PAN Electronics India Reports 195% Revenue Surge Amid Ongoing Financial Challenges
Pan Electronics (India) Limited reported a 195.40% year-on-year increase in revenue, reaching ₹196.16 lakhs for Q1. Despite this growth, the company posted a net loss of ₹5.59 lakhs, an improvement from the previous quarter's ₹22.83 lakh loss. The balance sheet shows total assets of ₹1,152.02 lakhs against liabilities of ₹4,097.29 lakhs, with a negative equity position of ₹(2,645.27) lakhs. Cash and cash equivalents decreased to ₹5.40 lakhs, while non-current borrowings increased to ₹3,600.97 lakhs. The loss per share for the quarter was ₹0.01.
*this image is generated using AI for illustrative purposes only.
Pan Electroncis (India) Limited, a Bengaluru-based electronics company, has reported a significant revenue increase for the first quarter, despite ongoing financial challenges. The company's unaudited financial results, approved by its Board of Directors on August 9, reveal a complex financial picture marked by revenue growth and persistent losses.
Revenue Surge
Pan Electroncis witnessed a remarkable 195.40% year-on-year increase in revenue from operations, reaching ₹196.16 lakhs, up from ₹66.40 lakhs in the same quarter of the previous year. This substantial growth demonstrates the company's improved sales performance and market presence.
Financial Performance
Despite the impressive revenue growth, the company reported a net loss of ₹5.59 lakhs for the quarter. While this represents a loss, it marks an improvement from the ₹22.83 lakh loss recorded in the previous quarter. The total expenses for the quarter stood at ₹201.00 lakhs, with the cost of materials consumed being the largest component at ₹111.90 lakhs.
Balance Sheet Overview
The balance sheet as of June 30 presents a challenging financial position:
| Particulars | Amount (₹ in Lakhs) |
|---|---|
| Total Assets | 1,152.02 |
| Total Liabilities | 4,097.29 |
| Equity Position (negative) | (2,645.27) |
| Cash and Cash Equivalents | 5.40 |
| Non-current Borrowings | 3,600.97 |
| Trade Payables | 68.65 |
The company's total assets decreased to ₹1,152.02 lakhs from ₹1,235.81 lakhs as of March 31. Notably, the equity position remains negative at ₹(2,645.27) lakhs, indicating ongoing financial stress.
Liquidity and Debt
Pan Electroncis faced a significant reduction in its cash position, with cash and cash equivalents dropping to ₹5.40 lakhs from ₹20.82 lakhs in the previous quarter. This decline in liquidity could pose challenges for the company's short-term financial management.
The company's debt position saw an increase, with non-current borrowings rising to ₹3,600.97 lakhs from ₹3,544.35 lakhs. However, trade payables decreased to ₹68.65 lakhs from ₹199.50 lakhs, potentially indicating improved supplier management or reduced operational activity.
Earnings Per Share
The loss per share for the quarter was reported at ₹0.01, reflecting the company's continued financial challenges despite the revenue growth.
Management Commentary
Gullu Gellaram Talreja, Managing Director of Pan Electroncis (India) Limited, signed off on the financial results. The company's board meeting to approve these results was held on August 9, lasting from 2:00 PM to 2:30 PM.
Outlook
While the substantial revenue growth is a positive sign for Pan Electroncis, the persistent negative equity position and ongoing losses highlight the need for continued financial restructuring and operational improvements. The company's ability to sustain this revenue growth while managing its debt and improving profitability will be crucial for its future financial health.
Historical Stock Returns for Pan Electroncis
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.19% | +9.34% | +4.32% | -9.83% | -37.05% | +779.94% |
15
