Penam Laboratories Annual Reports, Balance Sheet and Financials

Penam Laboratories Limited Balance Sheet (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Non-Current Assets
Property, Plant and Equipment	2,629.93	2,452.92
Capital Work-in-Progress	153.99	218.43
Other Financial Assets	232.51	6,377.66
Other Non-Current Assets	514.36	16.56
Current Assets
Inventories	9,697.31	9,621.37
Investments	1,610.99	1,544.32
Trade Receivable	16,415.60	15,456.24
Cash And Cash Equivalents	7,050.42	10,963.50
Bank Balances other than Above	20,363.30	6,791.01
Loans	20.87	12.88
Other Financial Assets	1,249.47	804.85
Other Current Assets	1,323.22	1,775.51
Total Assets	61,261.97	56,035.25
Equity
Equity Share Capital	516.72	516.72
Other Equity	45,141.76	39,780.59
Non-Current Liabilities
Provisions	116.98	96.77
Current Tax Liabilities	200.88	200.85
Current Liabilities
Trade Payable
Total Outstanding dues of Micro and Small enterprises	52.87	1.10
Total dues other than Micro and Small enterprises	13,422.97	13,757.30
Other Financial Liabilities	237.00	237.00
Other Current Liabilities	1,488.48	1,322.23
Provisions	22.40	22.07
Current Tax Liabilities	61.92	100.66
Total Equity and Liabilities	61,261.98	56,035.29

 Penam Laboratories Limited Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Revenue
Revenue from Operations	53,182.50	50,804.69
Other Income	2097.37	1,097.09
Total Revenue	55,279.87	51,901.78
Expenses
Cost of Materials Consumed	43,476.29	41599.27
Changes in Inventories of finished goods, stock in trade and WIP	-741.78	-566.69
Employee Benefit Expense	954.72	836.54
Finance Costs	26.31	44.87
Depreciation and amortisation expenses	195.21	190.28
Other Expenses	4057.76	3788.35
Total Expenses	47,968.51	45,892.62
Profit before Tax	7,311.37	6,009.17
Current Tax	1,915.00	1,580.00
Tax relating to earlier years	27.86	16.29
Deferred Tax	-1.8	0.96
Profit from Continuing Operations	5,370.17	4,411.91
Other Comprehensive Income
Re-measeurement Gain/(Loss) of defined benefit plan	-7.30	12.72
Income Tax on above	1.84	3.20
Other Comprehensive Income/(Loss)	-9.14	9.52
Total Comprehensive Income for the year	5,361.17	4,421.43
Earnings per Equity Share:
Basic	103.75	85.57
Diluted	103.75	85.57

Penam Laboratories Limited Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Cash Flow from Operating Activities
Net Profit/(Loss) before Tax and extraordinary items	7,311.37	6,009.17
Adjustment for:
Interest Income	-1,543.07	-1,092.17
Profit on sale of investments	-85.76	-1.04
Loss/(Profit) on Sale/discard of fixed assets	1.17	-
Depreciation of property, plant & equipment	195.21	190.28
Operating Profit before Working Capital Charges	5,878.92	5,106.23
Adjustments:
Decrease/(Increase) in Trade & other receivables	-959.36	-3,620.14
Decrease/(Increase) in Inventories	-75.94	-5,284.34
Decrease/(Increase) in Other Current Financial Assets	-452.61	239.07
Decrease/(Increase) in Other Current Assets	452.29	-622.10
Decrease/(Increase) in Bank balance other than Cash & Cash Equivalents	-13,572.29	-1,712.27
Decrease/(Increase) Other Non current Financial Assets	6,145.15	335.76
Decrease/(Increase) Other Non current Assets	-497.80	-1.55
Increase/(Decrease) in Tarde Payable	-282.56	4,410.45
Increase/(Decrease) Other Current Financial liabilities	-	-30.00
Increase/(Decrease) Other Current Liabilities	127.52	383.46
Increase/(Decrease) in Provisions	13.25	7.25
Cash generated from Operations	-3,223.44	-788.18
Income Tax	1,915.00	1,580.00
Cash Flow before extraordinary item	-5,138.44	-2,368.18
Income Tax Provision for earlier year	27.86	16.29
Net Cash Flow From Operating Activities	-5,166.31	-2,384.47
Cash Flow from Investing Activities
Purchase of Property, plant & Equipment including Building WIP	-313.83	-295.73
Purchase/Redemption of Other Investments	-66.67	-72.66
Proceeds for sale of Proprty, plant & equipment	4.90	-
Profit on sale of investments	85.76	1.04
Interest Income	1,543.07	1,092.17
Net Cash Flow From Investing Activities	1,253.23	724.83
Net Increase in Cash & Cash Equivalents	-3,913.08	-1,659.64
Cash  & Cash equivalents at the beginning of the Year	10,963.50	12,623.14
Cash  & Cash equivalents at the end of the Year	7,050.42	10,963.50

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

Cash Flow from Operating Activities

For the year ended 31st March 2024, the company reported a net profit before tax and extraordinary items of Rs. 7,311.37 lakhs, a healthy increase compared to Rs. 6,009.17 lakhs in the previous year. However, this improvement in profit did not translate into positive operating cash flow.

Adjustments were made to remove non-cash and non-operating items. Interest income of Rs. 1,543.07 lakhs and profit on sale of investments (Rs. 85.76 lakhs) were subtracted, as they are part of investing activities. Depreciation, a non-cash expense, was added back (Rs. 195.21 lakhs), along with a minor loss on sale/discard of fixed assets.

After these adjustments, Operating Profit before Working Capital Changes stood at Rs. 5,878.92 lakhs, up from Rs. 5,106.23 lakhs in FY23.

However, significant changes in working capital negatively impacted cash flow:

Trade and other receivables increased by Rs. 959.36 lakhs (cash outflow).

Inventories also rose by Rs. 75.94 lakhs.

A sharp increase in "Bank balances other than Cash & Cash Equivalents" by Rs. 13,572.29 lakhs significantly drained cash from operations.

Meanwhile, there was a positive adjustment of Rs. 6,145.15 lakhs due to a reduction in non-current financial assets, which helped offset some of the outflow.

Overall, these movements resulted in negative cash generated from operations of Rs. 3,223.44 lakhs in FY24, worse than the previous year’s outflow of Rs. 788.18 lakhs.

After accounting for income tax payments of Rs. 1,915 lakhs and a prior year tax provision of Rs. 27.86 lakhs, the net cash flow from operating activities was a negative Rs. 5,166.31 lakhs, compared to a negative Rs. 2,384.47 lakhs in FY23. This indicates worsening operational cash efficiency, despite better profitability.

 

Cash Flow from Investing Activities

During the year, the company invested Rs. 313.83 lakhs in property, plant & equipment, slightly higher than the Rs. 295.73 lakhs spent last year. There was also a moderate outflow of Rs. 66.67 lakhs toward purchase/redemption of other investments.

On the inflow side, the company earned Rs. 1,543.07 lakhs in interest income, a significant jump from Rs. 1,092.17 lakhs last year. It also realized Rs. 85.76 lakhs from the sale of investments and Rs. 4.90 lakhs from the sale of assets.

The net result was a positive cash flow from investing activities of Rs. 1,253.23 lakhs, higher than Rs. 724.83 lakhs in FY23. This inflow helped cushion the blow from negative operating cash flows.

 

Net Cash Movement and Cash Equivalents

The company experienced a net decrease in cash and cash equivalents of Rs. 3,913.08 lakhs during FY24, significantly higher than the decrease of Rs. 1,659.64 lakhs in FY23. This reduction reflects the severe impact of working capital changes and tax outflows.

As a result, the cash and cash equivalents at the end of FY24 stood at Rs. 7,050.42 lakhs, down from Rs. 10,963.50 lakhs at the end of FY23. This trend signals a weakening liquidity position, even though profitability has improved.

Financial Ratios of Penam Laboratories

Particulars	2024	2023
Current Ratio	3.77	3.04
Debt Equity Ratio	0.005	0.006
Debt Servuce Coverage Ratio	260.12	214.1
Return on Equity	11.76%	10.95%
Inventory Turnover Ratio	5.5	7.27
Trade Receivables Turnover Ratio	3.33	3.72
Trade Payables Turnover Ratio	3.15	4.009
Net Capital Turnover Ratio	125.30%	161.13%
Net Profit Ratio	10.08%	8.70%
Return on Capital Employed	15.92%	14.82%
Return on Investment	22.13%	0.36%

 

Here is a summary of the financial and operational metrics for Penam Laboratories Limited for the year 2024 & 2023:

 

Current Ratio

The current ratio measures a company’s ability to cover its short-term liabilities with its short-term assets. A ratio above 1 indicates good short-term financial health. In 2024, the ratio improved to 3.77 from 3.04 in 2023, suggesting that the company’s liquidity position has strengthened.

Debt Equity Ratio

This ratio shows the proportion of debt financing compared to shareholders’ equity. The very low debt-equity ratio of 0.005 in 2024 (slightly down from 0.006 in 2023) indicates that the company operates with minimal leverage.

Debt Service Coverage Ratio

The DSCR indicates the company’s ability to service its debt (interest and principal payments) with its operating income. A DSCR of 260.12 in 2024 is exceptionally strong and significantly higher than the previous year’s 214.1, highlighting excellent capacity to meet debt obligations.

Return on Equity (ROE)

ROE evaluates how effectively the company is using shareholders’ funds to generate profits. An ROE of 11.76% in 2024 shows improvement over 2023’s 10.95%, suggesting that the company is becoming more efficient in delivering value to shareholders.

Inventory Turnover Ratio

This ratio reflects how often the company sells and replaces its inventory during a period. A decline from 7.27 to 5.5 indicates that inventory is turning over more slowly in 2024.

Trade Receivables Turnover Ratio

This ratio shows how effectively the company is collecting its receivables. A drop from 3.72 to 3.33 implies a slower collection cycle, meaning customers are taking more time to pay.

Trade Payables Turnover Ratio

This ratio assesses how quickly the company pays its suppliers. A decline to 3.15 from 4.009 suggests that the company is taking longer to pay its creditors, which could be a strategy to preserve cash, or it may reflect renegotiated payment terms.

Net Capital Turnover Ratio

This ratio measures how efficiently the company is using its working capital to generate revenue. A decline to 125.30% from 161.13% means that capital efficiency has reduced—the company is generating less revenue per rupee of net working capital.

Net Profit Ratio

The net profit ratio indicates how much of revenue remains as profit after all expenses. The improvement from 8.70% to 10.08% reflects better cost control or higher-margin sales, resulting in a more profitable business overall.

Return on Capital Employed (ROCE)

ROCE evaluates how effectively the company is using all available capital (both equity and debt) to generate profits. The increase to 15.92% in 2024 reflects improved utilization of overall capital and a more efficient operational model. It is particularly encouraging considering the company operates with minimal debt.

Return on Investment (ROI)

This is a striking improvement. An ROI of 22.13% suggests excellent returns on the company’s investments in 2024, compared to a negligible 0.36% in 2023. or better-performing assets.