Lava Annual Reports, Balance Sheet and Financials

Lava International Limited Consolidated Balance Sheet (Rs in Crores)

Lava International Limited Consolidated Profit & Loss Statement (Rs in Crores)

Lava International Limited Consolidated Cash Flow Statement (Rs in Crores)

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

Cash Flow from Operating Activities:

The company’s operating cash flow weakened significantly during 2024–25. Profit before tax improved from a loss of ₹432.51 crore in 2023–24 to a loss of ₹312.18 crore in 2024–25, but the company still reported a substantial loss. After adjustments, operating loss before working-capital changes improved from ₹88.82 crore to ₹53.23 crore. However, adverse movements in trade receivables and other assets offset improvements in trade payables, provisions and inventories. Consequently, cash generated from operations declined from ₹81.92 crore to negative ₹4.09 crore. After payment of taxes, net cash used in operating activities stood at ₹19.41 crore, compared with positive cash flow of ₹69.12 crore in the previous year. This indicates that the company’s core business operations were not generating sufficient cash during 2024–25.

Cash Flow from Investing Activities:

Investing activities generated a net cash inflow of ₹58.32 crore in 2024–25, compared with a cash outflow of ₹62.27 crore in 2023–24. The major contributor was the maturity of bank deposits, which provided ₹123.31 crore, partially offset by fresh investments in bank deposits of ₹65.22 crore. The company also received ₹4.60 crore as interest and ₹4.28 crore from the sale of mutual fund investments. Investment in property, plant and equipment and intangible assets remained relatively low at ₹10.59 crore. Overall, the positive investing cash flow was mainly due to the maturity of deposits rather than strong investment income or asset disposals.

Cash Flow from Financing Activities:

 Financing activities resulted in a significant cash outflow of ₹98.50 crore in 2024–25, compared with a small inflow of ₹2.23 crore in 2023–24. The company repaid ₹10.79 crore of non-current borrowings and ₹40.07 crore of current borrowings. It also paid ₹41.92 crore as interest on borrowings, along with lease-related principal and interest payments. The large financing outflow indicates that the company was using its available cash to reduce borrowings and meet financing costs. The substantial interest payment also reflects the financial burden associated with its debt.

Net Increase in Cash and Cash Equivalents:

 The company experienced a net decrease in cash and cash equivalents of ₹59.59 crore in 2024–25, compared with an increase of ₹9.08 crore in 2023–24. The negative movement was primarily caused by the combination of negative operating cash flow and substantial financing outflows. Although investing activities generated positive cash, they were insufficient to compensate for the cash consumed by operations and financing activities.

Financial ratios of Lava International Limited

Summary of Financial Ratios for the years 2025 and 2024:

Current Ratio: The current ratio declined from 0.64 in 2023–24 to 0.39 in 2024–25, indicating deterioration in the company’s short-term liquidity position. The ratio below 1 suggests that current liabilities exceeded current assets, indicating greater difficulty in meeting short-term obligations.

Debt Equity Ratio: The debt-equity ratio changed from 0.49 in 2023–24 to -0.81 in 2024–25. The negative ratio indicates that the company’s net worth/equity position became negative, reflecting a significant deterioration in its financial structure and increased financial risk.

Debt Service Coverage Ratio: The DSCR deteriorated from -2.71 to -7.03. A negative DSCR indicates that the company’s operating earnings were insufficient to cover its debt-servicing obligations. The further decline suggests increased difficulty in meeting interest and principal repayment commitments.

Return on Equity Ratio: ROE declined sharply from -73.93% to -386.07%. The negative return indicates that the company generated losses rather than returns for shareholders. The substantial deterioration in 2024–25 reflects a significant decline in shareholder profitability.

Inventory Turnover Ratio: The inventory turnover ratio decreased slightly from 7.45 to 7.10. This indicates a marginal decline in the efficiency with which the company manages and sells its inventory. However, the ratio still indicates that inventory was being turned over several times during the year.

Trade Receivable Turnover Ratio: The ratio improved considerably from 38.12 to 63.10, indicating better efficiency in the collection of trade receivables. The increase suggests that the company was able to convert its receivables into cash more quickly during 2024–25.

Trade Payable Turnover Ratio: The trade payable turnover ratio declined from 5.04 to 3.41. This suggests that the company took longer to settle its trade payables compared with the previous year. It may indicate improved use of supplier credit, although it should also be monitored for potential pressure on supplier relationships.

Net Capital Turnover Ratio: The net capital turnover ratio improved from -9.06 to -2.54, although it remained negative. The negative ratio reflects the company’s negative net working capital position. The improvement suggests that the position became less adverse during 2024–25, but the company continued to face working-capital challenges.

Net Profit Ratio: The net profit ratio declined from -12.97% to -20.74%, showing that the company’s losses increased in relation to its revenue. This indicates worsening overall profitability and suggests that the company was unable to generate adequate profit from its sales.

Return on Capital Employed: ROCE improved from -201.35% to -156.72%, but it remained substantially negative. This indicates that the capital employed in the business continued to generate negative returns. Although the position improved compared with 2023–24, the company was still not generating satisfactory returns from its capital.

Return on Investment: ROI declined from -24.86% to -30.24%, indicating that the returns generated from investments became more negative. This reflects deterioration in investment profitability and suggests that the company was not earning adequate returns on the funds invested.