Namaste Exports Limited Annual Report and Financials

Namaste Exports Limited Standalone Balance Sheet (Rs. In Lakhs)

Namaste exports Limited Standalone Profit & Loss (Rs. In Lakhs)

 Namaste Exports Limited Standalone Cash Flow Statement (Rs. In Lakhs)

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

Cash Flow from Operating Activities (₹ in lakhs)

During the year ended 31 March 2025, the Company reported a net cash outflow from operating activities of ₹352.40 lakhs, as compared to an outflow of ₹857.24 lakhs in the previous year. The operating cash outflow was primarily due to losses before tax from continuing and discontinuing operations aggregating to ₹275.52 lakhs. Although non-cash adjustments such as depreciation of ₹23.27 lakhs were added back, these were offset by lower interest and dividend income and a loss on sale of fixed assets. Working capital changes had a mixed impact; while there was a reduction in inventories, trade receivables, and other assets resulting in cash inflow, this was partially offset by a decrease in trade payables, provisions, and other liabilities. Overall, despite improvement over the previous year, operating activities continued to generate negative cash flows, indicating operational stress.

Cash Flow from Investing Activities (₹ in lakhs)

Net cash inflow from investing activities amounted to ₹502.08 lakhs during the year ended 31 March 2025, compared to an inflow of ₹1,217.90 lakhs in the previous year. The inflow was largely driven by an increase in term deposits amounting to ₹873.24 lakhs and interest income of ₹121.66 lakhs. These inflows were partially offset by capital expenditure on property, plant and equipment of ₹44.54 lakhs, acquisition of investment property of ₹529.70 lakhs, and income tax paid of ₹43.57 lakhs. In the previous year, investing cash inflows were higher mainly due to substantial proceeds from sale of fixed assets. The current year reflects a shift towards redeployment of funds into investment property and fixed deposits.

Cash Flow from Financing Activities (₹ in lakhs)

Net cash outflow from financing activities stood at ₹394.31 lakhs for the year ended 31 March 2025, significantly higher than the outflow of ₹32.78 lakhs in the previous year. The major contributor to this outflow was the buyback of shares amounting to ₹398.79 lakhs. This was marginally offset by an increase in long-term borrowings of ₹8.57 lakhs. Interest and finance charges paid during the year amounted to ₹2.01 lakhs. The financing activities indicate a return of capital to shareholders rather than fund raising.

Net Change in Cash and Cash Equivalents (₹ in lakhs)

As a result of the above activities, cash and cash equivalents decreased by ₹244.63 lakhs during the year, as against an increase of ₹329.96 lakhs in the previous year. The opening cash and cash equivalents balance of ₹379.97 lakhs declined to ₹135.34 lakhs as at 31 March 2025. The reduction reflects continued operating losses and significant financing outflows, partially cushioned by investing inflows.

Namaste Exports Limited Financial Ratios

Summary of the financial ratios for the years 2025 and 2024

Current Ratio:
The Current Ratio increased from 4.32 as on 31 March 2024 to 8.11 as on 31 March 2025, indicating a significant improvement in the Company’s short-term liquidity position. The Company is comfortably placed to meet its current obligations; however, the higher ratio also suggests accumulation of current assets such as inventory and trade receivables, indicating scope for improvement in working capital efficiency.

Debt Equity Ratio:
The Debt Equity Ratio remained unchanged at 0.01 during both periods, reflecting that the Company continues to operate with minimal reliance on borrowed funds. This indicates a strong equity base and low financial risk, though it also suggests limited use of financial leverage to enhance returns.

Debt Service Coverage Ratio:
The Debt Service Coverage Ratio declined sharply from 79.21 in the previous year to negative (91.14) in the current year. This deterioration is primarily due to operating losses during the year, resulting in inadequate earnings to service debt obligations, which indicates stress on debt servicing capacity.

Return on Equity:
The Return on Equity turned negative at (0.09%) in 2025 compared to a high return of 171.70% in 2024. The decline is attributable to losses incurred during the year, whereas the unusually high ROE in the previous year may have been driven by exceptional income or a low equity base.

Inventory Turnover Ratio:
The Inventory Turnover Ratio decreased significantly from 26.90 times in 2024 to 1.41 times in 2025, indicating slower movement of inventory. This suggests reduced sales velocity or higher inventory holding levels, leading to inefficiencies in inventory management.

Trade Receivables Turnover Ratio:
The Trade Receivables Turnover Ratio declined from 22.76 times to 1.63 times during the year, reflecting delays in collection from customers. This indicates extended credit periods and weaker receivables management, adversely impacting cash flows.

Trade Payables Turnover Ratio:
The Trade Payables Turnover Ratio decreased from 3.49 times in 2024 to 0.46 times in 2025, indicating that the Company is taking longer to settle its dues with suppliers. This may be due to liquidity management measures but could impact supplier relationships if prolonged.

Net Capital Turnover Ratio:
The Net Capital Turnover Ratio fell sharply from 1.87 times in the previous year to 0.08 times in the current year, indicating inefficient utilization of working capital to generate revenue. The decline is primarily due to reduced turnover coupled with increased working capital levels.

Net Profit Ratio:
The Net Profit Ratio turned negative at (1.89%) in 2025 as compared to a positive margin of 1.59% in 2024. This reflects operating losses during the year caused by higher costs, lower revenues, or both, resulting in reduced profitability.

Return on Capital Employed:
The Return on Capital Employed declined from 0.97% in the previous year to negative (0.08%) in the current year, indicating that the capital employed did not generate adequate returns. The negative return is mainly due to operating losses and inefficient deployment of capital.