Sigachi Laboratories Annual Reports, Balance Sheet and Financials

Sigachi Laboratories Limited Standalone Balance Sheet (Rs in Crores)

Sigachi Laboratories Limited Standalone Profit & Loss Statement (Rs in Crores)

Sigachi Laboratories 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

During FY 2024–25, the company reported a profit before tax of ₹1.52 crore compared to ₹2.81 crore in FY 2023–24, indicating a decline in accounting profitability. However, after adjusting for non-cash and non-operating items such as depreciation (₹0.23 crore), impairment provision (₹0.75 crore), fair value adjustments, dividend income, and interest income, the operating profit before working capital changes remained stable at ₹0.82 crore (vs ₹0.80 crore in FY 2023–24).

Working capital movements improved significantly. In FY 2024–25, there was a positive working capital change of ₹0.15 crore compared to a sharp negative movement of ₹2.29 crore in FY 2023–24, mainly because the previous year saw a substantial increase in non-current assets. Consequently, cash generated from operations turned positive at ₹0.97 crore, compared to negative ₹1.49 crore in the previous year. After paying direct taxes of ₹0.45 crore, net cash from operating activities stood at ₹0.52 crore, a strong recovery from negative ₹1.90 crore in FY 2023–24.

Overall, operational cash flow performance improved materially, indicating better cash conversion and more stable core operations despite lower accounting profits.

Cash Flow from Investing Activities

Investing activities generated a net positive cash flow of ₹0.89 crore in FY 2024–25, compared to a net outflow of ₹1.36 crore in FY 2023–24.

In FY 2024–25, the company reduced capital expenditure significantly, purchasing property, plant and equipment worth only ₹0.11 crore compared to ₹1.07 crore in the previous year. Investment purchases also declined to ₹0.71 crore from ₹1.27 crore. At the same time, the company realized cash through sale of investments (₹0.40 crore), dividend income (₹0.50 crore), interest income (₹0.68 crore), and release of term deposits (₹0.13 crore).

In contrast, FY 2023–24 witnessed heavy investment in non-current assets and deposits, leading to substantial cash outflows. The positive investing cash flow in FY 2024–25 suggests either partial monetization of investments or reduced expansion activity, reflecting a more conservative capital allocation approach during the year.

Cash Flow from Financing Activities

There were no financing activities in either FY 2024–25 or FY 2023–24. This indicates that the company neither raised fresh equity nor debt nor repaid borrowings during the period. The absence of financing cash flows suggests a stable capital structure and that operational and investment requirements were managed without external funding.

Net Change in Cash and Cash Equivalents

The company reported a net increase in cash and cash equivalents of ₹1.41 crore in FY 2024–25, a sharp turnaround from a decrease of ₹3.26 crore in FY 2023–24. Cash balance increased from ₹0.44 crore at the beginning of FY 2024–25 to ₹1.86 crore at year-end.

The improvement was primarily driven by positive operating cash flows and reduced investment outflows. In contrast, the previous year’s decline in cash was largely due to heavy investment in non-current assets and working capital absorption.

Overall, FY 2024–25 reflects improved liquidity, stronger cash generation from operations, and disciplined investing, resulting in a healthier closing cash position.

Financial ratios of Sigachi Laboratories Limited

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

Current Ratio

The current ratio remained extremely high at 38.95 in FY 2024–25 compared to 37.32 in FY 2023–24. This indicates that the company has a very large surplus of current assets over current liabilities. While this reflects excellent short-term liquidity and almost negligible default risk, such an unusually high ratio may also indicate inefficient utilization of funds, with excess cash or investments lying idle instead of being deployed productively.

Return on Equity

Return on equity declined significantly to 17.64% in FY 2024–25 from 29.24% in FY 2023–24. This shows that the company generated lower profits relative to shareholders’ equity compared to the previous year. The decline suggests reduced profitability or higher equity base without proportionate earnings growth, indicating comparatively weaker returns for shareholders during the year.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio slightly decreased to 12.22 times in FY 2024–25 from 12.83 times in FY 2023–24. This means the company collected its receivables slightly slower than the previous year. However, the ratio still remains strong, indicating efficient credit management and quick realization of receivables, which supports healthy operating cash flows.

Net Capital Turnover Ratio

The net capital turnover ratio declined to 0.86 in FY 2024–25 from 1.34 in FY 2023–24. This indicates that the company generated lower revenue per unit of capital employed. The fall suggests either reduced sales or higher capital base without corresponding growth in revenue, pointing toward reduced efficiency in utilizing capital for generating turnover.

Net Profit Ratio

The net profit ratio fell to 0.31 (31%) in FY 2024–25 compared to 0.45 (45%) in FY 2023–24. This indicates a substantial decline in profitability margins. The company earned lower net profit per rupee of revenue during the year, which may be due to higher expenses, fair value losses, or lower income from investments compared to the previous year.

Return on Capital Employed

ROCE declined to 3.87% in FY 2024–25 from 7.82% in FY 2023–24. This significant drop indicates that overall capital employed in the business generated lower operating returns during the year. The fall reflects weaker operational efficiency and reduced earning power of total long-term funds invested in the company.

Return on Investments

Return on investments decreased to 7.98% in FY 2024–25 from 11.32% in FY 2023–24. This suggests that income generated from the company’s investment portfolio reduced during the year, possibly due to lower dividend income, interest income, or fair value gains compared to the previous year.