received (₹786.68 thousand), but these were not enough to offset the significant outflows related to asset purchases and investments.

Cash Flow from Financing Activities

Financing activities resulted in a net cash outflow of ₹37,162.03 thousand in 2024, a reversal from the cash inflow of ₹23,939.53 thousand in 2023. This was primarily due to:

Repayment of short-term borrowings of ₹26,834.04 thousand, compared to net borrowings of ₹25,483.13 thousand in 2023, indicating a significant reduction in short-term debt.

Interest paid amounted to ₹9,975.46 thousand, and dividends paid were ₹6,750.24 thousand, slightly higher than the previous year.

These outflows were partially offset by proceeds from long-term borrowings (₹6,397.71 thousand).

Net Increase/(Decrease) in Cash and Cash Equivalents

Despite the large outflows in financing and investing activities, the strong operational cash flow resulted in a net increase in cash and cash equivalents of ₹9,028.66 thousand in 2024, compared to ₹25,486.59 thousand in the previous year.

The company started the year with a cash balance of ₹45,717.04 thousand and ended with ₹54,745.70 thousand, reflecting improved liquidity.

Financial Ratios of Patels Airflow Limited  

Here is a summary of the financial and operational metrics for Patels Airflow Limited   for the year 2024 and 2023:

Current Ratio

The current ratio measures the company’s ability to cover its short-term liabilities with its current assets. In 2023-24, the ratio increased slightly from 1.43 to 1.59, indicating improved liquidity. This suggests the company is in a stronger position to meet its short-term obligations, although the difference is marginal.

Debt-Equity Ratio

The debt-equity ratio indicates the proportion of debt to equity in the company’s capital structure. The ratio declined from 0.57 to 0.41, showing the company reduced its reliance on debt financing. This reduction in leverage signals a more conservative approach to financing, which could lower financial risk, though it may limit growth potential if less debt is being utilized for expansion.

Debt Service Coverage Ratio (DSCR)

The DSCR measures the company’s ability to cover its debt obligations with operating income. The ratio increased from 0.47 to 0.58, reflecting a slight improvement in the company’s ability to service its debt. However, since the DSCR is still below 1, the company may continue to face challenges in covering its debt payments from earnings alone.

Return on Equity (ROE)

ROE measures the company’s profitability relative to shareholders' equity. The ratio decreased from 20.83% to 17.44%, indicating a drop in profitability. The company generated less profit for each unit of shareholder equity in 2023-24, suggesting reduced efficiency in utilizing equity capital.

Inventory Turnover Ratio

The inventory turnover ratio reflects how efficiently the company sells and replaces its inventory. The ratio improved from 3.20 to 3.86, showing that inventory was moving faster in 2023-24. This suggests better inventory management and potentially stronger sales performance compared to the previous year.

Trade Receivables Turnover Ratio

This ratio measures how efficiently the company collects payments from its customers. The ratio improved slightly from 9.11 to 9.23, indicating that the company’s collection process remained stable, with a minor improvement in how quickly it converted receivables into cash.

Trade Payables Turnover Ratio

This ratio reflects how quickly the company pays its suppliers. The ratio increased significantly from 6.52 to 9.77, meaning the company paid off its suppliers more quickly in 2023-24. Faster payments could indicate better liquidity, though it may also suggest pressure to settle obligations more promptly.

Net Capital Turnover Ratio

The net capital turnover ratio assesses how effectively the company uses its working capital to generate revenue. The ratio decreased from 10.51 to 8.37, indicating a reduction in the efficiency of using working capital to drive sales. This decline suggests the company generated less revenue for each unit of working capital employed in 2023-24.

Net Profit Ratio

The net profit ratio measures the percentage of revenue that becomes profit. The ratio decreased from 4.89% to 4.54%, signaling a slight decline in profitability. This reduction may indicate higher costs or lower margins, causing the company to retain less of its revenue as profit.

Return on Capital Employed (ROCE)

ROCE evaluates how effectively the company generates profit from its capital employed (equity plus debt). The ratio remained relatively stable, slightly decreasing from 17.71% to 17.57%. This consistency suggests that the company maintained its efficiency in utilizing capital, despite the other financial changes.