STERLIN BIO Annual Reports, Balance Sheet and Financials

Sterling Biotech Limited Standalone Balance Sheet (Rs in Millions)

Particulars	31-03-2025	31-03-2024
Non-Current Assets
Property, Plant and Equipment	2,096.15	1,813.49
Capital work in progress	428.80	119.57
Intangible asset under development	-	25.11
Right of use asset	20.57	27.59
Investment property	89.49	91.95
Financial Investments	8.16	5.95
Other financial assets	49.09	78.36
Bank balances other than cash & cash equivalents	0.08	159.48
Deferred tax assets	2,839.92	2,997.93
Other assets	621.48	29.02
Current Assets
Inventories	993.18	1,225.07
Investments	5.58	5.34
Trade receivables	384.36	526.70
Cash & cash equivalents	81.27	284.22
Bank balances other than cash & cash equivalents	1,148.37	1,739.91
Other financial assets	72.82	107.17
Tax assets (net)	43.74	38.60
Assets held for sale	988.41	-
Other assets	57.96	87.80
Total Assets	9,929.43	9,363.26
Equity
Equity share capital	6,433.46	6,433.46
Other equity	2,905.81	2,360.71
Non-current Liabilities
Lease liabilities	22.03	27.16
Provisions	14.11	21.80
Current Liabilities
Borrowings	40.91	108.15
Lease liabilities	7.01	7.53
Trade payables
Total outstanding dues of micro & small enterprises	19.12	25.37
Total outstanding dues of creditors other than micro & small enterprises	173.98	254.72
Other financial liabilities	146.15	46.19
Provisions	8.31	22.01
Liabilities related to assets held for sale	112.07	-
Other current liabilities	46.47	56.16
Total Equities & Liabilities	9,929.43	9,363.26

Sterling Biotech Limited Standalone Profit & Loss Statement (Rs in Millions)

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operations	4,145.55	3,898.16
Other Income	134.53	172.03
Total Income	4,280.08	4,070.19
Expenses
Cost of material consumed	1,825.05	1,880.06
Changes in inventories of finished goods and work in progress	3.60	-322.19
Employee Benefit Expenses	345.38	322.72
Finance Costs	5.02	5.69
Depreciation & amortization expense	127.17	122.76
Other Expenses	1,219.53	1,350.59
Total Expenses	3,525.75	3,359.63
Profit Before Tax	754.33	710.56
Deferred Tax	-170.07	-313.85
Profit for the Year from continuing operations	584.26	396.71
Loss before tax for the year from discontinued operations	-25.83	-779.90
Deferred Tax credit	-8.29	190.33
Loss for the Year after tax from discontinued operations	-34.12	-589.57
Profit/ (Loss) for the Year	550.14	-192.86
Other comprehensive income/(loss)
Re-measurement gains/(loss) on post-employment defined benefit plans	-9.73	-0.74
Net (loss)/gain on FVTOCI of equity securities	2.24	0.86
Income tax on items that will not be reclassified subsequently to profit & loss	2.45	0.19
Total comprehensive income/(loss) for the year	545.10	-192.55
Earnings per share from continuing and discontinued operations
Basic	0.08	-0.03
Diluted	0.08	-0.03

Sterling Biotech Limited Standalone Cash Flow Statement (Rs in Millions)

Particulars	31-03-2025	31-03-2024
Cash Flows from Operating Activities
Net Profit/(Loss) Before Taxation and Exceptional Items :
Continuing operations	754.33	710.56
Discontinued operations	-25.83	-10.00
Adjustments for:
Depreciation/amortization expense	130.56	152.70
Excess provision written back	-	-3.84
Provision for doubtful trade receivables/others	9.48	7.30
Unrealised forex (gain)/loss	-0.73	-0.47
Finance costs	5.34	5.86
Loss on disposal of property, Plant & Equipment	2.17	3.14
Intangible assets under development expensed out	25.11	-
Re-measurement losses on defined benefit obligations	-9.73	-0.74
Gains in fair value of investment as fair value through profit & loss	-0.24	-6.47
Other charges	0.01	-
Notional interest income on security deposit	-0.30	-0.26
Interest income	-126.39	-135.98
Operating profit before working capital changes	763.78	721.80
Adjustments for:
(Increase) in trade receivables	-127.11	-26.85
Decrease/(increase) in inventories	10.92	-269.06
(Increase) in other assets	-13.45	-34.22
(Increase)/decrease in trade payables	-9.61	91.98
Decrease in other liabilities	28.83	22.36
Cash generated from operations	653.36	506.02
Direct taxes paid	-5.14	-17.59
Net cash flow generated from operating activities	648.22	488.43
Cash flow from investing activities
Proceeds from sale of property, plant & equipment	10.54	6.89
Payments made for purchase of property, plant & equipment	-1,697.89	-375.05
Payments made for purchase of intangible assets	-	-25.11
Proceeds from sale of investment	0.02	31.33
Movement in bank deposits	730.95	-666.95
Receipt in bank account	20.00	-
Interest income	162.70	46.08
Net Cash (used in) investing activities	-773.68	-982.81
Cash flow from financing activities
Finance costs paid	-1.04	-0.71
Proceeds from borrowings	40.91	108.15
Repayment of borrowings	-108.15	-
Payment of lease liabilities	-9.21	-8.34
Payment of lease deposit	-	-0.50
Net cash generated from/(used in) financing activities	-77.49	98.60
Net (decrease) in cash & cash equivalents	-202.95	-395.78
Cash & cash equivalents at the beginning of the year	284.22	680.00
Cash and cash equivalents at the end of the year	81.27	284.22

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

Cash Flow from Operating Activities

Sterling Biotech reported net cash flow from operating activities of ₹648.22 million in FY 2024–25, compared to ₹488.43 million in FY 2023–24, reflecting a strong improvement in core operational cash generation. Operating profit before working capital changes increased to ₹763.78 million from ₹721.80 million, supported by depreciation adjustments and stable finance costs. Interest income remained significant, though slightly lower compared to the previous year.

Working capital movements had mixed effects. Trade receivables increased substantially (₹127.11 million), indicating higher credit sales and some locking of funds. However, inventory levels improved significantly with a decrease of ₹10.92 million compared to a sharp build-up in the previous year (₹269.06 million increase), which positively impacted cash flow. Reduction in other liabilities and moderate changes in payables also influenced cash generation. Overall, the company demonstrated improved operational efficiency and better working capital management in FY25.

 

Cash Flow from Investing Activities

Net cash used in investing activities stood at ₹773.68 million in FY25, compared to ₹982.81 million in FY24, indicating continued but relatively lower capital expenditure intensity. The major outflow was due to heavy investment in property, plant, and equipment (₹1,697.89 million), significantly higher than the previous year, suggesting expansion or modernization efforts.

This outflow was partially offset by movement in bank deposits (₹730.95 million inflow) and interest income received (₹162.70 million). In FY24, there was also notable spending on intangible assets (₹25.11 million), which did not recur in FY25. Overall, the company appears to be in an expansion phase, committing substantial funds toward long-term assets.

 

Cash Flow from Financing Activities

Cash flow from financing activities turned negative in FY25 at ₹77.49 million outflow, compared to a positive inflow of ₹98.60 million in FY24. The company repaid borrowings amounting to ₹108.15 million while raising only ₹40.91 million in new borrowings, indicating deleveraging. Lease liabilities continued to be serviced regularly. Finance costs paid remained relatively low, suggesting manageable debt levels. The shift from positive to negative financing cash flow reflects reduced dependence on external borrowings and repayment of existing obligations.

 

Net Change in Cash Position

The overall net decrease in cash and cash equivalents was ₹202.95 million in FY25, lower than the ₹395.78 million decreases in FY24. Cash balance declined from ₹284.22 million at the beginning of the year to ₹81.27 million at year-end.

Despite improved operating cash flow, the substantial capital expenditure resulted in a decline in cash reserves. However, the lower reduction compared to the previous year suggests relatively better liquidity management.

Financial ratios of Sterling Biotech Limited

Particulars	31-03-2025	31-03-2024
Current ratio	6.31	7.72
Debt equity ratio	0.01	0.02
Return on equity ratio	5.89%	-2.19%
Trade receivables turnover ratio	8.28	8.90
Trade payables turnover ratio	15.06	16.43
Net capital turnover ratio	1.45	1.42
Net profit ratio	11.25%	-4.22%
Return on capital employed	8.02%	-0.71%
Inventory turnover ratio	4.01	4.19

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

Current Ratio

The current ratio declined from 7.72 in FY24 to 6.31 in FY25. Although there is a slight reduction, the ratio remains significantly above the standard benchmark of 2:1, indicating a very strong liquidity position. The company has ample current assets to meet its short-term obligations. However, such a high ratio may also suggest underutilisation of current assets or idle funds that could otherwise be deployed more efficiently.

 

Debt–Equity Ratio

The debt–equity ratio improved from 0.02 in FY24 to 0.01 in FY25, reflecting extremely low leverage. This indicates that the company is almost entirely financed through equity rather than debt. The reduction suggests further repayment of borrowings and a conservative capital structure. While this minimizes financial risk, it may also limit the benefits of financial leverage.

 

Return on Equity

ROE improved significantly from –2.19% in FY24 to 5.89% in FY25. The negative return in the previous year indicates losses incurred in FY24, whereas FY25 reflects a return to profitability. Although 5.89% is moderate, the turnaround signals improved operational performance and better returns to shareholders compared to the previous year.

 

Trade Receivables Turnover Ratio

The receivables turnover ratio declined slightly from 8.90 to 8.28, indicating a marginal slowdown in collection efficiency. This suggests that the company is taking slightly longer to collect payments from customers compared to the previous year. However, the ratio still reflects reasonably efficient credit management.

 

Trade Payables Turnover Ratio

The payables turnover ratio decreased from 16.43 to 15.06, indicating that the company is taking slightly longer to pay its suppliers. This may reflect better working capital management by stretching credit periods moderately, though it should be monitored to avoid strain on supplier relationships.

 

Net Capital Turnover Ratio

The net capital turnover ratio improved marginally from 1.42 to 1.45, indicating better utilization of working capital to generate revenue. This shows improved efficiency in converting net working capital into sales, supporting operational growth.

 

Net Profit Ratio

The net profit ratio improved sharply from –4.22% in FY24 to 11.25% in FY25. The negative margin in FY24 reflects losses, while the strong positive margin in FY25 indicates significant improvement in cost control, operational efficiency, and overall profitability. This is a major positive development for the company.

 

Return on Capital Employed

ROCE increased from –0.71% to 8.02%, reflecting a substantial improvement in the company’s ability to generate returns from its total capital employed. The negative return in FY24 indicated poor capital utilization, whereas FY25 demonstrates a recovery in operating performance.

 

Inventory Turnover Ratio

The inventory turnover ratio declined slightly from 4.19 to 4.01, suggesting a marginal slowdown in inventory movement. While the change is not significant, it may indicate slightly higher inventory holding levels. Efficient inventory management remains important to avoid carrying costs and obsolescence risks.