Mysore Paints Annual Reports, Balance Sheet and Financials

Mysore Paints and Varnish Limited Standalone Balance Sheet (Rs in Thousands)

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

Cash Flow from Operating Activities

During FY 2024-25, the company generated a strong net cash inflow of ₹3,09,766.79 thousand from operating activities compared to a cash outflow of ₹53,992.53 thousand in FY 2023-24, indicating a significant improvement in operational cash performance.

Although net profit before tax declined sharply to ₹21,154.78 thousand from ₹1,56,700.45 thousand in the previous year, the operating cash flow improved primarily due to favorable working capital movements. Major non-cash adjustments included depreciation of ₹2,769.42 thousand and finance cost of ₹2,579.14 thousand, while substantial deductions were made for interest income (₹52,530.75 thousand) and rental income.

The most notable improvement came from working capital changes, which contributed ₹3,16,308.10 thousand to cash generation. A significant increase in trade receivables recovery (₹1,72,471.49 thousand) and a sharp rise in short-term borrowings (₹1,89,078.92 thousand) supported liquidity. However, inventories increased slightly, and trade payables declined, partially offsetting gains. After paying direct taxes of ₹6,541.30 thousand, the company reported robust net operating cash inflows, reflecting improved liquidity management despite lower accounting profits.

Cash Flow from Investing Activities

The company reported a net cash outflow of ₹1,96,124.18 thousand from investing activities in FY 2024-25 compared to a net inflow of ₹1,42,201.81 thousand in FY 2023-24.

The primary reason for the outflow was placement of fixed/restricted bank deposits amounting to ₹2,45,013.68 thousand, indicating deployment of surplus funds into deposits. Capital expenditure remained moderate at ₹4,526.26 thousand, significantly lower than the previous year.

The company earned substantial interest income of ₹52,530.75 thousand, along with rental income and minor forex gains, partially offsetting investment outflows. Overall, the investing activities suggest a conservative investment approach with funds parked in bank deposits rather than aggressive asset expansion.

Cash Flow from Financing Activities

Financing activities resulted in a net cash outflow of ₹1,92,968.71 thousand in FY 2024-25 compared to ₹4,096.96 thousand outflow in FY 2023-24.

The major financing cash movement was related to dividends. The company paid a regular dividend of ₹44,834.11 thousand. Additionally, there is a reported special dividend of ₹1,45,092.93 thousand (though presented as positive in the statement, dividend payments generally represent cash outflow). Finance costs of ₹2,579.14 thousand and minor tax adjustments were also recorded.

The high dividend payout indicates distribution of accumulated profits to shareholders, which significantly reduced cash reserves during the year.

Overall Cash Position

Overall, despite strong operating cash inflows, substantial investing outflows and high dividend payments led to a net decrease in cash and cash equivalents of ₹79,326.11 thousand in FY 2024-25, compared to a net increase of ₹84,112.32 thousand in the previous year.

As a result, closing cash and cash equivalents declined sharply to ₹4,817.78 thousand as of 31 March 2025 from ₹84,143.89 thousand at the beginning of the year. This indicates that the company utilized its cash reserves significantly during the year, mainly for deposits and dividend distribution.

Financial ratios of Mysore Paints and Varnish Limited

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

Current Ratio

The current ratio declined significantly to 3.72 as at 31-03-2025 from 14.38 as at 31-03-2024. Although the ratio has reduced sharply, it still remains above the ideal benchmark of 1.5–2.0, indicating that the company continues to maintain adequate short-term liquidity. The substantial fall suggests either a reduction in current assets or an increase in current liabilities during the year, pointing toward comparatively tighter working capital management than the previous year.

Return on Equity / Return on Investment

The Return on Equity decreased considerably to 1.27% in 2025 from 11.53% in 2024. This sharp decline indicates reduced profitability relative to shareholders’ funds. Lower earnings during the year have significantly impacted the company’s ability to generate returns for equity investors, reflecting weakened overall financial performance.

Inventory Turnover Ratio

The inventory turnover ratio dropped to 4.21 times in 2025 from 17.00 times in 2024. This substantial decline indicates slower movement of inventory and possible accumulation of stock during the year. Lower turnover may point to reduced sales efficiency, overstocking, or weaker demand conditions compared to the previous year.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio reduced to 0.87 times in 2025 from 3.85 times in 2024, showing a significant slowdown in collection efficiency. This suggests that receivables are being realized more slowly, potentially impacting cash flows and increasing credit risk exposure.

Trade Payables Turnover Ratio

The trade payables turnover ratio declined sharply to 3.75 times in 2025 from 16.57 times in 2024. This indicates that the company is taking longer to pay its suppliers compared to the previous year. While this may help conserve cash in the short term, it could also strain supplier relationships if the trend continues.

Net Profit Ratio

The net profit ratio decreased to 8.59% in 2025 from 17.33% in 2024, indicating a significant contraction in profit margins. This suggests either increased costs, reduced pricing power, or lower operational efficiency during the year, leading to diminished profitability.

Return on Capital Employed

ROCE declined markedly to 3.05% in 2025 from 19.94% in 2024. This sharp fall reflects lower operating profitability relative to total capital employed and indicates that the company was less efficient in utilizing its capital base during the year.

Return on Investments

Return on investments improved slightly to 8.25% in 2025 from 7.96% in 2024. This marginal increase suggests relatively stable performance from investment activities despite the overall decline in core operational profitability.