Crescent Finstock Limited Annual Report, Balance Sheet, and Financials.

Crescent Finstock Consolidated Balance Sheet (Rs in Lakhs)

  Crescent Finstock Consolidated Profit and Loss Statement (Rs in Lakhs)

 Crescent Finstock Consolidated Cash Flow Statement (Rs in Lakhs)

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

Cash Flow from Operating Activities
In FY 2025, Crescent Finstock reported a net loss of cash from operations amounting to ₹50.75 lakhs, compared to a positive inflow of ₹125.86 lakhs in FY 2024. Although the company managed to keep operating profit before working capital changes almost flat (₹170.34 lakhs vs ₹166.05 lakhs in 2024), the real drag came from unfavorable changes in working capital. A sharp increase in other current assets (₹108.43 lakhs) and declines in trade payables and current liabilities significantly reduced liquidity. Tax payments of ₹36.62 lakhs further worsened the outflow. Overall, operations turned into a net drain of cash this year, reflecting weaker efficiency in managing short-term assets and liabilities compared to the previous year.

Cash Flow from Investing Activities
Investing activities showed a sharp improvement. In FY 2025, the net outflow was just ₹7.17 lakhs, compared to a heavy outflow of ₹1,126.69 lakhs in FY 2024. The main reason for this improvement was a more balanced approach to investments. Purchases of investments were lower (₹1,431.81 lakhs vs ₹3,485.69 lakhs in 2024), while proceeds from sales were substantial at ₹1,310.01 lakhs. Additionally, the company earned higher interest income and received proceeds from asset sales, which cushioned the outflow. This indicates that while the company continues to remain investment-heavy, it was able to offset much of the outflow with proceeds, keeping investing cash flow almost neutral in 2025.

Cash Flow from Financing Activities
Financing activities in FY 2025 reflected a modest outflow of ₹26.07 lakhs, in sharp contrast to a strong inflow of ₹343.51 lakhs in FY 2024. The difference mainly comes from the absence of fresh equity issuance and deposits, which had significantly boosted financing inflows in the prior year. Instead, FY 2025 saw repayments and reductions in borrowings (₹25.98 lakhs) and minor interest payments. The shift shows that the company did not raise fresh funds in 2025 and instead relied on internal accruals, though operating losses limited cash generation.

Net Cash Flow and Closing Balance
Overall, Crescent Finstock witnessed a net decrease in cash of ₹83.99 lakhs in FY 2025, compared to a smaller decrease of ₹16.45 lakhs in FY 2024. This was primarily due to weaker operating performance and lower financing support, despite better investing cash flow management. Consequently, cash and cash equivalents fell from ₹134.09 lakhs at the beginning of FY 2025 to ₹50.10 lakhs at year-end. The steep drop in closing cash balance indicates tightening liquidity, suggesting that the company may need to improve operational efficiency or secure external funding to maintain financial flexibility going forward.

 Financial Ratios of Crescent Finstock

 Summary of the financial ratios of Crescent Finstock for the year 2025 & 2024:

Current Ratio
The current ratio improved to 7.86 in 2025 from 5.26 in 2024, showing that the company’s short-term liquidity position strengthened further. This indicates Crescent Finstock holds significantly more current assets than current liabilities, which means it can comfortably meet its short-term obligations. However, such a high ratio may also suggest inefficient use of working capital, with funds being tied up in assets rather than being used for business growth.

Debt-Equity Ratio
The debt-equity ratio decreased slightly from 0.0189 in 2024 to 0.0137 in 2025, reflecting an extremely low reliance on debt financing. This signals a very conservative capital structure, where the company is primarily funded by equity. While this minimizes financial risk, it may also indicate under-utilization of leverage for expansion.

Debt Service Coverage Ratio (DSCR)
The DSCR remained negative at -0.40 in 2025 compared to -1.06 in 2024. Though the ratio improved, it still suggests that the company is unable to cover its debt servicing obligations (interest and principal) from its earnings. This indicates operational inefficiencies and limited cash flow generation, which could become a concern if borrowings increase.

Return on Equity (ROE)
ROE fell from 7.60% in 2024 to 3.14% in 2025, showing a decline in shareholder returns. The drop suggests that profits generated relative to shareholders’ equity weakened, possibly due to lower net profit and operational inefficiencies. While still positive, the downward trend indicates the company is not utilizing equity capital as effectively as before.

Trade Receivables Turnover Ratio
The trade receivables turnover ratio declined from 79.32 in 2024 to 64.67 in 2025. This means receivables are being collected more slowly, tying up funds in outstanding credit. The drop signals weaker efficiency in credit management and could affect liquidity if the trend continues.

Trade Payables Turnover Ratio
The ratio declined sharply from 0.23 in 2024 to 0.09 in 2025, indicating the company is paying its suppliers much more slowly. While delaying payments can temporarily conserve cash, such a low ratio could strain supplier relationships and may not be sustainable in the long run.

Net Working Capital Turnover Ratio
This ratio fell from 1.56 in 2024 to 0.78 in 2025, highlighting a decline in efficiency of using working capital to generate revenue. A lower turnover suggests that more funds are tied up in current assets relative to sales, which may hamper operational efficiency.

Net Profit Margin
The net profit margin decreased from 28.28% in 2024 to 24.80% in 2025. While still strong, the decline reflects reduced profitability, likely due to weaker operating performance. A falling margin suggests the company is facing pressure on cost control or revenue generation.

EBITDA Margin
The EBITDA margin remained negative, though it improved slightly from -3.30% in 2024 to -2.62% in 2025. This means the company’s core operations are still loss-making before considering depreciation, interest, and taxes. The improvement, however, indicates efforts toward cost control or higher revenues are beginning to narrow losses.

EBIT Margin
The EBIT margin worsened from -9.95% in 2024 to -20.20% in 2025, showing operating losses have deepened after accounting for depreciation and amortization. This highlights inefficiency in managing operating expenses and suggests profitability challenges at the operational level.

Return on Capital Employed (ROCE)
ROCE remained negative at -2.53% in 2025 compared to -2.62% in 2024. Although slightly better, it still shows that the company failed to generate positive returns from its overall capital employed. This implies that both equity and debt capital are not being used efficiently to create value.