Tunwal E-Motors Annual Report

Tunwal E Motors Private Limited (Tunwal E-Motors) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40
Tunwal E Motors Private Limited

Tunwal E Motors Private Limited Balance Sheet (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Shareholder's Funds
Share capital	829.02	412.51
Reserves and Surplus	1,224.06	421.38
Non-current liabilities
Long-term borrowings	276.03	344.33
Deferred tax liabilities (net)	38.02	16.44
Provisions	6.11	-
Other Long term Liabilities	632.56	649.66
Current liabilities
Short-term borrowings	1,775.86	1,545.17
Trade and other payable due to:
Micro and small enterprises	80.66	-
Other than micor and small enterprises	1,624.26	1,616.46
Other current liabilities	761.14	688.54
Provisions	335.25	-
Total Equity and liabilities	7,582.97	5,694.49
Non-current assets
Property, Plant and equipment	1,088.71	1,065.08
Intangible assets	53.15	56.94
Other non-current assets	17.12	20.50
Current assets
Inventories	5,180.99	2,615.00
Trade receivables	274.60	579.56
Cash and cash equivalents	264.65	327.30
Other current assets	703.75	1,030.10
Total assets	7,582.97	5,694.48

Tunwal E Motors Private Limited Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Income
Revenue from Operations	10,460.07	7,650.18
Other income	93.63	5.56
Total income	10,553.70	7,655.74
Expenses
Cost of Material consumed	8,201.10	5,050.78
Changes in inventories of finished goods, stock in process & scrap	-649.20	939.11
Employee benefits expense	251.51	209.52
Finance costs	208.16	96.98
Depreciation and amortization expense	91.93	76.60
Other expense	873.50	788.23
Total Expense	8,977.00	7,161.23
Profit/ loss before tax	1,576.70	494.51
Current tax	383.28	112.82
Deferred tax	12.25	35.44
Profit for the year	1,181.17	346.25
Earnings per share (face value of Rs 10/- each):
Basic & Diluted	2.85	1.68

Tunwal E Motors Private Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2024	31-03-2023
Cash flow from Operating activities
Net profit before tax as per stateprofit & loss	1,576.70	494.51
Adjustment for:
Depreciation and amortization expenses	91.93	76.60
Interest Income	-23.60	-2.97
Finance costs	208.16	96.98
Operating profit before working capital changes	1,853.18	665.12
Adjustment for:
Trade receivables	304.95	-485.40
Other current assets	326.36	-357.78
Inventories of finished goods, Stock in trade and scrap	-2,565.99	364.39
Trade Payables	88.46	-877.22
Other liabilities	55.49	595.63
Provisions	3.48	-
Cash in flow from operations	65.93	-95.25
Taxes paid (net)	-48.04	-112.82
Net cash inflow from operating activities	17.89	-208.07
Cash flow from investing activities
Purchases of Fixed assets	-111.76	-176.05
Interest Income	23.60	2.97
Long term loans and advances	3.38	-13.00
Net cash out flow from investing activities	-84.78	-186.08
Cash flow from financing activities
Interest and finance charges	-208.16	-96.98
Issue of share capital	50.00	25.00
Increase/(Repayment) of borrowings	162.39	531.95
Net cash inflow from financing activities	4.23	459.96
Net increase in cash and cash equivalent	-62.65	65.82
Net cash and cash equivalent opening balance	327.30	261.49
Net cash and cash equivalent closing balance	264.65	327.30

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

Cash Flow from Operating Activities:

In 2024, the company generated a small net cash inflow of Rs. 17.89 lakhs from operating activities, compared to a negative Rs. 208.07 lakhs in 2023. This improvement is primarily driven by a significant rise in net profit before tax to Rs. 1,576.70 lakhs, from Rs. 494.51 lakhs in 2023, coupled with adjustments like depreciation and finance costs. However, working capital adjustments played a major role in cash generation.

There were favorable movements in trade receivables (Rs. 304.95 lakhs) and current assets (Rs. 326.36 lakhs), but a significant increase in inventories (Rs. 2,565.99 lakhs) negatively impacted cash flow, as the company tied up more cash in stock.

Trade payables increased by Rs. 88.46 lakhs, providing some relief, but overall, changes in working capital resulted in low net cash generation from operations, with the company only managing Rs. 65.93 lakhs before taxes.

After paying taxes of Rs. 48.04 lakhs, the net operating cash inflow was minimal.

Cash Flow from Investing Activities:

The company experienced a net cash outflow of Rs. 84.78 lakhs from investing activities in 2024, down from Rs. 186.08 lakhs in 2023. This outflow was mainly due to purchases of fixed assets (Rs. 111.76 lakhs), reflecting ongoing investments in property or equipment, though the amount spent was lower than the previous year. However, the company earned Rs. 23.60 lakhs from interest income, which helped reduce the total cash outflow in this category. The company also saw some benefit from long-term loans and advances, which contributed to minimizing the cash outflow.

Cash Flow from Financing Activities:

In 2024, the company saw a small net inflow of Rs. 4.23 lakhs from financing activities, significantly lower than the Rs. 459.96 lakhs inflow in 2023. The primary reason for this drop was increased interest and finance costs (Rs. 208.16 lakhs) compared to the previous year. Despite this, the company managed to raise funds through the issue of share capital (Rs. 50.00 lakhs) and borrowings (Rs. 162.39 lakhs), although the increase in borrowings was lower than in 2023.

Net Cash Movement:

Overall, the company’s net cash outflow for the year amounted to Rs. 62.65 lakhs, a reversal from the positive cash flow of Rs. 65.82 lakhs in 2023. As a result, the cash and cash equivalents at the end of 2024 were Rs. 264.65 lakhs, down from Rs. 327.30 lakhs at the beginning of the year.

Financial Ratios of Tunwal E Motors Private Limited

Particulars	2024	2023
Current Ratio	1.4	1.18
Debt-Equity Ratio	1	2.27
Debt Service coverage ratio	5.29	3.24
Inventory turnover ratio	2.68	2.73
Trade receivables turnover ratio	24.49	22.71
Trade Payable Turnover Ratio	6.09	2.74
Net Capital Turnover Ratio	5.66	10.9
Return on Equity	57.53%	41.52%
Net Profit ratio	11.29%	4.53%
Return on capital employed	59.38%	32.07%

Here is a summary of the financial and operational metrics for Tunwal E Motors Private Limited for the year 2024 and 2023:

Current Ratio:

The current ratio improved from 1.18 in 2023 to 1.4 in 2024, indicating an enhancement in the company’s ability to cover its short-term liabilities with its short-term assets. A current ratio above 1 signifies that the company has sufficient liquidity to meet its current obligations, and the improvement shows better working capital management.

Debt-Equity Ratio:

The debt-equity ratio significantly declined from 2.27 in 2023 to 1 in 2024. This indicates a reduction in the company's reliance on debt financing compared to equity. A lower ratio suggests that the company has improved its financial stability by reducing debt levels, lowering financial risk, and becoming less leveraged.

Debt Service Coverage Ratio (DSCR):

The DSCR increased from 3.24 in 2023 to 5.29 in 2024. A higher DSCR indicates that the company has a greater ability to service its debt (interest and principal payments) from its operating income. A ratio above 1 is a positive sign, showing that the company has more than enough earnings to cover its debt obligations, and the increase in 2024 reflects improved financial health.

Inventory Turnover Ratio:

The inventory turnover ratio remained relatively stable, decreasing slightly from 2.73 in 2023 to 2.68 in 2024. This ratio indicates how efficiently the company is managing its inventory. A small decrease means the company is selling and replacing its inventory at a slightly slower rate compared to the previous year, but overall, it still reflects consistent inventory management.

Trade Receivables Turnover Ratio:

The trade receivables turnover ratio increased from 22.71 in 2023 to 24.49 in 2024, indicating that the company is collecting its receivables more quickly. This reflects strong credit control and efficient collection practices, allowing the company to maintain good cash flow by turning its receivables into cash faster.

Trade Payable Turnover Ratio:

The trade payable turnover ratio increased significantly from 2.74 in 2023 to 6.09 in 2024. This suggests that the company is settling its payables more quickly, possibly taking advantage of favorable credit terms or trying to improve supplier relationships. However, paying suppliers faster could also indicate stronger liquidity, allowing the company to meet its obligations promptly.

Net Capital Turnover Ratio:

The net capital turnover ratio decreased from 10.9 in 2023 to 5.66 in 2024. This ratio measures the company’s efficiency in generating revenue from its working capital. The decline suggests that the company is generating less revenue for every unit of working capital, indicating a potential inefficiency in capital utilization compared to the previous year.

Return on Equity (ROE):

ROE improved significantly from 41.52% in 2023 to 57.53% in 2024, indicating that the company generated higher returns for its shareholders. This increase is a strong indicator of enhanced profitability and efficient use of equity capital to generate earnings. A higher ROE suggests that the company is delivering better value to its investors.

Net Profit Ratio:

The net profit ratio increased from 4.53% in 2023 to 11.29% in 2024, reflecting an improvement in the company's profitability. This ratio measures how much of the revenue is converted into net profit, and the sharp increase indicates better cost management, higher efficiency, or stronger sales growth, leading to improved margins.

Return on Capital Employed (ROCE):

The ROCE jumped from 32.07% in 2023 to 59.38% in 2024, indicating that the company has become significantly more efficient in generating returns from its capital employed (both equity and debt). This sharp rise in ROCE is a positive sign of the company’s operational effectiveness and improved profitability, suggesting it is using its resources more effectively to generate profits.