Asiatic Oxygen Annual Reports, Balance Sheet and Financials

Asiatic Oxygen Ltd Consolidated Balance Sheet (Rs in Thousands)

Asiatic Oxygen Ltd Consolidated Profit & Loss Statement (Rs in Thousands)

Asiatic Oxygen Ltd Consolidated Cash Flow Statement (Rs in Thousands)

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

Cash Flow from Operating Activities
In FY 2025, the company’s core operations generated a negative cash flow of ₹76.6 million compared to negative ₹58.9 million in FY 2024. The main reason is that the company’s profits before tax were offset by large non-cash items like high interest income and gains on sale of investments. Working capital changes also worked against cash flow this year—particularly increases in long-term advances and other non-current assets. While there were some positives, like lower inventories and higher recovery of short-term advances, overall the operations continue to consume rather than generate cash, which indicates the business is still not self-funding from its core activity.

Cash Flow from Investing Activities
On the investing side, the company had a net outflow of ₹25.5 million in FY 2025, a sharp reversal from the inflow of ₹114.6 million in FY 2024. This change was mainly driven by large purchases of non-current investments and some spending on property and equipment, while the prior year benefited from selling investments and an investment property. The only saving factor in 2025 was consistent income from interest and dividends, but it was not enough to offset the heavy cash used for fresh investments. This shows the company shifted its focus towards deploying cash into investments rather than liquidating them like it did the year before.

Cash Flow from Financing Activities
Financing activities were a strong positive in both years. In FY 2025, the company raised ₹69.2 million net from borrowings (after interest payments), compared to ₹50.1 million the previous year. This indicates the company is relying on external funding to support its liquidity position, given that operations and investing activities consumed cash. The ability to borrow more and still manage interest costs suggests some comfort with creditors, but also shows rising dependence on debt to maintain cash levels.

Net Change in Cash and Cash Equivalents
Overall, the company’s cash position declined in FY 2025. Cash and cash equivalents fell by ₹32.9 million, ending the year at ₹156.5 million, down from ₹189.3 million last year. In contrast, FY 2024 had seen a very strong increase of over ₹105 million. The decline is a direct result of negative operating and investing cash flows, partly cushioned by financing inflows.

Financial Ratios of Asiatic Oxygen Ltd

Summary of the financial ratios of Asiatic Oxygen Ltd for the year 2025 and 2024:

Current Ratio
The current ratio has dropped sharply from 3.70 in FY 2024 to 1.54 in FY 2025. This means that the company’s short-term liquidity has weakened. While it still has enough current assets to cover its current liabilities (above 1), the cushion has reduced significantly, indicating tighter working capital management or higher short-term obligations.

Debt-Equity Ratio
The debt-equity ratio has increased slightly from 0.03 to 0.06. The company still has very low leverage, meaning it relies more on equity than debt to finance its operations. Even with the small rise, the company remains conservatively financed and faces minimal risk from debt.

Debt Service Coverage Ratio (DSCR)
DSCR fell steeply from 2.01 in FY 2024 to 0.67 in FY 2025. This suggests that the company’s ability to generate operating profits to service its debt obligations has weakened considerably. A DSCR below 1 means the company does not generate enough earnings to fully cover its debt servicing requirements, raising concerns about repayment capacity.

Return on Equity (ROE)
ROE declined from 4.60% to 2.61%, reflecting weaker profitability for shareholders. This indicates that the company generated lower returns on shareholders’ funds in 2025, showing reduced efficiency in utilizing equity capital.

Trade Receivables Turnover Ratio
The receivables turnover dropped from 10.23 to 8.26. This means the company is collecting money from its customers more slowly than before. While still healthy, the slowdown in collections could indicate more relaxed credit terms or delayed payments from customers.

Trade Payables Turnover Ratio
Payables turnover improved slightly from 30.52 to 32.66. This indicates the company is paying its suppliers faster than in the previous year. While this strengthens supplier relationships, it also reduces the cash buffer available to the business.

Net Capital Turnover Ratio
The net capital turnover improved from 0.41 to 0.50. This shows the company is generating more revenue per unit of capital employed in working capital. Although improvement is visible, the ratio is still relatively low, suggesting limited efficiency in capital utilization.

Net Profit Ratio
The net profit margin fell from 48.20% to 31.74%. Despite still being very high, the decline signals reduced profitability per unit of revenue. This could be due to higher costs, lower income from investments, or other margin pressures in FY 2025.

Return on Capital Employed
ROCE declined from 5.56% to 3.16%, showing that overall efficiency in generating returns from total capital employed has weakened. It signals lower profitability relative to the resources invested in the business.

Return on Investment
ROI decreased from 15.88% to 12.61%. While still decent, this fall shows the company’s investments generated lower returns in 2025 compared to 2024, reflecting reduced effectiveness in deploying funds into profitable opportunities.