Power Exchange Annual Report, Balance Sheet & Financials

Power Exchange India Limited Balance Sheet (Rs in Thousands)

 Power Exchange India Limited Profit & Loss Statement (Rs in Thousands)

Power Exchange India Limited Consolidated Cash Flow Statement (Rs in Thousands)

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

Cash Flow from Operating Activities

For the year ending March 31, 2023, the company reported a profit before tax of ₹2,91,384.00 thousand, up from ₹1,84,657.54 thousand in the previous year. This increase reflects improved profitability. The adjustments made to this profit include depreciation and amortization expenses, interest on lease liabilities, and changes in various assets and liabilities.

Key adjustments include a decrease in interest income from fixed deposits, which rose significantly from ₹45,348.26 thousand to ₹63,955.35 thousand, and a large reduction in liabilities and provisions, from an increase of ₹7,16,679.47 thousand in 2022 to a decrease of ₹6,05,913.10 thousand in 2023. The combination of these adjustments led to a cash outflow from operations of ₹-3,33,480.96 thousand, compared to a cash inflow of ₹-8,81,189.15 thousand in the previous year. After accounting for income taxes paid, the net cash outflow from operating activities was ₹-3,70,738.17 thousand, compared to a significant inflow of ₹8,81,774.49 thousand in 2022.

Cash Flow from Investing Activities

In investing activities, the company had a net cash outflow of ₹1,95,395.23 thousand for the year ending March 31, 2023, compared to ₹1,20,044.20 thousand in the previous year. This outflow was driven by payments for property, plant, and equipment, investments in fixed deposits, and purchases of new investments. However, the company also received interest income and proceeds from the disposal of assets, partially offsetting the outflows.

Cash Flow from Financing Activities

The cash flow from financing activities showed a net outflow of ₹9,473.36 thousand in 2023, compared to ₹7,544.62 thousand in 2022. This outflow included payments for lease liabilities and interest on lease liabilities.

Net Change in Cash and Cash Equivalents

Overall, the company 's cash and cash equivalents decreased by ₹5,75,606.76 thousand during the year, compared to an increase of ₹7,54,185.68 thousand the previous year. The cash balance at the end of the year was ₹4,18,896.90 thousand, down from ₹9,94,503.66 thousand at the beginning of the year.

 Financial Ratios of Power Exchange India Limited

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

Current Ratio: The current ratio increased from 1.17 in 2022 to 1.51 in 2023. This improvement suggests enhanced liquidity, indicating that the company has a better ability to meet its short-term obligations with its current assets.

Debt to Equity Ratio: The debt to equity ratio dropped significantly from 0.05 in 2022 to 0.02 in 2023. This low ratio highlights the company’s minimal reliance on debt financing relative to its equity, reflecting a strong financial position and low financial risk.

Debt Service Coverage Ratio: This ratio improved from 41.14 in 2022 to 53.9 in 2023, indicating the company’s better ability to service its debt obligations with its operating income.

Return on Equity (ROE): ROE decreased slightly from 0.39 in 2022 to 0.37 in 2023. This minor decline suggests a marginal reduction in the company’s profitability relative to shareholders’ equity, but it remains strong overall.

Net Profit Ratio: The net profit ratio improved slightly from 44.72% in 2022 to 44.98% in 2023, indicating that the company has been able to slightly enhance its profitability relative to its sales.

Return on Capital Employed (ROCE): ROCE increased from 53.92% in 2022 to 55.34% in 2023, reflecting a more efficient use of capital in generating profits, thus showing enhanced operational performance.

Return on Investment (ROI): The ROI rose from 5.31% in 2022 to 5.98% in 2023, suggesting that the company’s investments are generating higher returns, enhancing overall investment efficiency.

Trade Receivables Ratio: This ratio surged from 56.85 in 2022 to 331.29 in 2023, indicating a significant increase in the average number of days it takes to collect receivables. This could suggest potential issues with collections or changes in credit terms.

Trade Payables Ratio: The ratio declined from 5.47 in 2022 to 3.90 in 2023, reflecting a reduction in the average number of days the company takes to pay its suppliers. This might indicate better payment practices or stronger cash flows.

Net Capital Turnover Ratio: This ratio decreased from 1.37 in 2022 to 0.92 in 2023, suggesting a reduction in the efficiency of using capital to generate sales. This decline may indicate lower sales relative to the amount of capital employed.