Dr M Induscorp Limited Standalone Balance Sheet (Rs. in lacs)

Dr M Induscorp Limited Standalone Profit & Loss Statement  (Rs. in lacs)

 Dr M Induscorp Limited Standalone Cash Flow Statement  (Rs. in lacs)

Cash Flow Analysis of Dr M Induscorp Limited

(All amounts in ₹ Lacs)

A. Cash Flow from Operating Activities

During FY 2024-25, the Company reported a Net Profit before tax of ₹43.91 lacs, significantly higher than ₹8.06 lacs in the previous year, indicating improved operational performance.

After adjusting for non-cash and non-operating items such as:

• Depreciation of ₹0.82 lacs

• Interest Income of ₹17.95 lacs

the Operating Profit before Working Capital Changes stood at ₹26.78 lacs, compared to a loss of ₹16.76 lacs in FY 2023-24.

Working Capital Movement:

• Trade Receivables increased by ₹3.12 lacs

• Other Current Assets increased substantially by ₹636.28 lacs

• Trade Payables increased by ₹15.96 lacs

• Other Current Liabilities increased by ₹632.81 lacs

• Short-term Provisions increased by ₹7.89 lacs

The sharp rise in Other Current Assets was largely offset by a corresponding increase in Other Current Liabilities, stabilizing overall working capital impact.

As a result, Cash Generated from Operations stood at ₹45.03 lacs, compared to negative ₹149.89 lacs in the previous year.

After payment of Income Tax amounting to ₹8.64 lacs, the Net Cash Flow from Operating Activities was ₹36.39 lacs, marking a strong turnaround from negative ₹151.55 lacs in FY 2023-24.

Interpretation:
The company has successfully improved its core operational cash generation, reflecting better profitability and improved working capital management compared to the previous year.

B. Cash Flow from Investing Activities

During the year, the Company made capital investments amounting to ₹37.83 lacs in fixed assets.

It earned Interest Income of ₹17.95 lacs during the year.

As a result, the Net Cash Used in Investing Activities stood at ₹19.88 lacs, compared to positive ₹25.80 lacs in the previous year.

Interpretation:
The negative investing cash flow indicates capital expansion during the year. The previous year’s positive cash flow was primarily due to interest income without significant capital expenditure.

C. Cash Flow from Financing Activities

The Company raised Long-Term Borrowings of ₹232.00 lacs during FY 2024-25. There were no financing activities in the previous year.

Thus, Net Cash from Financing Activities stood at ₹232.00 lacs.

Interpretation:
The significant inflow from borrowings indicates strengthening of financial resources, possibly to support expansion, working capital requirements, or asset acquisition.

Overall Cash Position

• Net Increase in Cash & Cash Equivalents: ₹248.51 lacs

• Opening Cash Balance: ₹13.87 lacs

• Closing Cash Balance: ₹262.38 lacs

The Company witnessed a substantial improvement in liquidity position compared to the previous year, which had seen a decline of ₹125.75 lacs.

Overall Conclusion

Dr M Induscorp Limited has shown a remarkable financial turnaround in FY 2024-25. The Company moved from negative operating cash flows in the previous year to positive operational generation. The strong financing inflow and capital investment activities indicate a phase of growth and expansion. The closing cash balance of ₹262.38 lacs reflects a significantly strengthened liquidity position.

Financial Ratios of Dr M Induscorp Limited

Key Ratio Analysis – Dr M Induscorp Limited

1. Current Ratio
The current ratio stood at 1.69 in 2025 compared to an unusually high 122.20 in 2024, indicating normalization of liquidity levels. The 2025 ratio reflects a more realistic and efficient working capital position, suggesting the company is maintaining adequate short-term assets to meet its liabilities without excessive idle funds.

2. Debt–Equity Ratio
The debt-equity ratio was 0.85 in 2025, whereas no comparable figure was reported in 2024. This indicates a moderate reliance on borrowed funds and a balanced capital structure, reflecting prudent financial leverage.

3. Return on Equity (ROE)
ROE improved to 0.14 in 2025 from 0.03 in 2024, showing better returns generated on shareholders’ funds. The increase reflects improved profitability and efficient utilization of equity capital.

4. Inventory Turnover Ratio
Inventory turnover surged to 31,492.22 times in 2025 from 14.02 times in 2024, indicating significantly faster inventory movement. This suggests improved inventory management, quicker sales conversion, or lower inventory holding levels.

5. Trade Receivables Turnover Ratio
The ratio increased sharply to 1,488.05 times in 2025 compared to 0.23 times in 2024, reflecting a substantial improvement in collection efficiency and faster realization of receivables.

6. Trade Payables Turnover Ratio
Trade payables turnover rose to 3,424.50 times in 2025 from 1.18 times in 2024, indicating quicker payments to suppliers and stronger credit management practices.

7. Net Capital Turnover Ratio
The ratio increased to 62.76 in 2025 from 0.11 in 2024, demonstrating better utilization of working capital in generating revenue and improved operational efficiency.

8. Net Profit Ratio
Net profit ratio was 0.15% in 2025 compared to 0.34 in 2024, indicating a decline in profitability margins. This may be due to higher operating costs or lower revenue growth during the year.

9. Return on Capital Employed (ROCE)
ROCE improved to 0.09 in 2025 from 0.03 in 2024, reflecting better utilization of total capital employed and improved operating performance.

Overall Interpretation:
Dr M Induscorp Limited has shown significant improvement in operational efficiency, asset utilization, and capital productivity during 2025. Liquidity levels have normalized, and leverage remains moderate. However, profitability margins have slightly declined, indicating the need to focus on cost control and revenue optimization to enhance overall financial performance.