Kesoram Textile Ltd Annual Report and Financials

Kesoram Textile Mills Limited Balance Sheet (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Non-Current Assets
Property, Plant and Equipment	29847.06	29848.34
Other Financial Assets	397.66	300.51
Other Non-Current Assets	0.02	0.02
Current Assets
Cash and Caah Equivalents	0.33	63.19
Bank balances other than above	-	87.37
Other Financial Assets	62.49	10.21
Other Current Assets	188.57	172.16
Total Assets	30496.13	30481.8
Equity
Equity Share Capital	1045.64	1045.64
Other Equity	22748.71	20188.8
Non-Current Liabilities
Other Financial Liabilities	-	89.02
Provisions	91.65	91.40
Deferred Tax liabilities	4,334.84	6,932.09
Other Non-Current Liabilities	-	44.84
Current Liabilities
Borrowings	955.00	955.00
Other Financial Liabilities	1197.62	1012.36
Other Current Liabilities	115.09	114.07
Provisions	7.58	8.58
Total Equity and Liabilities	30496.13	30481.80

 Kesoram Textile Mills Limited Profit & Loss Statement (Rs in Lakhs)

 Kesoram Textile Mills Limited Cash Flow Statement (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

In both years, the company reported a net loss before tax—₹47.39 lakhs in FY 2024–25 and ₹36.34 lakhs in FY 2023–24. To derive the cash flow from operations, the company made several non-cash adjustments:

Depreciation and amortisation, a non-cash expense, was relatively stable at around ₹1.3 lakhs.

Finance costs fell dramatically from ₹1,417.12 lakhs in FY 2023–24 to just ₹3.93 lakhs in FY 2024–25, suggesting a significant reduction in debt obligations or interest-bearing liabilities.

Interest income, which is cash inflow from investments, declined from ₹1,373.65 lakhs to ₹180.76 lakhs, which also suggests fewer interest-generating assets or deposits.

After adjustments, the Operating Profit before Working Capital Changes showed a sharp decline to a loss of ₹222.93 lakhs in 2024–25, compared to a small profit of ₹8.49 lakhs in 2023–24. The changes in working capital further impacted cash:

The company improved its liabilities and provisions in FY 2024–25 (₹62.04 lakhs inflow) compared to a significant outflow in FY 2023–24 (₹767.96 lakhs).

Other financial assets decreased, providing cash inflow, while other current/non-current assets also reduced, both improving liquidity.

Taxes paid were negligible in FY 2024–25 but received as a refund in FY 2023–24.

Ultimately, Net Cash Used in Operating Activities was negative in both years, with a smaller outflow in FY 2024–25 (₹194.28 lakhs) compared to FY 2023–24 (₹301.35 lakhs), indicating ongoing operational challenges but slightly better cash management in the latest year.

Cash Flow from Investing Activities

This segment saw a significant shift:

In FY 2023–24, the company received large repayments from a body corporate (₹15,344.72 lakhs) and made a repayment of a deposit taken (₹16,853.51 lakhs), which roughly offset each other. It also earned substantial interest income (₹7,180.94 lakhs), resulting in net inflow of ₹5,532.26 lakhs.

In FY 2024–25, there were no such large repayments, and the only movements were:

Fixed deposit withdrawals (₹46.04 lakhs),

Interest income of ₹181.39 lakhs.

This led to a much smaller net investing cash inflow of ₹135.35 lakhs, a dramatic decrease, indicating that most of the one-time returns from financial arrangements in FY 2023–24 did not recur in FY 2024–25.

Cash Flow from Financing Activities

There was limited financing activity in FY 2024–25:

Only finance cost of ₹3.93 lakhs was paid.

There were no borrowings or repayments recorded during the year.

In contrast, FY 2023–24 involved the repayment of borrowings (₹3,228.83 lakhs) and significant finance cost payments (₹1,939.59 lakhs), resulting in a large net outflow of ₹5,168.42 lakhs.

The reduction in financing activity in FY 2024–25 suggests the company may have deleveraged or chosen not to raise new funds.

Net Cash Movement and Closing Balance

Combining all three activities, the company experienced a net decrease in cash and cash equivalents of ₹62.86 lakhs in FY 2024–25, compared to a net increase of ₹62.49 lakhs in FY 2023–24.

It began FY 2024–25 with ₹63.19 lakhs and ended with just ₹0.33 lakhs, indicating near depletion of immediate liquidity.

The cash at year-end consisted mainly of balances with banks and cash on hand—no short-term deposits, which were present the prior year.

 Financial Ratios of Kesoram Textile Mills Limited

 

Here is a summary of the financial and operational metrics for Kesoram Textile Mills Limited for the year 2025 and 2024:

Current Ratio

The current ratio measures a company’s ability to meet its short-term liabilities with its short-term assets. In 2024–25, the ratio stands at 0.11, down from 0.16 in 2023–24.

Debt-Equity Ratio

This ratio shows the proportion of debt to shareholder equity in the company’s capital structure. A positive ratio of 1.02 in 2024–25 implies that the company has slightly more debt than equity, which is relatively standard for businesses relying on borrowing for expansion or working capital.

Debt Service Coverage Ratio (DSCR)

The DSCR assesses the firm’s ability to cover its debt obligations (principal + interest) from its operating income. In 2024–25, it is not reported, likely because the company had negligible or no scheduled debt repayments or due to operating losses making the ratio non-computable.

Return on Capital Employed (ROCE)

ROCE shows how efficiently the company is using its capital (equity + debt) to generate profits. In 2024–25, the ROCE is 0.00%, meaning the company is breaking even and not generating any meaningful return from its capital base.

Return on Investment (ROI)

ROI measures the profitability of investments made by the company. In 2024–25, the ROI dropped slightly to 0.08 (or 8%), compared to 0.17 (or 17%) in 2023–24. This decline suggests that the company's investment portfolio is yielding lower returns, which aligns with the reduced interest income seen in the cash flow statement.