Balaji Agro Oils Annual Reports, Balance Sheet and Financials

Balaji Agro Oils Limited Standalone Balance Sheet (Rs in Lakhs)

Balaji Agro Oils Limited Standalone Profit & Loss Statement (Rs in Lakhs)

Balaji Agro Oils 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

During the year ended 31 March 2025, the company reported a net cash outflow from operating activities of ₹1,625.28 lakhs, as against a net cash inflow of ₹1,489.53 lakhs in the previous year, indicating a significant deterioration in operating cash generation. Although the profit for the year stood at ₹241.27 lakhs, marginally lower than ₹249.94 lakhs in 2024, the adverse cash flow was primarily due to unfavourable working capital movements.

Non-cash expenses such as depreciation of ₹155.96 lakhs and finance costs of ₹155.97 lakhs supported operating cash flows, while non-operating income including interest on fixed deposits of ₹26.26 lakhs and fair value gains on investments of ₹1.86 lakhs reduced operating cash. The major impact arose from a substantial increase in inventories amounting to ₹2,167.38 lakhs, reflecting significant funds blocked in stock. Additionally, increases in other current assets of ₹104.32 lakhs and other financial assets of ₹13.52 lakhs further strained liquidity. These outflows were partly offset by a reduction in trade receivables of ₹141.39 lakhs and an increase in other current liabilities of ₹42.65 lakhs. After considering income tax paid of ₹45.53 lakhs, operating activities resulted in a large net cash outflow.

Cash Flow from Investing Activities

Net cash used in investing activities during 2025 amounted to ₹305.01 lakhs, compared to a net cash inflow of ₹18.48 lakhs in 2024. The primary reason for this outflow was higher capital expenditure on property, plant and equipment of ₹337.44 lakhs, indicating increased investment in fixed assets during the year. Cash inflows from investing activities included interest on fixed deposits of ₹26.26 lakhs and ₹6.17 lakhs from the sale of property, plant and equipment. Overall, investing activities resulted in a net cash outflow due to increased capital spending.

Cash Flow from Financing Activities

Financing activities resulted in a net cash outflow of ₹66.93 lakhs in 2025, compared to an outflow of ₹186.43 lakhs in 2024. The company received ₹29.55 lakhs from long-term borrowings and ₹59.49 lakhs from short-term borrowings, providing partial funding support. However, these inflows were offset by finance costs of ₹155.97 lakhs, reflecting interest payments during the year. The lower outflow compared to the previous year indicates relatively reduced pressure from financing activities.

Net Change in Cash and Cash Equivalents

As a result of the above cash flows, cash and cash equivalents decreased by ₹1,997.22 lakhs during 2025, whereas an increase of ₹1,321.58 lakhs was recorded in 2024. The opening cash and cash equivalents balance stood at ₹(102.46) lakhs, which further declined to ₹(2,099.68) lakhs at the end of the year. The decline was mainly due to negative operating cash flows and increased capital expenditure, leading to higher utilization of secured cash credit.

Financial Ratios of Balaji Agro Oils Limited

Summary of the financial and operational metrics for the years 2025 and 2024:

Current Ratio

The current ratio marginally improved from 2.23 in 2024 to 2.24 in 2025, indicating a stable and comfortable liquidity position. The company continues to maintain more than sufficient current assets to meet its short-term obligations. The slight increase suggests marginal strengthening of working capital management, though liquidity has largely remained unchanged.

Debt–Equity Ratio

The debt–equity ratio declined from 1.49 in 2024 to 1.40 in 2025, indicating a reduction in financial leverage. This reflects a relatively improved capital structure with lower dependence on debt financing. The decrease reduces financial risk and interest burden, improving long-term solvency.

Debt Service Coverage Ratio

The DSCR declined from 1.52 in 2024 to 1.25 in 2025, indicating a reduced ability to service debt obligations from operating income. Although the ratio remains above 1, the decline suggests tighter cash flows and lower margin of safety for meeting interest and principal repayments.

Return on Equity

Return on equity remained almost stable at 6.11% in 2025 compared to 6.10% in 2024, indicating consistent returns to shareholders. This stability reflects efficient utilization of shareholders’ funds, despite fluctuations in profitability and leverage during the year.

Inventory Turnover Ratio

The inventory turnover ratio improved from 7.32 times in 2024 to 7.58 times in 2025, indicating faster movement of inventory. This improvement suggests better inventory management and efficient conversion of stock into sales, reducing holding costs.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio increased significantly from 4.83 times in 2024 to 9.29 times in 2025, indicating a substantial improvement in collection efficiency. This reflects stricter credit control and faster realization of receivables, positively impacting liquidity.

Trade Payables Turnover Ratio

The trade payables turnover ratio increased sharply from 599.48 times to 2,170.34 times, indicating much faster settlement of payables in 2025. While this may enhance supplier confidence, such a high ratio suggests reduced credit period availed from suppliers, which could put pressure on cash flows.

Net Capital Turnover Ratio

The net capital turnover ratio increased from 3.95 in 2024 to 6.22 in 2025, reflecting improved efficiency in utilizing working capital to generate sales. This indicates better management of net current assets and higher operational efficiency.

Net Profit Ratio

The net profit ratio declined from 1.41% in 2024 to 0.86% in 2025, indicating reduced profitability. The decline may be attributed to higher operating costs, pricing pressures, or increased finance costs, affecting overall margins despite stable revenues.

Return on Capital Employed

ROCE decreased from 9.41% in 2024 to 8.47% in 2025, indicating a decline in efficiency in utilizing total capital employed. This suggests that returns generated from long-term funds have reduced, possibly due to lower operating profits.

Return on Investment

Return on investment declined sharply from 22.79% in 2024 to 7.57% in 2025, indicating significantly lower returns on invested funds. This steep fall may be due to reduced income from investments or increased investment base without proportional returns.