Afcons Infrastructure Ltd Annual Reports, Balance Sheet and Financials

Afcons Infrastructure Limited Balance Sheet (Rs in Crores)

Afcons Infrastructure Limited Profit & Loss Statement (Rs in Crores)

 Afcons Infrastructure Limited Consolidated Cash Flow Statement (Rs in Crores)

 Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flow from Operating Activities:

For the year ending 31st March 2024, the company generated a net cash inflow of Rs. 707.45 crores from operating activities, compared to Rs. 1,215.45 crores in 2023. The primary driver of cash inflows was the profit before tax of Rs. 672.62 crores, supported by substantial non-cash adjustments such as depreciation and amortization expenses of Rs. 494.53 crores, and finance costs of Rs. 577.26 crores. Several other adjustments, such as provision for expected credit losses (Rs. 27.47 crores) and loss on sale/scrap of property and equipment (Rs. 12.03 crores), also contributed.

However, significant working capital changes led to a reduction in cash from operations. A major increase in trade receivables (Rs. 793.91 crores), contract assets (Rs. 546.65 crores), and inventories (Rs. 40.77 crores) caused a drain on cash, while positive contributions came from an increase in trade payables (Rs. 792.19 crores) and a decrease in other assets (Rs. 65.23 crores). Income tax payments of Rs. 250.12 crores further reduced net operating cash flows.

Cash Flow from Investing Activities:

Investing activities for 2024 saw a net outflow of Rs. 858.56 crores, improving from a net outflow of Rs. 870.19 crores in 2023. The primary cash outflow came from payments for property, plant, and equipment (Rs. 716.40 crores), as the company invested heavily in capital expenditures. There were some inflows from proceeds from the sale of property, plant, and equipment (Rs. 34.04 crores) and interest received (Rs. 16.50 crores). The company also invested in other bank balances (Rs. 211.60 crores), reducing cash flow. However, the receipt of insurance claims (Rs. 9.65 crores) partially offset these outflows.

Cash Flow from Financing Activities:

Financing activities showed a net cash inflow of Rs. 245.52 crores in 2024, a reversal from the net outflow of Rs. 482.53 crores in 2023. This improvement was driven by proceeds from short-term borrowings (net), which amounted to Rs. 888.64 crores, compared to a net repayment of Rs. 185.56 crores the previous year. There was also an inflow from long-term borrowings (Rs. 201.63 crores), nearly balancing the repayments of Rs. 200.42 crores.

However, significant finance costs paid (Rs. 574.93 crores) reduced the overall inflow, alongside dividends paid on equity shares (Rs. 28.79 crores) and lease payments (Rs. 40.56 crores).

Financial Ratios of Afcons Infrastructure Limited

Here is a summary of the financial and operational metrics for Afcons Infrastructure Limited for the year 2024 and 2023:

Current Ratio

The current ratio measures the company’s ability to meet its short-term liabilities with its short-term assets. In 2024, the current ratio is 1.06, showing a slight improvement from 2023 (1.03), indicating that for every Rs. 1 of liabilities, the company has Rs. 1.06 of assets.

Debt-Equity Ratio

The debt-equity ratio indicates the proportion of debt used to finance the company 's assets relative to shareholders ' equity. The ratio has increased to 0.80 in 2024 from 0.59 in 2023, suggesting the company has taken on more debt relative to equity.

Debt Service Coverage Ratio (DSCR)

DSCR measures the company 's ability to service its debt, particularly the ability to cover interest and principal repayments with operating income. The significant improvement in DSCR from 0.61 in 2023 to 1.66 in 2024 indicates the company is in a much better position to cover its debt obligations, with earnings now more comfortably exceeding debt payments.

Return on Equity (ROE)

ROE reflects the profitability of the company in relation to shareholders ' equity. Although it has slightly decreased to 15.39% in 2024 from 16.69% in 2023, it still shows a strong return, meaning the company is generating Rs. 15.39 in profit for every Rs. 100 of shareholders ' equity.

Inventory Turnover Ratio

This ratio shows how many times the company has sold and replaced its inventory over the period. The ratio declined slightly from 0.90 in 2023 to 0.82 in 2024, indicating the company is holding onto inventory longer or experiencing slower sales.

Trade Receivables Turnover Ratio

This ratio measures how efficiently the company collects revenue from its customers. A slight decrease from 4.48 in 2023 to 4.2 in 2024 suggests that the company is collecting receivables less frequently, possibly pointing to slower payment cycles from customers or lenient credit terms.

Trade Payables Turnover Ratio

This ratio measures how quickly the company is paying its suppliers. The decline from 0.70 in 2023 to 0.58 in 2024 suggests the company is taking longer to pay off its suppliers, which could indicate an attempt to improve cash flow by extending payment terms, though it may also risk supplier relationships.

Net Capital Turnover Ratio

This ratio measures the company’s efficiency in using its working capital to generate revenue. The sharp decline from 48.34 in 2023 to 22.52 in 2024 suggests a significant drop in how effectively the company is using its net capital to drive sales, which could indicate operational inefficiencies or challenges in managing working capital.

Net Profit Ratio

The net profit ratio measures the percentage of revenue that translates into profit after all expenses. The slight increase from 3.29% in 2023 to 3.43% in 2024 reflects marginally improved profitability, suggesting the company has managed to either increase revenue or reduce costs slightly to enhance overall profit margins.

Return on Capital Employed (ROCE)

ROCE measures how efficiently the company is using its capital to generate profits. The ratio remains relatively flat, with a small decrease from 0.23 in 2023 to 0.22 in 2024, indicating the company has not significantly improved its ability to generate returns on its employed capital, potentially pointing to stagnating operational performance.

Return on Investment (ROI)

ROI measures the profitability of the company relative to its total investments. The ROI remains unchanged at 0.07 in both years, reflecting consistent returns on the company 's investments. This indicates that while the company has maintained steady performance in terms of generating returns from its investments, there has been no significant growth or improvement.

Dividend history