NCL Holdings Annual Reports, Balance Sheet and Financials

NCL Holdings Limited Consolidated Balance Sheet (Rs in Lakhs)

NCL Holdings Limited Consolidated Profit & Loss Statement (Rs in Lakhs)

NCL Holdings Limited Consolidated Cash Flow Statement (Rs in Lakhs)

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

Cash Flow from Operating Activities
The company’s operating cash flows improved significantly in 2024-25. Profit before tax rose to Rs. 2,074.65 lakhs from Rs. 739.22 lakhs in 2023-24, supported by higher operating performance. After adjustments such as depreciation (Rs. 600.62 lakhs), interest and finance expenses (Rs. 1,416.04 lakhs), and deduction of non-operating incomes like interest and dividend, the operating profit before working capital changes stood at Rs. 3,754.62 lakhs in 2025, almost double the previous year’s Rs. 1,979.86 lakhs. Working capital changes were also favorable compared to 2024: trade receivables decreased by Rs. 686.46 lakhs (versus a sharp increase in the prior year), and inventories released Rs. 66.50 lakhs of funds. However, loans and advances created a large outflow of Rs. 2,214.96 lakhs. Despite this, cash generated from operations turned positive at Rs. 2,554.24 lakhs in 2025 compared to a negative Rs. 990.89 lakhs in 2024. After tax outflows, the net cash inflow from operating activities was Rs. 2,196.10 lakhs, versus an outflow of Rs. 1,155.35 lakhs in the previous year — a clear sign of recovery and efficiency in operations.

Cash Flow from Investing Activities
Investing activities also showed a marked turnaround. In 2025, the company generated a net inflow of Rs. 2,214.29 lakhs, compared to a heavy outflow of Rs. 5,510.36 lakhs in 2024. This was mainly due to sales of investments amounting to Rs. 1,787.28 lakhs, compared to large acquisitions in the previous year. Additionally, interest received (Rs. 363.14 lakhs) and dividend income (Rs. 60.31 lakhs) further supported inflows. Unlike 2024, when Rs. 822.59 lakhs was spent on property, plant, and equipment, only Rs. 3.55 lakhs was used in 2025, reflecting lower capital expenditure. This sharp shift from investment outflows to inflows strengthened the overall cash position.

Cash Flow from Financing Activities
Financing activities recorded a significant net outflow of Rs. 4,346.88 lakhs in 2025, against a strong inflow of Rs. 2,893.25 lakhs in 2024. The outflow was largely due to repayment of long-term loans amounting to Rs. 2,844.06 lakhs, alongside interest and finance charges of Rs. 1,416.04 lakhs and dividend payments of Rs. 86.77 lakhs. In contrast, the prior year had large inflows from new borrowings (Rs. 4,123.56 lakhs), which had boosted financing cash flow. The change reflects a shift from debt-fueled funding toward repayment and deleveraging.

Net Cash Movement and Closing Balance
Overall, the company reported a small positive net cash increase of Rs. 63.51 lakhs in 2025, compared to a steep decline of Rs. 3,772.46 lakhs in 2024. Cash and cash equivalents rose from Rs. 589.91 lakhs at the beginning of 2025 to Rs. 653.42 lakhs at year-end. This turnaround is mainly due to strong operational cash generation and proceeds from investment sales, which offset the heavy financing outflows.

Financial Ratios of NCL Holdings Limited

Summary of the financial ratios for NCL Holdings Limited for the year 2025 and 2024:

Current Ratio
The current ratio measures liquidity by comparing current assets with current liabilities. In 2024-25, it stands at 3.4 compared to 3.78 in 2023-24. Although there is a slight decline, both years indicate a strong liquidity position, as the company has over three times the current assets to cover its short-term liabilities.

Debt-Equity Ratio
This ratio reflects the balance between debt and equity financing. It improved to 1.72 in 2024-25 from 2.42 in 2023-24, indicating reduced reliance on debt financing. A lower debt-equity ratio enhances financial stability and reduces risk for investors.

Debt Service Coverage Ratio (DSCR)
DSCR measures the company’s ability to service its debt obligations (interest + principal) from its operating profits. It increased to 0.21 in 2024-25 from 0.10 in 2023-24. While the improvement is notable, the ratio is still below 1, indicating that operating cash flows are not sufficient to fully cover debt servicing requirements.

Inventory Turnover Ratio
This ratio measures how efficiently inventory is sold and replaced. It improved from 0.94 in 2023-24 to 1.14 in 2024-25. The improvement suggests faster movement of inventory, better stock management, and possibly stronger sales performance.

Return on Equity (ROE)
ROE reflects profitability from shareholders’ equity. It jumped significantly to 19.30% in 2024-25 from 7.92% in 2023-24. This sharp rise indicates much stronger profitability and more efficient use of shareholders’ funds.

Net Capital Turnover Ratio
This ratio shows how effectively capital is used to generate revenue. It rose from 0.39 in 2023-24 to 0.50 in 2024-25, meaning the company generated more sales per unit of capital employed.

Net Profit Ratio
The net profit ratio surged to 27.97% in 2024-25 from 11.29% in 2023-24, showing a significant improvement in profitability. The company is converting a much higher portion of sales into profits, reflecting better cost control, pricing strategy, or efficiency in operations.

Return on Capital Employed (ROCE)
ROCE improved to 14.31% in 2024-25 from 7.54% in 2023-24. This indicates more effective use of overall capital (both equity and debt) in generating profits.

Return on Investments (ROI)
ROI jumped drastically from just 1.25% in 2023-24 to 29.48% in 2024-25. This suggests that the company’s investments, whether in projects, securities, or assets, are yielding significantly higher returns.

Trade Payable Turnover Ratio
The ratio shows how quickly the company pays its suppliers. It was 0.3 in 2024-25 compared to 30.00% in 2023-24. The sharp change may indicate reporting inconsistencies, but if accurate, it suggests much slower payments to creditors in 2024-25.

Trade Receivables Turnover Ratio
This ratio measures the speed of collection from customers. It improved from 2.53 in 2023-24 to 4.57 in 2024-25. The higher turnover indicates faster collection, stronger credit management, and improved cash flow.