Pharmax Corporation Annual Reports, Balance Sheet and Financials

Pharmax Corporation Limited Standalone Balance Sheet (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Non-current assets
Investment property	276.83	143.58
Other financial assets	10.19	3,76
Other non-current assets	2.36	3.34
Current assets
Financial assets
Investment	9.53	-
Trade receivables	0.43	0.07
Cash & cash equivalents	4.66	2.95
Bank balances other than cash & cash equivalents	-	0.87
Other financial assets	7.71	1.41
Current tax assets	3.37	0.96
Other current assets	3.20	3.21
Total assets	318.33	160.18
Equity
Equity share capital	8.48	4.73
Other equity	55.57	12.55
Non-current liabilities
Financial liabilities
Borrowings	215.66	68.06
Other non-current financial liabilities	11.58	6.84
Long term provisions	-	0.20
Deferred tax liabilities (net)	5.29	2.20
Current liabilities
Financial liabilities
Borrowings	9.91	44.55
Trade payables
Total outstanding dues of creditors other than micro and small enterrpises	0.07	0.16
Other financial liabilities	10.92	20.07
Other current liabilities	0.81	0.55
Short term provisions	-	0.22
Total equity and liabilities	318.33	160.18

Pharmax Corporation Limited Standalone Profit & Loss Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operations	38.26	10.41
Other Income	2.83	0.87
Total Income	41.10	11.28
Expenses
Finance Costs	19.50	3.64
Depreciation & amortization expense	4.40	1.89
Other Expenses	5.49	1.91
Total Expenses	29.41	7.46
Profit Before Tax	11.68	3.82
Deferred Tax	3.09	2.39
Income tax paid for earlier years	-	0.18
Profit after tax	8.58	1.23
Other comprehensive income	8.58	1.23
Earnings per share
Basic	1.06	0.16
Diluted	1.06	0.16

Pharmax Corporation Limited Standalone Cash Flow Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Profit/(loss) Before Tax	11.68	3.82
Adjustments to reconcile profit before tax to net cash flows
Depreciation of property, plant and equipment	4.40	1.89
Guarantee fee	0.02	-0.04
Interest received	-0.66	-
Interest on CCPS	0.03	-
Other borrowing cost	0.51	-
Interest on security deposit received – Ind AS adjustment	1.05	-
Other non-operating income	-0.24	-
Amortization of deferred income	-1.17	-0.40
Gain on sale of mutual fund	-0.24	-
Revenue from rental (equalisation as per Ind-AS)	3.94	1.61
Interest liability written back on CCPS	-0.49	-
Guarantee fee income – Ind AS	-0.01	-
Finance costs	17.87	3.64
Operating profit before working capital changes	36.71	10.52
Working capital adjustment:
Movements in provisions, gratuity and leave encashment	-0.18	0.14
Increase/(Decrease) in other financial liabilities	-4.29	12.53
(Increase)/Decrease in trade receivables	-0.36	0.16
Increase/(Decrease) in other liabilities	0.25	-
(Increase)/Decrease in other assets	-0.98	2.67
(Increase)/Decrease in other financial assets	-8.49	-3.22
Increase/(Decrease) in trade and other payables	-0.08	0.45
Cash generated from operations	22.55	23.27
Income tax paid	-2.41	-
Net cash flows used in operating activities	20.14	23.27
Cash flow from investing activities
Investments in FDR’s	-7.31	4.87
Investments in mutual funds	-9.29	-
Interest received	0.66	-
Purchase of investment property, (including intangible assets, CWIP and capital advances)	-135.68	-58.31
Net cash flows used in investing activities	-151.62	-53.44
Cash flow from financing activities
Interest & processing fees paid	-18.26	-
Equity share capital issued	0.74	-
Share premium on issue of share capital	34.41	-
Proceeds from long term borrowings	231.44	24.50
Repayment of long term borrowings	-70.59	-
Loan repayment to holding company	-44.55	-
Proceeds from short term borrowings	-	5.60
Net cash flows from financing activities	133.19	30.10
Net increase/(decrease) in cash and cash equivalents	1.71	-0.06
Cash and cash equivalents at the beginning of the year	2.95	3.01
Cash and cash equivalents at year end	4.66	2.95

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

Cash Flow from Operating Activities:
The company reported a significant increase in profit before tax to ₹11.68 crore in FY2025 from ₹3.82 crore in FY2024, indicating improved operating performance. After adjustments for non-cash and non-operating items such as depreciation, finance costs, rental equalisation, and amortisation of deferred income, the operating profit before working capital changes rose sharply to ₹36.71 crore from ₹10.52 crore. However, working capital movements had a mixed impact. Major outflows were seen in other financial assets (₹8.49 crore) and financial liabilities (₹4.29 crore), partially offset by minor changes in receivables and payables. Despite these adjustments, cash generated from operations remained strong at ₹22.55 crore (FY2024: ₹23.27 crore). After tax payments of ₹2.41 crore, net cash flow from operating activities stood at ₹20.14 crore, slightly lower than the previous year but still healthy, indicating stable core cash generation.

 

Cash Flow from Investing Activities:
Investing activities saw a substantial cash outflow of ₹151.62 crore in FY2025 compared to ₹53.44 crore in FY2024. The primary driver was a large investment in investment property and capital assets amounting to ₹135.68 crore, indicating aggressive expansion or asset acquisition during the year. Additionally, the company invested ₹9.29 crore in mutual funds and ₹7.31 crore in fixed deposits. These were partially offset by interest income of ₹0.66 crore. The sharp increase in capital expenditure suggests a long-term growth strategy but also indicates heavy cash consumption.

 

Cash Flow from Financing Activities:
Financing activities were the key source of funds in FY2025, generating a net inflow of ₹133.19 crore compared to ₹30.10 crore in FY2024. The company raised substantial long-term borrowings of ₹231.44 crore, indicating reliance on debt to fund its expansion. It also raised equity capital, including ₹34.41 crore as share premium and ₹0.74 crore as share capital, which helped strengthen the capital base. However, there were significant outflows in the form of loan repayments (₹70.59 crore), repayment to the holding company (₹44.55 crore), and finance costs (₹18.26 crore). Overall, financing inflows more than offset these outflows, supporting the company’s investment activities.

 

Net Change in Cash and Cash Equivalents:
Despite heavy investing outflows, the company reported a net increase in cash and cash equivalents of ₹1.71 crore in FY2025, compared to a slight decrease in FY2024. This was primarily due to strong financing inflows. The closing cash balance increased to ₹4.66 crore from ₹2.95 crore, indicating improved liquidity position.

Financial ratios of Pharmax Corporation Limited

Particulars	31-03-2025	31-03-2024
Current ratio	1.33	0.23
Debt equity ratio	3.52	6.51
Debt service coverage ratio	0.15	0.08
Return on equity ratio	0.13	0.07
Trade receivables turnover ratio	150.26	67.46
Net capital turnover ratio	5.30	-0.22
Net profit ratio	0.22	0.12
Return on capital employed	11.15%	8.75%

Summary of the financial ratios for the years 2025 and 2024:

Current Ratio:
The current ratio improved significantly to 1.33 in FY2025 from a very low 0.23 in FY2024. This indicates a substantial improvement in the company’s short-term liquidity position. In the previous year, the company faced severe working capital constraints, but the current year reflects a better ability to meet its short-term obligations. However, while improved, a ratio of 1.33 is still moderate and suggests that liquidity should continue to be monitored.

 

Debt-Equity Ratio:
The debt-equity ratio declined from 6.51 in FY2024 to 3.52 in FY2025, indicating a reduction in financial leverage. Although still on the higher side, this improvement suggests that the company has either reduced its borrowings or strengthened its equity base. The lower ratio reduces financial risk and interest burden, but the company remains relatively highly leveraged.

 

Debt Service Coverage Ratio:
The DSCR increased from 0.08 to 0.15, but it remains significantly below 1. This indicates that the company is still not generating sufficient operating income to comfortably service its debt obligations. Despite improvement, the ratio reflects weak debt-servicing capacity and potential financial stress.

 

Return on Equity:
ROE improved from 0.07 in FY2024 to 0.13 in FY2025, showing better returns to shareholders. This suggests improved profitability and more efficient utilization of equity capital. However, the overall return remains modest and indicates that the company has scope to enhance shareholder value further.

 

Trade Receivables Turnover Ratio:
The receivables turnover ratio increased sharply to 150.26 from 67.46, indicating a highly efficient collection mechanism. This suggests that the company is collecting its receivables very quickly, improving cash flow and reducing credit risk. Such a high ratio may also indicate tighter credit policies or a shift toward cash-based transactions.

 

Net Capital Turnover Ratio:
The net capital turnover ratio improved significantly from -0.22 in FY2024 to 5.30 in FY2025. The negative ratio in the previous year indicated inefficient use of capital or possible losses, whereas the current year reflects strong efficiency in utilizing capital to generate revenue. This is a positive sign of operational improvement.

 

Net Profit Ratio:
The net profit ratio increased from 0.12 to 0.22, indicating improved profitability. This suggests better cost control, improved pricing, or higher operational efficiency. The company is now retaining a higher portion of revenue as profit, which is a strong positive indicator.

 

Return on Capital Employed:
ROCE improved from 8.75% in FY2024 to 11.15% in FY2025, indicating better utilization of total capital employed. This reflects improved operating performance and efficiency in generating returns from both equity and debt capital. The upward trend is encouraging, though further improvement would strengthen overall financial health.