Operational Energy Annual Reports, Balance Sheet and Financials

Operational Energy Group India Limited Consolidated Balance Sheet (Rs in Lakhs)

Operational Energy Group India Limited Consolidated Profit & Loss Statement (Rs in Lakhs)

Operational Energy Group India 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 reported a Profit Before Tax of ₹2,507.26 lakhs, higher than ₹2,037.09 lakhs in the previous year. After providing ₹469.34 lakhs for taxation, Net Profit After Tax increased to ₹2,037.92 lakhs from ₹1,661.89 lakhs, reflecting improved profitability. Depreciation remained stable at ₹80.33 lakhs, and Other Comprehensive Income rose significantly to ₹120.46 lakhs. However, despite higher profits, cash generated from operating activities declined sharply to ₹733.29 lakhs compared to ₹2,905.00 lakhs in FY24. This reduction was mainly due to a substantial increase in sundry debtors of ₹3,217.25 lakhs and inventories and other current assets of ₹1,382.58 lakhs, indicating higher working capital blockage. Although current liabilities increased by ₹3,205.05 lakhs, partially offsetting the impact, overall operating cash flow weakened considerably.

Cash Flow from Investing Activities

Under investing activities, the company used ₹203.83 lakhs during the year, compared to ₹294.98 lakhs in the previous year. The outflow was mainly due to the purchase of fixed assets amounting to ₹159.39 lakhs and long-term loans and advances of ₹59.40 lakhs, while a small inflow of ₹14.96 lakhs came from investments. This indicates controlled capital expenditure and moderate expansion. In financing activities, the company generated ₹148.39 lakhs from net proceeds of long-term borrowings, higher than ₹50.88 lakhs in FY24, suggesting some reliance on external funding.

Cash Flow from Financing Activities

Cash inflow from financing activities increased to ₹148.39 lakhs compared to ₹50.88 lakhs in FY24.

This was mainly due to higher net proceeds from long-term borrowings. The increase suggests partial reliance on debt to support operations or expansion.

Net change in Cash Position

Overall, the net increase in cash and cash equivalents stood at ₹677.85 lakhs, lower than ₹2,660.94 lakhs in the previous year. The cash balance increased from ₹8,565.75 lakhs at the beginning of the year to ₹9,243.61 lakhs at the end of FY25, maintaining a strong liquidity position. In conclusion, while profitability and cash reserves remain healthy, the significant rise in receivables and inventory has adversely impacted operating cash flow, highlighting the need for improved working capital management.

Financial ratios of Operational Energy Group India Limited

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

Current Ratio

The current ratio improved slightly to 1.64 in FY25 from 1.62 in FY24. This indicates a stable liquidity position, with the company holding ₹1.64 of current assets for every ₹1 of current liabilities. The marginal improvement suggests better short-term financial stability, though the ratio remains moderate rather than highly conservative.

Debt–Equity Ratio

The debt-equity ratio increased to 1.17 from 1.11, indicating a slightly higher reliance on debt financing. While the increase is not sharp, the company is moderately leveraged, with debt exceeding equity. This level of gearing suggests manageable financial risk, provided earnings remain stable.

Debt Service Coverage Ratio

The DSCR improved marginally to 35.12 from 34.97, reflecting extremely strong capacity to service debt obligations. A ratio above 2 is generally considered comfortable; hence, a ratio above 35 indicates very high operating earnings relative to debt servicing requirements. This suggests minimal default risk.

Return on Equity

ROE remained constant at 18% (0.18) in both years. This shows the company is consistently generating ₹0.18 profit for every ₹1 of shareholders’ equity. Stable ROE reflects consistent profitability and efficient utilization of equity capital.

Inventory Turnover Ratio

Inventory turnover declined significantly to 19.61 from 29.31. This indicates slower inventory movement compared to the previous year. The decline may suggest either increased inventory holding, weaker sales growth, or buildup of stock. Efficient inventory management will be important going forward.

Trade Receivables Turnover Ratio

Receivables turnover decreased to 6.55 from 7.47, meaning the company is collecting receivables slightly slower than last year. This could impact working capital efficiency and may indicate relatively lenient credit terms or slower collections.

Trade Payables Turnover Ratio

Payables turnover reduced marginally to 5.66 from 5.92, indicating the company is taking slightly more time to pay its suppliers. This may support working capital management but should be balanced to maintain healthy supplier relationships.

Net Capital Turnover Ratio

Net capital turnover improved slightly to 3.41 from 3.39, indicating marginally better utilization of working capital to generate revenue. The consistency reflects stable operational efficiency.

Net Profit Ratio

The net profit ratio remained stable at 5% (0.05) in both years. This suggests consistent cost control and pricing strategy, though the margin level is relatively moderate and may be sensitive to cost fluctuations.

Return on Capital Employed

ROCE remained steady at 22% (0.22), reflecting efficient utilization of total capital (debt + equity). A 22% return is strong and indicates good operational performance relative to capital invested.