Versuni India Home Solutions Limited Balance Sheet (Rs in Millions)

 Versuni India Home Solutions Limited Profit & Loss Statement (Rs in Millions)

 Versuni India Home Solutions Limited Consolidated Cash Flow Statement (Rs in Millions)

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

Operating Activities: The cash flow from operating activities decreased from ₹2,283 million in 2023 to ₹1,794 million in 2024. This reduction is due to a lower profit before tax, which fell from ₹1,955 million to ₹1,638 million. Despite adjustments for non-cash items such as depreciation and amortization (which increased from ₹199 million to ₹270 million) and interest income (which grew from ₹63 million to ₹88 million), the overall cash generated from operations decreased. Changes in working capital further impacted cash flow: trade receivables and other loans & advances saw a larger increase in outflows, while increases in inventories and variations in trade payables also influenced the cash flow. Income tax payments were significantly higher at ₹176 million compared to ₹19 million in the previous year, contributing to the reduced cash flow from operating activities.

Investing Activities: The net cash used in investing activities increased substantially from ₹65 million in 2023 to ₹344 million in 2024. This was primarily due to a rise in capital expenditures on property, plant, and equipment, which surged from ₹128 million to ₹432 million. Although interest income received rose from ₹60 million to ₹86 million, it was not enough to offset the increased cash outflows for investments. Proceeds from the sale of property, plant, and equipment remained minimal, contributing only ₹2 million compared to ₹3 million previously.

Financing Activities: Cash flow from financing activities also saw a significant outflow, rising from ₹1,514 million in 2023 to ₹1,703 million in 2024. This increase was largely due to higher dividend payments, which escalated from ₹1,438 million to ₹1,582 million. Additionally, interest payments on lease liabilities increased from ₹26 million to ₹53 million, and principal payments on lease obligations grew from ₹47 million to ₹65 million.

Net Cash Flow: Overall, the company experienced a net decrease in cash and cash equivalents of ₹252 million for the year, contrasting sharply with the net increase of ₹703 million in the previous year. The closing cash balance decreased from ₹1,833 million to ₹1,580 million. This reduction reflects the combined effects of increased investing and financing outflows despite positive cash flows from operating activities.

 Financial Ratios of Versuni India Home Solutions Limited

Here is a summary of the financial and operational metrics for Power Exchange Limited for the year 2023 and 2024:

Current Ratio: The current ratio decreased from 1.6 in 2023 to 1.4 in 2024. This ratio, calculated as current assets divided by current liabilities, measures the company’s ability to cover its short-term obligations with its short-term assets. A ratio of 1.4 indicates that for every ₹1 of current liabilities, the company has ₹1.40 in current assets.

Debt-to-Equity Ratio: The debt-to-equity ratio increased from 0.1 in 2023 to 0.2 in 2024. This ratio, calculated as total debt divided by shareholders’ equity, reflects the company’s leverage and financial risk. An increase indicates that the company is using more debt relative to equity to finance its operations. Although a ratio of 0.2 suggests a relatively low level of debt compared to equity, the rise could indicate growing financial risk or increased borrowing.

Debt Service Coverage Ratio: The debt service coverage ratio decreased significantly from 30 to 16.6. This ratio, which measures the company’s ability to meet its debt obligations from its operating income, is calculated as operating income divided by total debt service (interest and principal repayments). A ratio of 16.6 means the company earns 16.6 times its debt obligations in operating income, which still suggests a strong ability to cover debt payments. However, the sharp decline from the previous year indicates a reduced capacity to service debt, potentially due to higher debt or lower operating income.

Return on Equity (ROE): ROE fell from 0.4 in 2023 to 0.3 in 2024. This ratio, calculated as net income divided by shareholders’ equity, measures the return generated on shareholders’ investment. A decrease in ROE suggests that the company is generating less profit for every unit of equity invested. This decline could indicate reduced profitability or increased equity, reflecting lower efficiency in generating returns for shareholders.

Inventory Turnover Ratio: The inventory turnover ratio improved from 5.3 to 5.6. This ratio, calculated as the cost of goods sold divided by average inventory, measures how efficiently the company is managing and selling its inventory. An increase indicates that the company is selling through its inventory more quickly, which is a positive sign of efficient inventory management and effective sales strategies.

Trade Receivables Turnover Ratio: The trade receivables turnover ratio decreased from 15.9 to 14.2. This ratio, calculated as net credit sales divided by average trade receivables, measures how efficiently the company collects receivables from its customers. A lower ratio suggests slower collection of receivables, which may impact cash flow and working capital. This decline could be due to extended credit terms or difficulties in collecting outstanding invoices.

Trade Payables Turnover Ratio: The trade payables turnover ratio remained relatively stable at 5.4 in 2024 compared to 5.5 in 2023. This ratio, calculated as cost of goods sold divided by average trade payables, measures how quickly the company pays its suppliers. A stable ratio indicates consistent payment practices to suppliers, which is important for maintaining supplier relationships and credit terms.

Net Capital Turnover Ratio: The net capital turnover ratio increased significantly from 8.9 to 12.4. This ratio, calculated as net sales divided by average net capital employed (total capital less non-operating assets), measures how efficiently the company uses its capital to generate sales. An increase indicates improved efficiency in utilizing capital to drive revenue, reflecting better operational performance and capital management.

Net Profit Ratio: The net profit ratio decreased from 8.1% to 6.9%. This ratio, calculated as net profit divided by net sales, measures the proportion of revenue that translates into profit. The decline suggests a reduction in overall profitability, possibly due to increased costs or decreased revenue, impacting the company’s ability to convert sales into profit.

Return on Capital Employed (ROCE): ROCE decreased from 0.5 in 2023 to 0.4 in 2024. This ratio, calculated as earnings before interest and tax (EBIT) divided by capital employed, measures the profitability and efficiency in using capital. A lower ROCE indicates a reduced return on the capital invested in the business, suggesting decreased operational efficiency or profitability despite improved capital turnover.

Dividend history of Philips Domestic Appliances India Limited