Arraycom India Annual Reports, Balance Sheet and Financials

Arraycom (India) Limited Standalone Balance Sheet (Rs in Lakhs)

Arraycom (India) Limited Standalone Profit & Loss Statement (Rs in Lakhs)

Arraycom (India) Limited Standalone Cash Flow Statement (Rs in Lakhs)

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

Cash Flow from Operating Activities

The company reported a net cash outflow of ₹101.23 lakhs from operating activities in FY 2025, as compared to a strong inflow of ₹699.71 lakhs in FY 2024, indicating a sharp decline in operational cash generation. Although the company recorded a positive profit before tax of ₹30.44 lakhs compared to a loss in the previous year, this improvement did not translate into cash inflows. After adjusting for non-cash expenses such as depreciation and finance costs, the operating profit before working capital changes stood at ₹195.30 lakhs. However, adverse working capital movements significantly impacted cash flows. There was a substantial increase in trade receivables, short-term loans and advances, and other bank balances, all of which led to cash outflows. Although trade payables increased and provided some relief, it was insufficient to offset the overall negative impact. This indicates inefficiency in working capital management and poor cash realization from operations.

Cash Flow from Investing Activities

The company generated a net cash inflow of ₹432.05 lakhs from investing activities in FY 2025, compared to an outflow of ₹197.82 lakhs in FY 2024. This positive inflow was primarily driven by an advance of ₹500 lakhs received for the sale of land, which represents a significant one-time transaction. At the same time, capital expenditure on property, plant, and equipment decreased compared to the previous year, further supporting the positive cash flow. Proceeds from the sale of fixed assets were minimal and did not contribute significantly. Overall, the improvement in investing cash flow is largely due to non-recurring income, suggesting that the company relied on asset monetization rather than sustainable investment returns.

Cash Flow from Financing Activities

The company reported a net cash outflow of ₹330.90 lakhs from financing activities during FY 2025, which is lower than the outflow of ₹501.88 lakhs in the previous year. The financing cash flow reflects significant repayment of short-term borrowings, indicating efforts to reduce debt or meet repayment obligations. However, the company also raised fresh short-term borrowings, suggesting a cycle of borrowing and repayment to manage liquidity. Long-term borrowings showed a net repayment position, and finance costs remained high, reflecting continued dependence on debt financing. Overall, the financing activities indicate financial pressure and reliance on external funds, despite some reduction in net outflows.

Net Increase/(Decrease) in Cash and Cash Equivalents

Despite large movements in operating, investing, and financing activities, the net change in cash and cash equivalents was minimal, showing a slight decrease of ₹0.07 lakhs during FY 2025. The positive cash flow from investing activities largely offset the negative cash flows from operating and financing activities. As a result, the closing cash balance stood at ₹0.39 lakhs, slightly lower than the opening balance of ₹0.46 lakhs. This reflects a very low level of cash reserves, indicating tight liquidity and limited buffer to meet immediate financial obligations.

Financial ratios of Arraycom (India) Limited

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

Current Ratio

The current ratio of the company declined from 1.80 in FY 2024 to 1.56 in FY 2025, indicating a slight weakening in short-term liquidity. Although the ratio is still above the ideal benchmark of 1, suggesting that current assets are sufficient to meet current liabilities, the downward trend reflects reduced liquidity cushion. This may indicate tighter working capital management or increased short-term obligations.

Debt-Equity Ratio

The debt-equity ratio improved from 0.27 to 0.19, showing that the company has reduced its dependence on external borrowings. This indicates a stronger capital structure and lower financial risk. A lower ratio reflects that the company is increasingly financed through equity rather than debt, which is a positive sign for long-term solvency.

Debt Service Coverage Ratio

The debt service coverage ratio increased from 0.02 to 0.32, indicating some improvement in the company’s ability to service its debt obligations. However, the ratio is still significantly below 1, which means that operating profits are not sufficient to cover debt servicing requirements. This highlights continued financial stress and weak repayment capacity.

Return on Equity Ratio

The return on equity improved from -0.05 in FY 2024 to 0.01 in FY 2025, indicating that the company has moved from negative returns to marginal profitability for shareholders. Although this is a positive development, the return remains very low, suggesting limited efficiency in generating profits from shareholders’ funds.

Inventory Turnover Ratio

The inventory turnover ratio slightly declined from 0.48 to 0.46, indicating slower movement of inventory during the year. This suggests that inventory is being held for a longer period, which may lead to higher holding costs and inefficiencies in inventory management.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio improved significantly from 2.59 to 4.59, reflecting better efficiency in collecting receivables. This indicates that the company has improved its credit management and is able to convert receivables into cash more quickly than in the previous year.

Trade Payables Turnover Ratio

The trade payables turnover ratio increased from 7.21 to 7.97, indicating that the company is paying its suppliers more quickly. While this may improve supplier relationships, it could also put pressure on the company’s cash flows if not managed carefully.

Net Capital Turnover Ratio

The net capital turnover ratio improved from 1.52 to 2.26, indicating more efficient utilization of working capital to generate revenue. This suggests that the company is using its capital more effectively to support its operations.

Net Profit Ratio

The net profit ratio improved from -0.14 to 0.02, showing that the company has transitioned from losses to a small profit. This reflects better cost control and operational performance, although the margin remains very low.

Return on Capital Employed

The return on capital employed increased from -0.02 to 0.04, indicating improved efficiency in using total capital to generate profits. The shift from negative to positive return is a positive sign, but the level is still low, suggesting scope for further improvement.