Patels Airflow Annual Report | Balance Sheet and Financials

Patels Airflow Limited Standalone Balance Sheet (Rs in Thousands)

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

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

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

Cash Flow from Operating Activities:
The company generated cash from operations amounting to ₹66,634.27 thousand in 2025, compared to ₹72,296.36 thousand in 2024, indicating a slight decline in operating cash flow. This decrease is primarily due to a reduction in net profit before tax from ₹54,075.60 thousand to ₹49,103.23 thousand. However, non-cash expenses like depreciation increased, supporting operating cash. Working capital adjustments show mixed trends—reduction in trade payables and other liabilities led to cash outflows, while decreases in receivables and inventories contributed positively. Overall, the company continues to maintain positive operating cash flow, reflecting stable core business operations.

Cash Flow from Investing Activities:
Net cash used in investing activities increased significantly to ₹47,426.25 thousand in 2025 from ₹26,105.67 thousand in 2024. This higher outflow is mainly due to a substantial increase in the purchase of fixed assets (₹43,299.55 thousand), indicating expansion or capital investment. Additionally, investments made during the year also contributed to cash outflows. Although there were minor inflows from the sale of assets and interest received, they were not sufficient to offset the heavy capital expenditure. This suggests the company is actively investing in long-term growth.

Cash Flow from Financing Activities:
Cash outflow from financing activities rose sharply to ₹64,932.65 thousand in 2025 compared to ₹37,162.03 thousand in 2024. The major reason is significant repayment of short-term borrowings (₹46,759.92 thousand) along with repayment of long-term borrowings. Interest payments, although lower than the previous year, still contributed to outflows. Dividend payments also increased slightly, indicating continued shareholder returns. Overall, the company is reducing its dependence on external borrowings, which aligns with the improved debt-equity ratio observed earlier.

Net Increase/Decrease in Cash and Cash Equivalents:
There was a substantial net decrease in cash and cash equivalents of ₹45,724.63 thousand in 2025, compared to an increase of ₹9,028.66 thousand in 2024. This decline is mainly due to heavy outflows in investing and financing activities, which exceeded the cash generated from operations.

Financial ratios of Patels Airflow Limited

Summary of the financial ratios for the years 2025 and 2024

Current Ratio:
The current ratio improved from 1.59 in 2024 to 2.00 in 2025, indicating a stronger short-term liquidity position. The company now has better capability to meet its current liabilities with current assets, reflecting improved working capital management.

Debt-Equity Ratio:
The debt-equity ratio declined significantly from 0.41 to 0.19, showing a reduction in financial leverage. This indicates that the company has either repaid debt or increased equity, resulting in a more stable and less risky capital structure.

Debt Service Coverage Ratio:
The DSCR increased from 0.58 to 1.05, suggesting an improvement in the company’s ability to service its debt obligations. Although it has crossed the critical level of 1, the margin remains thin, indicating moderate financial comfort.

Return on Equity:
ROE decreased from 17.44% to 14.01%, indicating a decline in profitability for shareholders. Despite still being at a reasonable level, the drop suggests reduced efficiency in generating returns on equity.

Inventory Turnover Ratio:
The inventory turnover ratio declined from 3.86 to 3.25, implying slower movement of inventory. This may indicate overstocking or reduced demand, which could impact operational efficiency.

Trade Receivables Turnover Ratio:
This ratio decreased slightly from 9.23 to 8.73, suggesting a marginal slowdown in the collection of receivables. It indicates that the company is taking slightly longer to collect cash from customers.

Trade Payables Turnover Ratio:
The trade payables turnover ratio increased from 9.77 to 10.22, indicating faster payments to suppliers. While this improves supplier relationships, it may put pressure on short-term liquidity.

Net Capital Turnover Ratio:
The ratio declined from 8.37 to 6.20, suggesting reduced efficiency in utilizing working capital to generate revenue. This may be due to increased working capital or lower sales growth.

Net Profit Ratio:
The net profit ratio improved slightly from 4.54% to 4.81%, indicating better cost control and marginal improvement in profitability despite operational challenges.

Return on Capital Employed:
ROCE decreased from 17.57% to 16.36%, reflecting a slight decline in overall efficiency in generating returns from total capital employed. However, it still remains at a satisfactory level.