Ajay Bio-tech Annual Report, Balance Sheet & Financials

Ajay Biotech India Limited Consolidated Balance Sheet (Rs in Crores)

Ajay Biotech India Limited Consolidated Profit & Loss Statement (Rs in Crores)

Ajay Biotech India Limited Consolidated Cash Flow Statement (Rs in Crores) 

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

Cash Flow from Operating Activities

The company reported a net profit before tax of ₹0.82 crore in 2025, compared to a loss of ₹1.72 crore in 2024, indicating a turnaround in core profitability. After adjusting for non-cash and non-operating items such as depreciation, provisions, and interest, the operating profit before working capital changes increased significantly to ₹3.09 crore from ₹1.42 crore, reflecting improved operational efficiency.

Working capital adjustments also contributed positively in 2025. There was a reduction in trade receivables and an increase in other current liabilities, which improved cash inflows. Unlike 2024, where working capital changes negatively impacted cash flow, 2025 shows better management of receivables and liabilities. As a result, the company generated ₹4.19 crore from operations, compared to a negative ₹2.43 crore in the previous year.

After paying taxes, the net cash flow from operating activities stood at ₹3.88 crore, a strong improvement from the cash outflow of ₹2.62 crore in 2024, indicating healthier core business cash generation.

Cash Flow from Investing Activities

The company experienced a significant cash outflow of ₹5.25 crore in 2025, compared to a slight inflow of ₹0.13 crore in 2024. This was mainly due to heavy investment in property, plant, and equipment (₹4.89 crore), suggesting expansion or capacity enhancement.

Additionally, there was an outflow towards bank deposits, further contributing to the negative investing cash flow. Although the company earned some interest income and proceeds from sale of assets, these were relatively small and insufficient to offset the large capital expenditure.

Overall, the negative cash flow indicates aggressive investment activities, which may support future growth but has reduced short-term liquidity.

Cash Flow from Financing Activities

Financing activities generated a net cash inflow of ₹1.30 crore in 2025, though lower than ₹1.86 crore in 2024. The inflow was mainly supported by repayment of long-term borrowings (net positive impact) and some loans and advances received.

However, there was a repayment of short-term borrowings and interest payments, which reduced the overall inflow. Compared to the previous year, where short-term borrowings significantly boosted cash, 2025 reflects a more balanced or reduced reliance on external financing.

Net Change in Cash & Cash Equivalents

Overall, the company reported a slight decrease in cash of ₹0.07 crore in 2025, compared to a larger decrease of ₹0.62 crore in 2024. Despite strong operating inflows, the heavy investment outflows outweighed the gains, leading to a marginal decline in cash balance.

The closing cash balance stood at ₹0.01 crore, which is quite low and indicates tight liquidity position, even though operational performance has improved.

Financial ratios of Ajay Biotech India Limited

Summary of the financial ratios for the years 2025 and 2024:

Current Ratio

The current ratio slightly declined from 2.53 in FY 2024 to 2.46 in FY 2025, but remains at a comfortable level above 2. This indicates the company has sufficient short-term assets to meet its liabilities. The minor decline suggests some utilization of current assets, possibly due to operational or expansion needs, but overall liquidity remains stable.

Debt-Equity Ratio

The debt-equity ratio increased slightly from 0.26 to 0.29, reflecting a marginal rise in leverage. However, the ratio is still low, indicating limited dependence on debt financing and relatively lower financial risk.

Debt Service Coverage Ratio The DSCR improved from 0.13 to 0.50, showing better ability to service debt compared to last year. However, it is still below 1, which means the company is not yet generating sufficient earnings to fully cover its debt obligations.

Return on Equity

ROE improved from -4.00% to 1.88%, indicating a shift from losses to profitability. This reflects better returns to shareholders, although the level remains relatively low.

Inventory Turnover Ratio

The inventory turnover ratio declined from 1.86 to 1.70, indicating slower movement of inventory. This may suggest inefficiencies in inventory management or relatively lower demand.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio improved slightly from 2.64 to 2.72, indicating better collection efficiency and improved cash conversion from customers.

Trade Payables Turnover Ratio

The trade payables turnover ratio increased from 4.18 to 5.00, suggesting the company is paying its suppliers more quickly, which may impact cash flows but can strengthen supplier relationships.

Net Capital Turnover Ratio

The net capital turnover ratio improved from 2.18 to 2.28, indicating better utilization of capital to generate revenue.

Net profit ratio

The Net Profit Ratio has improved from -0.04% in 2023–24 to 0.02% in 2024–25, indicating a shift from a net loss to a marginal net profit.

Return on Capital Employed

ROCE improved from -2.59% to 3.16%, reflecting better overall efficiency in generating returns from total capital employed, though still at a modest level.