Fusion Techstack (ICEX) Annual Report | Balance Sheet | Financials

Fusion Techstack Limited Standalone Balance Sheet (Rs in Thousands)

 Fusion Techstack Limited Standalone Profit & Loss Statement (Rs in Thousands)

 Fusion Techstack Limited Standalone Cash Flow Statement (Rs in Thousands)

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

Cash Flows from Operating Activities

In FY 2024–25, Fusion Techstack Limited reported a net loss from operating activities of ₹71,763.08 thousand, compared to a loss of ₹96,361.52 thousand in the previous year. This indicates a smaller cash outflow from operations, though operations still consumed cash. The major reason for the negative cash flow is the significant reduction in operating profit due to high non-cash income like interest income and excess provisions written back in FY 2024, which are non-recurring in nature. Additionally, working capital movements, including increased trade receivables, financial assets, and liabilities, contributed to the outflow. Despite reduced negative cash flow compared to the prior year, the company still faces operational inefficiency in converting profits into cash.

Cash Flows from Investing Activities

The company generated a positive cash inflow of ₹79,015.44 thousand from investing activities during FY 2024–25, compared to ₹1,02,424.34 thousand in FY 2023–24. The main sources of inflow were interest income and proceeds from the sale or redemption of investments, indicating active management of liquid investments. However, the overall inflow declined compared to last year due to lower redemption of mutual funds and fewer loan repayments. No significant capital expenditure was incurred during the year, suggesting limited investment in long-term assets and a focus on maintaining liquidity rather than expansion.

Cash Flows from Financing Activities

Under financing activities, the company reported a cash outflow of ₹5,382.11 thousand in FY 2024–25, slightly lower than ₹5,696.22 thousand in the previous year. This outflow mainly represents lease rent payments under Ind AS 116, with no major financing inflows such as borrowings or share issues. The consistency of lease payments shows stable financial obligations but no fresh capital infusion or debt repayment activities, reflecting a conservative financing position.

Net Increase/(Decrease) in Cash and Cash Equivalents

Overall, the company’s cash position improved slightly, with cash and cash equivalents increasing by ₹1,870.25 thousand in FY 2024–25 compared to an increase of ₹366.60 thousand in FY 2023–24. The improvement was driven by positive investing cash flows that offset the negative operating cash flows. The closing cash balance stood at ₹3,271.20 thousand as of March 31, 2025, up from ₹1,400.95 thousand a year earlier. While liquidity has improved, the company still depends heavily on investment income rather than core operations for sustaining its cash balance.

Financial Ratios of Fusion Techstack Limited

Summary of the financial ratios of Fusion Techstack Limited for the year 2025 & 2024:

Current Ratio

The company’s current ratio improved from 6.52 in FY 2023–24 to 7.75 in FY 2024–25, indicating a stronger short-term liquidity position. This suggests that Fusion Techstack Limited has more than enough current assets to cover its current liabilities comfortably. However, such a high ratio might also mean that too many resources are tied up in non-productive current assets, which could otherwise be utilized for business growth. Overall, liquidity remains healthy and well above the ideal benchmark of 2:1.

Return on Equity (ROE) Ratio

The Return on Equity declined sharply from 11.73% in FY 2023–24 to 2.29% in FY 2024–25. This drop indicates that the company generated significantly lower profits from shareholders’ funds in the current year. The decline reflects reduced profitability and less efficient use of equity capital, possibly due to lower operational income and high reliance on non-core investment gains. Despite remaining positive, the fall in ROE signals weaker value creation for shareholders compared to the previous year.

Trade Receivables Turnover Ratio

The Trade Receivables Turnover Ratio stood at 0 in both FY 2024–25 and FY 2023–24, implying that the company either did not have significant trade receivables or had minimal revenue from credit sales. This could suggest that Fusion Techstack operates primarily on a cash-based model or has negligible receivable balances. While this eliminates collection risks, it may also reflect limited business activity in terms of customer transactions.

Trade Payables Turnover Ratio

The Trade Payables Turnover Ratio improved substantially from 0.33 in FY 2023–24 to 2.30 in FY 2024–25, indicating that the company is now settling its payables more frequently and efficiently. This improvement shows stronger cash management and better relationships with suppliers. However, it may also suggest that the company is not fully utilizing the available credit period, possibly opting for faster payments due to improved liquidity or reduced procurement volumes.

Net Capital Turnover Ratio

The Net Capital Turnover Ratio remained very low at 0.00 in FY 2024–25, unchanged from 0.01 in FY 2023–24. This shows that the company is not effectively using its working capital to generate revenue. Such a stagnant ratio reflects weak operational efficiency and limited sales activity relative to the company’s capital employed. The management may need to enhance business operations to better utilize the funds invested in working capital.

Net Profit Ratio

The Net Profit Ratio decreased from 0.30 in FY 2023–24 to 0.18 in FY 2024–25, indicating a decline in overall profitability. This means that for every ₹100 of revenue, the company earned only ₹0.18 as net profit, compared to ₹0.30 in the previous year. The reduction suggests increased expenses or lower income from core operations, emphasizing the need for better cost control and revenue enhancement strategies.

Return on Capital Employed (ROCE)

The ROCE improved from a steep negative -103.08% in FY 2023–24 to -14.89% in FY 2024–25, though it still remains negative. This indicates that the company continues to generate losses from the capital employed, meaning the funds invested in business assets are not yielding adequate returns. The improvement, however, suggests that losses have narrowed and operational performance has somewhat stabilized compared to the prior year.

Return on Investment (ROI)

The Return on Investment remained steady at 1.38% for both FY 2024–25 and FY 2023–24, reflecting stable earnings from the company’s investments. This consistency shows that the company’s investment portfolio continues to generate modest but reliable returns. However, the relatively low ROI also indicates that investment efficiency could be improved to yield higher gains from available funds.