Simpson and Company Annual Reports, Balance Sheet and Financials

Simpson & Company Limited Consolidated Balance Sheet (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Non-Current Assets
Property, Plant And Equipment	1,992.02	1,931.01
Capital Work-In-Progress	54.78	113.03
Right Of Use Assets	66.59	65.60
Investment Property	19.94	8.26
Intangible Assets	68.04	100.41
Intangible Assets Under Development	125.67	99.41
Financial Assets
Investments	11,738.59	11,824.45
Loans	17.69	11.37
Others	219.71	187.86
Deferred Tax Assets	10.56	12.58
Other Non-Current Assets	54.56	32.18
Goodwill On Consolidation	54.70	54.70
Current Assets
Inventories	1,498.87	1,553.62
Financial Assets
Investments	4,227.37	3,842.98
Trade Receivables	1,706.56	1,782.56
Cash And Cash Equivalents	845.09	694.30
Bank Balances Other Than Above	653.40	303.14
Loans	57.86	15.12
Others	90.75	58.52
Current Tax Assets (Net)	5.09	61.64
Other Current Assets	502.46	464.45
Assets Held For Sale	2.29	2.29
Total Assets	24,012.59	23,219.48
Equity
Share Capital	7.37	7.37
Other Equity	16,128.41	15,412.46
Non-Controlling Interest	3,800.54	3,649.10
Capital Reserve On Consolidation	33.33	33.33
Non-Current Liabilities
Borrowings	61.32	60.56
Other Financial Liabilities	68.67	71.65
Lease Liabilities	39.42	45.34
Deferred Tax Liabilities	678.84	821.67
Provisions	55.34	52.34
Other Non-Current Liabilities	3.64	4.43
Current Liabilities
Borrowings	248.58	246.66
Trade Payables - Micro & Small Enterprises	97.97	85.31
Trade Payables - Other Than Micro & Small	2,103.83	2,033.36
Other Financial Liabilities	338.82	351.40
Lease Liabilities	11.93	7.15
Other Current Liabilities	280.54	275.23
Provisions	54.03	62.12
Total Equity And Liabilities	24,012.59	23,219.48

 

Simpson & Company Limited Consolidated Profit & Loss Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operations	15,575.84	14,792.41
Other Income	964.96	763.16
Total Income	16,540.80	15,555.58
Expenses
Cost of Materials Consumed	8,914.80	8,105.30
Purchases of Stock-in-Trade	1,675.55	1,840.24
Changes in Inventories of Finished Goods, Stock-in-Trade & WIP	-42.42	68.43
Employee Benefits Expense	1,371.35	1,277.03
Finance Costs	71.23	60.92
Depreciation and Amortization Expense	298.26	276.82
Other Expenses	2,253.65	2,137.18
Total Expenses	14,542.43	13,765.90
Profit/(Loss) before Exceptional Items and Tax	1,998.37	1,789.68
Exceptional Items	1.71	2.34
Profit/(Loss) before Tax	1,996.66	1,787.35
Current Tax	444.81	489.54
Deferred Tax	133.03	18.04
Tax refund/provision relating to earlier years	-1.10	-1.73
Profit/(Loss) from Continuing Operations	1,419.93	1,281.49
Share of Profit from Associates & Joint Ventures	-354.48	1,369.58
Profit/(Loss) for the Year after Tax	1,065.45	2,651.07
Other Comprehensive Income
Items that will not be reclassified to profit or loss (net of tax)	55.86	106.04
Items that will be reclassified to profit or loss (net of tax)	-147.21	41.34
Total Comprehensive Income for the year	974.10	2,798.45
Earnings per Equity Share - Basic & Diluted (Face value Rs 2500/- per share)	2,91,573.63	7,18,356.56

 

Simpson & Company Limited Consolidated Cash Flow Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Cash flow from Operating Activities
Profit Before Tax	1,996.66	1,787.35
Add: Profit from Sale of Property, Plant and Equipment	-12.47	-6.55
Depreciation and Amortisation Expense	298.26	276.82
Finance Cost	71.23	60.92
Interest Income	-111.04	-67.79
Dividend Income	-2.37	-2.97
Fair Value Gain on Investments	-663.08	-569.07
Profit on Sale of Investments	-101.26	-67.78
Exchange Gain/Loss	-28.41	6.42
Operating Profit Before Working Capital Changes	1,447.53	1,417.34
Working Capital Changes
Decrease/(Increase) in Financial Assets	-2.51	0.27
Decrease/(Increase) in Other Non-current & Current Assets	-92.63	18.36
Decrease/(Increase) in Inventories	54.75	125.24
(Decrease)/Increase in Trade and Other Payables	75.33	-12.18
(Decrease)/Increase in Provisions	-5.08	-20.67
Decrease/(Increase) in Loans and Advances	-49.06	-7.97
Decrease/(Increase) in Trade and Other Receivables	84.20	150.55
(Decrease)/Increase in Other Non-current & Current Liabilities	-4.38	0.37
Cash Generated from Operations	1,508.15	1,671.30
Less: Taxes Paid	387.16	518.36
Cash Flow from Operating Activities	1,120.99	1,152.93
Cash flow from Investing Activities
Net Purchase/Adjustments in Property, Plant and Equipment	-295.11	-313.33
Movement in Non-current Assets held for Sale	-	-0.23
Net (Purchase)/Sale of Investments	-253.85	-368.33
Interest Income Earned	111.04	67.79
Dividend Income	2.37	2.97
Changes in Bank Balance - Other than Cash & Cash Equivalents	-379.60	-290.87
Cash used in Investing Activities	-815.15	-902.00
Cash flow from Financing Activities
Interest/Finance Charges on Borrowings	-71.23	-60.92
Change in Group Structure/Adjustments	-33.01	-34.75
Proceeds from/(Repayment of) Long Term Borrowings (Net)	0.76	-10.71
Proceeds from/(Repayment of) Short Term Borrowings (Net)	1.92	3.04
Dividend Paid	-73.70	-71.86
Cash Generated from Financing Activities	-175.26	-175.20
Net Increase/(Decrease) in Cash	130.58	75.74
Opening Cash & Cash Equivalents	694.30	627.68
Effect of Exchange Differences on Foreign Currency Transactions	20.21	-9.11
Closing Cash & Cash Equivalents	845.09	694.30

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

Cash Flow from Operating Activities

Simpson & Company Limited generated a strong operating cash inflow of ₹1,120.99 crore in FY 2024–25 compared to ₹1,152.93 crore in FY 2023–24, reflecting a marginal decline of 2.8%. The increase in profit before tax from ₹1,787.35 crore to ₹1,996.66 crore indicates improved operational performance. However, non-cash and non-operating items such as fair value gains on investments, profit on sale of investments, and higher interest income reduced the operating profit before working capital changes. Working capital management remained efficient supported by lower inventories, reduced trade receivables, and higher trade payables, although increased other assets and loans and advances partially offset these benefits. After paying taxes of ₹387.16 crore, the company maintained healthy operating cash generation, demonstrating strong cash conversion from its core business operations and sufficient liquidity to support future investments and obligations.

 

Cash Flow from Investing Activities

The company reported a net cash outflow of ₹815.15 crore from investing activities during FY 2024–25, compared with ₹902.00 crore in the previous year, indicating relatively lower investment spending. The largest outflow was towards capital expenditure on property, plant and equipment amounting to ₹295.11 crore, highlighting continued investment in business expansion and modernisation. Additionally, ₹253.85 crore was utilised for net investment purchases, though this was significantly lower than the previous year 's ₹368.33 crore. Higher placements in bank balances other than cash equivalents (₹379.60 crore) also contributed to the outflow. These investments were partially offset by interest income of ₹111.04 crore and dividend income of ₹2.37 crore. Overall, the investing cash flows indicate a balanced investment strategy aimed at strengthening long-term growth while effectively managing available financial resources.

 

Cash Flow from Financing Activities

Financing activities resulted in a net cash outflow of ₹175.26 crore in FY 2024–25, almost unchanged from ₹175.20 crore in FY 2023–24, reflecting a stable financing policy. The major cash outflows comprised finance costs of ₹71.23 crore, dividend payments of ₹73.70 crore, and adjustments relating to changes in group structure amounting to ₹33.01 crore. Borrowing activities remained minimal, with only a marginal increase in long-term borrowings (₹0.76 crore) and short-term borrowings (₹1.92 crore), indicating limited dependence on external debt financing. The company continued to finance its operations and investments primarily through internally generated funds. The consistent dividend payments also demonstrate management 's commitment to rewarding shareholders while maintaining a prudent capital structure and preserving financial stability.

 

Net Increase in Cash and Cash Equivalents

During FY 2024–25, Simpson & Company Limited recorded a net increase in cash and cash equivalents of ₹130.58 crore, compared to an increase of ₹75.74 crore in FY 2023–24. The improvement was mainly driven by strong operating cash generation and a lower cash outflow from investing activities. In addition, favourable foreign exchange movements contributed ₹20.21 crore, whereas the previous year witnessed a negative exchange impact of ₹9.11 crore. Consequently, the closing cash and cash equivalents increased to ₹845.09 crore from ₹694.30 crore at the beginning of the year. The higher cash balance reflects the company 's strong liquidity position, efficient cash management practices, and its ability to generate sufficient internal funds to meet operational requirements, finance investments, service financial obligations, and support future growth opportunities without significant reliance on external borrowings.

 

Financial ratios of Simpson & Company Limited

 

Particulars	31-03-2025	31-03-2024
Current Ratio (times)	2.25	2.44
Debt-Equity Ratio (times)	0.01	0.02
Debt Service Coverage Ratio (times)	9.33	8.55
Return on Equity Ratio (%)	10.32	11.33
Inventory Turnover Ratio (times)	9.93	9.16
Trade Receivables Turnover Ratio (times)	3.93	3.61
Trade Payables Turnover Ratio (times)	6.22	6.09
Net Capital Turnover Ratio (times)	4.41	3.72
Net Profit Ratio (%)	10.46	11.56
Return on Capital Employed (%)	13.82	13.65
Return on Investment (%)	16.19	19.42

 

Summary of Financial Ratios for the years 2025 and 2024:

 

Current Ratio

The current ratio declined from 2.44 times in FY 2023–24 to 2.25 times in FY 2024–25. Although the ratio decreased slightly, it remained well above the ideal benchmark of 1.5–2.0, indicating that the company possesses sufficient current assets to meet its short-term liabilities. The decline may be attributed to increased utilisation of current assets or relatively higher current liabilities. Overall, the liquidity position remains strong and reflects effective working capital management.

 

Debt–Equity Ratio

The debt–equity ratio decreased from 0.02 times to 0.01 times, indicating an extremely low level of financial leverage. This suggests that the company relies primarily on shareholders ' equity rather than external borrowings to finance its operations. The negligible debt burden strengthens financial stability, reduces interest obligations, and provides greater flexibility for future financing if required.

 

Debt Service Coverage Ratio (DSCR)

The debt service coverage ratio improved from 8.55 times to 9.33 times, demonstrating an enhanced ability to meet debt servicing obligations from operating earnings. A DSCR significantly above one indicates a strong repayment capacity and low financial risk. The improvement reflects increased operating profitability and efficient management of debt-related commitments.

 

Return on Equity (ROE)

The return on equity declined from 11.33% in FY 2023–24 to 10.32% in FY 2024–25. Despite the marginal reduction, the ratio indicates that the company continues to generate satisfactory returns for its shareholders. The decline may be due to increased equity capital or comparatively lower growth in net profit relative to shareholders ' funds.

 

Inventory Turnover Ratio

The inventory turnover ratio increased from 9.16 times to 9.93 times, indicating improved inventory management. The higher ratio suggests that inventories were converted into sales more quickly, reducing inventory holding costs and enhancing operational efficiency. This reflects better demand management and effective inventory control.

 

Trade Receivables Turnover Ratio

The trade receivables turnover ratio improved from 3.61 times to 3.93 times, indicating more efficient collection of receivables during the year. The improvement suggests strengthened credit management practices and faster recovery of outstanding dues, contributing positively to the company 's liquidity and cash flow position.

 

Trade Payables Turnover Ratio

The trade payables turnover ratio increased marginally from 6.09 times to 6.22 times. This indicates that the company settled its supplier obligations slightly faster than in the previous year while maintaining healthy relationships with creditors. The stable ratio reflects efficient management of trade payables without adversely affecting liquidity.

 

Net Capital Turnover Ratio

The net capital turnover ratio increased significantly from 3.72 times to 4.41 times, indicating improved utilisation of working capital to generate revenue. The higher ratio reflects enhanced operational efficiency, better management of current assets and liabilities, and stronger sales generation from the available working capital.

 

Net Profit Ratio

The net profit ratio declined from 11.56% to 10.46%, indicating a slight reduction in profitability despite increased sales or revenue. The decrease may be attributed to higher operating costs, increased expenses, or changes in the income mix. Nevertheless, the company maintained a healthy double-digit profit margin, demonstrating continued operational strength.

 

Return on Capital Employed

The return on capital employed improved marginally from 13.65% to 13.82%, indicating slightly better utilisation of long-term funds invested in the business. The increase reflects improved operating efficiency and the company 's ability to generate higher earnings from its capital employed, highlighting effective financial and operational management.

 

Return on Investment

The return on investment declined from 19.42% in FY 2023–24 to 16.19% in FY 2024–25. Although the ratio remains strong, the decline suggests comparatively lower returns generated from investments during the year. This may be due to lower investment income, changes in market valuations, or increased investment levels that are yet to yield proportionate returns. Overall, the company continues to earn favourable returns on its investment portfolio.