Capgemini Annual Reports, Balance Sheet and Financials

Capgemini Technology Services India Limited Balance Sheet (Rs in Millions)

Capgemini Technology Services India Limited Profit & Loss Statement (Rs in Millions)

Capgemini Technology Services India Limited Cash Flow Statement (Rs in Millions) 

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

Cash Flows from Operating Activities

In 2024, the company generated a net cash flow from operating activities of ₹36,871 million, up from ₹33,729 million in 2023. This increase is driven by a higher profit before tax, which rose from ₹41,256 million to ₹42,910 million. Adjustments for non-cash items included depreciation and amortization, which remained relatively stable, and changes in provisions, bad receivables, and foreign currency gains/losses.

The operating profit before working capital changes decreased slightly from ₹48,581 million in 2023 to ₹47,139 million in 2024. However, substantial positive cash flow adjustments, such as decreases in trade receivables and increases in trade and other payables, contributed to a higher cash flow from operations. This was partially offset by increased income tax payments, which rose to ₹11,329 million from ₹10,633 million in the previous year.

Cash Flows from Investing Activities

The net cash used in investing activities improved to an outflow of ₹23,091 million in 2024 from ₹26,742 million in 2023. This improvement is largely due to increased proceeds from the sale of current investments and a lower outflow for the purchase of property, plant, and equipment. The company made substantial payments for the acquisition of a subsidiary and had significant activity in current investments, with large purchases offset by proceeds from sales.

The reduction in outflows from fixed deposits and a smaller amount invested in new fixed deposits contributed to the decreased net cash outflow from investing activities. Despite these inflows, the significant purchase of current investments and the acquisition of a subsidiary led to a net cash outflow, indicating continued substantial investment in the company’s asset base and strategic acquisitions.

Cash Flows from Financing Activities

Net cash used in financing activities amounted to ₹5,720 million in 2024, up from ₹5,115 million in 2023. This increase reflects higher payments related to share-based payment liabilities and lease liabilities. Payments towards share-based compensation and interest on lease obligations, along with the repayment of lease liabilities, contributed to the overall cash outflow. The company 's financing activities also included payments to non-controlling interests in the previous year, which did not recur in 2024.

Net Increase in Cash and Cash Equivalents

Overall, the company experienced a significant net increase in cash and cash equivalents of ₹8,060 million in 2024, compared to ₹1,872 million in 2023. This substantial increase was driven by strong operational cash flows and a lower net outflow from investing activities. The effect of exchange rate differences and cash balances taken over from business combinations further bolstered the ending cash balance.

The cash and cash equivalents at the end of the year rose to ₹17,724 million from ₹9,661 million at the beginning of the year. This increase highlights a strengthened liquidity position, enabling the company to maintain a higher cash reserve despite substantial investment and financing outflows.

Financial Ratios of Capgemini Technology Services India Limited

Here is a summary of the financial and operational metrics for Capgemini Technology Services India Limited for the year 2024 and 2023:

Current Ratio

The current ratio increased from 4.46 in 2023 to 4.87 in 2024. This ratio measures the company’s ability to meet short-term liabilities with short-term assets. The rise indicates improved liquidity, suggesting that the company has a stronger buffer of current assets relative to its current liabilities. A higher current ratio reflects a better position to cover short-term obligations, enhancing financial stability and operational flexibility.

Debt-Equity Ratio

The debt-equity ratio remained constant at 0.04 for both 2023 and 2024. This ratio assesses the proportion of debt used relative to equity in financing the company’s assets. A ratio of 0.04 indicates a very low level of debt compared to equity, highlighting a conservative approach to leverage. This low ratio suggests that the company relies primarily on equity rather than debt, minimizing financial risk and demonstrating strong financial health.

Debt Service Coverage Ratio

The debt service coverage ratio slightly decreased from 13.73 in 2023 to 13.00 in 2024. This ratio measures the company’s ability to service its debt obligations with its operating income. Despite the minor decline, the ratio remains high, indicating a strong capacity to cover debt payments comfortably. This suggests that the company continues to generate ample cash flow relative to its debt obligations, maintaining robust financial stability.

Return on Equity (ROE)

Return on Equity decreased from 18.06% in 2023 to 16.19% in 2024. This ratio measures how effectively the company is using shareholders ' equity to generate profits. The decline indicates a slight reduction in profitability relative to equity. While still strong, the lower ROE suggests that the company’s returns on equity have diminished, potentially due to increased equity base or lower profit margins.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio decreased from 6.45 in 2023 to 5.44 in 2024. This ratio assesses how efficiently the company collects its receivables. A lower ratio suggests that the company is taking longer to collect payments from customers, which could impact liquidity. This decrease may reflect slower collections or changes in credit policies, potentially leading to tighter cash flow.

Trade Payable Turnover Ratio

The trade payable turnover ratio decreased from 3.78 in 2023 to 3.66 in 2024. This ratio measures how quickly the company pays its suppliers. The slight decline indicates that the company is taking marginally longer to settle its payables. This could be a strategy to manage cash flow more effectively or a result of changes in payment terms with suppliers.

Net Capital Turnover Ratio

The net capital turnover ratio decreased from 2.34 in 2023 to 2.07 in 2024. This ratio measures the efficiency of generating sales from the capital employed. The decrease suggests a slight decline in the efficiency of capital utilization to generate revenue. This could imply slower sales growth or increased capital investment without a proportional increase in sales.

Net Profit Ratio

The net profit ratio increased from 10.64% in 2023 to 11.61% in 2024. This ratio indicates the percentage of revenue that is converted into net profit. The improvement reflects better profitability, suggesting that the company has been able to convert a higher percentage of its sales into profit. This increase is indicative of improved operational efficiency or better cost management.

Return on Capital Employed (ROCE)

Return on Capital Employed decreased from 21.56% in 2023 to 19.24% in 2024. This ratio measures how effectively the company is using its capital to generate profits. The decline indicates a slight reduction in profitability relative to capital employed. Although still strong, the decrease suggests that the company may be experiencing lower returns on its capital investments, potentially due to increased capital expenditure or changes in profit margins.