Starlite Global Enterprises Limited Annual Report, Balance Sheet and Financials.

Starlite Global Enterprises (India) Limited Consolidated Balance Sheet (Rs in Crores)

Starlite Global Enterprises (India) Limited Consolidated Profit & Loss Statement (Rs in Crores)

Starlite Global Enterprises (India) Limited Consolidated Cash Flow Statement (Rs in Crores)

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

Cash Flow from Operating Activities:

Starlite Global Enterprises (India) Limited reported profit before tax and exceptional items of ₹4.16 crore in FY2025 compared to ₹4.05 crore in FY2024, reflecting stable operating performance. After adjusting for non-cash and non-operating items such as depreciation, finance costs, foreign exchange adjustments, and liability write-backs, operating profit before working capital changes stood at ₹4.07 crore in FY2025 against ₹4.94 crore in FY2024.

Changes in working capital had a significant impact during the year. Trade receivables increased by ₹1.85 crore, inventories rose by ₹0.46 crore, and other current assets increased by ₹4.28 crore, indicating higher funds tied up in working capital. However, a substantial increase in non-current liabilities of ₹29.86 crore significantly supported operating cash flows. As a result, cash generated from operations increased to ₹23.95 crore in FY2025 from ₹1.57 crore in FY2024.

After accounting for direct taxes paid of ₹0.69 crore, the company reported net cash generated from operating activities of ₹27.34 crore in FY2025 compared to ₹5.80 crore in FY2024, indicating a strong improvement in operating cash flows during the year.

Cash Flow from Investing Activities:
The company continued to invest in long-term assets during the year. Capital work-in-progress accounted for a major outflow of ₹13.03 crore in FY2025, similar to ₹12.85 crore in FY2024, indicating ongoing capital expenditure or project development. There was also a small investment in property, plant, and equipment amounting to ₹0.13 crore. However, the company generated cash through reduction in current investments of ₹2.90 crore and interest income of ₹0.14 crore. Overall, net cash used in investing activities stood at ₹10.01 crore in FY2025 compared to ₹22.22 crore in FY2024, showing a lower investment outflow during the year.

Cash Flow from Financing Activities:
Financing activities resulted in a net cash outflow of ₹16.93 crore in FY2025, compared to a net inflow of ₹16.06 crore in FY2024. During FY2025, the company repaid long-term borrowings amounting to ₹2.32 crore, whereas in FY2024 it had raised borrowings of ₹7.44 crore. Additionally, there was a reduction in current financial liabilities of ₹13.60 crore, indicating repayment or settlement of short-term obligations. Finance costs of ₹1.00 crore also contributed to the outflow. This suggests that the company used its operating cash to reduce debt and financial liabilities.

Net Change in Cash and Cash Equivalents:
Despite significant outflows from financing and investing activities, strong operating cash inflows helped the company maintain a positive cash position. Net cash increased by ₹0.39 crore in FY2025, compared to a decrease of ₹0.35 crore in FY2024. 

Financial ratios of Starlite Global Enterprises (India) Limited

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

Current Ratio:
The current ratio of the company improved significantly to 4.38 in FY2025 from 1.45 in FY2024, indicating a substantial strengthening of short-term liquidity. A ratio above 1 suggests that the company has sufficient current assets to meet its short-term liabilities, and the sharp increase implies that working capital availability has improved considerably. However, a very high current ratio may also suggest that a large portion of assets is tied up in cash, receivables, or other current assets that may not be generating adequate returns.

Debt–Equity Ratio:
The debt–equity ratio declined from 0.49 in FY2024 to 0.35 in FY2025, reflecting a reduction in financial leverage. This indicates that the company has either reduced its borrowings or increased its equity base during the year. A lower ratio generally suggests a stronger capital structure and lower financial risk, as the company is relying less on external debt financing and more on internal or equity sources of funds.

Debt Service Coverage Ratio (DSCR):
The debt service coverage ratio slightly declined to 1.56 in FY2025 from 1.59 in FY2024. Although the change is marginal, it indicates that the company’s ability to service its debt obligations (principal and interest) from operating earnings has slightly weakened. However, since the ratio remains above 1, the company still generates enough operating income to cover its debt servicing requirements.

Return on Equity:
The return on equity decreased from 7% in FY2024 to 5% in FY2025, suggesting a decline in profitability relative to shareholders’ funds. This indicates that the company generated lower returns on the equity invested by its shareholders during the year. The decline may be due to reduced profitability, increased equity base, or inefficient utilization of capital.

Inventory Turnover Ratio:
The inventory turnover ratio dropped significantly to 0.02 in FY2025 from 0.09 in FY2024, indicating extremely slow movement of inventory. A lower ratio suggests that inventory is being held for a longer period, which may point to weak demand, inefficient inventory management, or accumulation of unsold stock. This could also increase storage costs and negatively affect working capital efficiency.

Trade Receivables Turnover Ratio:
The trade receivables turnover ratio declined from 4.80 in FY2024 to 3.58 in FY2025, indicating that the company is taking longer to collect payments from its customers. A lower ratio generally reflects slower receivable collection and could lead to higher working capital requirements. It may also signal relaxed credit policies or delays in customer payments.

Net Capital Turnover Ratio:
The net capital turnover ratio slightly decreased to 0.21 in FY2025 from 0.23 in FY2024, indicating a marginal decline in the efficiency with which the company utilizes its working capital to generate revenue. A lower ratio suggests that the company may not be utilizing its working capital optimally to drive sales.

Net Profit Ratio:
The net profit ratio improved to 26% in FY2025 from 22% in FY2024, reflecting an increase in profitability relative to revenue. This indicates that the company was able to retain a higher proportion of profit from its sales, possibly due to improved cost management, better pricing strategies, or lower operating expenses.

Return on Capital Employed:
The return on capital employed declined slightly from 5% in FY2024 to 4% in FY2025, indicating a marginal decrease in the efficiency with which the company utilizes its total capital (both equity and debt) to generate profits. This suggests that despite improved liquidity, the company’s capital is not being deployed as efficiently to generate operating returns.

Return on Investments:
The return on investments decreased from 3% in FY2024 to 2% in FY2025, indicating that the returns generated from the company’s investments have declined. This may reflect lower income from investment activities or underperformance of invested funds during the year.