DFM Foods Annual Reports & Financials

DFM Foods Limited Standalone Balance Sheet (Rs in Crores)

DFM Foods Limited Standalone Profit & Loss Statement (Rs in Crores)

DFM Foods Limited Standalone Cash Flow Statement (Rs in Crores)

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

Operating Activities:
The company reported a loss before tax of ₹12.01 crore in FY2025, compared with a loss of ₹6.42 crore in FY2024, indicating a deterioration in accounting profitability. However, after adjusting for non-cash items such as depreciation (₹14.92 crore), finance costs (₹6.23 crore), and employee stock appreciation rights expense (₹5.11 crore), the operating cash position improved. Working capital movements also had a significant impact: trade payables increased by ₹9.71 crore and other liabilities rose by ₹6.96 crore, which supported cash inflows. On the other hand, inventory increased by ₹11.76 crore and trade receivables increased by ₹4.79 crore, which absorbed cash. After these adjustments, the cash generated from operations was ₹17.63 crore, slightly higher than ₹17.04 crore in FY2024. After accounting for direct taxes paid (₹2.78 crore), the company reported net cash from operating activities of ₹20.41 crore, showing that its core operations still generated cash despite accounting losses.

Investing Activities:
Cash flow from investing activities showed a net outflow of ₹2.38 crore in FY2025, compared with a net inflow of ₹6.35 crore in FY2024. The main reason for the outflow was capital expenditure, including ₹6.47 crore spent on property, plant, and equipment and ₹0.33 crore on intangible assets, reflecting continued investment in productive capacity and technology. These outflows were partly offset by ₹4.00 crore from the sale of investments, ₹0.10 crore from asset disposals, and ₹0.80 crore of interest income. In the previous year, higher proceeds from the sale of assets (₹8.90 crore) led to a stronger investing cash inflow, which did not recur in FY2025.

Financing Activities:
Financing activities resulted in a net cash outflow of ₹19.72 crore in FY2025, though this was slightly lower than the ₹23.33 crore outflow in FY2024. The major financing cash outflows included repayment of non-current borrowings of ₹22.12 crore, interest payments of ₹5.90 crore, and lease liability payments of ₹3.62 crore. Although the company raised ₹12.05 crore through current borrowings, this was not sufficient to offset the large debt repayments and financing costs. This suggests that the company is actively reducing its long-term debt obligations, which improves financial leverage but also places pressure on cash reserves in the short term.

Overall Cash Position:
Due to the combination of positive operating cash flows but large financing outflows, the company experienced a net decrease in cash and cash equivalents of ₹1.69 crore in FY2025, compared with a small increase of ₹0.55 crore in FY2024. As a result, the cash balance declined from ₹2.29 crore at the beginning of the year to ₹0.60 crore at the end of the year. Overall, the statement indicates that while the company’s operations continue to generate cash, significant debt repayments and capital investments have reduced its available cash balance 

Financial ratios of DFM Foods Limited.

Summary of financial Ratio for the year 2025 and 2024.

Current ratio:
The current ratio of DFM Foods Limited decreased from 0.49 in FY2024 to 0.44 in FY2025. This indicates a decline in the company’s liquidity position and suggests that current liabilities are significantly higher than current assets. A ratio below 1 reflects potential difficulty in meeting short-term obligations and shows pressure on the company’s working capital management.

Debt–equity ratio:
The debt–equity ratio improved from 0.77 in FY2024 to 0.65 in FY2025. This decline indicates that the company reduced its reliance on external borrowings and strengthened its capital structure. Lower financial leverage suggests that the company has repaid some of its debt during the year, thereby reducing financial risk.

Debt service coverage ratio:
The debt service coverage ratio slightly decreased from 0.74 to 0.73. This ratio measures the company’s ability to meet its debt obligations from operating income. A ratio below 1 indicates that the company’s earnings are insufficient to fully cover its debt servicing requirements, highlighting financial pressure.

Return on equity:
Return on equity declined slightly from -5.02% in FY2024 to -5.20% in FY2025. The negative ratio indicates that the company incurred losses during the year, resulting in negative returns for shareholders. This suggests that the company was unable to generate profits from the shareholders’ invested funds.

Inventory turnover ratio:
The inventory turnover ratio increased from 8.50 to 9.59, indicating an improvement in inventory management. A higher turnover ratio suggests that inventory is being sold and replaced more frequently, which reflects efficient stock utilization and better operational efficiency.

Trade receivables turnover ratio:
The trade receivables turnover ratio declined from 136.82 to 123.49. This indicates that the company collected receivables slightly slower compared to the previous year. Although the ratio remains high, the decline suggests a minor slowdown in the efficiency of receivables collection.

Trade payables turnover ratio:
The trade payables turnover ratio increased from 6.04 in FY2024 to 7.47 in FY2025. This indicates that the company paid its suppliers more quickly during the year. While this may improve supplier relationships, it can also lead to higher short-term cash outflows.

Net capital turnover ratio:
The net capital turnover ratio remained almost unchanged at -6.67 in FY2025 compared to -6.66 in FY2024. The negative ratio indicates that the company has negative working capital, meaning current liabilities exceed current assets. This reflects inefficiency in the utilization of working capital to generate sales.

Net profit ratio:
The net profit ratio improved from -1.10% in FY2024 to -0.66% in FY2025. Although the ratio is still negative, the improvement indicates that the company reduced its net losses relative to its revenue. This suggests a slight improvement in cost control or operational performance.

Return on capital employed:
Return on capital employed decreased significantly from 2.87% in FY2024 to -3.90% in FY2025. The negative ratio indicates that the company was unable to generate adequate returns from the total capital employed in the business, reflecting poor operational profitability during the year.

Return on investment:
Return on investment increased slightly from 6.36% in FY2024 to 6.43% in FY2025. This indicates that the company earned marginally better returns on its investments compared to the previous year, suggesting stable performance from its investment activities