Sistema Smart Annual Reports, Balance Sheet and Financials

Sistema Smart Technologies Limited Consolidated Balance Sheet (Rs in millions)

Sistema Smart Technologies Limited Consolidated Profit & Loss Statement (Rs in millions)

Sistema Smart Technologies Limited Consolidated Cash Flow Statement (Rs in millions)

Here is a summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flows from Operating Activities

The company reported a net loss before tax of ₹21,676.32 million in FY 2025, which is wider than the ₹18,622.14 million loss in FY 2024. This significant loss is the starting point of the operating cash flow. However, non-cash and finance-related items are added back to adjust this loss. The most notable adjustments include depreciation and amortization (₹6.50 million in 2025) and finance costs (₹21,601.61 million in 2025), both of which are non-cash or financing expenses. Interest income of ₹137.07 million is deducted as it’s not part of core operations. Other adjustments such as gain on asset disposals and credit loss allowances are minimal or absent in 2025.

After adjustments, the operating cash flow before working capital changes is still negative at ₹-206.52 million (worse than ₹-100.85 million in 2024). However, working capital movements provided some relief. Trade receivables decreased by ₹47.05 million (indicating improved collections), and other receivables also decreased by ₹67.83 million. Trade payables and liabilities increased slightly, indicating better cash retention. As a result, the net cash outflow from operating activities improved to ₹-77.77 million in 2025 from ₹-174.23 million in 2024, though it still reflects negative cash generation from core operations.

Cash Flows from Investing Activities

In FY 2025, the company showed positive net cash flow from investing activities of ₹85.58 million, though lower than the ₹162.83 million in FY 2024. This was primarily due to interest received (₹121.48 million), and inflows from maturity of bank balances (₹8.24 million). There were also proceeds of ₹1.61 million from disposal of assets held for sale. However, there was a significant outflow of ₹44.97 million due to increase in margin money deposits, which partially offset the inflows.

Compared to 2024, where the company earned ₹102.54 million in interest and received ₹17.2 million from asset sales, the overall investing inflows have dropped slightly, mainly due to less asset disposal and higher margin money deposits. Importantly, investment in new assets remains minimal (only ₹0.78 million), indicating limited capital expenditure or asset expansion.

Cash Flows from Financing Activities

Financing activities continued to show a small net outflow, with ₹6.01 million used in 2025, compared to ₹5.72 million in 2024. This includes lease liability repayments of ₹4.28 million and interest payments of ₹1.73 million. These figures suggest the company has limited financing inflows, and is primarily servicing existing financial obligations. There’s no indication of fresh borrowings or equity inflow, indicating a conservative or restricted financing environment.

Net Change in Cash and Cash Equivalents

As a result of the above activities:

The company experienced a net increase in cash of ₹1.80 million in FY 2025, a turnaround from the net decrease of ₹17.12 million in FY 2024.

Opening cash balance was ₹7.56 million in 2025, which grew to ₹9.36 million by year-end.

This improvement is mainly due to better working capital management and positive investing inflows, despite continued operating losses. However, the cash position remains low and may not be adequate to cover major liabilities or investments without external support.

Financial Ratios of Sistema Smart Technologies Limited

Here is a summary of the financial ratios for Sistema Smart Technologies Limited for the year 2025 and 2024:

Current Ratio (2025: 1.7 | 2024: 1.71)

The current ratio measures a company’s ability to pay its short-term liabilities using its short-term assets. A ratio above 1 generally indicates that the company has enough current assets to cover its current obligations. In both years, the company maintained a healthy current ratio around 1.7, suggesting it has sufficient liquidity. However, the slight decrease from 1.71 to 1.7 shows marginal deterioration in short-term solvency, though not concerning.

Debt-Equity Ratio (2025: -1.01 | 2024: -1.01)

The debt-equity ratio reflects the proportion of debt used to finance the company relative to its equity. A negative debt-equity ratio (like -1.01) usually means that the company has negative net worth—i.e., liabilities exceed shareholder equity. This is a major red flag, showing financial distress and poor capital structure, remaining unchanged across both years.

Return on Equity (ROE) (2025: -0.15 | 2024: -0.15)

ROE measures how effectively a company generates profit from its shareholders ' equity. A negative ROE of -0.15 indicates that the company is losing money relative to equity investment, and not generating any return for shareholders. The consistency in the negative figure signals persistent losses and possibly poor strategic or operational efficiency.

Trade Receivables Turnover Ratio (2025: 1.37 | 2024: 1.72)

This ratio shows how many times the company collects its average trade receivables during the year. A decline from 1.72 to 1.37 suggests that collection efficiency worsened, meaning the company is slower in collecting dues from customers in 2025. This could affect cash flow and working capital.

Trade Payable Turnover Ratio (2025: 9.86 | 2024: 7.72)

This ratio reflects how quickly a company pays off its suppliers. The increase from 7.72 to 9.86 means the company is paying suppliers faster in 2025. While this could indicate strong liquidity or good supplier relationships, it may also suggest reduced credit terms, putting pressure on cash reserves.

Net Capital Turnover Ratio (2025: 0.10 | 2024: 0.12)

This ratio indicates how efficiently a company uses its working capital to generate revenue. A drop from 0.12 to 0.10 means that the company is generating less revenue per unit of net working capital. This indicates inefficiency in utilizing short-term resources to drive sales.

Net Profit Ratio (2025: -253.35% | 2024: -183.15%)

This ratio reveals the percentage of revenue that remains as profit after all expenses. A negative net profit ratio and its worsening trend (-253% to -183%) indicates that the company is incurring heavy losses—spending more than twice the revenue it earns. This is a major concern for long-term viability.

Return on Capital Employed (ROCE) (2025: -0.06 | 2024: 0.06)

ROCE shows how well a company generates profits from its total capital. In 2024, the company was just about profitable with a ROCE of 0.06. However, it turned negative in 2025 (-0.06), indicating that the returns fell below the cost of capital, suggesting value destruction and declining operational efficiency.