Penam Laboratories Annual Reports, Balance Sheet and Financials

Penam Laboratories limited Standalone Balance Sheet (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Non-current assets
Plant, property and equipment	2,568.36	2,629.93
Capital work in progress	393.21	153.99
Other financial assets	1,297.46	232.51
Other non-current assets	6,171.55	514.36
Current assets
Inventories	5,286.60	9,697.31
Investments	1,907.90	1,610.99
Trade receivables	9,438.53	16,415.60
Cash and cash equivalent	7,138.49	7,050.42
Bank balances other than cash and cash equivalent	19,409.83	20,363.30
Loans	23.82	20.87
Other financial assets	767.70	1,249.47
Current tax assets	114.08	-
Other current assets	1,318.66	1,323.22
Total assets	55,836.19	61,261.98
Equity
Equity share capital	516.72	516.72
Other equity	49,105.26	45,141.76
Non-current liabilities
Provisions	136.04	116.98
Deferred tax liabilities	199.68	200.88
Current liabilities
Trade payables – total outstanding dues of micro and small enterprises	45.78	52.87
Total outstanding dues other than above	4,497.98	13,422.97
Other financial liabilities	158.50	237.00
Other current liabilities	1,148.99	1,488.48
Provisions	27.23	22.40
Current tax liabilities	-	61.92
Total equity and liabilities	55,836.19	61,261.98

Penam Laboratories limited Standalone Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operations	38,677.71	53,182.50
Other Income	2,085.27	2,097.37
Total Income	40,762.99	55,279.87
Expenses
Cost of material consumed	31,169.66	43,476.29
Changes in inventories of finished goods and WIP	-843.75	-741.78
Employee benefits expense	948.70	954.72
Finance costs	24.43	25.74
Depreciation & amortization expense	192.41	195.21
Other Expenses	4,010.69	4,058.32
Total Expenses	35,502.13	47,968.50
Profit/Loss Before Tax	5,260.86	7,311.37
Current Tax	1,300.00	1,915.00
Tax relating to earlier years	-	27.86
Deferred Tax	-1.56	-1.80
Profit/ Loss for the period	3,962.42	5,370.31
Other comprehensive income
Item that will not classified to profit or loss :
Re-measurement gain/(loss) of defined benefit plan	1.45	-7.30
income tax on above	0.37	1.84
Total income for the period	3,963.51	5,361.17
Earning per share
Basic & diluted	76.71	103.75

Penam Laboratories limited Standalone Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Net profit/loss before tax and extraordinary items	5,260.86	7,311.37
Adjustments:
Interest income	-1,690.67	-1,543.07
Profit on sale of investment	-117.44	-85.76
Loss/(profit) on sale of fixed assets	-	1.17
Depreciation of PPE	192.41	195.21
Working capital adjustments:
Decrease/(increase) Trade and other receivables	6,977.08	-959.36
Decrease/(increase) Inventories	4,410.71	-75.94
Decrease/(increase) in other current financial assets	478.82	-452.61
Decrease/(increase) in other current assets	-109.52	452.29
Decrease/(increase) in bank balances other than cash and cash equivalent	953.47	-13,572.29
Decrease/(increase) in other non-current financial assets	-1,064.95	6,145.15
Decrease/(increase) in other non-current assets	-5,657.19	-497.80
(Decrease)/increase in Trade payables	-8,932.08	-282.56
Decrease)/increase in other current financial liabilities	-78.50	-
Decrease)/increase in other current liabilities	-401.41	127.52
Decrease)/increase in provisions	25.34	13.25
Cash generated from operations	246.94	-3,223.44
Income tax	1,300.00	1,915.00
Income tax provision for	-	27.86
Net Cash from/(used in) Operating Activities	-1,053.06	-5,166.31
Cash Flow from Investing Activities
Purchase of plant, property and equipment	-375.48	-313.83
Purchase/redemption of other investment	-296.91	-66.67
Proceeds from sale of PPE	5.42	4.90
Profit on sale of investment	117.44	85.76
Interest income	1,690.67	1,543.07
Net Cash from / (used in) Investing Activities	1,141.13	1,253.23
Cash Flow from Financing Activities
Net Cash from/(used in) Financing Activities	-	-
Net Increase/decrease in Cash & cash equivalents	88.07	-3,913.08
Cash and cash equivalents at the beginning of the year	7,050.42	10,963.50
Cash and cash equivalents at the end of the year	7,138.49	7,050.42

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

Cash Flow from Operating Activities

The company reported a lower net profit before tax of ₹5,260.86 lakhs in FY 2024-25 compared to ₹7,311.37 lakhs in FY 2023-24. After adjusting for non-cash and non-operating items such as depreciation (₹192.41 lakhs), interest income (₹1,690.67 lakhs) and profit on sale of investments (₹117.44 lakhs), the major impact came from working capital changes. Significant inflow was seen from reduction in trade receivables (₹6,977.08 lakhs) and inventories (₹4,410.71 lakhs), indicating improved recovery and inventory management. However, this was largely offset by a substantial decrease in trade payables (₹8,932.08 lakhs) and increases in certain non-current assets. Consequently, cash generated from operations stood at ₹246.94 lakhs. After paying income tax of ₹1,300.00 lakhs, the company reported a net cash outflow from operating activities of ₹1,053.06 lakhs, though this is a significant improvement compared to the outflow of ₹5,166.31 lakhs in the previous year.

 

Cash Flow from Investing Activities

Investing activities resulted in a net cash inflow of ₹1,141.13 lakhs during FY 2024-25, slightly lower than ₹1,253.23 lakhs in FY 2023-24. The company incurred capital expenditure of ₹375.48 lakhs on purchase of property, plant and equipment and invested ₹296.91 lakhs in other investments. However, strong inflows were generated from interest income of ₹1,690.67 lakhs and profit on sale of investments of ₹117.44 lakhs, along with minor proceeds from sale of PPE. Overall, investing activities contributed positively to liquidity during the year.

 

Cash Flow from Financing Activities

There were no cash flows reported under financing activities in both FY 2024-25 and FY 2023-24, indicating that the company neither raised nor repaid borrowings nor undertook any equity-related transactions during the year.

 

Net Change in Cash and Cash Equivalents

Overall, cash and cash equivalents increased marginally by ₹88.07 lakhs in FY 2024-25, compared to a significant decrease of ₹3,913.08 lakhs in the previous year. The closing cash balance stood at ₹7,138.49 lakhs as against ₹7,050.42 lakhs at the beginning of the year, reflecting stable liquidity supported mainly by positive investing cash flows despite operating outflows.

Financial ratios of Penam Laboratories limited

Particulars	31-03-2025	31-03-2024
Current ratio	7.724	3.777
Debt equity ratio	0.003	0.006
Debt service coverage ratio	189.238	260.116
Return on equity ratio	7.99%	11.76%
Inventory turnover ratio	5.157	5.504
Trade receivables ratio	2.992	3.337
Trade payables turnover ratio	2.874	3.146
Net capital turnover ratio	97.85%	125.30%
Net profit ratio	10.25%	10.08%
Return on capital employed	10.58%	15.92%
Return on Investments	60.27%	22.13%

Summary of the Financial ratio for the years 2025 and 2024:

Current Ratio

The current ratio increased significantly to 7.724 in FY 2024-25 from 3.777 in FY 2023-24, indicating a very strong short-term liquidity position. The company has substantially higher current assets compared to current liabilities, which reflects strong solvency in the short term. However, such a high ratio may also suggest under-utilisation of working capital.

 

Debt Equity Ratio

The debt equity ratio declined to 0.003 from 0.006, showing an almost debt-free position. The company is minimally leveraged and relies predominantly on equity funding, which reduces financial risk and interest burden.

 

Debt Service Coverage Ratio

The DSCR decreased to 189.238 from 260.116, though it remains exceptionally high. This indicates that the company generates ample earnings to meet its debt servicing obligations comfortably, despite a marginal decline compared to the previous year.

 

Return on Equity

ROE reduced to 7.99% from 11.76%, reflecting lower profitability for shareholders during the year. This suggests that the company generated comparatively lower returns on shareholders’ funds in FY 2024-25.

 

Inventory Turnover Ratio

The inventory turnover ratio slightly declined to 5.157 from 5.504, indicating marginally slower movement of inventory. However, the ratio remains healthy, suggesting efficient inventory management overall.

 

Trade Receivables Ratio

The trade receivables turnover ratio decreased to 2.992 from 3.337, implying a slower collection cycle compared to the previous year. This may indicate relatively longer credit terms or slower customer payments.

 

Trade Payables Turnover Ratio

The trade payables turnover ratio reduced to 2.874 from 3.146, suggesting that the company is taking slightly longer to pay its suppliers compared to the previous year, which may help manage short-term liquidity.

 

Net Capital Turnover Ratio

The net capital turnover ratio declined to 97.85% from 125.30%, indicating relatively lower efficiency in utilizing working capital to generate revenue during the year.

 

Net Profit Ratio

The net profit ratio improved marginally to 10.25% from 10.08%, reflecting stable profitability margins despite changes in operational efficiency and turnover ratios.

 

Return on Capital Employed

ROCE decreased to 10.58% from 15.92%, indicating lower overall returns generated from the total capital employed in the business. This suggests moderation in operational profitability.

 

Return on Investments

Return on investments increased sharply to 60.27% from 22.13%, indicating significantly higher returns from investment activities during FY 2024-25, contributing positively to overall income.