Steadfast Corporation Limited Annual Report, Balance Sheet, Financials.

Steadfast Corporation Limited Consolidated Balance Sheet (Rs in Crores)

Steadfast Corporation Limited Consolidated Profit & Loss Statement (Rs in Crores)

Steadfast Corporation 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

The company reported a marginal increase in net profit before tax from ₹0.07 crore in FY24 to ₹0.09 crore in FY25, indicating slight improvement in core profitability. However, after adjustments, the operating performance weakens. Depreciation declined from ₹0.06 crore to ₹0.04 crore, reflecting either lower asset base or reduced capital expenditure intensity. A significant negative adjustment comes from interest and other income of ₹0.61 crore in FY25, which reduces operating profit as it is non-operating in nature. As a result, operating profit before working capital changes turned negative at ₹-0.46 crore compared to a positive ₹0.14 crore in FY24, indicating deterioration in core operating efficiency.

Working capital changes further impacted cash flows. Trade receivables increased (₹-0.19 crore), showing slower collections, though the impact is lower than last year (₹-0.48 crore). Financial and non-financial assets saw a positive adjustment of ₹0.06 crore compared to a large outflow of ₹-5.75 crore in FY24, suggesting better asset management this year. There were no major changes in liabilities and payables in FY25, unlike FY24 where increases in liabilities and payables supported cash flow. Overall, cash generated from operations remained negative at ₹-0.59 crore, although significantly improved from ₹-5.64 crore in FY24. After a small tax payment of ₹0.01 crore, net cash used in operating activities stood at ₹-0.61 crore, indicating the company is still unable to generate positive cash from its core business.

Cash Flow from Investing Activities

The investing section shows a strong positive movement in FY25. The company recorded ₹0.61 crore as interest and other income received, which contributed positively to cash flows. Additionally, there was an inflow of ₹0.49 crore from long-term loans and advances, possibly indicating recovery of previously extended loans or reduction in investments. As a result, net cash generated from investing activities stood at ₹1.11 crore, compared to no activity in FY24. This indicates that the company relied on investment-related inflows to support liquidity during the year.

Cash Flow from Financing Activities

There were no financing activities reported in both FY25 and FY24. This suggests that the company neither raised fresh capital nor repaid any borrowings during the period. While this avoids financial risk, it also indicates limited external funding support, which could restrict growth if internal cash generation remains weak.

Net Change in Cash and Cash Equivalents

Despite negative operating cash flow, the strong inflows from investing activities resulted in a net increase in cash and cash equivalents of ₹0.50 crore in FY25, compared to a sharp decline of ₹-5.64 crore in FY24. This reflects a recovery in liquidity position, largely driven by non-operating cash sources rather than core operations.

Financial ratios of Steadfast Corporation Limited

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

Current Ratio:
The current ratio of Steadfast Corporation Limited stands at 20.45 in 2025 as compared to 19.48 in 2024, indicating an extremely strong liquidity position. The company has a very high level of current assets relative to its current liabilities, ensuring excellent short-term solvency. However, such an unusually high ratio may also point toward inefficient working capital management, with excess funds not being effectively utilized for business growth.

Return on Equity:
The return on equity is negligible, with no reported figure in 2025 and a minimal 0.01 in 2024. This reflects very weak profitability or possible losses, resulting in poor returns for shareholders. It indicates that the company is not effectively utilizing shareholders’ funds to generate earnings, which is a concern from an investor’s perspective.

Trade Receivables Turnover Ratio:
The trade receivables turnover ratio has declined from 1.09 in 2024 to 0.74 in 2025, indicating slower collection of receivables. This suggests inefficiency in credit management and a longer collection cycle, which may impact liquidity over time and increase the risk of bad debts.

Net Capital Turnover Ratio:
The net capital turnover ratio remains constant at 0.06 for both years, reflecting very low efficiency in utilizing capital to generate revenue. This indicates that the company is not effectively deploying its capital base to drive sales, pointing toward operational inefficiencies or low business activity.

Net Profit Ratio:
The net profit ratio has decreased from 0.10 in 2024 to 0.06 in 2025, indicating a decline in profitability. This suggests that the company’s ability to convert revenue into profit has weakened, possibly due to higher expenses or reduced revenue, thereby putting pressure on margins.

Return on Capital Employed:
The return on capital employed remains unchanged at a low level of 0.01 in both 2024 and 2025. This highlights poor overall efficiency in generating returns from the total capital invested in the business. It indicates that the company is struggling to use its capital effectively, resulting in weak financial performance.