Purity Flexpack Annual Report, Balance Sheet & Revenue

Purity Flexpack Limited Balance Sheet (Rs in Lakhs)

Purity Flexpack Limited Profit & Loss Statement (Rs in Lakhs)

Purity Flexpack Limited Consolidated Cash Flow Statement (Rs in Lakhs)

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

Cash Flow from Operating Activities

Net Profit Before Tax: For the year ending March 31, 2024, the net profit before tax was $121.59 million, slightly higher than the $120.26 million reported for the previous year. This indicates a modest increase in profitability before accounting for tax expenses.

Adjustments for Non-Cash Items:

Depreciation and Amortization Expense: This rose from $359.89 million to $371.75 million, reflecting the higher depreciation charges on fixed assets and amortization of intangible assets.

Depreciation on Right of Use Assets: This remained constant at $6.81 million, indicating stable usage and amortization of leased assets.

(Gain)/Loss on Sale of Assets: There was a gain of $5.82 million in the current year, whereas there was no gain or loss reported in the previous year.

(Gain)/Loss on Sale of Investment: The loss increased to $2.19 million from $0.16 million, which suggests a decline in the value of investments sold.

Finance Costs: Finance costs decreased slightly to $208.12 million from $212.22 million, reflecting a reduction in interest expenses or lower borrowing costs.

Net (Gain)/Loss of Foreign Currency Fluctuation (Unrealized): There was an unrealized gain of $2.74 million compared to a small gain of $0.13 million in the previous year, indicating more favorable currency movements.

Income Received from Banks/Others: Increased to $12.62 million from $8.26 million, showing higher earnings from bank or other sources.

Net (Gain)/Loss Arising on Investments Measured at Fair Value Through Profit and Loss: The loss increased to $10.3 million from $0.97 million, indicating a decline in the fair value of investments.

Provision for Expected Credit Loss (ECL): There was a reversal to $1.84 million from a provision of $3.11 million, indicating improved credit quality.

Operating Profit Before Working Capital Changes: The profit decreased to $672.75 million from $693.04 million, reflecting the net effect of the above adjustments.

Adjustments for Changes in Working Capital:

Change in Trade Receivables: A significant increase in receivables by $213.66 million compared to a decrease of $226.66 million in the previous year suggests more credit sales or slower collection.

Change in Other Non-Current Financial Assets: Increased by $2.36 million, up from $1.14 million, indicating an increase in long-term financial assets.

Change in Other Assets: Increased by $71.54 million compared to a minor change in the previous year, which may reflect higher prepayments or advances.

Change in Inventories: Decreased to $71.17 million from $204.07 million, suggesting improved inventory management or a reduction in stock.

Change in Trade Payables: Increased by $215.94 million compared to a decrease of $626.18 million in the previous year, indicating more credit purchases or delayed payments.

Change in Other Financial Liabilities: Increased by $30.34 million compared to a decrease of $23.48 million, reflecting higher other liabilities.

Change in Other Current Liabilities and Provisions: Decreased by $22.37 million compared to an increase of $26.93 million, showing reduced provisions or liabilities.

Cash Generated from Operations: The net cash generated increased to $828.07 million from $502.05 million, reflecting better cash generation from core operations.

Less: Income Tax Paid: Reduced slightly to $10.65 million from $11.92 million, indicating lower tax payments.

Net Cash Generated from Operating Activities: This increased to $817.42 million from $490.13 million, highlighting improved operational cash flow.

Cash Flow from Investing Activities

Purchase of Investments: Increased to $42 million from $13.4 million, suggesting more investment activity.

Sales Proceeds of Investments: Increased to $52.97 million from $13.4 million, indicating higher cash inflows from the sale of investments.

Purchase of Property, Plant & Equipment, Investment Property & Intangibles: Increased to $324.63 million from $179.57 million, reflecting higher capital expenditures.

Sale Proceeds of Property, Plant & Equipment: There was a sale worth $11 million, compared to none in the previous year.

Term Deposits with Maturity 3 to 12 Months: Increased to $42.22 million from a reduction of $105.41 million, reflecting changes in short-term investments.

Interest Received from Banks/Others: Increased to $12.62 million from $8.26 million, indicating more interest income.

Net Cash Used in Investing Activities: Reduced slightly to $247.82 million from $276.72 million, despite higher capital expenditures, due to increased sales of investments and interest received.

Cash Flow from Financing Activities

Finance Cost: Decreased to $195.71 million from $200 million, reflecting reduced interest expenses.

Proceeds/(Repayment) of Short-Term Borrowings: A net outflow of $52.97 million compared to an inflow of $326.78 million, indicating reduced short-term borrowing.

Proceeds of Long-Term Borrowings: Increased to $180 million from $115 million, indicating new long-term borrowings.

(Repayment) of Long-Term Borrowings: Decreased to $486.58 million from $501.56 million, reflecting a reduction in long-term debt repayments.

Payments of Interest Portion of Lease Liabilities: Increased slightly to $9.92 million from $9.45 million.

Net Cash Used in Financing Activities: Increased to $565.19 million from $269.22 million, reflecting higher net outflows due to increased borrowings and interest payments.

Net (Decrease)/Increase in Cash & Cash Equivalents

Net Increase in Cash & Cash Equivalents: The net increase was $4.41 million compared to a decrease of $55.82 million in the previous year, showing improved liquidity.

Cash & Cash Equivalents at the Beginning of the Period/Year: Increased to $14.01 million from $69.83 million, indicating lower opening cash balances.

Cash & Cash Equivalents at the End of the Period/Year: Increased to $18.42 million from $14.01 million, reflecting a positive change in cash position despite higher outflows in financing activities.

Financial Ratios of Purity Flexpack Limited

Here is a summary of the financial and operational metrics for Purity Flexpack Limited for the year 2024 & 2023:

Current Ratio

2024: 1.43

2023: 1.71

Insight: The current ratio, which measures the company's ability to pay short-term liabilities with short-term assets, has decreased from 1.71 to 1.43. This decline indicates a reduction in liquidity and suggests that the company has less cushion to cover its short-term obligations. This could be due to an increase in current liabilities or a decrease in current assets.

2. Debt-Equity Ratio

2024: 0.12

2023: 0.11

Insight: The debt-equity ratio has slightly increased from 0.11 to 0.12. This ratio measures the company's financial leverage and indicates that the company has a very low level of debt relative to its equity. The increase is minimal and suggests that the company remains conservatively financed with minimal debt relative to equity.

3. Debt-Service Coverage Ratio (DSCR)

2024: 4.71

2023: 12.05

Insight: The debt-service coverage ratio has significantly decreased from 12.05 to 4.71. This ratio indicates the company's ability to service its debt obligations from its operating income. A lower DSCR suggests reduced ability to cover debt payments, which may reflect decreased operating income or increased debt service requirements.

4. Return on Equity (ROE)

2024: 7.13%

2023: 32.16%

Insight: The return on equity has dropped sharply from 32.16% to 7.13%. This indicates a significant decline in profitability relative to shareholders' equity. A lower ROE suggests that the company is less efficient in generating profit from shareholders' funds, which could be due to reduced net income or increased equity.

5. Trade Receivables Turnover Ratio

2024: 4.34

2023: 3.63

Insight: The trade receivables turnover ratio has improved from 3.63 to 4.34. This ratio measures how effectively the company collects its receivables. An increase indicates improved efficiency in collecting accounts receivable, which is positive for cash flow.

6. Inventory Turnover Ratio

2024: 0.55

2023: 0.56

Insight: The inventory turnover ratio has slightly decreased from 0.56 to 0.55. This ratio measures how often inventory is sold and replaced over a period. A slight decrease suggests that the company is selling inventory at a slightly slower rate, which may indicate either slower sales or increased inventory levels.

7. Trade Payables Turnover Ratio

2024: 2.61

2023: 2.43

Insight: The trade payables turnover ratio has improved from 2.43 to 2.61. This ratio measures how quickly the company pays off its trade creditors. An increase suggests that the company is managing its payables more effectively, possibly paying off creditors more quickly.

8. Net Capital Turnover Ratio

2024: 11.04

2023: 8.01

Insight: The net capital turnover ratio has increased from 8.01 to 11.04. This ratio indicates how efficiently the company is using its capital to generate revenue. A higher ratio suggests improved efficiency and effective use of capital to generate sales.

9. Net Profit Ratio

2024: 3.51%

2023: 8.29%

Insight: The net profit ratio has decreased from 8.29% to 3.51%. This ratio measures the percentage of revenue that remains as profit after all expenses. The decrease suggests reduced profitability, which could be due to higher costs or lower revenue.

10. Return on Capital Employed (ROCE)

2024: 9.18%

2023: 16.09%

Insight: The return on capital employed has decreased from 16.09% to 9.18%. This ratio measures the return generated on the total capital employed in the business. The decline indicates reduced efficiency in generating returns from capital, potentially due to lower operating profit or increased capital employed.

11. Return on Investment (ROI)

2024: 35%

2023: 11%

Insight: The return on investment has increased significantly from 11% to 35%. This ratio measures the profitability relative to the total investments. The substantial increase suggests that the company has achieved a much higher return on its investments, which could indicate successful investment strategies or improved overall financial performance.