Malayalam Communications Latest Annual Report, Balance Sheet and Financials

Malayalam Communications Limited Consolidated Balance Sheet (Rs. in crores).

Malayalam Communications Limited Consolidated Profit & Loss Statement (Rs. in crores).

Malayalam Communications 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
Malayalam Communications Limited generated positive operating cash flows in both years, though there are notable shifts in underlying drivers. Net profit before tax dropped sharply from ₹2.74 crores in 2024 to ₹0.35 crores in 2025, indicating weaker core profitability. However, strong non-cash adjustments such as depreciation (₹8.18 crores) and finance charges (₹7.03 crores) continued to support operating cash flow. Favorable movements in working capital—especially an increase in trade receivables collection (₹2.94 crores inflow)—helped offset declines in profit. Despite some negative adjustments like increases in other non-current assets and loans/advances, the company still reported cash generated from operations at ₹11.20 crores. After tax adjustments, net cash flow from operating activities stood at ₹11.55 crores, lower than ₹16.17 crores in 2024, suggesting reduced efficiency in converting earnings into cash but still maintaining a healthy positive inflow.

Cash Flow from Investing Activities
Investing activities show a continued outflow, though at a reduced level compared to the previous year. The company spent ₹4.49 crores on fixed assets in 2025 versus ₹7.38 crores in 2024, indicating a slowdown in capital expenditure. Investments remained relatively small at ₹0.17 crores. Interest income provided a modest inflow of ₹1.31 crores. Overall, net cash used in investing activities was ₹3.35 crores, significantly lower than ₹6.45 crores in the prior year. This suggests a more conservative investment approach or completion of major capital projects in earlier periods.

Cash Flow from Financing Activities
Financing activities continue to reflect net cash outflows, though there is slight improvement compared to 2024. The company raised ₹2.69 crores from long-term borrowings, higher than the previous year, but this was offset by repayment of short-term borrowings and substantial finance costs (₹7.03 crores). Net cash used in financing activities was ₹5.04 crores compared to ₹7.24 crores in 2024. This indicates ongoing debt servicing pressure, though the reduced outflow suggests better management of financing obligations or lower reliance on external funding.

Net Increase/decrease in Cash & cash equivalents
The company recorded a net increase in cash and cash equivalents of ₹3.16 crores in 2025, slightly higher than ₹2.48 crores in 2024. This reflects a balanced position where strong operating inflows were sufficient to cover investing and financing outflows. However, the closing cash balance is reported at ₹202.29 crores, which appears disproportionately high compared to the opening balance of ₹16.69 crores and the net increase during the year. This may indicate a reporting inconsistency or inclusion of additional cash components, and it would require further clarification. Overall, despite reduced profitability, the company maintains positive liquidity supported primarily by operating cash flows.

Financial ratios of Malayalam Communications Limited.

Summary of Financial Ratio of the year 2025 and 2024.

Current Ratio
The current ratio improved from 0.95 in 2024 to 1.06 in 2025, indicating a marginal strengthening of short-term liquidity. The company has just crossed the benchmark of 1, suggesting that current assets are now slightly sufficient to cover current liabilities. However, the margin of safety remains thin, so liquidity management still requires attention.

Debt Equity Ratio
The debt-equity ratio increased significantly from 0.37 to 0.93, showing a sharp rise in leverage. This indicates that the company has relied more on debt financing in 2025 compared to the previous year. While still below 1, the increase suggests higher financial risk and potential pressure on future cash flows due to debt servicing.

Debt Service Coverage Ratio
The debt service coverage ratio improved from 3.90 to 4.50, reflecting a stronger ability to service debt obligations from operating income. Despite higher leverage, the company appears more capable of meeting its interest and principal repayments, which is a positive sign for creditors and lenders.

Return on Equity
Return on equity showed a major turnaround from -84% in 2024 to 2.51% in 2025. This indicates that the company has moved from heavy losses to generating a small profit for shareholders. Although the return is still low, the improvement reflects recovery in profitability and better utilization of shareholders’ funds.

Trade Account Receivables Ratio (in days)
Receivables days increased from 183.31 to 223.11 days, indicating slower collection from customers. This suggests inefficiency in credit management and could lead to cash flow constraints, as funds remain tied up in receivables for a longer period.

Trade Account Payables Ratio (in days)
Payables days increased slightly from 2.17 to 2.31 days. This change is minimal and indicates that the company continues to pay its suppliers very quickly. While this may maintain good supplier relationships, it may not be optimal for cash flow management, especially when receivables collection is slow.

Net Capital Turnover Ratio
The net capital turnover ratio remains negative, though it improved slightly from -0.06 to nearly zero. This suggests inefficient utilization of working capital in generating revenue, but the improvement indicates a gradual stabilization.

Net Profit Ratio
The net profit ratio declined significantly from 5.16% to 1.09%, reflecting reduced profitability. Even though the company returned to positive profits, margins have weakened considerably, indicating rising costs or lower revenue efficiency.

Return on Capital Employed
Return on capital employed dropped from 1.80% to 0.24%, showing a decline in the efficiency of overall capital usage. This indicates that the company is generating lower returns from its total capital base, which may be due to reduced operating profits or underutilized assets.