Maxvalue Credits Annual Reports, Balance Sheet and Financials

Maxvalue Credits and Investments Limited Standalone Balance Sheet (Rs. in crores).

Maxvalue Credits and Investments Limited Standalone Profit & Loss Statement (Rs. in crores).

Maxvalue Credits and Investments Limited Standalone 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 reported a significant decline in net cash generated from operating activities, moving from a positive ₹83.38 crores in FY 2024 to a negative ₹65.06 crores in FY 2025. Despite a lower net profit before tax and extraordinary items of ₹3.65 crores in FY 2025 compared to ₹10.19 crores in FY 2024, non-cash adjustments also had a substantial impact. Depreciation decreased slightly to ₹2.54 crores, while loans written off rose sharply to ₹8.36 crores from ₹3.80 crores, reflecting higher credit risk realization. Provisions for NPAs swung from a charge of ₹4.58 crores in FY 2024 to a negative ₹2.46 crores in FY 2025, indicating a reversal of earlier provisions, possibly due to recoveries. Working capital adjustments heavily influenced cash flows: increases in current assets (₹52.13 crores) and decreases in current liabilities (₹23.90 crores) absorbed cash, resulting in the sharp negative operating cash flow. Overall, the operating activities show liquidity stress primarily driven by higher asset growth and loan write-offs.

Cash Flow from Investing Activities

Investing activities remained relatively small and consistent in both years. The company spent ₹1.07 crores on the purchase of fixed assets in FY 2025, slightly higher than ₹0.62 crores in FY 2024, while proceeds from the sale of fixed assets were negligible (₹0.06 crores). The net cash used in investing activities was ₹1.01 crores, almost in line with the prior year (₹0.54 crores), indicating that there were no significant new investments or asset sales. This suggests a conservative approach to capital expenditure.

Cash Flow from Financing Activities

Financing activities were the key driver of cash inflow in FY 2025. The company received ₹92.22 crores from long-term loans, exceeding the repayment of long-term borrowings and liabilities totaling ₹33.13 crores (₹27.56 + ₹5.57 crores). This resulted in a net positive cash flow from financing activities of ₹59.09 crores, compared to a negative outflow of ₹95.49 crores in FY 2024. The financing pattern indicates reliance on external borrowings to support operations, likely to offset the negative operating cash flow.

Net Increase/Decrease in Cash & Cash Equivalents

Overall, the company’s cash and cash equivalents decreased by ₹6.98 crores during FY 2025, ending the year at ₹24.87 crores, down from ₹31.84 crores. While the cash outflow from operations was substantial, the inflow from financing activities partially mitigated the liquidity impact. The decrease in cash suggests tightening liquidity, which could be a point of concern if the trend continues, particularly given the high increase in loans written off and growth in current assets.

Financial ratios of Maxvalue Credits and Investments Limited.

Summary of Financial Ratio of the year 2025 and 2024.

Current Ratio

The current ratio improved significantly from 1.65 in FY 2024 to 3.59 in FY 2025, indicating a stronger short-term liquidity position. The company now has more than three times the current assets to cover its current liabilities, suggesting better coverage of short-term obligations.

Net Debt Equity Ratio

The net debt-to-equity ratio declined slightly from 3.30 to 2.92, reflecting a modest reduction in financial leverage. Although still high, this indicates the company has slightly reduced reliance on debt relative to shareholders’ equity.

Debt Service Coverage Ratio

DSCR increased from 0.20 to 0.27, showing a marginal improvement in the company’s ability to service its debt from operating profits. However, a DSCR below 1 still signals limited capacity to fully cover debt obligations from operational cash flows.

Return on Equity

ROE dropped sharply from 12.03% to 3.65%, highlighting a significant decline in profitability relative to shareholders’ funds. This indicates lower returns for investors and reflects both reduced profits and higher equity levels.

Net Capital Turnover Ratio

The net capital turnover ratio fell from 1.06 to 0.40, showing a significant slowdown in the company’s efficiency in generating revenue from its capital employed. Lower asset utilization may be due to higher loan write-offs or slower income growth.

Net Profit Ratio

The net profit margin decreased from 8.33% to 3.79%, indicating reduced profitability on sales or interest income. The decline aligns with the drop in ROE and reflects operational challenges and higher provisions or write-offs.

Return on Capital Employed

ROCE declined from 65.71% to 41.37%, showing a reduced ability to generate returns from total capital employed. Although still healthy, the downward trend suggests less efficient use of capital compared to the previous year.