Consolidated Construction Annual Report and Financials

Consolidated Construction Consortium Limited Balance Sheet (Rs in Lakhs)

 Consolidated Construction Consortium Limited Profit & Loss Statement (Rs in Lakhs)

 Consolidated Construction Consortium Limited Cash Flow Statement (Rs in Lakhs)

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

Cash Flow from Operating Activities

Net Profit/(Loss) Before Tax: The company reported a significant profit of ₹64,879.90 lakh in 2024 compared to a loss of ₹11,361.65 lakh in 2023. This change is a major contributor to the positive operating cash flow in 2024.

Adjustments: Several non-cash items and expenses are added back, such as depreciation (₹546.29 lakh in 2024), finance costs, and provisions for credit losses, which increase the cash generated from operations. Key adjustments also include a large write-back of bank liabilities (₹1,22,584.26 lakh) under the Vivad se Vishwas scheme, which reduces the total expenses significantly and contributes positively to operating cash flow.

Working Capital Changes: Changes in working capital show increases in trade receivables, inventories, and other liabilities, resulting in a net positive impact of ₹11,717.88 lakh. This change indicates improved cash flow management from operational aspects, particularly from financial and non-financial liabilities.

Net Cash from Operating Activities: After adjusting for tax refunds, the net cash from operating activities for 2024 was ₹5,054.30 lakh, a substantial improvement compared to a slight cash outflow of ₹44.81 lakh in 2023. This increase suggests a significant recovery and operational profitability in 2024.

Cash Flow from Investing Activities

Purchase and Sale of Assets: In 2024, the company generated substantial cash inflows from the sale of property, plant, and equipment (₹13,175.55 lakh), which significantly outweighed the minimal investment in new assets (₹5.20 lakh). This asset disposal was a primary source of positive cash flow in the investing section.

Net Cash from Investing Activities: The overall net cash from investing activities was a positive ₹12,622.98 lakh in 2024, compared to a slight outflow of ₹5.88 lakh in 2023. This increase reflects strategic asset sales that helped improve liquidity.

Cash Flow from Financing Activities

Borrowings and Repayments: The company had cash outflows from financing activities due to the repayment of long-term borrowings amounting to ₹17,567 lakh in 2024, which significantly impacted the financing cash flow. There were limited inflows from borrowings and other financing sources.

Net Cash from Financing Activities: The cash flow from financing activities shows a significant outflow of ₹17,367.00 lakh in 2024, reflecting substantial debt repayment efforts, compared to a smaller outflow of ₹112.79 lakh in 2023. This negative cash flow indicates that the company prioritized reducing its debt in 2024.

Net Change in Cash and Cash Equivalents

Despite the large cash outflows from financing activities, the positive cash flows from operating and investing activities resulted in a net increase of ₹310.28 lakh in cash and cash equivalents by the end of 2024. The opening cash balance was ₹560.43 lakh, and the closing cash balance rose to ₹870.71 lakh by the end of the year.

Financial Ratios of Consolidated Construction Consortium Limited

Here is a summary of the financial and operational metrics for Consolidated Construction Consortium Limited  for the year 2024 and 2023:

Current Ratio

2024: 0.63; 2023: 0.1

This measures a company 's ability to cover its short-term liabilities with its short-term assets. Both years show a low current ratio, indicating liquidity challenges. However, an improvement from 0.1 to 0.63 in 2024 suggests slight progress in managing current assets relative to current liabilities.

Debt-Equity Ratio

2024: 5.85; 2023: -2

A high debt-equity ratio of 5.85 in 2024 suggests that the company has a substantial amount of debt compared to equity. This indicates high leverage and potential risk if the company cannot meet debt obligations. The negative value in 2023 implies a deficiency in equity compared to liabilities, potentially indicating negative equity, but the 2024 figure shows that equity may have improved, though with a high reliance on debt.

Debt Service Coverage Ratio (DSCR)

2024: 9.95; 2023: -3

DSCR assesses the company 's ability to cover its debt obligations with operating income. The substantial increase to 9.95 in 2024 signifies strong capability to service debt from operational cash flow, a significant improvement over the previous year’s negative DSCR, which indicated a struggle to meet debt payments.

Return on Equity (ROE)

2024: 2.06%; 2023: 0.2%

ROE reflects the company’s profitability relative to shareholder equity. The ROE has improved, suggesting that the company generated higher returns for shareholders in 2024. Although still relatively low, the increase is a positive sign of improving efficiency in generating profit from equity.

Trade Receivables Turnover Ratio

2024: 0.42; 2023: 0.23

This ratio measures how efficiently the company collects its receivables. The improvement from 0.23 to 0.42 indicates better collection efficiency in 2024, meaning the company is turning receivables into cash more effectively than in 2023.

Trade Payables Turnover Ratio

2024: 5.77; 2023: 1.33

This ratio indicates the speed at which the company pays off its suppliers. The higher turnover ratio in 2024 suggests that the company paid its suppliers more promptly, improving from 2023, when payables were settled more slowly.

Net Capital Turnover Ratio

2024: 0.16; 2023: -0.1

This measures the efficiency in using working capital to generate revenue. The positive 0.16 ratio in 2024 indicates that the company is now able to generate revenue from its working capital, a notable improvement from the negative value in 2023, suggesting better efficiency in 2024.

Net Profit Ratio

2024: 5.24%; 2023: -0.86%

This ratio shows how much net income is generated as a percentage of revenue. The positive value in 2024 reflects profitability, a significant turnaround from the negative profit margin in 2023. This indicates the company has moved from a loss-making position to profitability.

Return on Capital Employed (ROCE)

2024: 23.51%; 2023: 0.07%

ROCE indicates the company’s efficiency in generating profit from capital employed (debt + equity). The large increase in 2024 suggests that the company is utilizing its capital more effectively to generate returns, which is a positive signal of operational and financial improvements.