Inkel Limited Unlisted Shares

Annual Report Summary

INKEL 17th Annual Report 2023-2024 Summary

INKEL Limited, a Public Private Partnership (PPP) enterprise of the Government of Kerala, presents its 17th annual report for 2023-2024. The company focuses on infrastructure development in various sectors, including health, education, tourism, transport, and finance, and has been recognized by KIIFB for its quality work. INKEL emphasizes safety and quality in every project and aims to deliver cost-efficient solutions. The company's expertise includes Project Management Consultancy (PMC) and construction services in EPC mode, and specializes in renewable energy solutions.

Financial Performance:

• The annual turnover decreased slightly from ₹81.17 Cr in FY 2022-23 to ₹79.20 Cr in FY 2023-24, a reduction of 2.43%.
• Profit After Tax (PAT) increased to ₹16.25 Cr, up 26.16% from ₹12.88 Cr in the previous year.
• The increase in PAT is attributed to increased lease premiums in the estate division and dividend income from INKEL-EKK and INKID.
• The overall turnover of the INKEL Group increased to ₹115.11 Cr, up 13.98% from ₹100.99 Cr in the previous year.
• The PAT of the group increased significantly to ₹30.74 Cr, up 113.03% from ₹14.43 Cr the previous year.

Project Management Consultancy (PMC):

• INKEL’s PMC division commenced operations in 2007.
• The division undertakes PMC services, and Non-PMC/EPC construction, funded primarily by KIIFB.
• INKEL is an ISO 9001:2015 certified project management consultancy.
• Works worth ₹1440 Cr are under construction, with 97% being government projects funded by KIIFB.
• Strategic initiatives include strengthening the Design & Engineering Wing, seeking empanelment with other agencies, and establishing a Training Academy.

Renewable Energy:

• INKEL is a turnkey Solar EPC player in Kerala and expanding into Karnataka.
• Major projects under execution include solar power plants for KSEBL and hybrid rooftop systems in Karnataka.
• The company has signed an MOU with the National Institute of Wind Energy for a wind power project in Palakkad.

INKEL Group of Companies:

• INKEL KSIDC Projects Limited (INKID): A joint venture focused on land infrastructure development for industrial purposes, holding land parcels in Angamaly and Malappuram.
• INKEL EKK Roads Private Limited (INKEL EKK): A special purpose vehicle for rehabilitation of state highways in Kottayam and Thiruvananthapuram districts, engaged in operation and maintenance.
• INKES Trade Centre Limited (INKES): A joint venture for commercial development of land near Thampanoor, Trivandrum, with plans for a trade center.
• INKEL Infrastructure Development Projects Limited (IIDPL): A 100% subsidiary of INKEL, serving as an investing arm for infrastructure projects. IIDPL has incorporated a wholly owned subsidiary company, INKEL Renewable Energy Private Limited,
• INKEL Renewable Energy Private Limited (INKEL RE): A wholly-owned subsidiary of IIDPL focused on renewable energy projects. INKEL RE has won a tender for a 14 MW wind energy project for KSEBL.
• MIV Logistics Private Limited (MIV): An associate company with equity participation by INKEL; a Container Freight Station at Vallarpadam Terminal, Cochin. The project could not take off and the investments have to be written off.
• Seguro Foundations & Structures Private Limited (SFS) & SEGURO INKEL Consortium LLP (SEGURO LLP): INKEL is facing multiple litigations from the former management of SEGURO due to financial irregularities. Investment of 13.8 Cr in SFS was written off in FY 2019-20, and legal actions are being pursued.

Projects at a Glance:

• Ongoing Projects: Cochin Cancer Research Center, Govt. Medical College Ernakulam – SSB, GMCE-MLT, DH Mavelikkara
• Completed Projects: Family Health Centre Ettumanoor, GHSS Naluchira, GHSS Panamattam, Alappuzha Heritage Projects, 1.5MWp Solar Power plant at Nenmara Palakkad, 2MWp Autokast Limited Cherthala, 2MWp Solar Power Plant at Mananthavady, 400kWp Solar Power Plant at Cherpulassery, 400kWp Solar power plant at Manjeshwaram, 100kWp Solar Power plant at Kelappaji College of Agricultural Engineering & Food Technology, Malappuram
• Projects Commenced: GMC Thrissur- Mother & Child Block, GMC Thrissur- Super Speciality Block, Taluk Hospital Kunnamkulam, Taluk Hospital Pathanapuram, General Hospital, Kottayam

Corporate Actions & Governance:

• The 17th Annual General Meeting (AGM) is scheduled for September 9, 2024.
• The board recommends a dividend of 4.75% for the FY 2023-24.
• The board seeks approval for the reappointment of Adv. Geethakumary P.S. and the extension of the period of appointment of Mr. Jacob Kovoor Ninan as Independent Directors.
• The board also seeks approval to extend the period of appointment of Dr. Ellangovan K as Managing Director.
• Mr. S. Harikishore IAS has been appointed as Nominee Director in lieu of Mr. Suman Billa IAS.
• Mr. Riju Thomas appointed as Chief Financial Officer (CFO).

Key Issues and Risks:

• Litigations against INKEL related to past investments in Seguro Foundations and Structures (SFS) and the Calicut Expressway Project
• The report also mentions areas of concern as well, investment into Seguro Foundations and Structures in the year 2017, has not only led to loss of entire investment of 13.8 Cr, but also led to large number of litigations against INKEL.
• The directors are taking all possible measures to protect the interest of shareholders.

Financial Ratios

The report includes key financial ratios. Current ratio shows improvement. Debt Equity Ratio, Net Profit Ratio & Return on Capital Employed increased.

Overall: The report emphasizes INKEL's commitment to infrastructure development in Kerala, its focus on renewable energy, and its efforts to address challenges from past investments. The company is aiming to expand into new areas and improve financial performance.