Rite Water Solutions Annual Reports, Balance Sheet and Financials

Rite Water Solutions (India) Limited Consolidated Balance Sheet (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Non-Current Assets
Property, Plant And Equipment	3.09	2.74
Right Of Use Assets	5.72	1.32
Intangible Assets	0.07	0.01
Trade Receivables	2.74
Other Financial Assets	70.33	14.32
Deferred Tax Assets	7.79	2.60
Other Non-Current Assets	5.10	3.34
Current Assets
Inventories	52.13	20.61
Investments	-	25.32
Trade Receivables	169.91	36.03
Cash & Cash Equivalents	58.74	51.93
Other Bank Balances	-	34.32
Other Financial Assets	81.53	98.34
Other Current Assets	14.27	9.55
Total Assets	471.41	300.43
Equity
Equity Share Capital	14.31	2.39
Instruments Entirely Equity In Nature	0.46	0.46
Other Equity	324.18	237.12
Non-Current Liabilities
Borrowings	0.41	0.62
Lease Liabilities	4.44	0.90
Other Financial Liability	0.40	0.33
Provisions	0.32	0.26
Current Liabilities
Borrowings	39.55	16.61
Lease Liabilities	1.37	0.51
Trade Payables - Micro & Small Enterprises	9.91	9.58
Trade Payables - Other Than Micro & Small Enterprises	52.87	18.51
Other Financial Liabilities	4.12	2.02
Other Current Liabilities	7.46	3.32
Provisions	4.20	1.88
Current Tax Liabilities	7.43	5.90
Total Equity And Liabilities	471.41	300.43

 

Rite Water Solutions (India) Limited Consolidated Profit & Loss Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Income
Revenue From Operations	506.48	202.75
Other Income	5.48	4.29
Total Revenue	511.96	207.04
Expenses
Cost Of Material Consumed	243.80	70.35
Changes In Inventories Of Finished Goods	-	0.77
Employee Benefit Expense	16.38	11.15
Finance Costs	3.35	2.11
Depreciation And Amortisation Expense	2.87	1.68
Other Expenses	111.29	49.79
Total Expenses	377.69	135.85
Profit Before Tax	134.27	71.19
Current Tax	40.13	16.23
Earlier Year Tax	0.59	0.62
Deferred Tax	-5.20	4.87
Profit For The Year	98.73	49.48
Total Comprehensive Income For The Year	98.73	49.48
Basic Earnings Per Share	13.80	7.46
Diluted Earnings Per Share	11.56	6.89

 

Rite Water Solutions (India) Limited Consolidated Cash Flow Statement (Rs in Crores) 

Particulars	31-03-2025	31-03-2024
Cash Flow From Operating Activities
Profit Before Tax	134.27	71.19
Adjustments For:
Depreciation And Amortisation Expense	1.16	1.12
Depreciation For Right Of Use Assets	1.71	0.56
Interest On Lease Liability	0.53	0.11
Bad Debts And Expected Credit Loss	19.61	2.42
Balances Written Back	-0.05	-0.01
Interest On Unwinding Of Lease Deposits	-0.07	-
Other Finance Cost	2.82	2.00
Fair Valuation Gain On Security Deposits	-1.41	-0.60
Fair Valuation Of Investments	-0.25	-0.27
Interest Income On Deposits	-3.06	-2.32
Proceeds From Sale Of Investment	-0.03	-
Profit On Sale Of Asset (Net)	-	-
Share Based Employee Compensation Cost	0.25	-
Operating Profit Before Working Capital Changes	155.47	74.20
Decrease/(Increase) In Inventories	-31.51	-14.02
Decrease/(Increase) In Trade Receivables	-156.22	-17.31
Decrease/(Increase) In Other Assets	-6.47	-6.98
Decrease/(Increase) In Other Financial Assets	-37.79	-55.07
Increase/(Decrease) In Trade Payables	34.75	7.96
Increase/(Decrease) In Provisions	2.38	-0.04
Increase/(Decrease) In Other Liabilities	4.13	1.41
Increase/(Decrease) In Other Financial Liabilities	2.16	-0.93
Cash Generated From Operations	-33.10	-10.79
Income Taxes Paid	-39.20	-11.41
Net Cash Inflow (Used In)/Generated From Operating Activities	-72.30	-22.20
Cash Flow From Investing Activities
(Purchase) Of Fixed Assets, Including Intangible Assets	-1.58	-0.38
Proceeds From Sale Of Fixed Assets	0.01	-
(Purchase)/Redemption Of Mutual Fund Investments (Net)	25.57	-25.04
Encashment Of/(Investments In) Fixed Deposits (Maturity >3 Months, Net)	34.26	-32.92
Interest Received On Fixed Deposits	3.06	2.32
Movement In Other Bank Balance (Net)	0.06	-0.06
Net Cash (Used In)/Generated From Investing Activities	61.38	-56.09
Cash Flow From Financing Activities
Increase/(Decrease) In Long Term Borrowings	-0.21	-0.20
Increase/(Decrease) In Short Term Borrowings	22.94	13.70
Payment Of Lease Liabilities (Including Deposits)	-1.71	-0.60
Payment Of Interest On Lease Liability	-0.47	-0.12
Finance Cost	-2.82	-1.88
Proceeds From Issue Of Equity Shares & Instruments Entirely Equity In Nature	-	98.74
Buyback Of Equity Shares	-	-7.00
Net Cash Generated From/(Used In) Financing Activities	17.73	102.63
Net (Decrease)/Increase In Cash And Cash Equivalents	6.81	24.34
Add: Cash And Cash Equivalents At The Beginning Of The Financial Year	51.93	27.59
Cash And Cash Equivalents At End Of The Period	58.74	51.93

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

Cash Flow from Operating Activities:
Net cash used in operating activities increased significantly from ₹22.20 crore in FY2023-24 to ₹72.30 crore in FY2024-25, despite Profit Before Tax increasing from ₹71.19 crore to ₹134.27 crore. The major reason for the negative operating cash flow was the substantial increase in working-capital requirements. Trade receivables alone resulted in a cash outflow of ₹156.22 crore, compared with ₹17.31 crore in the previous year. Inventories absorbed ₹31.51 crore and other financial assets absorbed ₹37.79 crore. Although trade payables contributed ₹34.75 crore, this was not sufficient to offset the working-capital outflows. Income taxes paid also increased to ₹39.20 crore. Overall, the company’s operating cash flow indicates that a significant portion of its profits remained tied up in receivables and other working-capital items.

 

Cash Flow from Investing Activities:
Investing activities generated a net cash inflow of ₹61.38 crore in FY2024-25, compared with a net outflow of ₹56.09 crore in FY2023-24. The major sources of cash were net redemption of mutual fund investments of ₹25.57 crore and encashment of fixed deposits of ₹34.26 crore. Interest received on fixed deposits contributed another ₹3.06 crore. Capital expenditure was relatively low at ₹1.58 crore. Thus, the positive investing cash flow was primarily due to the realisation of investments and fixed deposits rather than fresh investment income or operating generation. This provided important liquidity support during the year.

 

Cash Flow from Financing Activities:
Financing activities generated a net cash inflow of ₹17.73 crore in FY2024-25, compared with ₹102.63 crore in FY2023-24. The current-year inflow was mainly due to an increase in short-term borrowings of ₹22.94 crore, partly offset by repayment of borrowings, lease liabilities and finance costs. In contrast, FY2023-24 benefited substantially from ₹98.74 crore raised through the issue of equity shares and equity instruments. The movement indicates that the company relied more on short-term debt to meet its funding requirements in FY2024-25. Given the negative operating cash flow, the increased dependence on borrowings for liquidity and working capital is an important area of concern.

Net Change in Cash and Cash Equivalents:
The company recorded a net increase in cash and cash equivalents of ₹6.81 crore during FY2024-25, compared with an increase of ₹24.34 crore in the previous year. Consequently, cash and cash equivalents increased from ₹51.93 crore to ₹58.74 crore. However, the increase in cash was not generated from core operating activities, as operating activities consumed ₹72.30 crore. Instead, the cash deficit was compensated mainly through investment realisations and financing inflows. Overall, while the company ended the year with a reasonable cash balance, the negative operating cash flow highlights the need for better receivables collection and tighter working-capital management to ensure sustainable cash generation.

 

Financial ratios of Rite Water Solutions (India) Limited

Particulars	31-03-2025	31-03-2024
Current Ratio	2.81	5.30
Debt equity ratio	0.13	0.08
Debt service coverage ratio	6.66	29.12
Return on equity ratio	32%	24%
Inventory Turnover ratio	8.74	9.64
Trade Receivable Turnover ratio	4.95	7.51
Trade Payable Turnover ratio	7.31	5.01
Net capital turnover ratio	2.34	1.66
Net profit ratio	17%	19%
Return on capital employed	33%	24%
Return on investment	6%	4%

 

Summary of Financial Ratios for the years 2025 and 2024:

Current Ratio

The current ratio declined from 5.30 in FY2023-24 to 2.81 in FY2024-25, indicating a reduction in short-term liquidity. However, the ratio remains well above the ideal benchmark, suggesting that the company still has adequate current assets to meet its short-term obligations.

 

Debt Equity Ratio

The debt-equity ratio increased slightly from 0.08 to 0.13, reflecting a marginal rise in the use of debt financing. Despite the increase, the ratio remains very low, indicating a strong capital structure with limited financial leverage.

 

Debt Service Coverage Ratio

The debt service coverage ratio decreased from 29.12 to 6.66, showing a decline in the company’s debt repayment capacity. Nevertheless, the ratio is still comfortably above 1, indicating that the company generates sufficient earnings to meet its debt servicing obligations.

 

Return on Equity Ratio

The return on equity improved from 24% to 32%, demonstrating higher profitability and better returns generated for shareholders from their invested capital during FY2024-25.

 

Inventory Turnover Ratio

The inventory turnover ratio declined slightly from 9.64 to 8.74, indicating a marginal slowdown in inventory movement. Even so, the ratio suggests that inventory continues to be managed efficiently.

 

Trade Receivable Turnover Ratio

The trade receivable turnover ratio fell from 7.51 to 4.95, indicating slower collection of receivables and a higher amount of funds tied up in customer credit, which also affected operating cash flow.

 

Trade Payable Turnover Ratio

The trade payable turnover ratio increased from 5.01 to 7.31, indicating that the company paid its suppliers more quickly during the year, reflecting improved settlement practices.

 

Net Capital Turnover Ratio

The net capital turnover ratio improved from 1.66 to 2.34, showing better utilisation of working capital in generating revenue and improved operational efficiency.

 

Net Profit Ratio

The net profit ratio declined slightly from 19% to 17%, indicating a small reduction in profit margin despite higher revenue and overall profitability.

 

Return on Capital Employed

The return on capital employed increased from 24% to 33%, reflecting more efficient utilisation of the company’s long-term capital and improved operating performance.

 

Return on Investment

The return on investment improved from 4% to 6%, indicating that the company earned better returns from its invested funds compared with the previous financial year.