Onix Renewable Limited Annual Report and Financials

Onix Renewable Limited Consolidated Balance Sheet (Rs in Lakhs)

Onix Renewable Limited Consolidated Profit & Loss Statement (Rs in Lakhs)

Onix Renewable Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Summary of Cash Flow Statement for the financial year 2025 and 2024:

Cash Flows from Operating Activities

In the year ended 31st March 2025, the company reported a net loss of ₹41,078.12 lakhs from operating activities, a sharp contrast to the net inflow of ₹5,443.71 lakhs in the previous year. Although the net profit after tax rose markedly to ₹11,479.04 lakhs from ₹3,938.89 lakhs, heavy outflows tied to working capital changes led to negative operating cash flows.

The adjustments to profit included non-cash expenses such as depreciation and finance costs, which increased compared to last year, slightly offset by interest income and non-cash reversals. The primary reason for the large outflow was the substantial increase in current assets, particularly loans and advances, trade receivables, and other current assets. For instance, loans and advances increased by ₹24,292.92 lakhs, and trade receivables grew by ₹12,913.83 lakhs, both consuming significant cash. Additionally, there was a reduction in trade payables and other current liabilities, further straining cash flow. Despite strong profitability, the high buildup of working capital severely impacted cash generation from operations.

Cash Flows from Investing Activities

During 2025, the company recorded a minor cash outflow of ₹13.52 lakhs from investing activities compared to a much larger outflow of ₹16,895.94 lakhs in 2024. The small outflow was mainly due to moderate capital expenditure on property, plant, and equipment amounting to ₹406.99 lakhs, partly offset by proceeds from the sale of fixed assets and interest income of ₹380.70 lakhs.

In contrast, the previous year’s heavy outflow was driven by the sale and redemption of investments worth ₹16,485.43 lakhs and movement in non-current assets. The improvement this year suggests more controlled investment activity, reflecting a cautious approach to capital expenditure and investment allocation.

Cash Flows from Financing Activities

The financing activities were the major source of cash inflow in 2025, generating a net cash inflow of ₹56,522.98 lakhs, compared to ₹10,807.52 lakhs in the previous year. This remarkable rise was mainly due to the issue of new share capital amounting to ₹49,349.50 lakhs, along with increased borrowings—both long-term and short-term—totaling ₹8,262.17 lakhs. Although the company incurred higher finance costs, the overall financing inflow far outweighed these expenses.

The substantial inflow from financing activities indicates that the company relied heavily on equity and debt financing to support its operations and investments. This influx of funds helped offset the negative cash flow from operations and strengthened the company’s overall cash position.

Net Change in Cash and Closing Balance

As a result of the combined effects of all activities, the company achieved a net increase in cash and cash equivalents of ₹15,431.34 lakhs during the year, compared to a net decrease of ₹644.71 lakhs in 2024. Consequently, the closing cash balance surged from ₹212.80 lakhs to ₹15,644.13 lakhs, marking a significant turnaround in liquidity.

Financial Ratios of Onix Renewable Limited

Summary of the financial Ratios of Onix Renewable Limited for the years 2025 and 2024:

Current Ratio

The current ratio has increased significantly from 1.14 in the previous year to 2.57 in the current year, indicating a notable improvement in the company’s liquidity position. This means the business is now in a much stronger position to meet its short-term obligations using its current assets.

Debt-Equity Ratio

The debt-equity ratio has declined from 1.00 in the previous year to 0.24 in the current year, which shows a major reduction in the company’s financial leverage. This indicates that the company now relies far less on borrowed funds and is financing its operations mainly through shareholders’ equity.

Return on Equity (ROE)

The return on equity has fallen from 59.56% to 28.59%, showing that the company’s ability to generate profit from shareholders’ investments has weakened. Despite the decline, the current level of ROE remains fairly strong, indicating that the business continues to deliver healthy returns to its owners.

Net Profit Ratio

The net profit ratio has improved from 5.89% in the previous year to 11.46% in the current year, demonstrating a considerable rise in overall profitability. This means the company is now earning more profit for every unit of revenue generated.

Inventory Turnover Ratio

The inventory turnover ratio has declined sharply from 8.23 to 0.09, which is a major concern. This suggests that the company is taking much longer to sell its inventory or that its stock levels have increased disproportionately.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio has decreased from 11.04 to 5.04, indicating that the company is collecting payments from customers at a slower rate than before. This decline suggests a relaxation in credit policies or possible delays in customer payments.

Trade Payables Turnover Ratio

The trade payables turnover ratio has slightly increased from 3.19 to 3.78, which implies that the company is paying its suppliers more quickly than in the previous year. While prompt payment can strengthen supplier relationships and possibly secure better terms.

Net Capital Turnover Ratio

The net capital turnover ratio has dropped from 17.80 to 3.49, showing a significant decline in the efficiency with which the company uses its working capital to generate sales. This decrease may be due to higher levels of current assets relative to sales or a sharp decline in sales volume.

Return on Capital Employed (ROCE)

The return on capital employed has fallen from 34.93% to 20.96%, indicating that the overall efficiency in using capital to generate profits has declined. This suggests that the company’s profitability and operational performance have weakened compared to the previous year.