Deepak Houseware and Toys Limited (Urban Tots) Latest Annual Report, Balance Sheet and Financials

Deepak Houseware and Toys Limited Standalone Balance Sheet (Rs in Lakhs)

Deepak Houseware and Toys Limited Standalone Profit & Loss Statement (Rs in Lakhs)

Deepak Houseware and Toys Limited Standalone Cash Flow Statement (Rs in Lakhs)

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

Operating Activities:
During the year ended 31 March 2025, the company generated significantly higher cash from operating activities compared to the previous year. Net profit before tax increased to ₹1,369.88 lakhs from ₹822.73 lakhs, reflecting improved operational performance. After adding back non-cash expenses such as depreciation and finance costs, operating profit before working capital changes rose to ₹2,015.26 lakhs (₹1,306.96 lakhs in 2024). However, substantial increases in trade receivables and short-term loans and advances led to higher cash outflows tied up in working capital. This was partly offset by an increase in trade payables and other current liabilities. As a result, cash generated from operations stood at ₹1,145.14 lakhs, more than double the prior year. After payment of direct taxes of ₹195.29 lakhs, net cash from operating activities amounted to ₹949.86 lakhs, indicating strong cash-generating ability from core business operations.

Investing Activities:
Cash flows from investing activities remained negative in both years, reflecting ongoing capital investment. In 2025, the company incurred ₹1,399.79 lakhs towards purchase of fixed assets, broadly in line with the previous year, demonstrating continued focus on capacity expansion or asset renewal. There was marginal inflow from sale of fixed assets and interest received, but these were insufficient to offset capital expenditure. Additionally, there was a small increase in security deposits during the year. Consequently, net cash outflow from investing activities amounted to ₹1,380.63 lakhs, similar to the outflow of ₹1,426.80 lakhs in 2024.

Financing Activities:
Financing activities during 2025 resulted in a net inflow of ₹331.32 lakhs, significantly lower than the ₹1,025.08 lakhs inflow in the previous year. The company repaid a portion of its long-term borrowings, while short-term borrowings increased, indicating reliance on working capital financing. Unlike the previous year, there was no inflow from issue of share capital or securities premium. Interest payments increased in line with higher borrowings and finance costs. Overall, financing cash flows reflect a cautious approach toward long-term debt and equity funding, with emphasis on short-term financing needs.

Net Change in Cash Position:
Despite strong operating cash inflows, the heavy investment in fixed assets and moderate financing inflows resulted in a net decrease in cash and cash equivalents of ₹99.45 lakhs during the year, compared to an increase of ₹42.08 lakhs in the previous year. Accordingly, cash and cash equivalents declined from ₹123.95 lakhs at the beginning of the year to ₹24.50 lakhs at the close of 31 March 2025.

Financial Ratios of Deepak Houseware and Toys Limited

Summary of the financial and operational metrics for Deepak Housewares and Toys Limited for the year 2025 and 2024:

Current Ratio:
The current ratio declined slightly from 1.29 in 2024 to 1.22 in 2025. This indicates a marginal reduction in short-term liquidity, suggesting that while the company continues to maintain adequate current assets to meet its current liabilities, a higher proportion of funds is now tied up in working capital components such as receivables and inventories.

Debt–Equity Ratio:
The debt–equity ratio improved from 0.82 in 2024 to 0.76 in 2025, reflecting a reduction in leverage. This indicates a stronger capital structure with lower reliance on borrowed funds and improved financial stability, reducing long-term financial risk.

Debt Service Coverage Ratio (DSCR):
The debt service coverage ratio increased significantly from 2.81 in 2024 to 6.65 in 2025. This substantial improvement indicates a strong enhancement in the company’s ability to service its debt obligations from operating profits, primarily due to higher earnings and better cash generation during the year.

Return on Equity (ROE):
Return on equity rose from 0.20 in 2024 to 0.24 in 2025, demonstrating improved profitability for shareholders. The increase suggests more efficient utilization of shareholders’ funds and higher earnings generated per unit of equity invested.

Inventory Turnover Ratio:
The inventory turnover ratio improved markedly from 5.55 in 2024 to 7.39 in 2025. This indicates more efficient inventory management, with faster movement of stock and reduced holding periods, contributing positively to operational efficiency and working capital optimization.

Trade Receivables Turnover Ratio:
The trade receivables turnover ratio declined from 4.97 in 2024 to 4.41 in 2025. This suggests a slower collection cycle during the year, possibly due to extended credit terms or increased receivables, which may have contributed to higher working capital requirements.

Trade Payables Turnover Ratio:
The trade payables turnover ratio decreased from 3.93 in 2024 to 3.56 in 2025. This indicates that the company is taking slightly longer to settle its obligations with suppliers, which may help conserve cash in the short term but should be monitored to maintain healthy supplier relationships.

Net Capital Turnover Ratio:
The net capital turnover ratio increased significantly from 6.97 in 2024 to 10.05 in 2025, reflecting improved efficiency in utilizing working capital to generate revenue. This highlights better management of net current assets and stronger operational performance.

Net Profit Ratio:
The net profit ratio remained constant at 0.09 in both years. This stability indicates consistent cost management and pricing strategies, with the company maintaining its profit margins despite changes in scale of operations.

Return on Capital Employed (ROCE):
Return on capital employed improved from 0.15 in 2024 to 0.20 in 2025. This reflects enhanced efficiency in the use of both equity and debt capital, driven by higher operating profits and improved asset utilization.

Return on Investment (ROI):
Return on investment increased from 0.33 in 2024 to 0.52 in 2025, indicating a significant improvement in the overall returns generated from investments. This suggests better deployment of funds and higher profitability from investment activities during the year.