JCK Infrastructure Latest Annual Report, Balance Sheet and Financials

JCK Infrastructure Development Balance Sheet (Rs in Lakhs)

JCK Infrastructure Development Profit & Loss Statement (Rs in Lakhs)

 JCK Infrastructure Development Consolidated 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:

The net profit before taxation and extraordinary items for the year ending March 31, 2024, is a loss of Rs. 367.05 Lakhs, compared to a profit of Rs. 571.86 Lakhs in the previous year. However, this figure is adjusted for various items to determine the actual cash generated or used by the business operations.

Adjustments for changes in working capital:

The decrease in inventories (Rs. -73.79 Lakhs) indicates an outflow of cash, as more goods were used or sold without replenishing inventory.

Trade receivables increased by Rs. 460.28 Lakhs in 2024, compared to a decrease of Rs. 103.64 Lakhs in 2023. This suggests the company extended more credit to customers, resulting in cash outflow.

Other current assets saw a decrease of Rs. -71.89 Lakhs in 2024, which indicates cash inflow as some of these assets were liquidated.

Adjustments for financial assets and current liabilities show varied movements, with trade payables increasing by Rs. 26.28 Lakhs (cash inflow), while other current liabilities decreased by Rs. -32.83 Lakhs (cash outflow).

Depreciation and amortization expenses of Rs. 133.10 Lakhs were added back as they are non-cash expenses.

Interest and taxes:

The company paid Rs. 71.12 Lakhs in interest, which is an outflow.

It earned interest income of Rs. -30.10 Lakhs, also an inflow.

Tax payments were Rs. 1.05 Lakhs, a small outflow compared to the previous year 's refund of Rs. -118.23 Lakhs.

After accounting for all these adjustments, the company’s net cash flow from operating activities in 2024 was a negative Rs. 215.95 Lakhs, reflecting a cash outflow, a significant drop from the positive Rs. 547.22 Lakhs in 2023.

Cash Flow from Investing Activities:

Investing activities generally involve the purchase and sale of long-term assets.

Capital Expenditure: The company spent Rs. 5.59 Lakhs on purchasing property, plant, and equipment, a significant decrease from the previous year’s outflow of Rs. 403.30 Lakhs, indicating less investment in physical assets.

Capital Work in Progress: There was an inflow of Rs. 214.73 Lakhs due to changes in capital work in progress, meaning the company made progress on long-term projects that contributed positively to cash flow.

Interest Income: Rs. 30.10 Lakhs was received as interest income, consistent with the prior year’s Rs. 23.72 Lakhs.

Investments and Asset Sales: The company made an investment in securities amounting to Rs. 64.52 Lakhs and sold preference shares for Rs. 40 Lakhs, contributing positively to cash flow.

In total, the company had a net cash inflow from investing activities of Rs. 343.10 Lakhs in 2024, a reversal from the outflow of Rs. -549.20 Lakhs in 2023.

Cash Flow from Financing Activities:

Financing activities include transactions related to the company’s borrowing and repayment.

Proceeds from Borrowings: The company borrowed Rs. 16.06 Lakhs in 2024, a decrease from the previous year’s Rs. 121.64 Lakhs.

Interest Payments: The company paid Rs. 71.12 Lakhs in interest, similar to the prior year’s Rs. 89.90 Lakhs, contributing to an outflow of cash.

The net cash flow from financing activities was a negative Rs. -87.18 Lakhs in 2024, a significant drop from the positive Rs. 31.74 Lakhs in 2023, reflecting reduced borrowing activity and interest payments.

Net Increase/Decrease in Cash and Cash Equivalents:

After adjusting for operating, investing, and financing activities, the net increase in cash and cash equivalents was Rs. 39.98 Lakhs in 2024, compared to an increase of Rs. 29.76 Lakhs in 2023.

 Financial Ratios of JCK Infrastructure Development

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

Current Ratio (In Times):

The current ratio measures a company’s ability to meet its short-term obligations with its short-term assets. A ratio of 1.27 means the company has Rs. 1.27 in current assets for every Rs. 1 of current liabilities. The ratio remained stable from 2023 to 2024, suggesting that the company is maintaining a sufficient cushion of liquid assets to cover its short-term liabilities. A current ratio above 1 typically indicates financial health, although an excessively high ratio may suggest inefficient use of assets.

Debt Equity Ratio:

The debt equity ratio measures the proportion of debt used to finance the company relative to equity. In 2024, this ratio is significantly higher at 3.3, compared to 0.5 in 2023, indicating a substantial increase in leverage. A ratio of 3.3 means the company has Rs. 3.30 of debt for every Rs. 1 of equity. This high ratio suggests increased reliance on borrowed funds, which may raise concerns about financial risk, especially if the company’s earnings do not sufficiently cover the debt repayments.

Debt Service Coverage Ratio (DSCR):

The debt service coverage ratio measures the company’s ability to service its debt obligations from operating income. A ratio of -70.81 in 2024 indicates that the company has insufficient earnings to cover its debt payments, which is a major red flag. In 2023, the ratio was 79.77, meaning the company had more than enough operating income to cover its debt service. The drastic decline in 2024 suggests a significant deterioration in cash flow or profitability, making it risky for the company to meet its debt obligations.

Return on Equity (ROE):

Return on equity indicates the profitability generated from shareholders’ equity. The ratio of 0.06 means the company is generating a return of 6% on its equity capital. The consistency in ROE over the two years suggests that the company has maintained its profitability at the same level despite other changes. However, this is relatively low, indicating that the company is not generating high returns for its equity investors.

Trade Receivables Turnover Ratio:

This ratio measures how quickly a company collects its receivables. In 2024, the company collected its receivables 1.24 times during the year, an improvement from 0.79 times in 2023. This indicates that the company is managing its receivables more efficiently, collecting outstanding payments more quickly, which is a positive sign for liquidity and cash flow management.

Trade Payables Turnover Ratio:

The trade payables turnover ratio shows how quickly a company pays its suppliers. In 2024, the ratio of 11 indicates the company paid its payables 11 times during the year, a significant increase from 5.64 times in 2023. This suggests that the company is paying its suppliers much faster, which may indicate better supplier relationships or a more conservative approach to managing payables.

Net Capital Turnover Ratio:

This ratio measures the efficiency with which a company uses its capital to generate revenue. A net capital turnover ratio of 4.58 in 2024 indicates that the company generated Rs. 4.58 of revenue for every Rs. 1 of capital invested, which is a significant improvement from 3.16 in 2023. This suggests enhanced operational efficiency, where the company is making better use of its capital to drive revenue growth.

Net Profit Ratio:

The net profit ratio measures the percentage of revenue that turns into profit. In 2024, the company’s net profit ratio is negative (-40.32%), compared to a positive 69.72% in 2023. This sharp decline indicates that the company is operating at a loss, as more than 40% of its revenue is being lost, which is a major concern for profitability. In 2023, the company was highly profitable, with nearly 70% of revenue converting into net profit.

Return on Capital Employed (ROCE):

Return on capital employed measures the profitability and efficiency with which a company uses its capital to generate earnings before interest and taxes (EBIT). In 2024, the ROCE of -0.32 indicates that the company is losing money relative to its capital base, reflecting poor capital utilization. In contrast, the 0.27 ROCE in 2023 suggested that the company was able to generate a return of 27% on its capital employed, indicating more efficient use of capital during that year.

Return on Investment (ROI):

Return on investment assesses the return the company generates on its investments, typically relative to the cost of those investments. A negative ROI of -2.31 in 2024 suggests that the company’s investments have not been profitable and are eroding value. In contrast, the 0.52 ROI in 2023 was positive, indicating that investments were yielding returns, though the return was modest.