Hindon Mercantile Limited (Hindon Mercantile ) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40
Hindon Mercantile Limited

Hindon Mercantile Limited Consolidated Balance Sheet (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Financial assets
Cash and cash equivalent	123.91	99.30
Bank balances other than cash and cash equivalent	109.03	170.41
Trade receivables	13.00	0.84
Other receivables	-	0.04
Loans	1,134.81	657.40
Investment	187.30	5.65
Other financial assets	28.33	30.15
Non-financial assets
Current tax assets	2.25	2.81
Deferred tax assets	1.57	2.06
Plant, property & equipment	1.45	0.64
Right of use assets	5.80	7.52
Intangible assets under development	8.71	6.99
Goodwill	-	0.49
Other intangible assets	5.82	1.13
Other non-financial assets	79.63	15.22
Inventory	0.65	0.01
Total assets	1,702.28	1,000.66
Equity
Equity share capital	22.26	14.79
Preference share capital	0.01	-
Other equity	386.54	150.67
Non-controlling interest	293.42	103.93
Financial liabilities
Trade payables
Total outstanding dues of micro and small enterprises	0.85	-
Total outstanding dues other than above	0.77
Debt securities	325.65	75.13
Borrowings	600.55	607.85
Other financial liabilities	62.21	45.43
Non-financial liabilities
Current tax liabilities	1.88	-
Provisions	1.77	0.48
Other non-financial liabilities	6.38	2.38
Total equity and liabilities	1,702.28	1,000.66

Hindon Mercantile Limited Consolidated Profit & Loss Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Revenue from operations
Interest income	181.59	102.48
Net gain on fair value change	0.67	0.09
Fee and commissions income	67.43	8.49
Other income	4.09	9.32
Total Income	253.78	120.38
Expenses
Cost of material consumed	41.54	0.05
Finance costs	98.63	50.35
Fees and commissions expense	6.14	9.70
Impairment on financial instrument	11.02	3.42
Employee benefit expense	35.59	19.13
Depreciation & amortization expense	4.11	2.66
Other Expenses	31.11	11.00
Total Expenses	228.15	96.31
Profit/Loss Before exceptional items and tax	25.63	24.07
Exceptional items	-	0.52
Profit/(loss) before tax	25.63	24.59
Current Tax	5.76	2.32
Tax related to earlier years	0.22	-0.05
Deferred Tax	-0.13	3.81
Profit/ Loss for the period	19.78	18.51
Other comprehensive income
Other comprehensive income not to be reclassified to profit or loss	0.11	0.04
Income effect on above items	-0.02	-0.01
Total comprehensive income for the period	19.87	18.54
Earning per share
Basic	5.79	8.72
Diluted	5.77	8.11

Hindon Mercantile Limited Consolidated Cash Flow Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Net Profit/(loss) Before Tax	25.63	24.59
Adjustment for: -
Interest expense on lease liabilities	0.76	0.41
Depreciation and amortisation	4.11	2.66
ESOP expense	1.28	0.04
Impairment on financial instrument	8.16	3.42
(gain)/loss on sale of fixed deposits	-0.01	-1.04
Net gain on fair value changes	0.67	0.09
(gain)/loss on sale of investment	-	-
Working capital adjustments:
(increase)/decrease in trade receivables	12.16	-0.30
(increase)/decrease in other receivables	0.04	0.30
(increase)/decrease in bank balances and other cash and cash equivalent	61.37	-57.90
(increase)/decrease in loans	-490.33	-369.08
increase/(decrease) in financial liabilities	16.79	31.11
(increase)/decrease in provisions	16.09	0.23
(increase)/decrease in other non-financial liabilities	4.00	-5.55
(increase)/decrease in other non-financial assets	-64.41	-1.58
increase/(decrease) in trade payables	1.62	-
(increase)/decrease in inventories	-0.64	-0.01
(increase)/decrease in other financial assets	1.82	-27.56
Cashflow generated from operations	-425.20	-400.18
Direct taxes paid	-3.55	-2.27
Net Cash from/(used in) Operating Activities	-428.75	-402.45
Cash Flow from Investing Activities
Purchase of investment	-1,192.01	-1.38
Sale of investment	1,009.71	-
Purchase of PPE	-0.79	-8.12
Sale of PPE	0.02	0.01
Purchase of intangible assets under development	-1.73	-7.20
Proceeds from sale of intangible assets under development	-	2.00
Purchase of intangible assets	-4.69	-
Net Cash from / (used in) Investing Activities	-189.49	-14.69
Cash Flow from Financing Activities
Share issue expense of subsidiary company	-	7.14
Proceeds from issue of equity share of subsidiary company	5.79	72.65
Proceeds from debt securities	258.44	7.33
Repayment of debt securities	-7.92	-1.25
Proceeds from borrowing	376.89	550.39
Repayment of borrowings	-287.15	-164.77
Proceeds from overdraft facilities from bank	-97.04	13.60
Increase in net worth due to acquisition of subsidiaries	180.29	-
Increase of share issue net of share issue expense	216.29	-
Payment of lease liabilities	-2.76	-0.41
Net Cash from/(used in) Financing Activities	642.84	484.69
Net Increase/decrease in Cash & cash equivalents	24.61	67.56
Cash and cash equivalents at the beginning of the year	99.30	31.75
Cash and cash equivalents at the end of the year	123.91	99.30

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

Operating Activities

Cash flow from operating activities remained negative during FY25, reflecting the nature of financial businesses where growth in lending requires significant capital deployment. Net cash used in operating activities was ₹428.75 crore in FY25 compared to ₹402.45 crore in FY24. The primary reason for the negative operating cash flow is the sharp increase in loans disbursed, reflected in a ₹490.33 crore increase in loans, compared with ₹369.08 crore in FY24. This indicates aggressive expansion of the company’s lending portfolio. Additionally, other non-financial assets increased by ₹64.41 crore, which further reduced operating cash flow. However, the company generated some operating liquidity through reduction in trade receivables of ₹12.16 crore and increase in provisions of ₹16.09 crore. Overall, the negative operating cash flow suggests capital being deployed to expand lending operations, which is typical for financial services companies during growth phases.

Investing Activities

Cash flow from investing activities showed a net outflow of ₹189.49 crore, significantly higher than the ₹14.69 crore outflow in FY24. The major activity was purchase of investments worth ₹1,192.01 crore, partially offset by sale of investments worth ₹1,009.71 crore. This indicates active portfolio management and treasury operations.The company also invested in intangible assets and technology development, including ₹1.73 crore in intangible assets under development and ₹4.69 crore in intangible assets, reflecting ongoing investments in digital infrastructure or systems.

Capital expenditure on property, plant and equipment remained minimal at ₹0.79 crore, indicating the company is asset-light in nature.

Financing Activities

Financing activities generated a strong positive cash flow of ₹642.84 crore in FY25, compared with ₹484.69 crore in FY24. The company raised significant funds through borrowings of ₹376.89 crore and debt securities issuance of ₹258.44 crore, indicating reliance on external funding to support loan growth. Additionally, the company strengthened its capital base through equity issuance and acquisition-related capital inflows totaling over ₹396 crore, including ₹216.29 crore increase in share capital and ₹180.29 crore increase in net worth from subsidiary acquisition. Some repayments were also made during the year, including ₹287.15 crore repayment of borrowings and ₹7.92 crore repayment of debt securities. Overall, financing inflows highlight the company’s active capital raising strategy to support expansion.

Net cash position

The net cash position of Hindon Mercantile Limited improved during FY25, with cash and cash equivalents increasing by ₹24.61 crore, rising from ₹99.30 crore at the beginning of the year to ₹123.91 crore at the end of the year. This increase was mainly supported by strong inflows from financing activities such as borrowings, debt securities, and equity infusion, which helped offset the significant cash outflows from operating and investing activities due to expansion in lending operations and investment purchases. Overall, the company maintained a positive liquidity position during the year.