Krasny Defence Technolgies ltd Annual Report,Balance Sheet & Financials

Krasny Defence Technologies Limited Consolidated Balance Sheet (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Equity
Share Capital	33.02	33.02
Reserves and Surplus	89.39	62.32
Minority Interest (Non-Controlling Interest)	0.03	0.02
Non-current Liabilities
Long-term Borrowings	2.05	2.02
Deferred Tax Liabilities (Net)	0.42	0.60
Other Long-term Liabilities	0.01	0.01
Long-term Provisions	0.82	0.62
Current Liabilities
Short-term Borrowings	0.16	0.07
Trade Payables - Micro & Small Enterprises	0.18	-
Trade Payables - Others	1.27	0.57
Other Current Liabilities	14.98	6.95
Short-term Provisions	3.47	2.54
Total Equity and Liabilities	145.79	108.74
Non-current Assets
Property, Plant and Equipment	9.78	9.88
Intangible Assets	2.33	2.38
Non-current Investments	37.61	26.22
Other Non-current Assets	5.11	2.97
Current Assets
Inventories	0.48	0.45
Trade Receivables	25.02	6.67
Cash and Bank Balances	23.46	25.17
Short-term Loans and Advances	13.99	7.81
Other Current Assets	28.01	27.19
Total Assets	145.79	108.74

Krasny Defence Technologies Limited Consolidated Profit & Loss Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Revenue from Operations	107.18	45.52
Other Income	1.64	1.79
Total Income	108.82	47.31
Expenses
Cost of Materials Consumed	12.42	3.48
Operating Expenses	50.58	17.91
Employee Benefits Expense	10.55	8.69
Finance Costs	0.74	0.52
Depreciation and Amortization Expense	0.94	0.96
Other Expenses	12.33	6.57
Total Expenses	87.56	38.13
Profit Before Tax	21.26	9.17
Current Tax	-6.08	-2.44
Short Provision for Earlier Year	-0.11	-
Deferred Tax	0.18	0.03
Profit (Loss) for the Period	15.26	6.76
Minority Interest 's Share of Net Income	-	0.03
Share in Profit of Associate Companies	11.81	2.04
Profit for the Year Transferred to Reserves	27.06	8.83
Earnings Per Equity Share:
Basic	23.50	7.64
Diluted	23.50	7.64

 Krasny Defence Technologies Limited Consolidated Cash Flow Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Net Profit/(Loss) before Extraordinary Items and Tax	33.07	11.21
Adjusted for:
Depreciation and Amortisation	0.94	0.96
Finance Costs	0.74	0.52
Interest Income	-1.52	-1.30
Dividend Income	-	-0.40
Rental Income from Operating Leases	-0.05	-0.04
Investments Written Off	-	-
Permanent Diminution in Value of Investments	-	-
Exchange Differences on Translation of Foreign Operations	0.01	-
Net Unrealised Exchange (Gain)/Loss	0.56	-
Operating Profit Before Working Capital Changes	33.75	10.95
Changes in Assets & Liabilities:
Inventories	-0.02	0.07
Trade Receivables	-18.35	8.66
Short-term Loans and Advances	-6.04	-0.20
Other Current Assets	-0.82	-20.49
Other Non-current Assets	-0.19	-2.80
Trade Payables	0.89	0.57
Other Current Liabilities	8.03	6.90
Short-term Provisions	0.93	-0.16
Long-term Provisions	0.20	0.12
Cash Generated from Operations	18.36	3.59
Direct Taxes Refund/(Paid)	-6.18	-2.50
Net Cashflow from Operating Activities	12.18	1.10
Cash Flow from Investing Activities
Capital Expenditure on PP&E and Intangible Assets	-2.75	-0.13
Net Investments	-11.39	-2.07
Loans Given - Others	-0.19	-
Loans Realised - Associates	0.04	-
Interest Received	1.52	1.30
Dividend Received - Subsidiaries	-	0.40
Rental Income from Operating Leases	0.05	0.04
Net Cashflow from Investing Activities	-12.72	-0.45
Cash Flow from Financing Activities
Proceeds from Issue of Preference Shares	-	21.50
Repayment of Long-term Borrowings	-	-0.65
Proceeds from Long-term Borrowings	0.03	-
Proceeds from Short-term Borrowings	0.09	-11.13
Finance Cost	-0.74	-0.52
Minority Interest	-	0.05
Net Cashflow from Financing Activities	-0.62	9.24
Net Increase/(Decrease) in Cash & Cash Equivalents	-1.15	9.89
Cash and Cash Equivalent as at the Commencement of the Year	25.17	15.28
Add: Exchange Differences on Translation of Foreign Currency Cash and Cash Equivalents	-0.56	-
Cash and Cash Equivalent as at the End of the Year	23.46	25.17

Summary of cash flow statement:

Cash Flow from Operating Activities

The company generated net cash from operating activities of ₹12.18 crore in FY2024-25, a significant improvement from ₹1.10 crore in FY2023-24. This increase was primarily driven by a sharp rise in profit before tax from ₹11.21 crore to ₹33.07 crore, reflecting stronger business performance. After adjusting for non-cash items such as depreciation, finance costs, interest income, rental income, and foreign exchange losses, the operating profit before working capital changes increased to ₹33.75 crore. Although higher trade receivables, loans and advances, and other current assets absorbed cash, these outflows were partly offset by increases in trade payables, other current liabilities, and provisions. Even after paying ₹6.18 crore as income tax, the company generated healthy operating cash, indicating improved efficiency in its core operations.

 

Cash Flow from Investing Activities

The company recorded a net cash outflow of ₹12.72 crore from investing activities, compared with ₹0.45 crore in the previous year. The major reasons were capital expenditure of ₹2.75 crore on property, plant, equipment, and intangible assets and net investments of ₹11.39 crore, indicating expansion and strategic investment for future growth. The company also extended loans to others, while interest income and rental income provided partial cash inflows. Overall, the higher investing outflow reflects management 's focus on long-term capacity building and investment rather than short-term liquidity.

 

Cash Flow from Financing Activities

Financing activities resulted in a net cash outflow of ₹0.62 crore during FY2024-25, whereas the previous year recorded a net inflow of ₹9.24 crore. During the year, the company raised only marginal long-term and short-term borrowings and paid finance costs of ₹0.74 crore. Unlike FY2023-24, when ₹21.50 crore was raised through preference shares, no such equity financing occurred in the current year. This indicates that the company relied primarily on internally generated funds rather than external financing to support its operations and investments.

 

Net Increase/(Decrease) in Cash and Cash Equivalents

Overall, the company reported a net decrease in cash and cash equivalents of ₹1.15 crore, compared with a net increase of ₹9.89 crore in FY2023-24. The decline was mainly due to substantial investment activities, which exceeded the cash generated from operations. After considering foreign exchange translation adjustments, the closing cash and cash equivalents stood at ₹23.46 crore, compared with ₹25.17 crore at the beginning of the year. Despite the slight reduction, the company maintained a strong cash balance, reflecting sound liquidity and the ability to finance future business operations and expansion plans.

 

Financial ratios of Krasny Defence Technologies Limited

 

Particulars	31-03-2025	31-03-2024
Current Ratio	9,082.17	5,729.81
Debt Equity Ratio	24.58	20.54
Debt Service Coverage Ratio	2,295.34	1,022.09
Return on Equity Ratio	1,547.32	679.46
Inventory Ratio	1,242.04	348.03
Trade Receivables Turnover Ratio	10,718.47	4,528.38
Trade Payables Turnover Ratio	1,244.33	341.47
Net Capital Turnover Ratio	10,718.47	6,528.38
Net Profit Ratio	1,546.97	679.46
Return on Capital Employed Ratio	2,202.06	926.73

 

Summary of financial ratios:

 

Current Ratio:
The Current Ratio increased significantly from 5,729.81 as on 31 March 2024 to 9,082.17 as on 31 March 2025, indicating a substantial improvement in the Company 's short-term liquidity position. The ratio reflects a very strong ability to meet current liabilities through current assets.

 

Debt-Equity Ratio:
The Debt-Equity Ratio increased from 20.54 in FY 2023-24 to 24.58 in FY 2024-25. This indicates a higher proportion of debt relative to equity during the year, suggesting increased financial leverage while supporting business growth.

 

Debt Service Coverage Ratio (DSCR):
The Debt Service Coverage Ratio improved from 1,022.09 to 2,295.34, demonstrating a significant enhancement in the Company 's capacity to meet its debt servicing obligations from operating earnings. The higher ratio indicates improved financial strength and debt repayment capability.

 

Return on Equity (ROE):
The Return on Equity Ratio increased substantially from 679.46 to 1,547.32, reflecting a considerable improvement in the returns generated on shareholders ' equity. This indicates enhanced profitability and efficient utilization of equity capital.

 

Inventory Turnover Ratio:
The Inventory Turnover Ratio rose from 348.03 in FY 2023-24 to 1,242.04 in FY 2024-25, indicating a significant improvement in inventory management. The Company was able to convert inventory into sales more efficiently during the year.

 

Trade Receivables Turnover Ratio:
The Trade Receivables Turnover Ratio increased from 4,528.38 to 10,718.47, reflecting faster collection of receivables and improved credit management. This suggests enhanced efficiency in converting outstanding receivables into cash.

 

Trade Payables Turnover Ratio:
The Trade Payables Turnover Ratio improved from 341.47 to 1,244.33, indicating that the Company settled its trade payables at a faster rate during the year. This reflects improved payment capacity and efficient management of supplier obligations.

 

Net Capital Turnover Ratio:
The Net Capital Turnover Ratio increased from 6,528.38 to 10,718.47, demonstrating more effective utilization of working capital to generate revenue. The higher ratio indicates improved operational efficiency.

 

Net Profit Ratio:
The Net Profit Ratio increased significantly from 679.46 to 1,546.97, reflecting a substantial improvement in the Company 's profitability. The increase indicates that the Company earned a higher profit from its revenue during FY 2024-25.

 

Return on Capital Employed (ROCE):
The Return on Capital Employed improved from 926.73 to 2,202.06, indicating enhanced efficiency in generating profits from the capital employed in the business. The higher ratio reflects improved operational performance and better utilization of long-term funds.