Nayara Energy Limited (Nayara Energy) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40
Nayara Energy Limited

Nayara Energy Limited Consolidated Balance Sheet (Rs in Millions)

Particulars	31-03-2025	31-03-2024
Non-current assets
Property, plant and equipment	448,515	4,09,601
Capital work-in-progress	17,893	54,210
Goodwill	1,08,184	1,08,184
Other Intangible assets	348	271
Intangible assets under development	143	-
Right-of-use assets	13,623	13,919
Loans	483	290
Other Financial assets	835	788
Non-current tax assets (net)	2,140	2,200
Other non-current Assets	10,678	7,774
Current assets
Inventories	1,04,567	1,03,932
Investments	9,579	3,753
Trade receivables	42,129	73,197
Cash and cash equivalents	21,719	17,750
Bank balances other than above	42,969	42,599
Loans	355	412
Other financial assets	27,188	34,106
Other current assets	3,128	4,504
Total Assets	854,476	8,77,490
Equity
Equity share capital	15,072	15,072
Other equity	4,85,030	4,19,838
Total equity	5,00,102	4,34,910
Non-current liabilities
Borrowings	80,717	81,900
Lease liabilities	15,784	15,810
Other financial liabilities	850	22,712
Deferred tax liabilities (net)	77,202	74,879
Current liabilities
Borrowings	45,304	35,952
Lease liabilities	1,376	1,294
Trade payables	71,117	1,14,735
Other financial liabilities	39,558	75,980
Other current liabilities	19,801	17,178
Provisions	1,254	1,075
Current tax liabilities (net)	1,411	1,065
Total Equity and Liabilities	854,476	8,77,490

Nayara Energy Limited Consolidated Profit & Loss Statement (Rs in Millions)

Particulars	31-03-2025	31-03-2024
Income
Revenue from operations	1,492,174	15,50,915
Other income	11,070	9,390
Total Income	1,503,244	15,60,305
Expenses
Cost of raw materials consumed	9,80,387	9,37,970
Excise duty	2,05,973	2,19,777
Purchases of stock-in-trade	1,28,174	1,32,876
Changes in inventory of finished goods, stock-in-trade and WIP	-5,986	-3,177
Employee benefits expense	10,246	10,435
Finance costs	17,060	22,419
Depreciation, amortisation and impairment expense	21,304	19,982
Other expenses	61,504	55,726
Total expenses	1,418,662	13,96,008
Profit before tax	84,582	1,64,297
Current tax expenses	20,871	41,881
Deferred tax expense	2,916	-794
Profit for the year	60,795	1,23,210
Other comprehensive income
Items that will not be reclassified to profit and loss	-70	-87
Re-measurement (loss) on defined benefit plans	-94	-117
Income tax effect	24	30
Items that will be reclassified to profit and loss	4,467	6,456
Effective portion of cash flow hedges (net)	5,948	8,594
Income tax effect	-1,497	-2,163
Foreign currency monetary item translation difference account	11	34
Income tax effect	-3	-9
Exchange difference arising on translation of foreign operation	8	-
Other comprehensive (loss)/income for the year, net of tax	4,397	6,369
Total comprehensive income for the year	65,192	1,29,579
Earnings per share
Basic and Diluted (in Rs.)	40.79	82.66

Nayara Energy Limited Consolidated Cash Flow Statement (Rs in Millions)

Particulars	31-03-2025	31-03-2024
Cash flow from operating activities
Profit before tax	84,582	1,64,297
Adjustments for:
Interest income	-6,604	-6,115
Depreciation, amortisation and impairment expense	21,303	19,982
Loss on disposal/discard of property, plant and equipment (net)	751	14
Gain on investment/financial assets measured at FVTPL	-726	-707
Gain on re-measurement of leases	-144	-12
Export obligation deferred income	-137	-61
Unrealised foreign exchange differences (net)	183	576
Derivative loss and hedge reserve adjustments (net)	915	501
Expected credit loss (net)	-1,338	633
Provision for doubtful debts/ doubtful debt written off	12	23
Provision/Liabilities written back	-12	-737
Finance costs	17,060	22,419
Operating profit before working capital changes	1,15,845	2,00,813
Adjustments for working capital changes:
(Increase) in inventories	-634	-7,981
Decrease/(Increase) in trade and other receivables	31,513	-21,778
(Decrease) in trade and other payables	-94,095	-93,735
Cash generated from operating activities	52,629	77,319
Income tax (payment)/refund (net) (including interest)	-22,151	-42,765
Net cash generated from operating activities	30,478	34,554
Cash flow from investing activities
Payments for property, plant and equipment (including capital work in progress, Intangible assets, Capital advances, Capital creditors and Intangible assets under development)	-22,841	-18,630
Proceed from sale of property, plant and equipment	43	16
Proceeds for sale / (payments for purchase ) of short term investments / Mutual fund (net)investments/Mutual fund (net)	-5,100	14,755
Placement of bank deposits	-21,272	-28,785
Encashment bank deposits	34,579	1,997
(Placement) / encashment of short term bank deposits (net)	-5,781	-37,457
Interest received	5,811	4,277
Net cash (used in) investing activities	-14,561	-63,827
Cash flow from financing activities
Proceeds from borrowings	26,738	42,329
Repayment of borrowings	-19,140	-45,899
Payment of principal portion of lease liabilities	-1,417	-1,186
Payment of interest on lease liabilities	-1,582	-1,450
Finance cost paid	-16,185	-19,350
Net cash (used in) financing activities	-11,586	-25,556
Net increase/(decrease) in cash and cash equivalents	4,331	-54,829
Cash and cash equivalents at the beginning of the year	17,229	72,058
Cash and cash equivalents at the end of the year	21,560	17,229

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

Cash Flow from Operating Activities

During FY25, the company reported a profit before tax of ₹84,582 million, significantly lower than ₹164,297 million in the previous year, reflecting a decline in operational profitability. Non-cash expenses such as depreciation and amortisation of ₹21,303 million and finance costs of ₹17,060 million supported cash generation. However, working capital movements exerted considerable pressure, primarily due to a substantial reduction in trade and other payables amounting to ₹94,095 million, partially offset by improved collections from receivables of ₹31,513 million. Consequently, cash generated from operations declined to ₹52,629 million. After accounting for income tax outflow of ₹22,151 million, the net cash generated from operating activities stood at ₹30,478 million, compared to ₹34,554 million in FY24.

Cash Flow from Investing Activities

Cash flows from investing activities showed a notable improvement in FY25. The company incurred capital expenditure of ₹22,841 million, reflecting continued investment in fixed assets. Net outflow from short-term investments and mutual funds amounted to ₹5,100 million, while bank deposit transactions remained active, with encashment of ₹34,579 million against placements of ₹21,272 million. Additionally, interest income increased to ₹5,811 million, supporting inflows. As a result, net cash used in investing activities reduced sharply to ₹14,561 million, compared to a significantly higher outflow of ₹63,827 million in the previous year.

Cash Flow from Financing Activities

In FY25, financing activities reflected lower dependence on external funding. Proceeds from borrowings declined to ₹26,738 million, while repayment of borrowings amounted to ₹19,140 million, indicating controlled debt management. Outflows towards finance costs paid were ₹16,185 million, along with lease-related payments of ₹2,999 million (principal and interest combined). Consequently, net cash used in financing activities stood at ₹11,586 million, showing an improvement over the ₹25,556 million outflow reported in FY24.

Net Change in Cash and Cash Equivalents

Owing to moderated investing and financing outflows, the company reported a net increase in cash and cash equivalents of ₹4,331 million during FY25, as against a sharp decline of ₹54,829 million in the previous year. Cash and cash equivalents increased from ₹17,229 million at the beginning of the year to ₹21,560 million at the end of the year, indicating an improvement in overall liquidity despite softer operating cash flows.

Financial Ratios of Nayara Energy Limited

Particulars	2025	2024
Current ratio	1.47	1.16
Debt Equity Ratio	0.18	0.2
Debt Service Coverage ratio	5.13	9.9
Return on Equity (%)	12.95%	32.57%
Inventory Turnover ratio	25	25
Trade Receivables Turnover ratio	15	15
Trade Payables Turnover ratio	30	45
Net Capital turnover ratio	19	40
Net Profit Margin (%)	4.06%	7.82%
Return on Capital Employed (%)	18.11%	37.18%
Return on Investment (%)	5.84%	6.66%

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

Current Ratio

The current ratio improved to 1.47 in FY25 from 1.16 in FY24, indicating a stronger short-term liquidity position. This improvement suggests that the company is better placed to meet its current obligations using its current assets, reflecting enhanced working capital management during the year.

Debt–Equity Ratio

The debt–equity ratio declined marginally to 0.18 in FY25 from 0.20 in FY24, highlighting a conservative capital structure. The reduction indicates lower reliance on debt financing and improved financial stability, reducing long-term solvency risk.

Debt Service Coverage Ratio

The DSCR decreased sharply to 5.13 in FY25 from 9.90 in FY24. Although the ratio remains well above 1, indicating adequate ability to service debt obligations, the decline reflects reduced operating cash flows or higher debt servicing requirements during the year.

Return on Equity

ROE dropped significantly to 12.95% in FY25 from 32.57% in FY24, indicating a substantial decline in profitability for equity shareholders. This reduction reflects lower net profits and possibly higher equity base, impacting shareholder returns.

Inventory Turnover Ratio

The inventory turnover ratio remained stable at 25 times in both FY25 and FY24, suggesting consistent inventory management efficiency. This stability indicates that the company maintained its operational effectiveness in converting inventory into sales despite changes in profitability.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio remained unchanged at 15 times in both years, reflecting stable credit policy and consistent efficiency in collecting receivables. This indicates effective management of customer credit and minimal deterioration in collection cycles.

Trade Payables Turnover Ratio

The trade payables turnover ratio declined to 30 times in FY25 from 45 times in FY24, indicating that the company took relatively longer to settle its payables. This could suggest improved liquidity management by optimising payment cycles, though extended credit periods should be monitored.

Net Capital Turnover Ratio

The net capital turnover ratio reduced significantly to 19 in FY25 from 40 in FY24, indicating lower efficiency in utilising working capital to generate revenue. The decline reflects increased working capital deployment or reduced sales during the year.

Net Profit Margin

The net profit margin declined to 4.06% in FY25 from 7.82% in FY24, indicating pressure on profitability. This reduction may be attributed to higher operating costs, lower refining margins, or adverse market conditions impacting earnings.

Return on Capital Employed

ROCE decreased sharply to 18.11% in FY25 from 37.18% in FY24, reflecting reduced efficiency in generating returns from capital employed. The decline aligns with lower operating profits and indicates weaker overall operational performance.

Return on Investment

ROI declined moderately to 5.84% in FY25 from 6.66% in FY24, suggesting reduced returns on investments. This points towards softer earnings generation from invested funds during the year.