Pine Labs Annual Reports, Balance Sheet and Financials

Pine Labs Limited Consolidated Balance Sheet (Rs in Millions)

Particulars	31-03-2025	31-03-2024
Non-current assets
Property, plant and equipment	3,048.27	3,803.65
Capital work-in-progress	407.51	1,169.90
Right of use assets	1,021.61	846.81
Goodwill	4,590.96	4,590.96
Other Intangible assets	763.76	617.93
Intangible assets under development	934.99	840.54
Investments	210.79	162.88
Other financial assets	569.97	411.29
Deferred tax assets (net)	1,522.60	1,583.74
Non current tax assets(net)	1,577.46	1,399.02
Other non-current assets	117.78	93.40
Current assets
Inventories	177.13	232.20
Trade receivables	6,713.39	5,118.90
Cash and cash equivalents	6,171.49	5,119.20
Other bank balances	50,710.97	43,271.20
Loans	13.71	548.40
Other financial assets	9,768.60	6,249.52
Current tax assets	12.04	758.22
Contract assets	302.41	768.10
Other current assets	1,865.85	1,513.63
Total assets	90,501.29	79,099.40
Equity
Equity share capital	839.95	839.95
Other equity	19,864.07	19,604.54
Non-current liabilities
Borrowings	471.82	1,135.90
Lease liabilities	1,035.18	865.77
Other financial liabilities	73.04	184.20
Contract liabilities	58.11	32.90
Deferred government grants	137.86	142.10
Provisions	421.60	323.30
Current liabilities
Borrowings	6,833.61	3,635.20
Lease liabilities	140.01	113.32
Trade Payables
Total outstanding dues of micro and small enterprises	380.24	137.37
Total outstanding dues of creditors other than above	4,736.20	5,705.03
Liabilities towards prepaid cards	47,717.71	-
Other financial liabilities	6,887.22	6,252.20
Contract liabilities	238.92	39,447.00
Deferred government grants	143.52	177.70
Provisions	198.82	165.50
Other current liabilities	323.41	337.42
Total equity and liabilities	90,501.29	79,099.40

Pine Labs Limited Consolidated Profit & Loss Statement (Rs in Millions)

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operation	16,379.94	13,410.14
Other Income	971.09	416.16
Total Income	17,351.03	13,826.30
Expenses
Transaction and related costs	1,868.71	1,772.68
Purchase of stock-in-trade	867.99	426.80
Changes in stock-in-trade	54.10	-10.60
Employee Benefits Expenses	6,591.17	6,253.50
Finance Costs	703.37	576.46
Depreciation and Amortization Expenses	2,018.11	2,660.70
Impairment of non-current assets	83.52	617.79
Impairment losses on trade receivables, other receivables, contract assets	206.64	167.79
Other Expenses	4,373.99	3,763.04
Total Expenses	16,767.60	16,228.00
Profit/(Loss) before tax	583.43	-2,401.70
Current tax	2.79	-
Deferred tax	149.21	-530.0
Profit/(Loss) for the year	431.43	-1,871.70
Other comprehensive income
Items that will not be reclassified to Profit or Loss
Re-measurement of post employment benefit obligations	-30.36	28.70
Fair value changes on Equity instrument through OCI	47.91	35.20
Income tax relating to these items	0.79	-15.30
Other Comprehensive Income for the year	18.34	48.60
Total comprehensive loss for the year	449.77	-1,823.10
Earnings per Equity Share (Basic & Diluted)	0.51	-2.23

Pine Labs Limited Consolidated Cash Flow Statement (Rs in Millions)

Particulars	31-03-2025	31-03-2024
Cash Flow From Operating Activites
Profit/(Loss) before tax	583.43	-2,401.70
Adjustments for:
Depreciation and amortization expenses	2,018.11	2,660.70
Impairment of non-current assets	83.52	617.63
Gain on sale of property, plant and equipment	-3.76	-35.39
Advances written off	10.03	-
Write down for obsolete and slow moving inventory	56.34	21.93
Impairment losses on financial assets & contract assets	206.64	167.79
Bank Deposits	-110.95	-159.53
Security deposits	-8.43	-5.64
Unsecured loans given to related parties	-44.09	-35.43
Interest on income tax refunds	-76.37	-127.41
Finance Costs	703.37	576.46
Liabilities and provisions no longer required written back	-84.96	-38.06
Foreign exchange loss (unrealised)	94.84	58.64
Write off of property, plant and equipment	0.34	1.88
Government grant income	-234.54	-224.42
Net gain on lease termination	-6.48	-2.86
Operating profit before working capital changes	3,187.04	1,074.59
Working capital adjustments:
Trade receivables	-1,742.65	-441.45
Inventories	250.00	22.64
Other financial assets	-3,547.90	1,521.35
Other assets	-443.63	-107.60
Contract assets	465.68	352.26
Loans	-3.10	2.10
Other bank balances	-7,049.44	-5,140.70
Trade payables	1,434.52	469.68
Provisions	101.38	81.30
Other financial liabilities	453.45	328.43
Contract liabilities	100.55	-28.44
Other current liabilities	-13.81	-38.73
Liabilities towards prepaid cards	6,349.68	4,556.60
Cash generated from operations	-458.23	-390.67
Income taxes refund/(paid) - net	704.41	35.67
Net cash flows from operating activities	246.18	-355.00
Cash Flows From Investing Activities
Purchase of property, plant, equipment & intangible assets	-923.12	-2,215.74
Proceeds from disposal of property, plant, equipment & intangible assets	13.86	93.36
Loans given to related party	-453.00	633.25
Repayment of loan from related party	990.54	395.45
Investment in bank deposits	-3,762.32	-933.53
Proceeds from maturity of bank deposits	3,241.78	2,806.29
Interest received	138.84	242.18
Proceeds from government grants	191.01	376.52
Net cash (used in) investing activities	-562.41	131.28
Cash Flows From Financing Activities
Proceeds from issue of shares	-	414.65
Payments for recharge cost of share based payments	-346.78	-
Proceeds from borrowings	-	628.60
Principal repayment of borrowings	-933.35	-1,162.49
Principal elements of lease payments	-115.90	-101.89
Interest paid	-702.10	-570.85
Net cash generated from financing activities	-2,098.13	791.98
Net decrease in cash and cash equivalents	-2,414.36	-1,015.70
Cash and cash equivalents as at the beginning of year	5,119.20	3,906.80
Cash credit facilities at beginning of year	-2,705.60	-477.50
Cash and cash equivalents as at end of the year	-0.76	2,413.60

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 ₹583.43 million for the year ended 31st March 2025, compared to a loss of ₹2,401.70 million in the previous year, showing a turnaround in profitability. Adjustments such as depreciation, impairment charges, finance costs, and provisions added significantly to operating cash. However, certain non-cash income items like government grants and write-backs reduced the operating profit.

After these adjustments, the operating profit before working capital changes stood at ₹3,187.04 million in FY25, a sharp increase from ₹1,074.59 million in FY24. However, working capital changes consumed large amounts of cash. Significant outflows were seen in trade receivables, other financial assets, and bank balances, while liabilities towards prepaid cards and trade payables provided strong inflows. Despite these pressures, the company ended with a positive operating cash flow of ₹246.18 million in FY25, compared to a negative outflow of ₹355.00 million in FY24.

Cash Flow from Investing Activities

On the investing side, the company continued to spend on property, plant, equipment, and intangible assets (₹923.12 million in FY25, though lower than FY24’s ₹2,215.74 million). It also placed significant amounts into bank deposits (₹3,762.32 million), partially offset by proceeds from maturities (₹3,241.78 million). Positive inflows were seen from repayment of loans from related parties (₹990.54 million) and government grants (₹191.01 million).

Overall, the net cash used in investing activities was ₹562.41 million in FY25, compared to an inflow of ₹131.28 million in FY24. This indicates higher capital allocation into assets and deposits during the year.

Cash Flow from Financing Activities

The financing activities saw large outflows. Unlike FY24, when the company raised funds through equity issuance (₹414.65 million) and borrowings (₹628.60 million), there were no such inflows in FY25. Instead, the year was dominated by repayments of borrowings (₹933.35 million), lease payments (₹115.90 million), interest payments (₹702.10 million), and share-based payment recharge costs (₹346.78 million).

As a result, the company reported a net outflow of ₹2,098.13 million in FY25, against a net inflow of ₹791.98 million in FY24.

Overall Cash Position

Taking all activities together, the company experienced a net decrease in cash and cash equivalents of ₹2,414.36 million in FY25, significantly higher than the decrease of ₹1,015.70 million in FY24. Cash and cash equivalents at the beginning of FY25 were ₹5,119.20 million, but after accounting for cash credit facilities and outflows, the year closed with a slight negative balance of ₹0.76 million.

Financial Ratios of Pine Labs Limited

Particulars	31-03-2025	31-03-2024
Current Ratio (in times)	1.12	1.14
Debt Equity Ratio (in times)	0.41	0.28
Debt service coverage ratio (in times)	2.01	1.20
Return on equity (in %)	2.94	2.52
Inventory turnover ratio (in times)	2.50	2.23
Trade receivables turnover ratio (in times)	1.21	1.21
Trade payables turnover ratio (in times)	2.03	1.69
Net capital turnover ratio (in times)	2.73%	-14.29%
Net profit ratio (in %)	5.62%	-9.06%

Summary of financial ratios of Pine Labs Limited for the year 2025 and 2024:

Current Ratio

The current ratio stood at 1.12 times in FY25, slightly lower than 1.14 times in FY24. This indicates that the company continues to maintain just about enough current assets to cover its current liabilities. A ratio close to 1 suggests tight liquidity, leaving little cushion for unexpected obligations.

Debt-Equity Ratio

The company’s debt-equity ratio rose to 0.41 times in FY25 from 0.28 times in FY24. This shows that the company has increased its reliance on debt financing relative to equity. While the ratio is still at a comfortable level (below 1), the rising trend signals a growing financial leverage that could increase interest obligations if not managed carefully.

Debt Service Coverage Ratio (DSCR)

The DSCR improved significantly from 1.20 times in FY24 to 2.01 times in FY25. This means the company generated twice the earnings required to service its debt obligations in FY25, compared to barely covering them in the previous year.

Return on Equity (ROE)

ROE increased modestly from 2.52% in FY24 to 2.94% in FY25. This indicates that shareholders’ funds generated a slightly higher return compared to the prior year. While positive, the returns are still relatively low, suggesting that profitability improvements are yet to translate into strong value creation for shareholders.

Inventory Turnover Ratio

The inventory turnover ratio improved to 2.50 times in FY25, up from 2.23 times in FY24. This reflects faster conversion of inventory into sales, which is a positive sign for efficiency in inventory management.

Trade Receivables Turnover Ratio

The receivables turnover ratio remained unchanged at 1.21 times in both years. This means the company collects its dues from customers at the same pace as last year, which may indicate stable credit terms but also highlights scope for improvement in receivables management to strengthen cash inflows.

Trade Payables Turnover Ratio

The payables turnover ratio rose from 1.69 times in FY24 to 2.03 times in FY25. This suggests that the company is now paying its suppliers more quickly than before. While this strengthens supplier relationships, it also reduces available cash in hand and could put pressure on liquidity.

Net Capital Turnover Ratio

The net capital turnover ratio saw a major improvement, rising from -14.29% in FY24 to 2.73% in FY25. A negative ratio in FY24 indicated inefficiency in utilizing working capital, but the positive turnaround in FY25 shows that the company has improved its ability to generate revenue from its capital employed, though the ratio remains modest.

Net Profit Ratio

The net profit ratio jumped from a loss of -9.06% in FY24 to a positive 5.62% in FY25. This marks a strong turnaround in profitability, indicating that the company has controlled costs, improved efficiency, and generated healthier margins from its sales.