Navitas Green Solutions Annual Reports, Balance Sheet and Financials

Navitas Green Solutions Private Limited Consolidated Balance Sheet (Rs in Crores)

Navitas Green Solutions Private Limited Consolidated Profit & Loss Statement (Rs in Crores)

Navitas Green Solutions Private 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

The operating performance of Navitas Green Solutions Private Limited shows a sharp deterioration in FY25 despite a significant improvement in profitability. Net profit before tax increased to ₹20.89 crore from ₹4.07 crore, supported by higher non-cash adjustments such as depreciation (₹8.26 crore) and interest expense (₹11.08 crore), indicating expansion and higher leverage. However, the core issue lies in working capital management, which turned heavily adverse. A substantial increase in inventories (₹82.71 crore), trade receivables (₹20.98 crore), and short-term loans and advances (₹27.27 crore) consumed large amounts of cash. Although there was some support from increased trade payables (₹37.15 crore) and other current liabilities (₹17.53 crore), it was insufficient to offset the outflows. Consequently, cash generated from operations turned negative at ₹-41.56 crore compared to a positive ₹27.74 crore in FY24. After tax payments, net cash flow from operations stood at a significant outflow of ₹-50.70 crore, indicating poor cash conversion despite accounting profits, a key red flag.

Cash Flow from Investing Activities

Investing activities reflect an aggressive expansion strategy during FY25. The company incurred substantial capital expenditure of ₹105.33 crore, a sharp increase from ₹28.08 crore in FY24, suggesting capacity expansion or infrastructure build-out. Additionally, investments in associates and fixed deposits further contributed to cash outflows. Loans extended to associate companies and others also indicate capital deployment beyond core operations. Although there were minor inflows from interest and investment-related income, these were negligible relative to total outflows. As a result, net cash outflow from investing activities widened significantly to ₹-119.68 crore from ₹-32.85 crore in FY24. This highlights a high growth phase driven by heavy capital allocation, but also raises concerns about execution efficiency and return generation on these investments.

Cash Flow from Financing Activities

Financing activities were the primary source of liquidity for the company in FY25. The company raised substantial funds through equity issuance (₹73.55 crore) and increased borrowings, both long-term (₹59.87 crore) and short-term (₹49.62 crore). This indicates reliance on external funding to support both operational deficits and capital expenditure. Interest payments also increased slightly, reflecting a rising debt burden. Net cash inflow from financing activities surged to ₹172.14 crore compared to ₹10.85 crore in FY24. This strong inflow effectively offset the negative operating and investing cash flows, but it also signals increasing financial leverage and dependence on capital markets, which may not be sustainable in the long term if cash generation does not improve.

Net change in cash position

Despite significant negative cash flows from operations and investing activities, the company managed a marginal net increase in cash and cash equivalents of ₹1.75 crore in FY25, primarily due to strong financing inflows. Closing cash stood at ₹6.84 crore. The overall cash flow profile indicates a growth-oriented but cash-stressed business, where expansion is being funded through external sources rather than internal accruals. While this strategy may be justified in an early growth phase, sustained negative operating cash flow combined with rising debt could pose liquidity and solvency risks if not corrected. The key monitor able going forward is improvement in working capital efficiency and operating cash generation.

Financial ratios of Navitas Green solutions Private Limited

Summary of the financial ratios for the years 2025 and 2024:

Current Ratio:
The current ratio improved from 1.22 in 2023–24 to 1.34 in 2024–25, indicating a better short-term liquidity position. The company is increasingly capable of meeting its current liabilities with its current assets. Although the ratio is above 1, suggesting adequacy, it still remains at a moderate level, implying there is room for further strengthening of liquidity.

Debt-Equity Ratio:
The debt-equity ratio declined from 0.63 to 0.39, reflecting a reduction in financial leverage. This indicates that the company has either repaid debt or increased its equity base, leading to a more conservative capital structure. Lower reliance on debt reduces financial risk and interest burden, which is a positive sign for long-term solvency.

Debt Service Coverage Ratio:
The DSCR increased significantly from 1.06 to 1.79, showing a substantial improvement in the company’s ability to service its debt obligations. A ratio above 1 indicates sufficient earnings to cover interest and principal repayments, and the improvement suggests enhanced operational efficiency and stronger cash flow generation.

Return on Equity:
The ROE doubled from 7% to 14%, indicating improved profitability for shareholders. This suggests that the company is utilizing its equity capital more efficiently to generate profits. The rise reflects better operational performance and possibly improved margins.

Inventory Turnover Ratio:
The inventory turnover ratio increased slightly from 4.46 to 4.65, indicating improved inventory management. The company is able to sell and replenish its inventory at a slightly faster rate, which reduces holding costs and the risk of obsolescence.

Trade Receivables Turnover Ratio:
The receivables turnover ratio declined from 31.05 to 24.85, indicating that the company is taking longer to collect payments from customers. This may point to relaxed credit policies or slower collections, which can negatively impact cash flows and working capital efficiency.

Trade Payables Turnover Ratio:
The payables turnover ratio increased from 13.18 to 14.65, suggesting that the company is paying its suppliers more quickly than before. While this may improve supplier relationships, it could also put pressure on cash flows if not matched with efficient receivables collection.

Net Capital Turnover Ratio:
The net capital turnover ratio decreased from 18.64 to 10.78, indicating lower efficiency in utilizing working capital to generate revenue. This decline suggests that the company may have excess working capital or reduced sales relative to capital employed, which needs attention.

Net Profit Ratio:
The net profit ratio improved from 2% to 5%, showing enhanced profitability. This indicates better cost control, improved pricing strategies, or higher operational efficiency, leading to increased net earnings relative to revenue.

Return on Capital Employed:
The ROCE increased from 10% to 13%, reflecting improved overall efficiency in utilizing total capital (both debt and equity). This indicates that the company is generating higher returns from its invested capital, which is a positive indicator of operational performance.