Polymatech Annual Reports, Balance Sheet and Financials

Polymatech Electronics Limited Balance Sheet (Rs in Lakhs)

 Polymatech Electronics Limited Profit & Loss Statement (Rs in Lakhs)

 Polymatech Electronics Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the years 2024,  2023 and 2022:

Cash Flow from Operating Activities

2024: The company recorded a significant net cash inflow of ₹25,387.60 lakhs from operating activities, up considerably from the previous years. This positive flow primarily results from a net profit after tax of ₹24,009.21 lakhs, bolstered by non-cash adjustments like depreciation of ₹5,016.62 lakhs and finance costs of ₹13.15 lakhs. Working capital adjustments include substantial increases in trade receivables and inventories, which reduced cash flow, while the increase in other current liabilities (₹46,505.56 lakhs) contributed to higher cash inflows. The net tax outflow was ₹1,597.90 lakhs.

2023: Net cash from operating activities in 2023 was ₹4,753.13 lakhs, a significant increase from 2022. While operating profit was driven by a net profit of ₹16,677.67 lakhs, the net impact of changes in working capital was more modest than in 2024. Notable adjustments include an increase in trade receivables and inventories, as well as a minor increase in trade payables and other current liabilities.

2022: Operating cash flow was only ₹294.75 lakhs in 2022, reflecting a relatively modest operational performance. The profit after tax was ₹3,480.11 lakhs, and working capital changes were mixed, with small increases in trade payables and other liabilities offsetting inventory and receivables growth. This low cash flow suggests that the company had limited internal funding capability at this time.

Cash Flow from Investing Activities

2024: The company had a substantial net cash outflow of ₹47,724.84 lakhs from investing activities. This primarily resulted from significant investments in property, plant, and equipment (₹34,186.41 lakhs), indicating a possible expansion or modernization effort. The company also invested ₹13,729.62 lakhs in mutual funds, and these heavy outflows highlight a strategic allocation of resources toward long-term growth assets. Minor inflows from interest income (₹3.10 lakhs) and gains on the sale of investments (₹165.18 lakhs) partially offset these outflows.

2023: Investing cash flow in 2023 was negative ₹8,033.33 lakhs, mainly due to property, plant, and equipment purchases totaling ₹8,036.52 lakhs. Unlike 2024, there were no significant inflows from other investments or sales, resulting in a net outflow. This indicates a moderate level of investment compared to the substantial capital deployment in 2024.

2022: In 2022, the net cash outflow from investing was ₹991.05 lakhs, mainly for property, plant, and equipment investments (₹991.05 lakhs). This lower level of investment activity reflects a period of relatively conservative capital expenditure compared to the subsequent years.

Cash Flow from Financing Activities

2024: Financing activities resulted in a net inflow of ₹20,410.40 lakhs. The most significant contribution came from the proceeds from the issue of share capital (₹646.16 lakhs) and a large inflow from securities premium (₹22,009.82 lakhs), possibly indicating equity financing efforts. There was a slight decrease in borrowings (net decrease of ₹2,232.43 lakhs), which partly offset the cash inflows. The finance costs were also minimal at ₹13.15 lakhs, highlighting reduced debt-related expenses.

2023: Net cash from financing activities was ₹7,411.30 lakhs. Key inflows included proceeds from share capital issuance and securities premium. However, there was a slight decrease in borrowings (₹451.08 lakhs), which partially offset these inflows. Compared to 2024, the financing activities were lower in magnitude, likely reflecting more conservative capital raising and debt repayment strategies.

2022: Financing activities generated a smaller net inflow of ₹698.70 lakhs. Notable inflows included proceeds from borrowings (₹995.55 lakhs) and financing of long-term loans and advances. The net inflow from financing activities was modest, indicating limited reliance on external financing or shareholder contributions in this period.

Net Changes in Cash and Cash Equivalents

2024: Despite strong operating cash inflows, the substantial cash outflows for investments resulted in a net decrease of ₹1,926.84 lakhs in cash and cash equivalents. This indicates that even though the company generated operational cash, it heavily reinvested into its assets.

2023: The company saw a net increase in cash and cash equivalents of ₹4,131.10 lakhs. This was driven by moderate investing outflows and positive financing inflows, indicating better liquidity management.

2022: There was a small increase in cash and cash equivalents of ₹2.40 lakhs, reflecting the limited activity in both investing and financing. This suggests that the company maintained a stable but conservative cash position in 2022.

Financial Ratios of Polymatech Electronics Limited

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

Current Ratio:

2024: 1.51

2023: 8.94

The current ratio has decreased significantly from 8.94 in 2023 to 1.51 in 2024, indicating a sharp decline in liquidity. A current ratio above 1 is generally good, but the large drop suggests the company may have reduced its current assets or increased current liabilities. In 2023, a very high current ratio suggested excess liquidity or inefficiency in using short-term assets.

Debt-Equity Ratio:

2024: 1.04

2023: 0.2

The debt-equity ratio has increased from 0.2 to 1.04, meaning the company has taken on significantly more debt in 2024 relative to equity. This shift toward a higher leverage might indicate a strategy of using debt to finance expansion, though it also increases financial risk.

Debt Service Coverage Ratio (DSCR):

2024: 12.93

2023: 54.11

The DSCR, which shows the company’s ability to cover debt obligations, has dropped significantly, indicating reduced capacity to service debt despite being at a still-comfortable level. A DSCR of 12.93 still suggests strong coverage, but the large drop from 2023 might warrant closer scrutiny if the trend continues.

Return on Equity (ROE):

2024: 3.17%

2023: 2.46%

The ROE has increased, showing improved profitability from shareholders ' equity. This improvement, though modest, suggests the company is generating slightly higher returns for its investors.

Net Profit Ratio:

2024: 22.12%

2023: 25.70%

The net profit ratio, which indicates profitability as a percentage of revenue, has decreased from 25.70% to 22.12%. This decrease implies a slight reduction in profitability, possibly due to increased costs or reduced pricing power.

Return on Capital Employed (ROCE):

2024: 32.02%

2023: 46.21%

ROCE has decreased, indicating that the company is generating a lower return on its capital base compared to the previous year. Despite the drop, 32.02% is still a strong ROCE, showing effective utilization of capital, but the decrease could indicate increased costs or less efficient capital usage.

Inventory Turnover Ratio:

2024: 4.62

2023: 15.9

The inventory turnover ratio has dropped significantly, indicating that inventory is moving much slower. A lower ratio might point to excess inventory, slower sales, or issues in inventory management. In 2023, a high inventory turnover ratio suggested efficient inventory management or high demand.

Net Capital Turnover Ratio:

2024: 3.07

2023: 3.13

This ratio, which shows how efficiently net capital is used to generate revenue, has remained stable, decreasing only slightly from 3.13 to 3.07. This consistency indicates that the company 's efficiency in generating revenue from its net capital base has remained steady year-over-year.