Speciality Medicines Limited (SMCL) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40
Speciality Medicines Limited

Speciality Medicines Limited Standalone Balance Sheet (Rs. in Lakhs)

Particulars	31-03-2025	31-03-2024
Non-current assets
Property, plant and equipment	186.66	147.10
Intangible Assets	10.17	-
Intangible Assets under development	-	8.78
Non-Current Investments	10.15	9.96
Deferred Tax Assets (net)	-	1.78
Long Term Loans and Advances	3.00	3.00
Other Non-current Assets	149.38	67.16
Current assets
Inventories	1,737.60	803.14
Trade Receivables	960.46	1,071.32
Cash and Bank Balances	84.58	24.89
Short Term Loans and Advances	846.96	195.55
Other Current Assets	12.50	-
Total Assets	4,001.47	2,332.70
Equity
Equity Share capital	643.58	511.68
Reserves and Surplus	2,418.57	1,156.42
Non-Current liabilities
Long Term Borrowings	260.84	84.53
Deferred tax liabilities	4.28	-
Long Term Provisions	12.40	5.95
Current liabilities
Short Term Borrowings	243.84	201.30
Trade Payables
Total outstanding dues of creditors other than Micro and Small Enterprises	97.10	241.49
Other Current liabilities	171.24	64.06
Short term Provisions	149.62	67.27
Total Equity and Liabilities	4,001.47	2,332.70

Speciality Medicines Limited Standalone Profit and Loss Account (Rs. in Lakhs)

Particulars	31-03-2025	31-03-2024
Revenue from Operation	5,827.14	2,752.48
Other Income	26.83	13.24
Total Revenue	5,853.96	2,765.72
Expenses
Purchase & Other Direct Expenses	5,151.66	2,163.91
Change in Inventories	-934.46	-343.60
Employees Benefit Expenses	208.33	147.77
Finance Costs	47.27	113.96
Depreciation and Amortization Expenses	19.76	23.19
Operating and Other Expenditure	492.40	258.17
Total Expenses	4,984.96	2,363.55
Profit before Tax	869.00	402.17
Deferred tax	-	-2.97
Tax expenses for previous year	149.38	-
Net Profit / (Loss) for the period	719.62	405.14
Earnings per share
Basic	11.18	7.92
Diluted	11.18	7.92
Weighted average number of equity shares	64.36	51.17

Speciality Medicines Limited Standalone Cash Flow Statement (Rs. in Lakhs)

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Profit before Tax	869.00	402.17
Adjustments For:
Depreciation and Amortization	19.76	23.19
Finance Costs	47.27	60.47
Provision for Gratuity	6.58	3.91
Operating Profit/(Loss) before Working Capital Charges	942.61	489.74
Working Capital adjustments:
(Increase)/ Decrease in Inventories	-934.46	(343.60)
(Increase)/ Decrease in Trade Receivables	110.86	(520.73)
(Increase)/ Decrease in Loans and Advances	-651.41	(165.00)
(Increase)/Decrease in Other Current Assets	-12.50
(Increase)/ Decrease in Trade Payables	-144.39	61.27
(Increase)/ Decrease in Other Current Liabilities	107.18	5.76
(Increase)/ Decrease in Provisions	88.29	(7.47)
Cash generated from Operating Activities	-493.82	-480.02
Direct taxes Paid including for past years	-149.38	-
Net Cash Flow (Used in)/ Generated from Operating Activates	-643.20	-480.02
Cash Flow from Investing Activities
Sales/ (Purchase) of Tangible and Intangible Assets	-60.71	-2.52
Change in Non-Current Investments	-0.19	-
Changes in other non-current assets	-82.22	-
Net Cash Flow (Used in)/ Generated from Investing Activities	-143.12	-2.52
Cash Flow from Financing Activities
Finance cost	-47.27	-60.47
Issue of Equity Shares (Including Bonus Share)	131.90	129.67
(Increase)/ Decrease in Long term borrowings	176.31	-86.83
(Increase)/ Decrease in Short term borrowings	42.54	8.67
Utilization of Reserve for Conversion of CCD into Equity	-	-45.08
Security Premium	542.53	535.31
Net Cash Flow (Used in)/ Generated from Financing Activities	846.01	481.28
Net Changes in Cash and cash equivalents during the year	59.69	-1.26
Cash and cash equivalents at beginning of the year	24.89	26.15
Cash and cash equivalents at the end of the year	84.58	24.89

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

Cash Flow from Operating Activities

During the financial year ended March 31, 2025, the company’s cash flow from operating activities remained negative at ₹643.20 lakh, compared to a negative cash flow of ₹480.02 lakh in the previous year. Although profit before tax increased significantly from ₹402.17 lakh in FY 2023–24 to ₹869.00 lakh in FY 2024–25, the improvement in profitability did not translate into positive cash flow due to substantial working capital requirements. The company experienced a major increase in inventories amounting to ₹934.46 lakh and a rise in loans and advances by ₹651.41 lakh, both of which absorbed significant cash. Trade receivables reduced by ₹110.86 lakh, slightly easing liquidity, but this was offset by a decrease in trade payables of ₹144.39 lakh. After considering adjustments for depreciation, finance costs, and other provisions, the operating activities resulted in a cash deficit primarily because funds were tied up in current assets. Furthermore, direct taxes paid during the year amounted to ₹149.38 lakh, which further reduced the net operating cash flow. Overall, despite higher profitability, the company faced a strain on operational liquidity due to its expanding working capital base.

Cash Flow from Investing Activities

The company recorded a net cash outflow of ₹143.12 lakh from investing activities during FY 2024–25, compared to an outflow of ₹2.52 lakh in the previous year. The primary reason for this increase in cash usage was the purchase of tangible and intangible assets worth ₹60.71 lakh, indicating continued investment in capacity building and asset development. Additionally, there were outflows towards non-current investments and other non-current assets totaling ₹82.41 lakh. These investments suggest that the company is focusing on long-term growth and infrastructure enhancement, although such expenditures temporarily reduce the availability of free cash in the short term.

Cash Flow from Financing Activities

Financing activities generated a net inflow of ₹846.01 lakh in FY 2024–25, as compared to ₹481.28 lakh in FY 2023–24. The strong inflow was mainly supported by the issue of equity shares, including security premium, amounting to ₹674.43 lakh in total. The company also increased its long-term borrowings by ₹176.31 lakh and short-term borrowings by ₹42.54 lakh, reflecting the management’s reliance on both debt and equity to fund its operations and investments. Finance costs during the year were ₹47.27 lakh, representing interest expenses on borrowings. The overall positive financing cash flow helped offset the deficits from operating and investing activities, thereby strengthening the company’s liquidity position.

Net Change in Cash Position

As a result of the above activities, the company’s overall cash and cash equivalents increased by ₹59.69 lakh during FY 2024–25, compared to a marginal decrease of ₹1.26 lakh in FY 2023–24. The closing cash and cash equivalents stood at ₹84.58 lakh at the end of March 2025, up from ₹24.89 lakh in the previous year.

Speciality Medicines Limited Financial Ratios

Particulars	2025	2024
Current Ratio	5.50	3.65
Debt-Equity Ratio	0.31	0.40
Return on Equity Ratio	23.50%	24.29%
Inventory Turnover Ratio	0.30	0.29
Trade Receivables Turnover Ratio	6.07	3.84
Trade Payables Ratio	53.05	8.96
Net Capital Turnover Ratio	1.96	1.81
Net Profit Ratio	15%	15%
Return on Capital Employed	0.30	0.31

Summary of the Financial Ratios for the years 2025 and 2024:

Current Ratio

The current ratio increased from 3.65 in 2024 to 5.50 in 2025. This means that for every rupee of short-term liability, the company had ₹5.50 worth of current assets in 2025 compared to ₹3.65 in the previous year. The rise shows that the company’s ability to meet its short-term obligations using its short-term assets improved during the year.

Debt-Equity Ratio

The debt-equity ratio decreased from 0.40 in 2024 to 0.31 in 2025. This indicates that the company’s proportion of debt compared to shareholders’ equity reduced during the year. A lower ratio means the company used less borrowed money relative to its own funds to finance its operations.

Return on Equity Ratio

The return on equity ratio slightly decreased from 24.29% in 2024 to 23.50% in 2025. This shows that the company earned a slightly lower return on the shareholders’ investment in 2025 compared to the previous year. Even though the difference is small, it means the company generated almost the same level of profit from the funds provided by shareholders in both years.

Inventory Turnover Ratio

The inventory turnover ratio increased slightly from 0.29 in 2024 to 0.30 in 2025. This shows that the company sold or used its inventory at almost the same rate as the previous year. There was only a small change in how quickly inventory was being converted into sales.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio increased from 3.84 in 2024 to 6.07 in 2025. This means the company collected money from its customers more frequently during 2025 than in 2024. The improvement indicates that the company managed its receivables better and was able to convert credit sales into cash more quickly.

Trade Payables Ratio

The trade payables ratio rose sharply from 8.96 in 2024 to 53.05 in 2025. This shows that the company paid its suppliers much faster in 2025 compared to the previous year. The large increase means there was a big change in how quickly the company settled its outstanding payables.

Net Capital Turnover Ratio

The net capital turnover ratio increased from 1.81 in 2024 to 1.96 in 2025. This means the company generated more revenue for every rupee invested in working capital in 2025 than it did in 2024. The increase suggests a small improvement in how efficiently the company used its capital to produce sales.

Net Profit Ratio

The net profit ratio remained the same at 15% in both 2024 and 2025. This shows that the company’s profitability, in terms of the percentage of profit earned on total revenue, stayed consistent over the two years. There was no major change in how much profit the company earned from its sales.

Return on Capital Employed

The return on capital employed ratio was 0.31 in 2024 and 0.30 in 2025. This means the company’s overall return from all the capital employed in the business decreased slightly during the year. The small change indicates that the company maintained nearly the same level of efficiency in generating profits from its total capital.