Pharmed Ltd Annual Report & Financials

Pharmed Limited Standalone Balance Sheet (Rs in Lakhs)

Pharmed Limited Standalone Profit & Loss Account (Rs in Lakhs)

Pharmed Limited Standalone Cash Flow Statement (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flows from Operating Activities

In FY 2024–25, the company generated net cash inflows of ₹6,626.38 lakhs from operating activities, an improvement over the previous year’s ₹4,373.56 lakhs. Profit before tax rose to ₹10,617.57 lakhs, supported by steady depreciation charges and some gains from provisions and liabilities adjustments. However, negative adjustments such as net fair value loss on investments (₹1,225.99 lakhs) and gains on sale of investments reduced operating inflows. Changes in working capital had a mixed effect: provisions and other liabilities increased, but trade receivables, inventories, and other current assets consumed cash. After accounting for income tax payments of ₹2,455.47 lakhs, the company maintained strong positive operating cash flows, highlighting robust business operations and efficient cash conversion.

Cash Flows from Investing Activities

Investing activities reflected a net cash outflow of ₹5,262.50 lakhs in FY 2024–25, compared to ₹2,810.79 lakhs in FY 2023–24. The major driver was continued investment in financial instruments, with net purchases/redemptions amounting to ₹5,471.90 lakhs. On the positive side, the company earned interest income of ₹634.56 lakhs and dividend income of ₹10.84 lakhs, while also realizing ₹31.54 lakhs from disposal of assets. Despite these inflows, the heavy investment activity led to an overall negative investing cash flow.

Cash Flows from Financing Activities

Financing activities resulted in a net outflow of ₹494.81 lakhs, slightly higher than the previous year’s ₹474.27 lakhs. Dividend payments (both final and interim) remained consistent at ₹150.72 lakhs each. Finance costs amounted to ₹44.91 lakhs, while lease liability repayments stood at ₹192.47 lakhs. The only inflow was ₹44.00 lakhs from receipts of financial liabilities. This reflects a conservative financing structure with minimal reliance on external sources, while continuing dividend commitments.

Net Movement in Cash and Closing Balance

Overall, the company recorded a net increase in cash and cash equivalents of ₹869.07 lakhs during FY 2024–25, compared to ₹1,088.50 lakhs in the prior year. With an opening balance of ₹2,361.84 lakhs, cash and cash equivalents closed at a healthier ₹3,230.91 lakhs as of March 31, 2025. The strong contribution from operating activities helped offset the negative impact of investing and financing outflows, indicating stable liquidity and sufficient internal generation of funds to support operations and investments.

Pharmed Limited Financial Ratio Analysis:

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

Current Ratio

The current ratio improved to 1.32 in FY 2025 from 1.22 in FY 2024, indicating a stronger short-term liquidity position. A ratio above 1 shows that the company has sufficient current assets to cover current liabilities, and the improvement suggests better working capital management and financial stability to meet obligations.

Return on Equity (ROE)

The ROE rose to 25.21% in FY 2025 from 22.90% in FY 2024, reflecting higher profitability for shareholders. This means the company generated more earnings per unit of equity capital employed, which is a positive sign of efficiency in utilizing shareholders’ funds.

Inventory Turnover Ratio

The inventory turnover ratio remained almost stable at 4.38 times in FY 2025 compared to 4.40 times in FY 2024. This indicates that the company is maintaining similar efficiency in managing its inventory levels and converting them into sales. A stable ratio suggests consistency, though scope remains to enhance turnover to free up more cash from inventory.

Trade Receivables Turnover Ratio

The receivables turnover ratio declined to 20.97 times in FY 2025 from 22.71 times in FY 2024. This means receivables are being collected slightly slower than before, implying a marginal lengthening of the credit period extended to customers. While still strong, management should ensure collections remain efficient to prevent working capital strain.

Trade Payables Turnover Ratio

The trade payables turnover ratio improved significantly to 16.57 times in FY 2025 from 13.29 times in FY 2024. This indicates the company is paying its suppliers faster than before. While this strengthens supplier relationships, it also suggests less reliance on supplier credit, which could impact cash flows if not balanced with receivable management.

Net Capital Turnover Ratio

The net capital turnover ratio declined to 1.58 times in FY 2025 from 1.84 times in FY 2024. This reflects reduced efficiency in using working capital to generate sales. It may be due to higher levels of working capital being tied up in receivables or inventory. Management may need to optimize working capital deployment to restore efficiency.

Net Profit Ratio

The net profit margin improved sharply to 15.99% in FY 2025 from 12.43% in FY 2024, showing better profitability from operations. Higher margins may be due to increased cost control, higher sales realizations, or improved operational efficiency. This indicates strong financial performance compared to the prior year.

Return on Capital Employed (ROCE)

The ROCE increased to 29.05% in FY 2025 from 27.02% in FY 2024, highlighting better returns from the overall capital employed in the business. This shows that the company is utilizing both debt and equity capital more effectively to generate profits, a strong indicator of operational efficiency.

Return on Investment (ROI)

The ROI improved to 7.58% in FY 2025 from 7.04% in FY 2024. This growth indicates that the company’s investments are yielding higher returns than before, reflecting prudent investment decisions and better utilization of funds.