J K Urbanscapes Developers Annual Report & Financials

JK Urbanscapes Developers Limited Consolidated Balance Sheet (Rs in Crores)

JK Urbanscapes Developers Limited Consolidated Profit & Loss Statement (Rs in Crores)

JK Urbanscapes Developers Limited Consolidated Cash Flow Statement (Rs in Crores)

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

The operating cash flow of JK Urbanscapes Developers Limited remained negative during FY25, indicating continued pressure on the company’s core business operations. The company reported a net loss before tax of ₹11.79 crore in FY25, significantly higher than the ₹0.16 crore loss in FY24. Several non-cash adjustments were added back, including depreciation and amortisation of ₹2.15 crore, finance costs of ₹2.50 crore, and ESOP expenses of ₹0.56 crore. However, these were offset by large non-operating income adjustments such as interest income of ₹7.24 crore and fair value gains on current investments of ₹2.53 crore, which reduced the operating profit.

Working capital movements further weakened the operating cash flow. There was a significant increase in inventories of ₹8.99 crore, reflecting capital tied up in real estate projects. Additionally, other liabilities declined by ₹3.92 crore, implying settlement of obligations that consumed cash. Although there were positive contributions from reductions in other financial assets and other assets, these were insufficient to offset the working capital outflows.

As a result, cash generated from operations stood at a negative ₹12.86 crore, compared to negative ₹20.64 crore in FY24. After accounting for direct tax payments of ₹0.86 crore, the company reported net cash used in operating activities of ₹13.72 crore, an improvement from ₹23.73 crore outflow in FY24, but still indicating weak operating cash generation.

Cash Flow from Investing Activities

Investing activities also resulted in a net cash outflow of ₹24.82 crore in FY25, although this was lower than the ₹37.04 crore outflow recorded in FY24. The company made a major investment of ₹22.16 crore to acquire controlling stakes in subsidiaries, indicating a strategic expansion or restructuring of its group structure.

Additionally, the company extended loans to related parties amounting to ₹54.34 crore, which represents a substantial deployment of funds and could raise concerns about capital allocation efficiency and liquidity management. However, part of these outflows was offset by repayments of loans from related parties amounting to ₹22.80 crore and maturity/withdrawal of bank term deposits generating ₹28.98 crore.

Capital expenditure also increased, with ₹5.34 crore spent on property, plant and equipment (PPE) compared to ₹2.52 crore in FY24, suggesting moderate investment in operational infrastructure. Interest income received during the year amounted to ₹5.84 crore, providing some support to cash inflows. Overall, the investing cash flow reflects significant capital allocation toward group entities and expansion activities.

Cash Flow from Financing Activities

Financing activities generated a net cash inflow of ₹24.21 crore in FY25, compared to a much larger ₹46.93 crore inflow in FY24. In FY24, financing inflows were primarily driven by equity issuance of ₹48.33 crore, which significantly strengthened the company’s liquidity position.

In FY25, the financing inflow was mainly supported by new borrowings, including ₹35 crore in current borrowings and ₹3.66 crore in non-current borrowings. These borrowings were partially offset by repayment of current borrowings of ₹15 crore and repayment of non-current borrowings of ₹0.23 crore. The company also paid interest expenses of ₹0.16 crore, which remained relatively low.

Net Cash Position

During FY25, the company recorded a net decrease in cash and cash equivalents of ₹14.32 crore, slightly higher than the ₹13.83 crore decline in FY24. As a result, cash and cash equivalents declined from ₹22.03 crore at the beginning of the year to ₹7.71 crore at the end of FY25.

The declining cash balance reflects persistent operating losses and high investment outflows, partially supported by financing inflows. The company’s liquidity position has therefore weakened, highlighting the importance of improving operating cash generation and optimizing capital allocation going forward. 

Financial ratios of JK Urbanscapes Developers Limited.

Summary of Financial Ratio of JK Urbanscapes Developers Limited for the year 2025 and 2024.

Current Ratio

The current ratio of JK Urbanscapes Developers Limited declined from 1.66 in FY24 to 1.06 in FY25, indicating a weakening in the company’s short-term liquidity position. Although the ratio remains slightly above the standard benchmark of 1, the sharp decline suggests that the company now has a smaller cushion of current assets to meet its short-term obligations. This may be due to increased current liabilities or higher working capital requirements related to project development.

Debt–Equity Ratio

The debt–equity ratio increased significantly from 0.01 in FY24 to 0.13 in FY25, reflecting an increase in the company’s reliance on borrowed funds. Despite this rise, the ratio still remains relatively low, indicating that the company’s capital structure is primarily equity funded. However, the increase suggests that the company has started using more debt financing to support its operational or investment activities.

Debt Service Coverage Ratio

The Debt Service Coverage Ratio (DSCR) declined sharply from 3.21 in FY24 to -1.28 in FY25. A negative DSCR indicates that the company’s operating income was insufficient to cover its debt servicing obligations during the year. This deterioration mainly reflects the decline in profitability and operating performance, which has reduced the company’s ability to generate enough earnings to meet interest and principal repayments.

Return on Equity

The Return on Equity decreased from 0.03 in FY24 to -0.04 in FY25, indicating that the company generated negative returns for its shareholders during FY25. This decline is mainly due to the net losses reported during the year, which eroded shareholder value and reduced overall profitability.

Inventory Turnover Ratio

The inventory turnover ratio declined from 0.44 in FY24 to 0.32 in FY25, indicating slower movement of inventory. A lower turnover ratio suggests that a larger amount of capital is tied up in inventory or ongoing projects. In the real estate sector, this may be attributed to longer project cycles or slower sales realization during the year.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio was reported as Not Available (NA) for both FY25 and FY24. This indicates that the company may not have significant trade receivables or that receivables are not a major component of its revenue cycle, which can sometimes occur in real estate businesses where payments are received based on project milestones.

Trade Payables Turnover Ratio

The trade payables turnover ratio was also reported as Not Available (NA) for both years. This suggests that trade payables might be minimal or not separately disclosed in the financial statements, limiting the ability to evaluate the company’s payment cycle to suppliers and contractors.

Net Capital Turnover Ratio

The net capital turnover ratio improved significantly from 0.52 in FY24 to 4.04 in FY25, indicating that the company generated substantially higher revenue relative to the capital employed in operations. This improvement suggests better utilization of working capital, although it did not translate into improved profitability due to higher expenses and losses.

Net Profit Ratio

The net profit ratio declined sharply from 0.11 in FY24 to -0.23 in FY25, reflecting a shift from profitability to net losses. The negative ratio indicates that the company incurred losses relative to its revenue during FY25, highlighting weak cost management or lower revenue generation.

Return on Capital Employed

The Return on Capital Employed decreased from 0.01 in FY24 to -0.04 in FY25, indicating that the company failed to generate adequate operating profits from the capital invested in the business. The negative ROCE reflects inefficient utilization of capital during the year due to declining profitability.

Return on Investment

The Return on Investment declined from 0.00 in FY24 to -0.02 in FY25, indicating a slight negative return on investments. This suggests that the company’s investments did not generate sufficient income and were impacted by the overall decline in profitability during the year.