Schneider Electric Annual Reports, Balance Sheet and Financials

Schneider Electric President Systems Limited Balance Sheet (Rs in Million)

Schneider Electric President Systems Limited Profit & Loss Statement (Rs in Million)

Schneider Electric President Systems Limited Consolidated Cash Flow Statement (Rs in Million)

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

Profit Before Tax:

2024: ₹405.45 million

2023: ₹230.38 million

Explanation: This indicates that the company’s profit before tax increased significantly by ₹175.07 million (around 76%) in 2024 compared to 2023, suggesting improved operational efficiency or higher revenues.

Adjustment to Reconcile Profit Before Tax:

Depreciation and Amortization Expenses: Increased from ₹70.75 million in 2023 to ₹94.17 million in 2024, reflecting higher depreciation and amortization charges, likely due to increased capital expenditure.

Liabilities No Longer Required Written Back: Increased from -₹5.58 million in 2023 to -₹16.5 million in 2024, showing that more previously recorded liabilities were no longer needed.

(Gain)/Loss on Sale of Property, Plant, and Equipment (Net): Small gain of ₹0.4 million in 2024 compared to a minor loss of ₹0.06 million in 2023.

Impairment Allowance on Trade Receivables: No allowance recorded in 2024, compared to ₹12.78 million in 2023, suggesting an improvement in receivables ' quality or a change in accounting estimates.

Provision for Doubtful Debts: Slight decrease from ₹1.81 million in 2023 to ₹1.38 million in 2024.

Bad Debts Written Off: Recorded ₹9.47 million in 2024, showing the company wrote off bad debts, which was not the case in 2023.

Net Unrealized Foreign Exchange Differences: Improved from -₹4.66 million in 2023 to -₹1.14 million in 2024, indicating reduced foreign exchange losses.

Finance Income: Increased from -₹5 million in 2023 to -₹8.5 million in 2024, suggesting higher interest income or changes in investments.

Finance Costs: Decreased slightly from ₹13.48 million in 2023 to ₹12.47 million in 2024, indicating lower borrowing costs.

Provision for Litigations: No provision made in 2024 compared to ₹0.26 million in 2023.

Operating Profit Before Working Capital Changes:

2024: ₹497.20 million

2023: ₹288.60 million

Explanation: This shows a substantial increase in operating profit before adjusting for working capital changes, up by ₹208.60 million (around 72%) in 2024, indicating strong operational performance.

Working Capital Adjustments:

Decrease/(Increase) in Trade Receivables: Significant decrease of ₹542.26 million in 2024 compared to an increase of ₹445.68 million in 2023, suggesting that the company either collected more from receivables or reduced outstanding invoices.

Decrease/(Increase) in Other Financial Assets: Minor decrease from -₹5.06 million in 2023 to -₹7.42 million in 2024.

Decrease/(Increase) in Other Assets: Shift from an increase of ₹106.82 million in 2023 to a decrease of ₹86.7 million in 2024.

Decrease/(Increase) in Inventories: Minor decrease in inventory of ₹2.32 million in 2024 compared to an increase of ₹23.82 million in 2023.

Increase/(Decrease) in Trade Payables: Significant increase of ₹197.79 million in 2024 compared to a decrease of ₹135.51 million in 2023, indicating more payments to suppliers or a change in supplier credit terms.

Increase/(Decrease) in Other Financial Liabilities: Decrease of ₹7.13 million in 2024 versus an increase of ₹17.5 million in 2023.

Increase/(Decrease) in Other Liabilities: Increase of ₹8.05 million in 2024 compared to a decrease of ₹5.23 million in 2023.

Increase/(Decrease) in Provisions: Small decrease of ₹4.69 million in 2024 compared to an increase of ₹4.6 million in 2023.

Cash Generated from Operations:

2024: ₹57.16 million

2023: ₹741.22 million

Explanation: There was a significant drop in cash generated from operations, decreasing by ₹684.06 million (about 92%) in 2024. This is largely due to changes in working capital adjustments.

Income Tax Paid (Net of Refunds):

2024: -₹63.9 million

2023: -₹57.7 million

Explanation: Increase in income tax paid by ₹6.2 million, likely due to higher profits.

Net Cash Flow from/ (Used in) Operating Activities:

2024: -₹6.74 million

2023: ₹683.52 million

Explanation: The company experienced a net cash outflow in 2024 compared to a significant inflow in 2023, reflecting changes in working capital and operational cash generation.

Investing Activities:

Purchase of Property, Plant, and Equipment: Increased from -₹42.26 million in 2023 to -₹57.46 million in 2024, indicating higher capital expenditure.

Proceeds from Sale of Property, Plant, and Equipment: Small amount of ₹1.82 million in 2023 with no proceeds in 2024.

Interest Received: Increased from ₹2.28 million in 2023 to ₹5.7 million in 2024, showing higher income from investments or deposits.

Net Cash Flow from/ (Used in) Investing Activities:

2024: -₹51.76 million

2023: -₹38.16 million

Explanation: The cash outflow from investing activities increased by ₹13.60 million, reflecting higher investment expenditures.

Financing Activities:

Payment of Principal Portion of Lease Liabilities: Increased slightly from -₹9.72 million in 2023 to -₹10.37 million in 2024.

Interest Paid: Decreased from -₹13.48 million in 2023 to -₹7.83 million in 2024, indicating lower borrowing costs or interest payments.

Repayment of Short-Term Borrowings: New repayment of ₹2.99 million in 2024.

Repayments of Short-Term Borrowings from Fellow Subsidiaries: No repayments in 2024 compared to -₹152.32 million in 2023.

Net Cash from/ (Used in) Financing Activities:

2024: -₹21.19 million

2023: -₹175.52 million

Explanation: Significant improvement in net cash used in financing activities, reducing the outflow by ₹154.33 million.

Net Increase/ (Decrease) in Cash and Cash Equivalents:

2024: -₹79.69 million

2023: ₹469.84 million

Explanation: The company experienced a net decrease in cash and cash equivalents, contrasting with a significant increase in 2023.

Cash and Cash Equivalents at the Beginning of the Year:

2024: ₹481.78 million

2023: ₹14.06 million

Explanation: Significant increase in cash and cash equivalents at the beginning of 2024 compared to 2023.

Effects of Changes in Exchange Rates on Cash and Cash Equivalents:

2024: ₹0.83 million

2023: -₹2.12 million

Explanation: Positive impact on cash and cash equivalents due to exchange rate fluctuations in 2024.

Cash and Cash Equivalents at the End of the Year:

2024: ₹402.92 million

2023: ₹481.78 million

Explanation: Decrease in cash and cash equivalents at the end of 2024 compared to 2023, reflecting the overall cash outflows during the year.

Components of Cash and Cash Equivalents:

Balances with Banks (Current Accounts): Decreased slightly from ₹0.22 million in 2023 to ₹0.1 million in 2024.

Deposits with Original Maturity of Less Than Three Months: Decreased from ₹446 million in 2023 to ₹333 million in 2024.

Exchange Earners Foreign Currency (EEFC) Accounts: ₹69.82 million in 2024, indicating a new component in cash equivalents related to foreign currency balances.

Financial Ratios of Schneider Electric President Systems Limited

Here is a summary of the financial and operational metrics for Schneider Electric President Systems Limited for the years 2024 and 2023:

Current Ratio:

2024: 2.31

2023: 2.31

Insight: The current ratio remains unchanged at 2.31, indicating consistent liquidity levels. The company has the same level of short-term assets relative to its short-term liabilities as in the previous year, suggesting stable short-term financial health.

Debt – Equity Ratio:

2024: 0.11

2023: 0.03

Insight: The debt-to-equity ratio has increased from 0.03 to 0.11, signalling a higher reliance on debt relative to equity. This rise could indicate increased borrowing or a change in the capital structure. However, the ratio remains low, indicating relatively low financial risk and a conservative use of debt.

Debt Service Coverage Ratio:

2024: 234.90%

2023: 119.55%

Insight: This ratio has improved significantly, indicating that the company’s ability to cover its debt obligations with operating cash flow has increased. The high ratio in 2024 suggests strong financial health and the company’s ability to comfortably meet its debt payments.

Return on Equity Ratio:

2024: 21.75%

2023: 14.48%

Insight: A substantial increase in return on equity (ROE) from 14.48% to 21.75% reflects improved profitability relative to shareholders’ equity. This indicates effective use of shareholders ' funds and a strong return on investments made by the equity holders.

Inventory Turnover Ratio:

2024: 13.04

2023: 10.61

Insight: An increase in inventory turnover ratio suggests more efficient inventory management. The company is selling and replacing its inventory faster in 2024 compared to 2023, which is positive for operational efficiency and liquidity.

Trade Receivables Turnover Ratio:

2024: 4.26

2023: 3.82

Insight: This ratio has improved, indicating that the company is more effective in collecting its receivables. A higher turnover ratio means quicker collection of receivables, which improves cash flow.

Trade Payables Turnover Ratio:

2024: 5.33

2023: 4.34

Insight: The increase in the trade payables turnover ratio suggests that the company is paying off its trade payables more quickly. This might indicate better supplier relationships or more efficient management of payables.

Net Capital Turnover Ratio:

2024: 3.86

2023: 4.74

Insight: The decline in net capital turnover ratio implies a reduction in efficiency in utilizing capital to generate revenue. The decrease suggests that the company’s capital base has increased relative to its revenue generation.

Net Profit Ratio:

2024: 7.63%

2023: 5.00%

Insight: The increase in net profit ratio indicates improved profitability. The company’s net profit as a percentage of its revenue has risen, reflecting better cost management or higher revenues.

Return on Capital Employed (ROCE):

2024: 22.57%

2023: 14.59%

Insight: The significant improvement in ROCE indicates better utilization of capital employed in generating profits. The company has become more efficient in using its capital to generate earnings.

Return on Investment (ROI):

2024: 17.04%

2023: 10.08%

Insight: The increase in ROI signifies improved returns on investments. This reflects that the company is achieving higher profitability relative to the investments made.

Dividend History

Schneider Electric President Systems Limited Recent Financial Performance

Dividend per Share: The specific dividend per share figure for 2024 and 2023 is not provided. Dividend per share represents the portion of a company 's earnings that is distributed to shareholders in the form of dividends. A higher dividend per share may indicate that the company is sharing more of its profits with shareholders.

Retained Earnings: Retained earnings for 2024 amounted to Rs 1,337.93 million, while in 2022, they were Rs. 1,044.32 million. Retained earnings represent the portion of a company 's profits that is reinvested in the business rather than distributed as dividends. An increase in retained earnings suggests that the company has retained more of its profits for reinvestment or future growth.

To provide a more comprehensive analysis, it would be necessary to consider additional financial metrics such as revenue, net profit, assets, liabilities, and cash flows. Additionally, an analysis of trends over multiple years and a comparison to industry benchmarks and competitors would help in assessing the company 's financial health and performance