Black Opal Consultants Limited FY25 profit rose, cash flow negative

Black Opal Consultants Limited reported FY25 profit after tax of Rs 11.48 crore, up from Rs 4.32 crore in FY24, but recorded a Rs 65.47 lakh operating-cash outflow. The difference arose principally because short-term loans and advances increased by Rs 9.76 crore during the year ended March 31, 2025.

Why did Black Opal’s FY25 profit rise while operating cash flow turned negative?

Black Opal’s FY25 profit rose on higher revenue and lower employee expense, while operating cash flow turned negative after funds were absorbed by working-capital movements and direct-tax payments. Revenue from operations increased to Rs 32.86 crore in FY25 from Rs 19.75 crore in FY24, while profit before tax rose to Rs 15.37 crore from Rs 5.81 crore.

Profit after tax reached Rs 11.48 crore in FY25, compared with Rs 4.32 crore in FY24. Employee benefits expense declined to Rs 1.60 crore from Rs 2.47 crore, although administrative expenses increased to Rs 15.79 crore from Rs 11.35 crore; total expenses rose to Rs 17.67 crore from Rs 14.10 crore as revenue expanded.

Operating cash flow records cash generated by operating activities after working-capital changes and direct taxes paid, rather than accounting profit alone. Black Opal’s operating profit before working-capital changes was Rs 15.43 crore in FY25, up from Rs 6.02 crore in FY24, but cash generated from operations fell to Rs 2.37 crore from Rs 6.96 crore.

The shift was substantial across the two financial years. FY24 produced Rs 5.60 crore of net cash from operating activities after Rs 1.35 crore of direct taxes, whereas FY25 ended with a Rs 65.47 lakh outflow after Rs 3.03 crore of direct taxes. For reported profit to translate into operating cash, the cash tied up in advances and receivables would need to decline, or increases in operating liabilities would need to provide an offset.

How did short-term advances drive Black Opal’s FY25 cash-flow gap?

Short-term loans and advances were Black Opal’s largest disclosed FY25 operating cash use. The cash-flow statement records a Rs 9.76 crore increase in the category, reversing a Rs 33.56 lakh decrease in FY24 that had added cash to operations.

The balance-sheet balance of short-term loans and advances rose to Rs 11.89 crore at March 31, 2025, from Rs 2.18 crore at March 31, 2024. That Rs 9.76 crore increase was equivalent to about 85% of FY25 profit after tax of Rs 11.48 crore, demonstrating why the accounting result did not result in positive operating cash flow.

The category also represented the largest disclosed current asset at the FY25 year-end. Short-term loans and advances of Rs 11.89 crore accounted for about 74% of total current assets of Rs 16.06 crore, compared with trade receivables of Rs 2.36 crore and cash and bank balances of Rs 1.77 crore.

The year-on-year movement changed direction sharply. At March 31, 2023, Black Opal reported Rs 2.46 crore of short-term loans and advances, which declined to Rs 2.18 crore at March 31, 2024 before increasing to Rs 11.89 crore at March 31, 2025. The supplied financial statements do not identify the counterparties, repayment terms or purpose of the advances.

What other FY25 working-capital movements affected Black Opal’s cash flow?

Trade receivables, trade and other payables, and other current liabilities added further pressure to Black Opal’s FY25 operating cash flow. Trade receivables increased by Rs 1.71 crore in FY25, following a Rs 33.93 lakh increase in FY24, and the balance sheet showed receivables of Rs 2.36 crore at March 31, 2025 versus Rs 64.13 lakh a year earlier.

Trade and other payables decreased by Rs 1.54 crore in FY25, which was another use of cash, after increasing by Rs 1.39 crore in FY24. Other current liabilities decreased by Rs 4.12 lakh in FY25, whereas they had decreased by Rs 50.22 lakh in FY24. These movements, alongside the increase in advances and receivables, reduced FY25 cash generated from operations to Rs 2.37 crore.

Direct taxes then exceeded the cash generated from operations. Black Opal paid Rs 3.03 crore of direct taxes in FY25, compared with Rs 1.35 crore in FY24, while its FY25 profit and loss statement recorded current tax expense of Rs 3.90 crore. The resulting FY25 operating cash-flow figure was a Rs 65.47 lakh outflow.

The March 31, 2025 balance sheet shows the scale of the operating funding position. Black Opal reported total assets of Rs 22.44 crore and current liabilities of Rs 1.85 crore, including short-term borrowings of Rs 8.99 lakh. Total equity was Rs 20.41 crore, compared with Rs 8.93 crore at March 31, 2024.

Did the June 2025 update change Black Opal’s operating cash-flow picture?

Black Opal reported positive operating cash flow of Rs 7.35 crore for the period ended June 30, 2025, reversing the FY25 outflow, but the update also showed a higher short-term borrowing balance. Operating profit before working-capital changes was Rs 5.89 crore for the three-month period, against profit before tax of Rs 5.83 crore.

A Rs 70.83 lakh decrease in short-term loans and advances supplied cash in the June 2025 period, unlike the Rs 9.76 crore FY25 increase. Other current liabilities increased by Rs 2.91 crore and trade and other payables increased by Rs 42.41 lakh, while trade receivables increased by Rs 1.26 crore. These movements produced Rs 8.65 crore of cash generated from operations before Rs 1.30 crore of direct taxes.

The June 30, 2025 balance sheet reported short-term loans and advances of Rs 11.19 crore, down from Rs 11.89 crore at March 31, 2025. It also reported current assets of Rs 18.01 crore, including trade receivables of Rs 3.62 crore and cash and bank balances of Rs 3.14 crore.

Short-term borrowings were Rs 4.09 crore at June 30, 2025, compared with Rs 8.99 lakh at March 31, 2025, while other current liabilities rose to Rs 3.44 crore from Rs 53.97 lakh. Separately, the June 2025 cash-flow statement records a Rs 40.16 crore increase in short-term borrowings and a Rs 10.89 crore increase in long-term loans and advances; the supplied extract does not explain the relationship between those cash-flow entries and the reported closing balances.

Conclusion

Black Opal’s FY25 accounts show that the increase in reported profit did not produce positive operating cash flow. Revenue rose by Rs 13.11 crore and profit after tax increased by Rs 7.16 crore from FY24, but the Rs 9.76 crore rise in short-term loans and advances, together with receivables and tax payments, resulted in a Rs 65.47 lakh operating-cash outflow.

The disclosed June 30, 2025 update showed Rs 7.35 crore of positive operating cash flow as short-term advances declined by Rs 70.83 lakh and other current liabilities increased by Rs 2.91 crore. Subsequent disclosures will indicate whether advances and receivables continue to convert into cash, and whether the reported increase in short-term borrowings remains part of Black Opal’s funding structure.