Philips Domestic Annual Reports, Balance Sheet and Financials

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

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

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

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

Cash Flow from Operating Activities

Net cash generated from operating activities decreased substantially to ₹593 million in 2025 from ₹1,794 million in 2024, despite a marginal rise in profit before tax to ₹1,667 million. Non-cash expenses such as depreciation and amortization of ₹284 million and finance costs of ₹70 million supported operating cash flows. However, adverse working capital movements significantly impacted cash generation. Inventories increased by ₹1,032 million, indicating higher stock holding, while trade receivables and other advances rose by ₹326 million, reflecting slower collections. These outflows were partly offset by an increase in trade payables and other liabilities of ₹531 million. Additionally, income tax paid increased sharply to ₹505 million, which further reduced net operating cash inflows.

Cash Flow from Investing Activities

Net cash used in investing activities amounted to ₹185 million in 2025, compared to ₹344 million in 2024, indicating reduced investment outflows. The company incurred capital expenditure of ₹289 million on property, plant and equipment, lower than the previous year, suggesting controlled capital investment. Cash inflows included interest income received of ₹103 million, which helped offset the investing outflows. Proceeds from the sale of fixed assets were negligible.

Cash Flow from Financing Activities

Financing activities resulted in a net cash outflow of ₹1,071 million, lower than ₹1,703 million in the previous year. The principal outflow was dividend payments of ₹920 million, although lower than last year’s payout. The company also made principal repayments of lease obligations amounting to ₹81 million and interest payments totaling ₹70 million, reflecting regular servicing of financial commitments. The reduced outflow indicates a relatively lower shareholder payout compared to the prior year.

Net Change in Cash and Cash Equivalents

As a result of the above activities, cash and cash equivalents declined by ₹664 million during 2025, compared to a decline of ₹253 million in 2024. The cash balance reduced from ₹1,580 million at the beginning of the year to ₹916 million at year end. The decrease was primarily driven by weaker operating cash flows and continued financing outflows, highlighting the need for improved working capital efficiency.

Financial Ratios of Versuni India Home Solutions Limited

Summary of the financial and operational metrics for Power Exchange Limited for the year 2025 and 2024:

Current Ratio

The current ratio remained constant at 1.4 in both 2025 and 2024, indicating stable short-term liquidity. The company continues to maintain an adequate level of current assets to meet its current liabilities. However, while stability is positive, the absence of improvement suggests there has been no strengthening of working capital efficiency during the year.

Debt–Equity Ratio

The debt–equity ratio stayed unchanged at 0.2 in both years, reflecting a conservative capital structure with low reliance on external debt. This indicates strong financial stability and low financial risk. The company continues to fund its operations largely through equity, which enhances long-term solvency.

Debt Service Coverage Ratio

The DSCR declined from 16.6 in 2024 to 13.6 in 2025, though it remains at a very healthy level. This indicates that while the company still comfortably meets its debt servicing obligations, there has been a slight reduction in surplus cash available after servicing debt. The decline may be due to lower operating profits or increased debt service requirements.

Return on Equity

Return on equity improved from 0.3 in 2024 to 0.4 in 2025, indicating better profitability for shareholders. This improvement suggests that the company has utilized shareholders’ funds more efficiently during the year, resulting in higher returns on equity investment.

Inventory Turnover Ratio

The inventory turnover ratio declined from 5.6 to 4.9, indicating slower movement of inventory in 2025. This may suggest higher inventory holding, slower sales, or inefficiencies in inventory management. A lower turnover ratio can lead to increased holding costs and potential obsolescence risks.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio decreased from 14.2 in 2024 to 13.6 in 2025, indicating a slight slowdown in the collection of receivables. This suggests that customers are taking marginally longer to pay, which may impact short-term liquidity if the trend continues.

Trade Payables Turnover Ratio

The trade payables turnover ratio increased from 5.4 to 5.7, indicating faster payment to suppliers in 2025. While this may strengthen supplier relationships, it could also put pressure on cash flows if not balanced with receivables collections.

Net Capital Turnover Ratio

The net capital turnover ratio declined from 12.4 in 2024 to 11.4 in 2025, suggesting reduced efficiency in the utilization of working capital to generate sales. This indicates that higher levels of capital are being tied up relative to revenue, affecting operational efficiency.

Net Profit Ratio

The net profit ratio decreased slightly from 6.90% to 6.6%, indicating a marginal reduction in profitability. This may be due to increased operating costs, pricing pressures, or reduced margins. Although the decline is small, it signals the need for cost control and margin improvement.

Return on Capital Employed

The ROCE remained stable at 0.4 in both 2025 and 2024, indicating consistent efficiency in generating returns from total capital employed. While stability reflects steady performance, the absence of growth suggests limited improvement in operational efficiency.