Jotindra Steel & Tubes Annual Reports & Financial

Jotindra Infrastructure Limited Balance Sheet (Rs in Millions)

Jotindra Infrastructure Limited Profit & Loss Statement (Rs in Millions)

 Jotindra Infrastructure Limited Consolidated Cash Flow Statement (Rs in Millions)

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

Cash Flow from Operating Activities

In 2024, the net cash used in operating activities amounted to Rs. -126.76 million, a significant decline from the positive Rs. 135.32 million in 2023. This shift can be traced back to fluctuations in working capital changes and adjustments to the company 's operating profit. The profit before exceptional items and tax rose from Rs. 329.60 million in 2023 to Rs. 508.04 million in 2024, showing improved core profitability. However, several key adjustments affected the operating cash flow:

There were significant non-cash adjustments, such as the gain of Rs. 286.25 million in 2024 from converting land into stock-in-trade, and provision reversals for doubtful advances amounting to Rs. 138.09 million, which negatively impacted cash flow.

The company faced a large decrease in security deposits of Rs. 302.91 million in 2024, representing a cash outflow.

There was also a reduction in inventories by Rs. 83.30 million, indicating that the company sold off or utilized stock, creating a cash inflow. This contrasts with an inventory increase of Rs. 388.89 million in 2023.

Changes in trade payables provided a major boost of Rs. 314.91 million in 2024, while in the prior year, there was a decrease in payables (outflow).

Conversely, trade receivables improved by Rs. 129.82 million in 2024, reflecting improved collections from customers compared to Rs. 10.18 million in 2023.

However, other liabilities and provisions reduced cash inflows by Rs. 152.24 million and Rs. 1.32 million respectively in 2024.

Overall, despite higher profitability, the large working capital changes, particularly in security deposits, other liabilities, and provisions, resulted in a negative net operating cash flow in 2024.

Cash Flow from Investing Activities

The cash flow from investing activities showed a positive net inflow of Rs. 85.83 million in 2024, a reversal from a significant outflow of Rs. 172.90 million in 2023. The turnaround in investing cash flow is mainly due to:

The company generated Rs. 126.20 million from the sale of property, plant, and equipment in 2024, which was absent in the previous year.

On the other hand, it continued to invest in non-current investments, spending Rs. 21.39 million, though this is significantly lower than the Rs. 97.62 million invested in 2023.

There were minimal cash flows related to margin money deposits, with a slight outflow of Rs. 31.40 million in 2024, compared to a small inflow of Rs. 1.10 million in 2023.

Interest income remained steady with Rs. 22.58 million in 2024 and Rs. 24.61 million in 2023, providing a moderate cash inflow.

Overall, the positive net inflow in 2024 reflects the company’s strategic actions in liquidating assets to generate cash, combined with reduced investment outflows.

Cash Flow from Financing Activities

The cash flow from financing activities in 2024 shows a positive inflow of Rs. 41.87 million, an increase from Rs. 31.13 million in 2023. This positive cash flow is largely due to:

Rs. 28.80 million generated from long-term borrowings in 2024, compared to only Rs. 1.94 million in 2023. This reflects increased borrowing, likely to support operational or investment needs.

The company also raised Rs. 15.49 million from short-term borrowings in 2024, a slight decrease from Rs. 32.16 million in 2023.

Interest payments remained stable, with a small outflow of Rs. 2.33 million in both years.

A minor outflow of Rs. 0.10 million was distributed to minority shareholders in 2024, which was not present in 2023.

The higher net inflow from financing activities in 2024 indicates that the company used external borrowings to offset some of the cash flow deficits from operations.

Net Changes in Cash and Cash Equivalents

As a result of these activities, the company saw a modest increase in its cash position, with Rs. 0.93 million in net cash generated in 2024, in contrast to a decrease of Rs. 6.45 million in 2023. The opening cash balance for 2024 was Rs. 1.89 million, and it ended the year with Rs. 2.82 million.

Financial Ratios of Jotindra Infrastructure Limited

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

Current Ratio

The current ratio measures the company 's ability to cover its short-term liabilities with its short-term assets. In 2024, the current ratio stands at 1.37, compared to 1.2 in 2023. A ratio above 1 indicates that the company has more current assets than liabilities, showing improved liquidity in 2024.

Debt to Equity Ratio

The debt to equity ratio evaluates the company’s financial leverage by comparing its total debt to shareholders ' equity. In 2024, the ratio is 0.27, down from 0.42 in 2023. This decline suggests that the company has reduced its reliance on debt relative to equity, making its capital structure less risky.

Debt Service Coverage Ratio (DSCR)

The DSCR indicates the company’s ability to service its debt, i.e., its capacity to cover debt obligations through operating income. In 2024, the DSCR is 0.05, down from 0.07 in 2023. A ratio below 1 indicates that the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) may not be sufficient to cover its debt obligations, signaling potential challenges in meeting financial commitments.

Return on Equity (ROE)

ROE measures the profitability generated from shareholders’ equity. In 2024, the ROE stands at an impressive 58.87%, up from 52.12% in 2023. This significant increase indicates that the company is generating higher returns for its equity investors, reflecting efficient use of equity capital.

Inventory Turnover Ratio

This ratio assesses how efficiently the company manages its inventory by measuring how often inventory is sold and replaced within a year. In 2024, the inventory turnover ratio is 0.85, lower than 1.47 in 2023. A declining ratio suggests that the company is holding onto inventory for a longer period, which may indicate slower sales or excess stock.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio shows how effectively the company collects payments from customers. In 2024, the ratio is 6.63, down from 8.72 in 2023. This decline indicates that the company is taking longer to collect its receivables, which could negatively impact its cash flow.

Trade Payables Turnover Ratio

The trade payables turnover ratio measures how quickly the company settles its debts with suppliers. The ratio decreased from 5.73 in 2023 to 3.86 in 2024, indicating that the company is taking longer to pay its suppliers.

Net Capital Turnover Ratio

The net capital turnover ratio shows how efficiently the company uses its working capital to generate revenue. In 2024, the ratio is 1.77, a significant drop from 6.2 in 2023.

Net Profit Ratio

The net profit ratio measures the percentage of revenue that remains as profit after all expenses are accounted for. In 2024, the ratio increased to 0.68% from 0.16% in 2023, indicating that the company has improved its profitability.

Return on Capital Employed (ROCE)

ROCE assesses how well the company generates profits from its total capital employed (equity and debt). In 2024, the ROCE is 0.37%, slightly down from 0.40% in 2023. This minimal decline suggests that the company’s profitability relative to its capital base has remained stable.