KLRF H1 FY 27 CWIP reaches Rs 29.38 crore as borrowings rise

Kovilpatti Lakshmi Roller Flour Mills Limited (KLRF) reported capital work in progress of Rs 29.38 crore in the first half (H1) of financial year (FY) 27, up from Rs 3.94 crore at FY 26, while total borrowings increased to Rs 105.83 crore from Rs 81.76 crore.

How much did KLRF's capital work in progress increase?

KLRF's capital work in progress increased by Rs 25.44 crore between FY 26 and H1 FY 27, reaching Rs 29.38 crore from Rs 3.94 crore. This was the largest movement among the non-current asset lines shown in the presentation, while property, plant and equipment declined to Rs 82.16 crore from Rs 83.05 crore.

The H1 FY 27 balance follows capital work in progress of Rs 22 lakh in FY 25 and Rs 2.58 crore in FY 24. KLRF does not identify the project, asset category, business segment or completion date associated with the Rs 29.38 crore balance, so the presentation shows the amount of unfinished capital assets but not their planned use.

What changed in KLRF's asset base in H1 FY 27?

KLRF's total assets increased by Rs 31.24 crore to Rs 224.61 crore in H1 FY 27 from Rs 193.37 crore at FY 26. Non-current assets rose by Rs 20.37 crore to Rs 119.45 crore, while current assets increased by Rs 10.88 crore to Rs 105.16 crore.

The Rs 25.44 crore increase in capital work in progress exceeded the overall rise in non-current assets because other lines declined. Other non-current assets fell to Rs 3.36 crore in H1 FY 27 from Rs 8.14 crore at FY 26, while intangible assets decreased to Rs 1.11 crore from Rs 1.20 crore.

Within current assets, inventories declined by Rs 7.09 crore to Rs 58.58 crore, but trade receivables increased by Rs 6.93 crore to Rs 29.97 crore. Other current assets rose to Rs 16.44 crore from Rs 5.32 crore, while cash and cash equivalents fell to Rs 12 lakh from Rs 19 lakh.

Capital work in progress represented Rs 29.38 crore of KLRF's Rs 224.61 crore asset base at H1 FY 27, alongside Rs 82.16 crore of property, plant and equipment. The presentation does not provide a separate measure of operating output or revenue contribution from the work-in-progress balance.

How did KLRF's borrowings change in H1 FY 27?

KLRF's total borrowings increased by Rs 24.07 crore to Rs 105.83 crore in H1 FY 27 from Rs 81.76 crore at FY 26. The H1 FY 27 balance comprised Rs 49.28 crore of non-current borrowings and Rs 56.55 crore of current borrowings.

Non-current borrowings increased by Rs 11.84 crore from Rs 37.44 crore at FY 26, while current borrowings rose by Rs 12.23 crore from Rs 44.32 crore. The increase was therefore split across both liability classifications rather than being limited to current or non-current borrowings.

KLRF's non-current liabilities rose to Rs 53.56 crore from Rs 42.03 crore, and current liabilities increased to Rs 92.99 crore from Rs 76.77 crore. Shareholders' funds increased by Rs 3.50 crore to Rs 78.06 crore, while total equity and liabilities were Rs 224.61 crore, equal to total assets.

The presentation reports higher capital work in progress and higher borrowings in the same H1 FY 27 balance sheet, but does not state that a specific borrowing financed a particular project. It also does not provide a project-wise allocation of the Rs 29.38 crore work-in-progress amount.

What do KLRF's earlier financial trends show?

KLRF's total assets increased from Rs 123.48 crore in FY 22 to Rs 224.61 crore in H1 FY 27. Over the same period, total borrowings rose from Rs 45.06 crore, comprising Rs 23.67 crore of non-current borrowings and Rs 21.39 crore of current borrowings, to Rs 105.83 crore.

Capital work in progress was Rs 50 lakh in FY 22, Rs 62 lakh in FY 23, Rs 2.58 crore in FY 24, Rs 22 lakh in FY 25 and Rs 3.94 crore in FY 26. The H1 FY 27 balance of Rs 29.38 crore is therefore higher than each of the five preceding reporting points shown by KLRF.

For FY 26, KLRF reported total income of Rs 412.99 crore, down from Rs 428.80 crore in FY 25. Earnings before interest, tax, depreciation and amortisation increased to Rs 21.79 crore from Rs 16.88 crore, while profit after tax rose to Rs 8.09 crore from Rs 1.15 crore.

KLRF's finance cost increased to Rs 9.03 crore in FY 26 from Rs 8.54 crore in FY 25. Its debt-equity ratio was 1.10 in FY 26, compared with 1.01 in FY 25, and the presentation does not disclose an updated debt-equity ratio for H1 FY 27.

Which segment figures did KLRF disclose for Q2 FY 27?

KLRF reported Food Division revenue of Rs 87.27 crore in Q2 FY 27, up from Rs 77.72 crore in Q2 FY 26. Food Division profit before interest and tax increased to Rs 1.16 crore from Rs 26 lakh over the same period.

Engineering Division revenue increased to Rs 28.84 crore in Q2 FY 27 from Rs 26.65 crore a year earlier, while its profit before interest and tax rose to Rs 3.53 crore from Rs 3.38 crore. The presentation gives these operating figures separately from the group balance sheet.

Food Division capital employed increased to Rs 54.03 crore in Q2 FY 27 from Rs 52.39 crore in Q2 FY 26. Engineering Division capital employed rose to Rs 28.58 crore from Rs 21.97 crore, but KLRF does not link either segment's capital employed to the Rs 29.38 crore group-level capital work in progress.

Conclusion

KLRF's H1 FY 27 balance sheet shows a Rs 25.44 crore increase in capital work in progress alongside a Rs 24.07 crore increase in total borrowings. Total assets rose by Rs 31.24 crore, while shareholders' funds increased by Rs 3.50 crore, indicating that both liabilities and equity were higher at the interim reporting point.

The key unresolved matter is the purpose, segment allocation and completion timing of the Rs 29.38 crore capital work in progress, none of which KLRF discloses in the presentation. Subsequent disclosures will show whether the balance moves into property, plant and equipment and whether total borrowings change from the H1 FY 27 level of Rs 105.83 crore.