Ossoor Estates Annual Reports, Revenue and Financials

Ossoor Estates Limited Standalone Balance Sheet (Rs in Crores)

Ossoor Estates Limited Standalone Profit & Loss Statement (Rs in Crores)

Ossoor Estates Limited Standalone Cash Flow Statement (Rs in Crores)

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

Cash Flow from Operating Activities

The company reported a net profit before tax of ₹38.08 crore in FY25, a sharp increase from ₹4.78 crore in FY24. However, this rise is largely influenced by non-operating gains, especially a significant profit on sale/write-off of assets (₹33.19 crore). After adjusting for such items, the operating profit before working capital changes is only ₹4.27 crore, indicating that core business profitability remains modest.

Working capital movements had a negative impact on cash flows. A major outflow came from a sharp increase in short-term loans and advances (₹23.29 crore), suggesting funds were tied up in advances or receivables. Although liabilities increased by ₹14.64 crore (which supports cash inflow), it was insufficient to offset the outflows. As a result, the company reported a net cash outflow of ₹4.15 crore from operating activities, compared to a strong inflow of ₹38.44 crore in the previous year. This indicates weak cash generation from core operations in FY25.

Cash Flow from Investing Activities

The investing section shows a strong inflow of ₹33.24 crore in FY25, primarily due to proceeds from the sale of fixed assets. There was negligible capital expenditure during the year, indicating that the company is not actively investing in asset expansion or capacity building.

Compared to FY24 (₹2.35 crore inflow), the sharp increase suggests that asset monetization is a key source of liquidity in FY25. However, such inflows are typically non-recurring, which raises concerns about sustainability if operating cash flows remain weak.

Cash Flow from Financing Activities

The company recorded a cash outflow of ₹21.13 crore from financing activities, mainly due to repayment of long-term borrowings. This is lower than the previous year’s repayment of ₹37.77 crore, indicating a reduced debt repayment burden.

This trend suggests that the company is actively deleveraging, which is positive from a balance sheet perspective. However, given weak operating cash flows, the repayment appears to be supported partly by proceeds from asset sales, rather than internal accrals.

Net Change in Cash Position

Overall, the company reported a net increase in cash and cash equivalents of ₹7.95 crore, higher than ₹3.02 crore in FY24. This increase is primarily driven by investing inflows (asset sales) rather than operating performance.

The closing cash balance stands at ₹9.47 crore, up from ₹5.51 crore, indicating improved liquidity. However, the quality of cash flow is weak, as it depends heavily on one-time transactions rather than sustainable operations.

Financial ratios of Ossoor Estates Limited

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

Current Ratio

The current ratio improved from 1.33 in FY24 to 1.45 in FY25, indicating a better short-term liquidity position. The company now has a stronger ability to meet its current liabilities using current assets. Although the improvement is positive, the ratio is still moderate, suggesting liquidity is adequate but not excessively strong.

Debt-Equity Ratio

The debt-equity ratio declined sharply from an extremely high 2359% in FY24 to 227% in FY25. This significant reduction reflects substantial deleveraging, likely due to repayment of borrowings. Despite the improvement, the ratio remains relatively high, indicating the company is still heavily leveraged, though the financial risk has reduced considerably.

Debt Service Coverage Ratio

The DSCR increased from 6.78% to 24.09%, showing a marked improvement in the company’s ability to service its debt obligations. However, the ratio is still low in absolute terms, suggesting that while repayment capacity has improved, it remains weak and potentially vulnerable.

Return on Equity

ROE declined from 2.13% in FY24 to 1.62% in FY25, indicating reduced returns to shareholders. Despite a higher reported profit, the decline suggests that profits may not be efficiently translating into shareholder returns, possibly due to non-operating income or increased equity base.

Inventory Turnover Ratio

The inventory turnover ratio improved from 2.15 to 3.07, reflecting better inventory management and faster movement of stock. This indicates improved operational efficiency in handling inventory and converting it into sales.

Net Capital Turnover Ratio

This ratio decreased from 0.70 to 0.37, showing a decline in the efficiency of utilizing working capital to generate revenue. It suggests that capital is being underutilized, possibly due to increased working capital (like loans and advances) without a corresponding rise in sales.

Net Profit Ratio

The net profit ratio surged dramatically from 25.39% to 236.35%, which appears exceptionally high. This spike is likely driven by one-time gains (such as sale of assets) rather than core operations. Hence, while profitability looks strong on paper, it may not be sustainable or reflective of normal business performance.

Return on Capital Employed

ROCE improved from 6% to 8%, indicating better utilization of total capital employed. However, the increase is modest, and the ratio still suggests moderate returns, implying that overall capital efficiency remains limited.