Paramount Syntex posts Rs 10.35 crore operating outflow

Paramount Syntex Limited posted a Rs 10.35 crore net cash outflow from operating activities for the half year ended September 30, 2026, despite profit after tax of Rs 6.35 crore. Working-capital changes absorbed Rs 19.26 crore, led by a Rs 32.99 crore increase in trade receivables and a Rs 7.02 crore inventory increase.

What caused Paramount Syntex’s operating cash outflow?

Paramount Syntex recorded the operating cash outflow because Rs 11.35 crore of operating profit before working-capital changes was outweighed by Rs 19.26 crore of net working-capital absorption in the half year ended September 30, 2026. The result was a Rs 7.91 crore operating cash deficit before income-tax payments.

Income-tax payments of Rs 2.44 crore took the net cash outflow from operating activities to Rs 10.35 crore. This differed from the Rs 6.35 crore profit after tax because the cash-flow statement incorporates changes in assets and liabilities, while reported profit includes revenue and expenses recognised during the period.

The cash-flow statement starts with profit before tax of Rs 8.95 crore and adjusts for items including depreciation of Rs 95.37 lakh, interest paid of Rs 1.21 crore and gratuity paid of Rs 33.05 lakh. It also deducts interest income of Rs 6.31 lakh and an unrealised foreign-exchange gain of Rs 2.98 lakh before reporting operating profit before working-capital changes.

How did receivables and inventory use Paramount Syntex’s cash?

Paramount Syntex’s largest disclosed working-capital cash use was the Rs 32.99 crore increase in trade receivables during the September 2026 half year. Inventory added a further Rs 7.02 crore use of cash, meaning these two movements together absorbed Rs 40.01 crore.

The receivables increase was Rs 25.97 crore larger than the inventory increase. An increase in receivables indicates that amounts recognised in sales had not been collected to the extent of that increase, while additional inventory represents funds committed to stock. The filing does not disclose collection days, stock turnover or management’s explanation for the movements.

Other items partly offset the two major cash uses. Short-term loans and advances released Rs 5.39 crore, trade payables increased by Rs 3.35 crore, other current liabilities increased by Rs 11.71 crore, short-term provisions increased by Rs 28.16 lakh and other current assets contributed Rs 1.66 lakh.

How did Paramount Syntex’s cash flow compare with the prior period?

Paramount Syntex’s Rs 10.35 crore operating cash outflow in the half year ended September 30, 2026 contrasted with Rs 5.90 crore of net operating cash generation in the year ended March 31, 2026. These are not like-for-like periods because the latest figure covers six months and the prior figure covers a full year.

For the year ended March 31, 2026, operating profit before working-capital changes was Rs 24.13 crore and working-capital changes absorbed Rs 16.57 crore. That left Rs 7.56 crore of operating cash before tax, and income-tax payments of Rs 1.66 crore reduced net operating cash to Rs 5.90 crore.

Working-capital composition also changed. Inventory absorbed Rs 7.02 crore in the latest six-month period, compared with Rs 4.79 crore in the full year ended March 2026. Trade receivables absorbed Rs 32.99 crore in the latest period, compared with Rs 4.43 crore in the prior full year, making receivables the principal reported difference.

What earnings did Paramount Syntex report for September 2026?

Paramount Syntex reported revenue from operations of Rs 51.04 crore and profit after tax of Rs 6.35 crore for the half year ended September 30, 2026. Revenue was below Rs 62.37 crore in the half year ended March 31, 2026, while profit after tax was nearly unchanged from Rs 6.36 crore.

Compared with the half year ended September 30, 2025, revenue rose by Rs 11.38 crore from Rs 39.66 crore. However, profit after tax fell by Rs 1.16 crore from Rs 7.51 crore, showing that higher revenue did not translate into higher reported profit in the year-on-year comparison.

Other income was Rs 9.71 lakh in the September 2026 half year, taking total revenue to Rs 51.14 crore. Total expenses were Rs 42.19 crore, producing profit before tax of Rs 8.95 crore, followed by total tax expense of Rs 2.60 crore.

How did investing and financing affect Paramount Syntex’s cash balance?

Paramount Syntex used Rs 1.94 crore in investing activities in the September 2026 half year, including Rs 1.68 crore for acquisition of fixed assets and Rs 32.80 lakh for non-fixed assets. The comparable net investing outflow was Rs 17.13 lakh for the year ended March 31, 2026.

Financing activities generated Rs 12.56 crore in the latest half year, compared with a Rs 3.01 crore financing outflow in the year ended March 2026. The filing shows Rs 13.21 crore of net proceeds from long-term borrowings, a Rs 1.21 crore finance-cost outflow and Rs 55.39 lakh of net proceeds from short-term borrowings.

After the operating, investing and financing movements, cash and cash equivalents increased by Rs 26.76 lakh. Cash and cash equivalents were Rs 30.77 lakh at the beginning of the September 2026 half year and Rs 57.52 lakh at its end.

Conclusion

Paramount Syntex’s September 2026 half-year results show a divergence between accounting profit and operating cash generation. Profit after tax was Rs 6.35 crore, but the Rs 32.99 crore increase in receivables and Rs 7.02 crore inventory increase contributed to a Rs 10.35 crore operating cash outflow.

The next financial results should indicate whether receivables are converted into cash and whether the inventory build declines or expands. The filing also shows Rs 13.21 crore of net proceeds from long-term borrowings in the half year, making future borrowing levels, finance costs and operating cash flow relevant items to track.