Skyweb Infotech Annual Reports, and Financials

Skyweb Infotech Limited Consolidated Balance Sheet (Rs in Lakhs)

Skyweb Infotech Limited Consolidated Profit & Loss Statement (Rs in Lakhs)

Skyweb Infotech Limited Consolidated Cash Flow Statement (Rs in Lakhs) 

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

Cash Flows from Operating Activities:
The company reported a higher loss before tax of ₹13.97 lakhs in 2025 compared to ₹7.91 lakhs in 2024, indicating deteriorating operating performance. Consequently, net cash outflow from operating activities increased to ₹10.62 lakhs from ₹7.88 lakhs. Although there were positive adjustments such as finance income (₹6.15 lakhs) and a large inflow from reduction in trade receivables (₹568.75 lakhs), these were largely offset by a significant decrease in trade and other payables (₹573.55 lakhs), which led to substantial cash outflow. Other working capital changes also contributed negatively. Overall, the company continues to generate negative cash flow from its core operations, reflecting operational inefficiency and weak cash management.

Adjustments include depreciation (₹0.03 lakhs), which is minimal and indicates low fixed asset usage. Finance income (₹6.15 lakhs) is deducted from operating cash flows as it is considered an investing activity. The most significant impact comes from working capital adjustments, particularly the sharp increase in trade receivables (inflow) and the equally large decrease in payables (outflow), which almost neutralize each other. Additional movements in other financial assets, current assets, liabilities, and provisions further influenced cash flows. These adjustments highlight that fluctuations in working capital are the primary drivers of cash flow changes rather than core profitability.

Cash Flows from Investing Activities:
The company reported a small cash outflow of ₹0.20 lakhs in 2025 due to the purchase of assets, compared to a strong inflow of ₹21.00 lakhs in 2024 from loan repayments. This indicates reduced investing inflows in the current year and suggests limited recovery of previously given loans or fewer investment-related cash inflows. The low level of investment activity also reflects a lack of expansion or capital expenditure.

Cash Flows from Financing Activities:
Financing activities generated a significant net inflow of ₹27.50 lakhs in 2025, compared to an outflow of ₹11.23 lakhs in 2024. This was mainly due to fresh proceeds from long-term borrowings (₹33.65 lakhs), partially offset by interest payments (₹6.15 lakhs). The reliance on external borrowing indicates that the company is funding its operations and cash deficits through debt, which increases financial risk.

Net Increase in Cash and Cash Equivalents:
Despite negative operating cash flows, the company recorded a net increase in cash of ₹16.68 lakhs in 2025, significantly higher than the ₹1.89 lakhs increase in 2024. This rise is primarily driven by financing inflows rather than operational performance, indicating dependence on borrowed funds to maintain liquidity.

Financial ratios of Skyweb Infotech Limited:

Summary of the Ratios for the years 2025 and 2024:

Current Ratio:
The current ratio has improved significantly from 0.99 in 2024 to 2.70 in 2025. This indicates that the company has strengthened its short-term liquidity position and now has sufficient current assets to cover its current liabilities. A ratio above 2 generally reflects a comfortable liquidity position, suggesting better working capital management compared to the previous year.

Debt-Equity Ratio:
The debt-equity ratio increased from 5.15 in 2024 to 5.56 in 2025, indicating a high level of financial leverage. This means the company relies heavily on borrowed funds compared to shareholders’ equity. Such a high ratio increases financial risk, as the company may face pressure in servicing its debt obligations, especially given its weak profitability.

Return on Equity:
The return on equity is negative at -0.14 in 2025, worsening from -0.07 in 2024. This indicates that the company is incurring losses and is unable to generate returns on shareholders’ funds. The decline suggests deteriorating performance and reduced efficiency in utilizing equity capital.

Net Profit Ratio:
The net profit ratio has declined from -2% in 2024 to -5% in 2025, showing that the company’s losses have increased relative to its revenue. This reflects worsening operational performance and possibly higher costs or lower revenues, indicating poor profitability.

Return on Capital Employed:
The return on capital employed stands at -0.14 in 2025 compared to -0.07 in 2024. A negative ROCE indicates that the company is not generating adequate returns from its total capital employed (both debt and equity). The deterioration highlights inefficiency in utilizing overall resources.