Shri Krishana Overseas PLC (SKL), a corrugated packaging manufacturer, is preparing for its NSE listing on 24th July 2025 with its balance sheet transformed by aggressive asset expansion and surging debt levels.
- •Founded in 2009, the company is betting on capacity expansion to capture rising demand from Kenya’s horticulture and FMCG sectors — but faces mounting short-term liquidity risks.
- •Over the four-year period ended 31st December 2024, SKL grew its revenue from KSh 130.2 million in 2021 to KSh 309.9 million in 2024, marking a 138% increase over four years.
- •However YoY revenue growth slowed sharply to +1.2% in 2024, suggesting the company’s pre-expansion capacity has plateaued ahead of the Kisaju plant commissioning.
| Metric | 2021 | 2022 | 2023 | 2024 | YoY % (2023-24) |
|---|---|---|---|---|---|
| Revenue (KSh Mn) | 130.2 | 217.6 | 306.3 | 309.9 | +1.2% |
| Net Profit (KSh Mn) | 4.0 | (1.7) | 4.2 | 10.2 | +143% |
| Gross Margin (%) | 30.6 | 24.8 | 25.1 | 31.6 | +650bps |
Margins improved sharply in 2024, rising to 31.6%, supported by operational savings. Net profit rebounded from a loss in 2022 to KSh 10.2 million, aided by a sharp drop in personnel costs.
Debt-Driven Asset Surge
SKL’s total assets doubled to KSh 297.5 million, reflecting the company’s aggressive debt-fuelled expansion strategy. Long-term loans exploded from KSh 4 million to KSh 71.9 million in just one year — a staggering 17-fold increase.
This surge in borrowing came at a cost, with finance expenses jumping fivefold to KSh 21.7 million in 2024. Higher interest payments quickly drained operating cash, limiting cash flow gains even as gross margins improved.
| Assets and Capital Structure (KSh Mn) | 2021 | 2022 | 2023 | 2024 |
| Total Assets | 146.6 | 231.7 | 249.0 | 297.5 |
| PPE | 15.6 | 53.0 | 49.2 | 120.6 |
| Long-Term Loans | 26.2 | 25.6 | 4.0 | 71.9 |
| Total Equity | (2.3) | 44.5 | 58.7 | 68.9 |
Liquidity Strained by Capex Cycle
Despite recording a net profit on paper, operating cash flows — which reflect actual cash generated by day-to-day business — plunged 93% YoY to just KSh 1.1 million in 2024. This sharp drop highlights how profitability didn’t translate into cash due to mounting costs.
Meanwhile, heavy investment in expanding production facilities pushed the company’s closing cash balance deeper into negative territory at KSh 13.7 million, signalling reliance on external financing to fund operations and growth.
| Cash Flow (KSh Mn) | 2023 | 2024 | % Change |
| Operating Cash Flow | 15.8 | 1.1 | -93% |
| Investing Cash Flow | (2.97) | (79.5) | +2,576% |
| Closing Cash | (10.1) | (13.7) | Negative |
The financial profile signals a company stretched thin by expansion, reliant on external funding while revenue growth flattens pre-commissioning of new capacity.
Ownership and Market Entry Terms
SKL is tightly held with 99% ownership concentrated among founders — Nirmla Devi (50%) and Dr. Sonvir Singh (48.97%). As part of its upcoming NSE listing by introduction, 8.7 million ordinary shares priced at KSh 5.90 each will be made available for trading, marking the first time public investors can access the company on the exchange.
As this is a listing by introduction, SKL will not raise fresh capital through it. Instead, the market admission facilitates share trading without diluting ownership. The company’s expansion — increasing production capacity from 3,000 to 22,000 tonnes by Q3 2025 via a new Kisaju plant — will be funded through internal cash flows and debt.
