INKEL Ltd Annual report, Balance Sheet and Financials

Inkel Limited Consolidated Balance Sheet (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Shareholder 's Funds
Share Capital	17,781.43	17,781.43
Reserves and Surplus	5,808.56	3,808.15
Minority Interest	2,519.43	2,523.62
Non - Current Liabilities
Long - Term Borrowings	8,581.39	10,809.13
Deferred Tax Liabilities (Net)	13.96	65.23
Other Long Term Liabilities	138.95	83.41
Long - Term Provisions	167.36	174.61
Current Liabilities
Short Term Borrowings	1,140.00	1,060.00
Trade Payables:-
Total outstanding dues of micro & small enterprises	228.69	-
Total outstanding dues of Creditors Other than above	3,447.94	2,962.83
Other Current Liabilities	4,923.02	5,168.70
Short - Term Provisions	883.49	954.63
Total Equity and Liabilities	45,634.22	45,391.74
Non - Current Assets
Property, Plant and Equipment	6,038.41	6,493.80
Intangible Assets	17.95	15.76
Capital Work in Progress	531.08	212.77
Goodwill on Consolidation	6.09	6.09
Non - Current Investments	1,566.85	1,773.79
Deferred Tax Assets	348.33	186.12
Long - Term Loans and Advances	1,787.58	5,168.05
Other Non - Current Assets	10,729.89	10,837.64
Current Assets
Inventories	8.27	1.21
Trade Receivables	13,977.59	9,521.34
Cash and Cash Equivalents	6,210.90	7,763.68
Short - Term Loans and Advances	809.17	844.41
Other Current Assets	3,602.11	2,567.08
Total Assets	45,634.22	45,391.74

 Inkel Limited Consolidated Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operations	11,370.12	9,764.45
Other Income	1,017.34	1,746.53
Total Income	12,387.46	11,510.98
Expenses
Cost of land acquired/building/amenities constructed and disposed	1127.86	791.58
Purchases of Stock-in-Trade	599.60	1,829.07
Changes in inventories of Stock-in-Trade	-7.06	75.32
Operating, Works Contract and project expenses	2763.75	640.28
Employee Benefits Expense	919.79	852.23
Finance Costs	1,862.42	1,384.96
Depreciation and Amortisation Expense	253.56	342.79
Other Expenses	1,433.74	1,566.16
Total Expenses	8,953.66	7,482.39
Profit Before Tax	3,433.80	4,028.59
Current Tax	1121.2	968.61
Taxes relating to prior years	-17.84	42.5
Deferred Tax	-213.49	-10.24
Profit for the year before Share In Net Profit/(Loss) of associate	2,543.92	3,027.72
Share of Profit/(Loss) Of Associate Company	-190.74	46.77
Profit/(Loss) for the Year	2,353.17	3,074.49
Profit/(Loss) attributable to:
Owners of the Company	2,000.42	2,703.68
Minority Interest	352.75	370.81
Earnings per Equity Share
Basic	1.13	1.52
Diluted	1.13	1.52

 Inkel Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Profit Before Taxation and exceptional items	3,433.79	4,028.59
Adjustments for:
Depreciation and Amortisation expense	253.56	342.79
Previous year adjustments	17.84	-42.5
Dividend	-	-769.67
Loss on sale of Assets	-	3.93
Profit on Sale of fixed assets	-0.17	-7.2
Interest Income	-870.99	-838.34
Interest Expense/Finance cost	1,862.42	1,384.96
Operating profit before Working Capital Changes	4,696.44	4,102.56
Changes in Working Capital
Trade Receivables	-4,456.25	496.91
Inventories	-7.06	75.98
Short term loans and advances	35.24	5.94
Other current assets	-700.33	-1,463.06
Long term Loans and Advances	3,380.49	1,091.49
Other Non-Current Assets	-226.96	223.77
Trade Payables	713.8	-417.76
Other Current Liabilities	-629.59	-1,245.72
Short term Provisions	-71.14	450.72
Long term Provisions	-7.26	24.06
Long Term Liabilities	55.54	-8.28
Short Term Borrowings	80	46.26
Cash generated from Operations	2,862.91	3,382.87
Taxes Paid	-1121.2	-968.61
Net Cash Generated from Operating activities	1,741.71	2,414.26
Cash Flow from Investing Activities
Purchase of Property, Plant and Equipment	-976.62	-322.41
Capital Work in progress	-318.31	-33.24
Proceeds from sale of property, plant and equipment	1176.42	815.08
Dividend received	-	769.67
Change in Investment	206.94	-46.83
Interest received	870.99	838.34
Share of Profit/Loss from MIV	-190.74	46.77
Net Cash Used in Investing activities	768.68	2,067.39
Cash Flow from Financing Activities
Dividend paid	26.96	14.54
Interest Paid	-1,862.42	-1,384.96
Proceeds  /(repayment of) Long term borrowings	-2,227.74	-1,460.05
Net Cash Generated from Financing Activities	-4,063.20	-2,830.47
Net increase in Cash and Cash equivalents	-1,552.76	1,651.18
Cash and Cash Equiv. at the beginning of the year	7,763.68	6,112.51
Cash and Cash Equivalents at the end of the year	6,210.91	7,763.68

 Here is a summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities:

This section represents the cash generated from the company’s core business operations.

The Profit Before Tax and Exceptional Items was ₹3,433.79 lakhs in FY 2025, down from ₹4,028.59 lakhs in FY 2024, indicating a decrease in pre-tax profitability.

Adjustments include non-cash items and finance-related activities. Notable changes include:

Depreciation and amortisation decreased from ₹342.79 lakhs to ₹253.56 lakhs.

Interest expense rose significantly from ₹1,384.96 lakhs to ₹1,862.42 lakhs, suggesting higher debt servicing costs.

Interest income also increased marginally.

In FY 2025, no dividend income was recorded, unlike ₹769.67 lakhs in FY 2024.

After adjustments, the Operating Profit before Working Capital Changes stood at ₹4,696.44 lakhs in FY 2025 (vs ₹4,102.56 lakhs in FY 2024).

Working Capital Changes showed large variations:

Trade Receivables increased significantly (-₹4,456.25 lakhs), reducing cash in FY 2025, compared to a positive impact in FY 2024.

Long Term Loans and Advances released ₹3,380.49 lakhs in FY 2025, compared to ₹1,091.49 lakhs in FY 2024, boosting cash.

Other Current Liabilities and Trade Payables also had positive effects this year.

After taxes paid, the Net Cash from Operating Activities was ₹1,741.71 lakhs in FY 2025, a decline from ₹2,414.26 lakhs in FY 2024. This suggests a moderate dip in cash generated from operations.

Cash Flow from Investing Activities:

This section reflects cash used in or generated from investments and capital expenditures.

Purchase of Property, Plant and Equipment (PPE) increased drastically to ₹976.62 lakhs in FY 2025 (from ₹322.41 lakhs), showing higher capital investment.

Proceeds from the sale of assets rose to ₹1,176.42 lakhs (from ₹815.08 lakhs).

Notably, Dividend received was nil in FY 2025.

Interest income and Change in Investment contributed positively.

There was a negative adjustment of ₹190.74 lakhs under “Share of Profit/Loss from MIV”.

Despite higher capital outflows, the company managed to maintain a positive cash flow from investing activities of ₹768.68 lakhs in FY 2025, though it is significantly lower than ₹2,067.39 lakhs in FY 2024.

Cash Flow from Financing Activities:

This section shows the inflows and outflows related to debt and dividends.

Interest paid rose to ₹1,862.42 lakhs in FY 2025.

Repayment of long-term borrowings increased to ₹2,227.74 lakhs (from ₹1,460.05 lakhs).

These outflows led to a net cash outflow of ₹4,063.20 lakhs in FY 2025, worsening from ₹2,830.47 lakhs in FY 2024.

Only minor dividend payments were made in both years.

Net Increase/Decrease in Cash and Cash Equivalents:

The company experienced a net cash outflow of ₹1,552.76 lakhs in FY 2025, compared to an inflow of ₹1,651.18 lakhs in FY 2024.

As a result, the closing cash balance decreased to ₹6,210.91 lakhs at the end of FY 2025 from ₹7,763.68 lakhs in FY 2024.

 

Financial Ratios of Inkel Limited

Particulars	2025	2024
Current ratio	2.32	2.07
Debt Equity Ratio	0.41	0.55
Debt Service Coverage Ratio	2.98	4.17
Return on Equity	0.1	0.14
Inventory Turn Over Ratio	125.02	49
Trade Receivable turnover Ratio	0.97	1
Trade Payable Turnover Ratio	0.18	0.77
Net Capital Turn Over Ratio	0.91	1.15
Net Profit Ratio	0.21	0.31
Return on Capital Employed	0.15	0.22
Return on Investment	0.07	0.11

 

Here is a summary of the financial and operational metrics for Inkel Limited for the year 2025 and 2024:

Current Ratio

The current ratio increased from 2.07 in 2024 to 2.32 in 2025, which indicates an improvement in the company’s liquidity position. A higher current ratio suggests that the company has more current assets to cover its current liabilities, making it better equipped to handle short-term financial obligations. This level reflects sound working capital management and reduced liquidity risk.

Debt Equity Ratio

The debt equity ratio declined from 0.55 in 2024 to 0.41 in 2025. This suggests that the company has reduced its financial leverage by relying less on external debt and more on equity financing. A lower debt-equity ratio generally indicates a more stable capital structure and lower financial risk, which can be favorable for long-term sustainability.

Debt Service Coverage Ratio

The debt service coverage ratio (DSCR) dropped from 4.17 to 2.98 over the year. Although the DSCR remains above 1, indicating that the company can comfortably meet its debt servicing obligations, the decline suggests that its capacity to generate enough operating income to cover interest and principal payments has weakened. This might be due to either lower earnings or higher debt repayments during the year.

Return on Equity (ROE)

Return on equity decreased from 0.14 in 2024 to 0.10 in 2025. This indicates that the company is generating less profit for every rupee of shareholders’ equity invested. The reduction in ROE might reflect a decline in net profits or a rise in retained earnings, diluting the return ratio. This trend suggests a slight erosion in shareholder value creation.

Inventory Turnover Ratio

The inventory turnover ratio saw a significant jump from 49 in 2024 to 125.02 in 2025. This sharp increase implies that the company is turning its inventory into sales much faster, which can be a sign of strong demand, better inventory management, or more efficient supply chain practices. A higher inventory turnover is generally positive as it minimizes holding costs and reduces the risk of obsolescence.

Trade Receivable Turnover Ratio

The trade receivable turnover ratio showed a slight dip from 1.00 to 0.97. This indicates that the company is collecting receivables marginally slower than the previous year. Although the decline is not steep, it may point to a minor relaxation in credit policies or delayed customer payments, which could affect cash flow if it continues.

Trade Payable Turnover Ratio

The trade payable turnover ratio fell drastically from 0.77 in 2024 to 0.18 in 2025. This suggests that the company has slowed down its payments to suppliers significantly. While this may help preserve short-term cash, it could also lead to strained supplier relationships or missed discounts for early payments.

Net Capital Turnover Ratio

The net capital turnover ratio declined from 1.15 to 0.91, indicating reduced efficiency in utilizing working capital to generate revenue. This drop might result from increased current assets or lower revenue growth, both of which can impact the overall performance and effectiveness of the company’s capital deployment.

Net Profit Ratio

The net profit ratio decreased from 0.31 to 0.21, highlighting a reduction in overall profitability. This indicates that a smaller portion of revenue is being converted into profit, possibly due to rising costs, declining margins, or increased competition. This reduction could impact shareholder confidence if not addressed.

Return on Capital Employed (ROCE)

Return on capital employed dropped from 0.22 to 0.15, which signals that the company generated lower returns from its overall capital (equity and debt combined) in 2025. This decline could be due to increased capital investments that are yet to yield returns or a drop in operating profitability, thereby lowering capital efficiency.

Return on Investment (ROI)

The return on investment ratio fell from 0.11 to 0.07, indicating that the company’s investments are generating lower returns in 2025 as compared to 2024. This may be a result of reduced profits or higher investment outlays that have not yet resulted in proportional income, highlighting a need to reassess investment effectiveness.