Kiaasa Retail Limited (Kiaasa) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40
Kiaasa Retail Limited

Kiaasa Retail Limited Standalone Balance Sheet (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Shareholder’s funds
Share Capital	1,273.90	450.00
Reserves and Surplus	2,784.87	760.93
Non-current liabilities
Long term borrowings	377.20	244.74
Deferred tax liabilities	1.27	-
Other long term liabilities	2,910.11	1,616.91
Long term provisions	42.54	15.71
Current liabilities
Short term borrowings	2,489.35	1,343.68
Total outstanding dues of micro enterprises and small enterprises	824.55	739.00
Total outstanding dues of creditors other than micro enterprises and small enterprises	3,001.92	3,995.42
Other current liabilities	355.50	199.47
Short term provisions	360.31	182.21
Total	14,421.51	9,548.08
Non-current assets
Property, plant and equipment	2,389.56	852.82
Intangible assets	28.88	13.67
Long term loans and advances	319.87	382.05
Deferred tax assets (net)	-	5.05
Current assets
Inventories	6,823.99	5,150.56
Trade Receivables	2,188.41	672.81
Cash and cash equivalents	270.38	173.26
Short term loans and advances	1,857.47	2,282.32
Other current assets	542.95	15.53
Total assets	14,421.51	9,548.08

Kiaasa Retail Limited Standalone Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operations	12,162.81	8,435.36
Other Income	1.92	15.51
Total Income	12,164.73	8,450.87
Expenses
Purchase	8,318.21	8,240.21
Change in inventory	-1,673.43	-3,154.16
Employee Benefits Expenses	1,112.26	776.03
Finance Costs	279.64	163.72
Depreciation and Amortization Expenses	139.29	50.58
Other Expenses	2,763.94	1,653.57
Total Expenses	10,939.92	7,729.96
Profit before tax	1,224.80	720.91
Current tax	306.82	181.60
Taxes of previous year	10.16	-
Deferred tax	6.32	2.73
Profit after tax	901.51	536.58
Earnings per Equity Share
Basic	7.47	6.61
Diluted	7.47	6.61

Kiaasa Retail Limited Standalone Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Cash Flow From Operating Activites
Net Profit before tax	1,224.80	720.91
Adjustments:
Depreciation	139.29	50.58
Interest expenses	220.15	137.54
Interest income	-0.83	-0.78
Operating profit before working capital changes	1,583.42	908.27
Adjustments:
(Increase)/Decrease in Inventory	-1,673.43	-3,154.16
(Increase)/Decrease in Trade Receivables	-1,515.60	2,221.00
(Increase)/Decrease in Long term loans and advances	62.19	-53.74
(Increase)/Decrease in Short term loans and advances	424.85	-1,767.09
(Increase)/Decrease in Other non current and current assets	-527.42	-10.68
Increase/(Decrease) in Trade payables	-907.94	2,708.95
Increase/(Decrease) in Other non current and current liabilities	1,449.23	325.67
Increase/(Decrease) in Long term provisions	14.65	11.32
Increase/(Decrease) in Short term provisions	52.88	0.61
Net cash generated from operating activities	-1,037.18	1,190.15
Income taxes refund/(paid) - net	-191.76	-105.71
Net cash flows from operating activities	-1,228.94	1,084.44
Cash Flows From Investing Activities
Purchase of property, plant and equipments (including intangible assets)	-1,691.24	-785.93
Proceeds from / (Investment in) fixed deposits	20.47	-20.97
Interest on fixed deposits	0.83	0.78
Net cash (used in) investing activities	-1,669.94	-806.13
Cash Flows From Financing Activities
Proceed from issue of shares (including security premium)	1,958.50	400.00
(Decrease)/Increase in borrowings	1,278.12	-528.24
Interest paid	-220.15	-137.54
Net cash generated from financing activities	3,016.48	-265.78
Increase In Cash And Cash Equivalents	117.59	12.52
Cash and cash equivalents as at the beginning of year	152.29	139.77
Cash and cash equivalents as at end of the year	269.88	152.29

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

Cash Flow from Operating Activities

In FY 2025, Kiaasa Retail Limited reported a net profit before tax of ₹1,224.80 lakhs, a healthy increase from ₹720.91 lakhs in FY 2024, showing better profitability. However, despite this improvement, operating cash flow turned negative at ₹(1,228.94) lakhs, compared to a positive ₹1,084.44 lakhs in the previous year.
This sharp reversal is mainly due to a significant increase in working capital requirements — particularly a large buildup in inventory (₹1,673.43 lakhs) and trade receivables (₹1,515.60 lakhs). These movements indicate that the company tied up more funds in stock and credit to customers, possibly reflecting business expansion or slower sales realization.
On the positive side, the company improved its short-term loans and advances position, and liabilities such as other current and non-current payables rose, partially offsetting the outflows. Overall, cash generation from core operations declined sharply, highlighting stress in working capital management during FY 2025.

Cash Flow from Investing Activities

The company recorded a net cash outflow of ₹1,669.94 lakhs from investing activities in FY 2025, higher than the outflow of ₹806.13 lakhs in FY 2024. The main reason was the substantial investment in property, plant, and equipment, amounting to ₹1,691.24 lakhs, more than double the previous year’s capital expenditure of ₹785.93 lakhs.
This indicates that Kiaasa Retail is investing heavily in expansion — perhaps opening new stores, upgrading infrastructure, or enhancing its retail presence. Apart from this, there were minor inflows from fixed deposits and interest income. In essence, the company continued to pursue growth-oriented investments, even though they consumed significant cash resources.

Cash Flow from Financing Activities

Financing activities provided a strong positive cash flow of ₹3,016.48 lakhs in FY 2025, compared to a cash outflow of ₹265.78 lakhs in FY 2024. The sharp turnaround was driven mainly by a fresh issue of shares worth ₹1,958.50 lakhs and an increase in borrowings by ₹1,278.12 lakhs, both indicating that the company raised substantial external funds to support operations and investments.
Although the company paid interest of ₹220.15 lakhs (up from ₹137.54 lakhs last year), the overall financing inflow comfortably outweighed these payments. This reflects strong financial backing and possibly growing investor or lender confidence in the company’s prospects.

Net Change in Cash and Cash Equivalents

Despite negative operating and investing cash flows, the large inflow from financing activities led to an overall increase in cash and cash equivalents by ₹117.59 lakhs in FY 2025, compared to a smaller increase of ₹12.52 lakhs in FY 2024. Consequently, the closing cash balance rose from ₹152.29 lakhs to ₹269.88 lakhs.
This indicates that the company’s liquidity improved slightly, but mainly due to financing inflows rather than business-generated cash. The pattern shows Kiaasa Retail is in a growth phase, relying on external funding to sustain expansion while its operations consume cash.

Standalone Financial Ratios of Kiaasa Retail Limited

Particulars	31-03-2025	31-03-2024
Current ratio	1.73	1.31
Debt-equity ratio	0.71	1.31
Debt service coverage ratio	0.63	0.31
Return on equity ratio	34.21%	72.04%
Inventory turnover ratio	1.11	1.42
Trade receivables turnover ratio	1.80	1.19
Trade payables turnover ratio	1.55	1.50
Net capital turnover ratio	2.41	4.26
Net profit ratio	7.55%	6.36%
Return on capital employed	16.46%	24.38%

Summary of the financial ratios of Kiaasa Retail Limited for the year 2025 and 2024:

Current Ratio

The current ratio increased from 1.31 in FY 2024 to 1.73 in FY 2025, indicating an improvement in the company’s short-term liquidity position. This suggests that Kiaasa Retail Limited now holds more current assets relative to its current liabilities, enhancing its ability to meet short-term obligations. The rise reflects better working capital management or possibly higher cash and receivable balances, though an excessively high ratio may also imply underutilized resources. Overall, the company appears more financially stable in terms of liquidity compared to the previous year.

Debt-Equity Ratio

The debt-equity ratio decreased significantly from 1.31 in FY 2024 to 0.71 in FY 2025, showing a substantial reduction in financial leverage. This decline indicates that the company relied less on borrowed funds and strengthened its equity base during the year, possibly due to fresh equity infusion or repayment of debt. A lower ratio is a positive indicator of financial health, suggesting reduced dependency on external borrowings and lower financial risk.

Debt Service Coverage Ratio (DSCR)

The debt service coverage ratio improved from 0.31 in FY 2024 to 0.63 in FY 2025, reflecting better capacity to meet interest and principal repayment obligations from its earnings. Although still below the ideal benchmark of 1.0, the improvement suggests that the company’s profitability and cash flows have strengthened. This upward trend points toward gradual progress in meeting debt obligations more comfortably.

Return on Equity (ROE)

The return on equity fell sharply from 72.04% in FY 2024 to 34.21% in FY 2025, indicating that shareholders earned a lower return on their investment during the year. The decline could be attributed to a rise in equity capital (due to new share issuance) or a slower growth in net profits relative to equity. Despite the drop, the ROE remains strong, signifying that the company continues to generate attractive returns for its shareholders, albeit at a moderated level.

Inventory Turnover Ratio

The inventory turnover ratio declined from 1.42 to 1.11, suggesting that inventory is being sold and replaced at a slower pace than before. This may indicate overstocking, slower sales movement, or higher inventory levels due to expansion. A lower turnover ratio could tie up working capital and increase holding costs, signaling a need for tighter inventory management.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio increased from 1.19 in FY 2024 to 1.80 in FY 2025, reflecting improved efficiency in collecting dues from customers. This implies that the company is converting its credit sales into cash more quickly than in the previous year. Stronger receivables management enhances cash flow and reduces credit risk, which is a positive sign for liquidity.

Trade Payables Turnover Ratio

The trade payables turnover ratio remained relatively stable, moving slightly from 1.50 in FY 2024 to 1.55 in FY 2025. This stability indicates that the company maintained a consistent pattern in settling its dues to suppliers. A steady ratio suggests balanced credit terms with suppliers and effective management of trade payables without putting strain on supplier relationships.

Net Capital Turnover Ratio

The net capital turnover ratio declined from 4.26 in FY 2024 to 2.41 in FY 2025, indicating a lower efficiency in utilizing working capital to generate sales. This drop may be the result of higher current assets such as inventory and receivables, as also seen in the cash flow data. It implies that more capital is tied up in day-to-day operations, reducing the overall efficiency of capital usage.

Net Profit Ratio

The net profit ratio improved from 6.36% in FY 2024 to 7.55% in FY 2025, showing that the company earned a higher profit margin on its sales. This improvement reflects better cost control, pricing efficiency, or a favorable change in product mix. The rising profitability margin is a positive sign, indicating stronger operational performance despite working capital pressures.

Return on Capital Employed (ROCE)

The return on capital employed decreased from 24.38% in FY 2024 to 16.46% in FY 2025, suggesting that the company’s efficiency in generating returns from its total capital base declined during the year. The reduction could be due to higher capital employed as a result of new investments or equity infusion, combined with moderate growth in profits. Even so, the ratio remains at a respectable level, indicating that the company continues to generate satisfactory returns on its overall investments.