Proyuga Advanced Technologies Annual Reports, Balance Sheet and Financials

Proyuga Advanced Technologies Limited Standalone Balance Sheet (Rs. in Hundreds)

Proyuga Advanced Technologies Limited Standalone Profit & Loss Statement (Rs. in Hundreds)

Proyuga Advanced Technologies Limited Standalone Cash Flow Statement (Rs. in Hundreds)

Summary of cash flow statement for the year 2025 and 2024:

Cash Flow from Operating Activities

The company reported a strong profit before tax (₹3.97 lakh hundreds) in FY25 compared to a loss in FY24, indicating improved profitability at the accounting level. However, major non-cash and income adjustments significantly altered operating cash flows. High interest income (₹3.33 lakh hundreds) and other non-operating income reduced the operating profit, showing that a substantial portion of earnings is not from core operations.

The most critical issue lies in working capital changes. There is a massive increase in short-term loans and advances (₹21.6 lakh hundreds) and other current assets (₹7.05 lakh hundreds), along with a sharp rise in receivables. This indicates that cash is heavily tied up in advances and recoverables, possibly due to aggressive lending, project funding, or inter-company transactions. Although inventories and payables showed minor positive movements, they were insufficient to offset the large cash outflows.

As a result, despite reporting profits, the company generated a negative operating cash flow of ₹31.21 lakh hundreds, compared to a healthy inflow in FY24. This reflects poor cash conversion efficiency and raises concerns about liquidity management and sustainability of earnings.

Cash Flow from Investing Activities

Investing activities show a strong positive inflow (₹29.79 lakh hundreds) in FY25, a significant turnaround from the previous year’s outflow. The key driver is a large reduction in long-term loans and advances (₹25.77 lakh hundreds inflow), suggesting recovery of funds previously lent or withdrawal from long-term investments.

Additionally, substantial interest income and other non-operating income contributed to cash inflow, indicating reliance on financial or investment-based earnings rather than operational expansion. Capital expenditure remains minimal, as seen from low spending on tangible and intangible assets, which may indicate limited reinvestment into core business growth.

Overall, investing cash flows helped offset the negative operating cash flows, but the quality of these inflows suggests they may not be recurring or sustainable in the long term.

Cash Flow from Financing Activities

Financing activities show a net cash outflow (₹61,930 hundreds), though significantly lower than the previous year’s large outflow. The company reduced its reliance on external financing, with only a small increase in long-term borrowings and a decrease in short-term borrowings.

There was no fresh equity infusion in FY25, unlike FY24 where substantial capital was raised. Finance costs also declined, reflecting reduced debt levels or better cost management. Additionally, repayment or reduction in other non-current liabilities contributed to cash outflow.

This indicates a shift towards deleveraging and reduced dependence on external funds, which is generally positive, but given weak operating cash flows, it may also strain liquidity.

Net Cash Flow Position

The overall cash position shows a net decrease of ₹2.03 lakh hundreds during FY25, compared to an increase in FY24. Despite strong inflows from investing activities, the heavy cash burn in operations outweighed gains.

The closing cash balance declined from ₹5.86 lakh hundreds to ₹3.83 lakh hundreds, indicating reduced liquidity. This suggests that the company is relying on non-operating inflows to sustain cash levels, which may not be reliable in the future.

Financial ratios of Proyuga Advanced Technologies Limited

Summary of ratios for the year 2025 and 2024:

Current ratio

The current ratio increased sharply from 1.86 in 2024 to 8.06 in 2025, indicating a significant improvement in short-term liquidity. The company now holds a much higher level of current assets relative to its current liabilities, suggesting strong ability to meet short-term obligations, though such a high ratio may also point to underutilization of assets.

Debt-equity ratio

The debt-equity ratio declined from 0.05 to 0.02, reflecting a further reduction in financial leverage. This indicates that the company relies very minimally on external debt and is primarily financed through equity, which reduces financial risk but may also limit potential returns from leverage.

Debt service coverage ratio

The debt service coverage ratio improved substantially from 4.05 to 8.39. This shows that the company’s earnings are more than sufficient to cover its debt obligations, indicating strong solvency and enhanced capacity to service interest and principal repayments.

Return on equity ratio

Return on equity improved from -2% in 2024 to 4% in 2025. This shift from negative to positive returns indicates that the company has moved into profitability and is now generating returns for its shareholders, although the return level is still modest.

Inventory turnover ratio

The inventory turnover ratio remained almost stable, increasing slightly from 0.60 to 0.61. This suggests that inventory management efficiency has not changed significantly, and the company continues to have a relatively slow movement of inventory.

Trade receivables turnover ratio

The trade receivables turnover ratio declined sharply from 15.73 to 4.50. This indicates a slowdown in the collection of receivables, suggesting that the company is taking longer to collect payments from customers, which may impact liquidity.

Trade payables turnover ratio

The trade payables turnover ratio decreased from 1.53 to 1.22. This implies that the company is taking more time to pay its suppliers, which could be a deliberate working capital strategy or a sign of cash flow management pressures.

Net capital turnover ratio

The net capital turnover ratio dropped from 1.17 to 0.48, indicating reduced efficiency in using capital to generate revenue. This suggests that the company’s capital base has increased faster than its sales, leading to lower utilization efficiency.

Net profit ratio

The net profit ratio improved significantly from -8% to 27%. This reflects a major turnaround in profitability, with the company moving from losses to strong profit margins, indicating improved cost control and/or higher revenue generation.

Return on capital employed

Return on capital employed increased from -0.01 to 0.03. This indicates that the company has started generating positive returns on its capital employed, though the return remains relatively low and suggests scope for better capital efficiency.