MTandT Rentals Annual Report, Balance Sheet, and Financials

  MTandT Rentals Limited Consolidated Balance Sheet (Rs in Crores)

MTandT Rentals Limited Consolidated Profit & Loss Statement (Rs in Crores)

MTandT Rentals Limited Consolidated Cash Flow Statement (Rs in Crores)

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

Cash Flow from Operating Activities:
Cash flow from operating activities remained positive in both years, but declined significantly from ₹52.65 crore in FY 2023-24 to ₹31.24 crore in FY 2024-25, a decrease of ₹21.41 crore. The company’s profit before tax and extraordinary items increased substantially from ₹17.99 crore to ₹40.54 crore, indicating improvement in operating profitability. Depreciation also increased from ₹26.95 crore to ₹39.31 crore, mainly reflecting a larger asset base. After adjustments, operating profit before working capital changes increased from ₹51.53 crore to ₹80.67 crore. However, this improvement was partly offset by a substantial increase in trade and other receivables of ₹80.06 crore, indicating that more funds were tied up in receivables. This was partly compensated by increases in trade payables and other liabilities, short-term borrowings and other provisions. Overall, the company generated ₹31.24 crore of net operating cash flow, showing that core operations continued to generate cash, although working-capital requirements exerted considerable pressure.

Cash Flow from Investing Activities:
The investing activities resulted in a net cash outflow of ₹113.66 crore in FY 2024-25, compared with an outflow of ₹79.51 crore in FY 2023-24. The major reason was the significant investment in fixed assets, with ₹137.98 crore spent on purchase of fixed assets, compared with ₹101.49 crore in the previous year. This indicates substantial expansion or investment in the company 's rental asset base. The company received ₹19.28 crore from the sale of fixed assets, compared with ₹6.06 crore in FY 2023-24, which partially offset the capital expenditure. Payments to trade payables relating to capital goods amounted to ₹5.05 crore. Overall, the large investing cash outflow suggests that the company is pursuing significant asset expansion, but it also creates a substantial requirement for financing and internally generated cash.

Cash Flow from Financing Activities:
Financing activities generated a net cash inflow of ₹83.43 crore in FY 2024-25, compared with ₹27.80 crore in FY 2023-24. The major contributor was an increase in share capital, including premium, of ₹62.05 crore, whereas there was no such inflow in the previous year. The company also raised ₹74.85 crore through loans, compared with ₹63.65 crore in FY 2023-24. At the same time, it repaid loans amounting to ₹53.47 crore, higher than the repayment of ₹35.84 crore in the previous year. Thus, the company relied considerably on both equity and debt financing to support its investment programme and meet its cash requirements. The strong financing inflow was particularly important because the company had a large cash outflow from investing activities.

Net Increase in Cash and Cash Equivalents:
Despite generating ₹31.24 crore from operating activities and receiving ₹83.43 crore from financing activities, the company had a large investing outflow of ₹113.66 crore. Consequently, the net increase in cash and cash equivalents was only ₹1.01 crore in FY 2024-25, compared with ₹0.94 crore in FY 2023-24. This shows that most of the cash generated and raised during the year was absorbed by investment in fixed assets. The increase in cash balance was therefore marginal.

Financial ratios of MTandT Rentals Limited

Summary of Financial Ratios for the year 2025 and 2024:

Current Ratio:
The current ratio increased from 1.16 in FY 2023-24 to 1.37 in FY 2024-25. This indicates an improvement in the company’s short-term liquidity position. The company had ₹1.37 of current assets for every ₹1 of current liabilities in FY 2024-25, compared with ₹1.16 in the previous year. The improvement suggests that the company has become better positioned to meet its short-term obligations. However, the ratio is still not very high, indicating that efficient management of current assets and liabilities remains important.

Debt-Equity Ratio:
The debt-equity ratio declined from 0.67 to 0.51, indicating a reduction in the company 's financial leverage. This means that the proportion of debt relative to shareholders ' funds decreased during the year. The lower ratio suggests a relatively stronger capital structure and reduced dependence on borrowed funds. It may also indicate an improvement in the company 's ability to absorb financial risk associated with debt.

Debt Service Coverage Ratio:
The debt service coverage ratio improved significantly from 1.23 in FY 2023-24 to 1.70 in FY 2024-25. This indicates that the company generated a higher level of earnings/cash available to meet its debt-servicing obligations, including interest and principal repayments. The improvement suggests greater debt-servicing capacity and provides a better indication of the company 's ability to meet its financing commitments.

Return on Equity Ratio:
Return on equity increased sharply from 106% to 198%. This indicates that the company generated substantially higher returns in relation to shareholders ' equity during FY 2024-25. The increase is consistent with the substantial improvement in profitability. However, the unusually high percentage should be interpreted carefully because ROE can be significantly affected by the size of the equity base and changes in shareholders ' funds during the year.

Inventory Turnover Ratio:
The inventory turnover ratio declined from 6.97 times to 5.09 times. This indicates that inventory was converted into sales at a slower rate during FY 2024-25 compared with the previous year. A lower turnover may suggest that inventory remained with the company for a longer period. For a rental business, however, the significance of this ratio should be considered in the context of the nature and classification of its inventory and operating model rather than being interpreted in isolation.

Trade Receivables Turnover Ratio:
The trade receivables turnover ratio decreased from 3.13 times to 2.03 times. This indicates that the company collected or converted its trade receivables into revenue at a slower rate during FY 2024-25. The decline is particularly relevant because the cash flow statement showed a substantial ₹80.06 crore increase in trade and other receivables. This suggests that more funds were tied up in receivables, which contributed to pressure on operating cash flows and indicates that collection efficiency and credit management require attention.

Trade Payables Turnover Ratio:
The trade payables turnover ratio increased substantially from 13.31 times to 38.52 times. This indicates that the company settled its trade payables at a much faster rate during FY 2024-25 compared with the previous year. While faster payment may reflect improved ability to meet supplier obligations, it can also reduce the amount of supplier credit available to finance working capital. Therefore, the sharp increase should be considered alongside the company 's overall cash and working-capital position.

Net Capital Turnover Ratio:
The net capital turnover ratio declined from 2.63 times to 1.44 times. This indicates that the company generated lower revenue in relation to the net working capital employed during FY 2024-25. The decline may be associated with the significant increase in working-capital requirements, particularly the rise in trade receivables. It suggests that the efficiency with which net working capital was utilised to generate revenue weakened during the year.

Net Profit Ratio:
The net profit ratio improved from 8% to 14%, showing a substantial improvement in the company 's profitability. This means that the company earned approximately ₹14 of net profit for every ₹100 of revenue in FY 2024-25, compared with ₹8 in FY 2023-24. The improvement indicates stronger profit generation and is consistent with the increase in profit before tax shown in the cash flow statement. Overall, the ratio reflects a significant improvement in the company 's profit margin.

Return on Capital Employed:
ROCE declined from 48% to 37% despite the improvement in net profit. This indicates that the company generated a lower return relative to the total capital employed in the business. One possible explanation is the substantial investment in fixed assets during FY 2024-25, as reflected by the ₹137.98 crore purchase of fixed assets in the cash flow statement. The newly invested capital may not yet have generated returns proportionate to the additional capital employed, resulting in a decline in ROCE.

Return on Investment:
Return on investment decreased slightly from 22% to 20%. This indicates that the return generated on the company 's investments was somewhat lower in FY 2024-25 than in the previous year. Although the decline is relatively moderate, it suggests that the additional funds invested during the year had not yet translated into a proportionate increase in returns. The ratio should therefore be viewed together with the company 's significant capital expenditure and expansion of its asset base.