Construction Mechanization Department
OJSC Construction Mechanization Department
UNP: 192643343 · 11a Promyshlennaya St., Minsk, 220075
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 2 551 | 3 537 |
| Intangible assets | 0 | 2 |
| Investments in long-term assets | 0 | 248 |
| Total Section I (long-term assets) | 2 551 | 3 787 |
| Inventories | 2 775 | 2 791 |
| — materials | 912 | 988 |
| — work in progress | 0 | 1 803 |
| — finished goods and merchandise | 1 863 | 0 |
| Deferred expenses | 14 | 7 |
| Short-term receivables | 4 055 | 893 |
| Cash and cash equivalents | 7 665 | 1 859 |
| Other short-term assets | 32 | 28 |
| Total Section II (short-term assets) | 14 541 | 5 578 |
| BALANCE (assets) | 17 092 | 9 365 |
| Charter capital | 767 | 767 |
| Additional capital | 2 354 | 3 059 |
| Retained earnings (uncovered loss) | 1 366 | 419 |
| Total Section III (equity) | 4 487 | 4 245 |
| Long-term loans and borrowings | 343 | 457 |
| Deferred income | 14 | 14 |
| Total Section IV (long-term liabilities) | 357 | 471 |
| Short-term payables | 12 241 | 4 642 |
| — to suppliers, contractors, providers | 4 540 | 3 289 |
| — on advances received | 4 927 | 116 |
| — on taxes and duties | 1 681 | 534 |
| — on social insurance and security | 240 | 159 |
| — on payroll | 607 | 383 |
| — to other creditors | 246 | 161 |
| Deferred income | 7 | 7 |
| Total Section V (short-term liabilities) | 12 248 | 4 649 |
| BALANCE (equity and liabilities) | 17 092 | 9 365 |
Computed metrics
Integrity checks
Checks passed: 6 of 6
Signals
- Very low profitability: net 0.41%, on sales 2.16% — the enterprise operates on large turnover with a minimal margin (typical of general contracting with a high subcontracting share)
- Sharp rise in short-term payables (4,642 → 12,241), mainly on advances received (116 → 4,927) — growing prepayment obligations to clients
- Current ratio 1.187, slightly below the 1.25 norm
- Positive own-working-capital provision: 0.133 (up from 0.082) — a rare positive in the sample, close to the norm
- Strong operating cash flow: 6,946, a 14.19% margin — a sharp turnaround from last year's negative (−855)
- Revenue grew 47% (33,314 → 48,967) with profit on sales rising from 471 to 1,057
- Debt load down 25%, cash up fourfold (1,859 → 7,665, including a 1,000 deposit)
- Positive real equity (2,133), minimal reliance on revaluation
Recommendation
The Construction Mechanization Department is a construction enterprise specializing in railway and metro infrastructure, in 100% state (republican) ownership. Its financial profile is stable and improving: revenue grew 47%, operating cash flow swung from negative (−855) to substantially positive (6,946, a 14.19% margin), own-working-capital provision is positive (0.133) and rising, the debt load is falling, and cash reserves grew fourfold. Real equity is positive and barely dependent on revaluation. The main weak spot is very thin profitability (net 0.41%), which is characteristic of general-contracting work with a high subcontracting share rather than a sign of dysfunction. The combination of a healthy balance sheet, a growing business and positive momentum, alongside the absence of strategic indispensability for state ownership, points to privatization potential. The possible strategic significance of infrastructure construction (metro, railways) requires clarification of status before a final decision — if a critical role is confirmed, the alternative is retention in state ownership.