IHP Finvest Annual Reports, Balance Sheet and Financials

IHP Finvest Limited Standalone Balance Sheet (Rs. in crores).

IHP Finvest Limited Standalone Profit & Loss Statement (Rs. in crores).

IHP Finvest Limited Standalone Cash Flow Statement (Rs. in crores).

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

Cash Flow from Operating Activities

In FY 2024–25, IHP Finvest Limited reported a higher profit before tax of ₹8.58 crores compared to ₹4.58 crores in FY 2023–24; however, operating cash flow remained negative and worsened to ₹(7.26) crores from ₹(1.32) crores. This divergence is mainly due to significant non-cash and income adjustments such as profit on sale of investments (₹2.91 crores), dividend income (₹5.35 crores), and rental income, all of which reduced operating cash flow. Additionally, a substantial increase in current investments/stock-in-trade (₹6.08 crores) led to a major cash outflow. Overall, despite higher accounting profits, the company experienced weak operating cash generation due to heavy deployment in working capital and reliance on non-operating income.

Cash Flow from Investing Activities

The company recorded a strong positive cash flow from investing activities of ₹12.39 crores in FY 2024–25, a sharp turnaround from a large outflow of ₹(47.87) crores in FY 2023–24. This improvement was primarily driven by proceeds from the sale of long-term investments (₹6.34 crores), along with steady inflows from dividend income, rental income, and interest received. In contrast, the previous year saw heavy investment in long-term assets (₹53.16 crores), which caused the significant outflow. The current year reflects a phase of monetizing investments rather than aggressive capital deployment.

Cash Flow from Financing Activities

Financing activities resulted in a cash outflow of ₹(5.19) crores in FY 2024–25, slightly higher than ₹(4.69) crores in FY 2023–24. This outflow was entirely due to dividend payments, indicating consistent returns to shareholders. The absence of any borrowing or equity issuance suggests that the company is not relying on external financing and is instead distributing a portion of its earnings.

Net Increase/Decrease in Cash & Cash Equivalents

Overall, the company recorded a marginal decline in cash and cash equivalents of ₹(0.07) crores in FY 2024–25, compared to a substantial decrease of ₹(53.88) crores in FY 2023–24. While investing inflows helped offset negative operating and financing cash flows, the overall cash position remained relatively stable during the year. Cash balances slightly declined from ₹0.83 crores to ₹0.77 crores, indicating tight liquidity but significantly improved stability compared to the previous year’s sharp cash depletion

Financial ratios of IHP Finvest Limited.

Summary of Financial Ratio of the year 2025 and 2024.

Current Ratio

The current ratio increased significantly to 6.69 in FY 2024–25 from 1.88 in FY 2023–24, indicating a very strong liquidity position. This suggests that the company has substantially higher current assets relative to its current liabilities, reflecting improved short-term financial stability. However, such a high ratio may also indicate underutilization of current assets.

Return on Equity

Return on Equity (ROE) improved to 13.81% in FY 2024–25 from 7.37% in FY 2023–24, showing better profitability and more efficient utilization of shareholders’ funds. This increase indicates that the company generated higher returns on its equity base during the year.

Trade Account Payables Ratio

The trade account payables ratio slightly increased to 1.10 in FY 2024–25 from 0.97 in FY 2023–24. This suggests a marginal improvement in the company’s ability to manage and settle its payables, indicating stable creditor payment practices.

Net Capital Turnover Ratio

The net capital turnover ratio dropped sharply to 1.22 in FY 2024–25 from an exceptionally high 50.05 in FY 2023–24. This significant decline indicates reduced efficiency in utilizing capital to generate revenue, possibly due to a substantial increase in capital base or a decline in turnover relative to capital employed.

Net Profit Ratio

The net profit ratio surged dramatically to 96% in FY 2024–25 from 8% in FY 2023–24. This unusually high margin suggests that a large portion of income is derived from non-operating sources such as investment gains, dividends, or other income streams, rather than core operations. It may not be sustainable in the long term.

Return on Capital Employed

ROCE improved to 14% in FY 2024–25 from 8% in FY 2023–24, indicating better efficiency in generating operating profits from the total capital employed. This reflects a positive trend in overall capital utilization.

Return on Investment

Return on Investment (ROI) declined sharply to 0% in FY 2024–25 from 81% in FY 2023–24, indicating that the company did not generate significant returns from its investments during the current year. This drop may be due to reduced gains on investments or a shift in investment strategy.