Shakumbhari Pulp Annual Reports, Balance Sheet and Financials

Shakumbhri Pulp & Paper Mills Limited Standalone Balance Sheet (Rs in Lakhs)

Shakumbhri Pulp & Paper Mills Limited Standalone Profit & Loss Statement (Rs in Lakhs)

Shakumbhri Pulp & Paper Mills Limited Standalone Cash Flow Statement (Rs in Lakhs)

Summary of cash flow statement:

Cash Flow from Operating Activities:
The company reported a profit before tax of ₹18.34 lakhs in 2025 compared to a loss of ₹74.30 lakhs in 2024, indicating a turnaround in profitability. After adjusting for non-cash and financial items such as depreciation, interest, and minor losses, operating profit before working capital changes rose to ₹289.59 lakhs from ₹199.58 lakhs. However, significant increases in trade receivables and inventories led to a substantial outflow, partially offset by a strong increase in trade payables. Despite these fluctuations, cash generated from operations stood at ₹226.48 lakhs, though lower than ₹451.06 lakhs in the previous year. After tax payments, net cash from operating activities decreased to ₹225.34 lakhs from ₹442.73 lakhs, indicating weaker cash conversion due to adverse working capital movements.

Cash Flow from Investing Activities:
Cash used in investing activities increased significantly to ₹199.40 lakhs in 2025 compared to ₹89.28 lakhs in 2024. This was mainly due to higher capital expenditure on property, plant, and equipment (₹209.89 lakhs), suggesting expansion or modernization efforts. The company received minor inflows from the sale of assets and interest income, but these were insufficient to offset the heavy investment outflows. Overall, this reflects a growth-oriented strategy but also higher cash outflow pressure.

Cash Flow from Financing Activities:
Net cash used in financing activities reduced substantially to ₹22.01 lakhs in 2025 from ₹356.18 lakhs in 2024. This improvement was driven by a shift in borrowing patterns—while the company repaid some long-term borrowings, it raised significant short-term borrowings (₹150.75 lakhs) compared to a net reduction in the previous year. Interest payments remained high but slightly lower than last year. The reduced outflow indicates better financing management, though increased reliance on short-term debt may raise liquidity concerns.

Net Increase/Decrease in Cash:
The company recorded a net increase in cash of ₹3.93 lakhs in 2025, compared to a decrease of ₹2.73 lakhs in 2024. This positive change indicates improved overall cash position, despite lower operating cash flows and higher investing outflows.

Financial Ratios of Shakumbhri Pulp & Paper Mills Limited

Summary of financial ratios:

Current Ratio:
The current ratio improved slightly from 0.75 in 2024 to 0.78 in 2025, indicating a marginal improvement in short-term liquidity. However, it remains below 1, suggesting that the company still faces challenges in meeting its short-term obligations with its current assets.

Debt-Equity Ratio:
The debt-equity ratio increased from 1.17 to 1.25, reflecting a higher reliance on debt financing. This indicates a slight rise in financial leverage, which could increase financial risk if not managed carefully.

Debt Service Coverage Ratio:
The DSCR improved significantly from 1.04 to 1.37, showing better ability to service debt obligations. This improvement suggests enhanced operational earnings and improved financial stability in meeting interest and principal payments.

Return on Equity:
ROE turned positive from -5.43% in 2024 to 1.90% in 2025. This indicates that the company has moved from losses to generating modest returns for shareholders, reflecting improved profitability.

Inventory Turnover Ratio:
The inventory turnover ratio increased from 9.13 to 10.91, indicating more efficient inventory management. The company is now converting its inventory into sales more quickly than before.

Trade Receivable Turnover Ratio:
This ratio slightly declined from 7.13 to 7.00, suggesting a marginal slowdown in collection from customers. However, the change is minimal and still reflects a relatively stable receivables management process.

Trade Payable Turnover Ratio:
The ratio improved from 4.28 to 4.62, indicating that the company is paying its suppliers more quickly than before. While this may strengthen supplier relationships, it could also put pressure on liquidity.

Net Capital Turnover Ratio:
The net capital turnover ratio remained negative, though it slightly improved from -12.94 to -12.76. This indicates inefficient utilization of working capital, possibly due to negative working capital or operational inefficiencies.

Net Profit Ratio:
The net profit ratio improved from -0.81% to 0.25%, showing that the company has transitioned from a loss-making position to marginal profitability. However, profitability levels remain very low.

Return on Capital Employed:
ROCE increased from 2.92% to 5.99%, indicating better utilization of capital employed in generating profits. This reflects improved operational efficiency, though returns are still moderate.

Return on Investment:
ROI rose slightly from 11.71% to 12.46%, suggesting a steady improvement in returns generated from investments. This indicates that the company is gradually enhancing the efficiency of its investment decisions.