Kirti Investments Limited Annual Report, Balance Sheet and Financials

Kirti Investments Limited Standalone Balance Sheet (Rs in Lakhs)

Kirti Investments Limited Standalone Profit & Loss Statement (Rs in Lakhs)

Kirti Investments Limited Standalone Cash Flow Statement (Rs in Lakhs)

Summary of the financial ratios for the years 2025 and 2024:

Cash Flow from Operating Activities

The company reported a profit before tax of ₹49.37 lakhs in FY 2025, a sharp decline from ₹484.09 lakhs in FY 2024, indicating weaker core profitability. After adjusting for non-cash and non-operating items like dividend income, interest income, fair valuation changes, and profit on sale of investments, the operating profit before working capital changes stood at ₹35.13 lakhs, significantly lower than the previous year.

However, working capital movements played a major role in improving cash flows. A substantial decrease in loans & advances (₹174.58 lakhs inflow) boosted liquidity, while inventory increased (₹22.60 lakhs outflow), indicating funds tied up in stock. Minor changes in other current assets and liabilities had limited impact. As a result, cash generated from operations turned positive at ₹186.01 lakhs, compared to a negative ₹71.68 lakhs last year.

After accounting for taxes paid (₹8.08 lakhs), the net cash flow from operating activities stood strong at ₹177.94 lakhs, a significant improvement over the negative ₹74.83 lakhs in FY 2024. This suggests better cash realization despite lower profits.

Cash Flow from Investing Activities

The investing section shows a major cash outflow of ₹182.06 lakhs in FY 2025, compared to an inflow of ₹11.58 lakhs in FY 2024. This is primarily due to a heavy purchase of investments amounting to ₹200.48 lakhs, indicating aggressive deployment of funds into investment assets.

At the same time, the company earned dividend income (₹3.65 lakhs) and interest income (₹14.77 lakhs), which partially offset the outflow but were not sufficient to counterbalance the large investment spending. Overall, this reflects a strategic shift toward expanding the investment portfolio.

Cash Flow from Financing Activities

There were no financing activities reported in both FY 2025 and FY 2024. This indicates that the company neither raised nor repaid any debt or equity during the year, relying entirely on internal accruals and existing funds.

Net Change in Cash Position

Despite strong operating cash inflows, the heavy investment activity led to a net decrease in cash and cash equivalents of ₹4.12 lakhs in FY 2025. This is, however, a significant improvement compared to the larger decline of ₹63.25 lakhs in FY 2024.

Financial Ratios of Kirti Investments Limited

Summary of the financial ratios for the years 2025 and 2024:

Current Ratio

The current ratio declined from 251.26 in FY 2024 to 163.27 in FY 2025, though it still remains extremely high. This indicates that the company continues to have very strong short-term liquidity, with current assets far exceeding current liabilities. However, the decline suggests relatively lower idle liquidity or better utilization of current assets compared to the previous year.

Return on Equity

ROE dropped sharply from 43.84% to 2.88%, reflecting a significant fall in profitability relative to shareholders’ funds. This decline indicates that the company generated much lower returns for equity investors in FY 2025, mainly due to reduced profits during the year.

Net Capital Turnover Ratio

The net capital turnover ratio improved slightly from 0.02 to 0.03, indicating a marginal increase in efficiency in utilizing capital to generate revenue. However, the ratio remains very low, suggesting that capital is still not being used aggressively to drive turnover, which is typical for investment-oriented companies.

Net Profit Ratio

The net profit ratio decreased drastically from an unusually high 1988.21% in FY 2024 to 101.89% in FY 2025. Despite the fall, the ratio remains above 100%, indicating that profits exceed revenue, likely due to income from investments (like fair value gains or sale of investments). The sharp drop reflects lower extraordinary or investment-related gains compared to the previous year.

Return on Capital Employed

ROCE declined significantly from 36.48% to 3.61%, showing that the company’s ability to generate returns from its total capital has weakened considerably. This aligns with the fall in operating profits and indicates reduced overall efficiency in capital utilization.

Return on Investment

The return on investment stands at 0.11 in FY 2025, compared to a negative figure in FY 2024. This indicates a positive turnaround in investment performance, suggesting that investments generated gains in the current year, unlike losses or poor returns in the previous year.