Peirce Leslie Annual Report, Balance Sheet and Financials

Peirce Leslie India Limited Consolidated Balance Sheet (Rs in Thousands)

Peirce Leslie India Limited Consolidated Profit & Loss Statement (Rs in Thousands)

Peirce Leslie India Limited Consolidated 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 reported a net loss before tax of ₹13,926.95 thousand in 2025, a sharp decline compared to a strong profit of ₹62,315.57 thousand in 2024. This indicates a significant deterioration in core profitability. Although non-cash adjustments like depreciation (₹1,774.59 thousand) and employee benefit provisions (₹1,388.25 thousand) added back to cash flow, they were insufficient to offset the losses. Additionally, lower interest expenses and absence of large one-time gains (like investment sale profits seen in 2024) further weakened the operating position.

Working capital changes also negatively impacted cash flow. Trade receivables increased significantly (cash outflow), and reductions in payables and provisions indicate that the company paid off obligations rather than delaying them, leading to further cash strain. As a result, cash used in operations stood at ₹17,402.97 thousand, which worsened after tax payments to ₹19,421.71 thousand, though still better than the previous year’s heavy outflow of ₹75,282.41 thousand. Overall, operating activities show weak core cash generation and stress on liquidity.

Cash Flow from Investing Activities

Investing activities generated a positive cash flow of ₹15,914.21 thousand in 2025, though lower than ₹28,406.39 thousand in 2024. The inflow was mainly driven by sale of investments (₹22,121.88 thousand) and interest income. However, the company continued to invest in fixed assets (₹7,385.45 thousand), indicating ongoing capital expenditure.

Compared to the previous year, the decline in inflows suggests fewer or smaller asset/investment disposals. Still, the positive investing cash flow indicates that the company relied on asset monetization to support liquidity, which may not be sustainable in the long term if core operations remain weak.

Cash Flow from Financing Activities

Financing activities showed a net cash outflow of ₹971.78 thousand in 2025, significantly lower than ₹10,921.04 thousand in 2024. This outflow is mainly due to repayment of borrowings and interest payments. The lower outflow compared to last year suggests reduced debt servicing burden or lower borrowing levels.

This indicates a conservative financing approach, where the company is reducing its reliance on external debt. While this improves financial stability, it also means fewer inflows to support operations during a period of weak profitability.

Net Change in Cash Position

Overall, the company recorded a net decrease in cash of ₹4,481.29 thousand in 2025, which is significantly better than the steep decline of ₹57,796.71 thousand in 2024. This improvement is mainly due to reduced operating losses and continued support from investing activities.

Financial ratios of Peirce Leslie India Limited: 

Summary of the Ratios for the years 2025 and 2024:

Current Ratio:
The current ratio of the company declined from 4.95 in 2024 to 3.90 in 2025. Although it remains well above the ideal benchmark of 2:1, indicating strong short-term liquidity, the downward trend suggests relatively reduced efficiency in managing current assets and liabilities. The company still maintains a comfortable liquidity position, but the excess liquidity seen earlier is gradually decreasing.

Debt Service Coverage Ratio:
The DSCR has sharply deteriorated from a healthy 4.28 in 2024 to a negative -13.48 in 2025. This indicates that the company is unable to generate sufficient operating income to meet its debt obligations. A negative DSCR is a serious concern, reflecting financial distress and potential difficulty in servicing interest and principal repayments.

Return on Equity:
The return on equity fell drastically from 0.38 (38%) in 2024 to -0.12 (-12%) in 2025. This shows that the company has shifted from generating strong returns for shareholders to incurring losses. The negative ROE reflects poor profitability and inefficient utilization of shareholders’ funds during the year.

Inventory Turnover Ratio:
The inventory turnover ratio is not available for 2025, compared to 2.32 in 2024. The absence of this data may indicate lack of inventory activity or reporting issues. In 2024, the ratio suggested moderate efficiency in inventory management, but no comparison can be made for 2025 performance.

Trade Receivables Turnover Ratio:
The ratio declined from 9.80 in 2024 to 7.98 in 2025. This indicates that the company is taking longer to collect receivables, reflecting reduced efficiency in credit management. Slower collection cycles may negatively impact cash flow and liquidity.

Net Capital Turnover Ratio:
The net capital turnover ratio dropped significantly from 2.12 in 2024 to 0.28 in 2025. This suggests a substantial decline in the company’s ability to generate revenue from its working capital. It indicates inefficient utilization of working capital and reduced operational effectiveness.

Net Profit Ratio:
The net profit margin has drastically fallen from a positive 18.14% in 2024 to a negative -57.01% in 2025. This indicates that the company incurred heavy losses during the year. Such a steep decline reflects poor cost control, reduced revenue, or both, and signals serious profitability concerns.

Return on Capital Employed:
ROCE declined sharply from 45.66% in 2024 to -11.88% in 2025. This indicates that the company is no longer generating returns from its capital employed and is instead incurring losses. It reflects poor overall financial performance and inefficient utilization of long-term funds.