New Delhi— Chhattisgarh-based construction machinery exporter Jinkushal Industries Limited (JKIPL) has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), seeking to raise capital through an initial public offering (IPO). The company plans to use the proceeds to strengthen its working capital base.
However, financial disclosures in the DRHP point to emerging challenges despite topline growth. Jinkushal reported revenue of Rs 31,093.32 lakh for the nine months ended December 31, 2024, already surpassing the Rs 24,279.84 lakh recorded for the full fiscal year ending March 31, 2024.
Yet, the company’s net profit declined to Rs 1,812.34 lakh for the nine-month period, down from Rs 1,864.45 lakh in FY24 — a 2.8% drop. The dip in profitability is largely attributed to a sharp rise in expenses. Total costs surged approximately 32.5% to Rs 28,901 lakh in the nine months, compared to Rs 21,806.87 lakh in the previous fiscal year.
This rise in operational expenditure has squeezed margins, raising concerns about cost management as the company scales up.
The IPO will consist of 96.5 lakh equity shares of Rs 10 each, including a fresh issue of 86.5 lakh shares and an offer-for-sale (OFS) of 10 lakh shares by the company’s promoters. GYR Capital Advisors Private Limited is acting as the sole book-running lead manager for the offering.
Jinkushal specializes in the export of new, used, and refurbished construction equipment, with a portfolio that includes hydraulic excavators, cranes, bulldozers, backhoe loaders, motor graders, soil compactors, wheel loaders, and asphalt pavers.
While its revenue trajectory appears promising, the company’s rising input and operational costs underscore the need for tighter cost control as it prepares to go public. (Source: IANS)
