Auckland International Annual Reports, Balance Sheet and Financials

Auckland International Limited Standalone Balance Sheet (Rs in Lakhs)

Auckland International Limited Standalone Profit & Loss Statement (Rs in Lakhs) 

 Auckland International Limited Standalone Cash Flow Statement (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

The company reported a positive cash flow from operating activities amounting to ₹204.25 lakhs in FY 2024–25, a marked improvement from the negative ₹75.03 lakhs in FY 2023–24. The net profit before tax stood at ₹514.68 lakhs, and key adjustments included non-cash charges such as depreciation and amortization of ₹131.57 lakhs, and interest expense of ₹53.72 lakhs, which positively impacted the operating cash. Offsetting these were deductions for interest income (-₹108.07 lakhs), profit on sale of investments (-₹40.78 lakhs), and dividend income (-₹7.37 lakhs).

Working capital changes had a mixed impact. Trade receivables increased significantly by ₹590.2 lakhs, implying reduced cash inflow, and inventory levels rose by ₹902.76 lakhs, further absorbing cash. However, there were some relieving factors: trade payables increased by ₹67.06 lakhs, and current assets such as other financial and current assets declined, releasing some funds. Direct tax payments of ₹105.52 lakhs were also made, contributing to the overall reduction in operating cash. Despite pressure from working capital movements, disciplined control of non-cash and non-operating income resulted in net positive operating cash flows.

Cash Flow from Investing Activities

In FY 2024–25, the company incurred a net cash outflow of ₹227.32 lakhs from investing activities, up from ₹184.71 lakhs in the previous year. This was primarily due to a major investment purchase of ₹1,599.97 lakhs, which outweighed the proceeds from sale/maturity of investments worth ₹1,451.57 lakhs. Additionally, the company invested ₹239.98 lakhs in fixed assets, although this was lower than the ₹282.07 lakhs in FY 2023–24.

On the positive side, capital advances of ₹42.35 lakhs were received, and the company earned ₹108.07 lakhs as interest income and ₹7.37 lakhs in dividends, consistent with last year’s returns. The modest asset sale of ₹3.27 lakhs also helped cushion the investment outflow. Overall, the negative investing cash flow reflects capital allocation toward asset expansion and portfolio investments, in line with the company 's long-term growth strategy.

Cash Flow from Financing Activities

The company reported a net inflow of ₹26.83 lakhs from financing activities during FY 2024–25, a sharp turnaround from the negative ₹153.17 lakhs in the previous year. This shift was driven by the proceeds of ₹84.44 lakhs from short-term borrowings, reflecting a reliance on external funding for working capital or liquidity support.

However, interest payments of ₹53.72 lakhs and deferred government grant adjustments of ₹3.89 lakhs moderated the overall inflow. The controlled use of debt and reduction in financial outflows shows a more conservative and stable financing approach compared to the previous year, where interest outflows alone stood at ₹119.29 lakhs.

Net Movement in Cash and Cash Equivalents

The cumulative effect of operating, investing, and financing activities resulted in a net increase in cash and cash equivalents of ₹3.76 lakhs for FY 2025. This compares favorably to a significant decline of ₹412.91 lakhs in the prior year. The closing cash balance increased to ₹69.34 lakhs, up from ₹65.58 lakhs, indicating a slight but positive uptick in liquidity. The improvement was primarily led by better working capital management and reduced financing outflows, helping the company strengthen its cash position despite subdued revenues and higher investments.

 Financial Ratios of Auckland International Limited

 Here is the summary of the Financial Ratios for the year 2025 and 2024:

Current Ratio

The current ratio remained stable at 3.12 in FY 2025 versus 3.14 in FY 2024. This ratio, which measures the company 's ability to cover its short-term liabilities with its short-term assets, indicates strong liquidity. A ratio above 1 is generally acceptable, and a figure above 3 suggests that the company is in a comfortable position to meet its short-term obligations, albeit with slightly excessive liquidity that could otherwise be used more efficiently.

Debt-Equity Ratio

The debt-equity ratio held steady at 0.17 for both years. This reflects a conservative capital structure, where the company relies more on equity than debt to finance its operations. Such a low leverage indicates low financial risk and implies that the company may have room to borrow if needed for expansion or working capital requirements.

Debt Service Coverage Ratio (DSCR)

The DSCR declined to 0.60 in FY 2025 from 0.74 in FY 2024, suggesting that the company 's earnings are covering only 60% of its debt service obligations. This decline is a concern, as a DSCR below 1 indicates inadequate earnings to meet interest and principal repayments, potentially raising red flags for lenders and stakeholders.

Return on Equity (ROE)

The ROE dropped slightly from 0.07 to 0.06, indicating that the company generated a 6% return on shareholders ' equity in FY 2025. This marginal decline implies slightly reduced profitability for shareholders. While not alarming, it does reflect either lower profit generation or higher retained equity without a proportional rise in net income.

Inventory Turnover Ratio

The inventory turnover ratio fell to 5.31 from 6.45, indicating a slower movement of inventory during the year. This means it took longer for the company to sell and replace its inventory, which could be due to lower sales, higher production, or inefficiencies in inventory management.

Trade Receivables Turnover Ratio

This ratio decreased marginally to 21.64 from 22.18, suggesting a slightly slower collection cycle of receivables. While the decline is not drastic, it implies that more credit was extended to customers or delays occurred in payment collection, which could affect short-term cash flow.

Trade Payables Turnover Ratio

The ratio increased significantly from 106.3 to 122.1, indicating that the company is settling its payables faster in FY 2025 than the previous year. While this may reflect strong supplier relationships or cash availability, it also means less use of supplier credit, which could strain cash reserves if not managed prudently.

Net Capital Turnover Ratio

The net capital turnover ratio declined to 5.04 from 5.98, indicating that the company generated less revenue per rupee of working capital employed. This decline reflects inefficiency in using net working capital to generate sales, potentially due to slower inventory movement or higher trade receivables.

Net Profit Ratio

The net profit ratio remained constant at 0.02 for both years, suggesting that the company retains ₹2 as profit for every ₹100 of revenue. While stable, this is a thin margin and may indicate cost pressures or pricing challenges in the company 's operating environment.

Return on Capital Employed (ROCE)

ROCE decreased to 0.07 in FY 2025 from 0.09 in the prior year, showing a drop in efficiency of capital usage. This suggests that the company is earning less from the total capital invested, including both debt and equity, which might be due to increased capital base or decreased earnings.

Return on Investment (ROI)

The ROI remained unchanged at 0.05, indicating a 5% return on the investments made. This consistency may reflect steady investment performance but also indicates that there was no significant improvement in capital returns, potentially limiting long-term value creation.