Federal Mogul Anand Sealings India Ltd Annual Report and Financials

Federal Mogul Anand Sealings India Limited Consolidated Balance Sheet (All amounts in INR million, unless otherwise stated)

Particulars	31-03-2025	31-03-2024
Non-current assets
Property, plant and equipment	213.96	226.58
Capital work-in-progress	43.58	25.60
Intangible assets	0.77	1.36
Financial assets
1.     Other financial assets	23.85	3.64
Current tax assets (net)	16.68	14.15
Other non-current assets	13.38	10.56
Deferred tax assets (net)	11.83	-
Current assets
Inventories	137.40	123.64
Trade receivables	234.96	168.23
Cash and cash equivalents	49.11	49.48
Other financial assets	2.79	4.08
Other current assets	11.19	10.44
Total Assets	759.50	637.76
Equity
Equity share capital	8.33	8.33
Other equity	173.25	80.90
Non controlling interest
Non-current liabilities
Lease liabilities
Provisions	5.09	2.91
Deferred tax liabilities (net)
Current liabilities
Financial liabilities
i.               Borrowings	305.00	355.00
ii.             Trade payables
(a)   Total outstanding dues of micro enterprises and small enterprises	29.49	42.81
(b)  Total outstanding dues of creditors other than micro enterprises and small enterprises	218.57	133.57
iii.            Other financial liabilities	4.84	6.32
Other current liabilities	13.87	7.40
Provisions	1.06	0.50
Total Equity and Liabilities	759.50	637.76

 

Federal Mogul Anand Sealings India Limited Consolidated Profit & Loss Statement (All amounts in INR million, unless otherwise stated)

Particulars	31-03-2024	31-03-2023
Income
Revenue from operations	1067.14	1102.53
Other income	0.80	2.65
Total Income	1067.94	1105.18
Expenses
Cost of materials consumed	625.75	662.66
Changes in inventories of finished goods, work-in progress and stock-in-trade	(6.34)	(0.69)
Employee benefits expenses	101.14	82.78
Finance costs	28.58	35.42
Depreciation and amortisation expense	36.03	33.39
Other expenses	183.18	185.72
Total expenses	968.34	999.28
Profit before tax	99.60	5.90
Current tax (including for earlier years)	17.83	-
Deferred tax (credit)	(11.65)	-
Tax related to earlier years	0.24	3.06
Profit for the year after tax	93.18	2.84
Other comprehensive (income)/loss
Items that will not be reclassified to profit or loss
Remeasurements of the post employment defined benefit plans (gain)/loss	(1.03)	(1.37)
Income tax relating to items that will not be reclassified to profit or loss	0.18	-
Total comprehensive income for the year	92.33	1.47
Earnings per equity share
Basic	11.18	0.34
Diluted	11.18	0.34

 Federal Mogul Anand Sealings India Limited Consolidated Cash Flow Statement(All amounts in INR million, unless otherwise stated)

 

Particulars	2025	2024
A. Cash flow from operating activities
Profit before tax	99.60	5.90
Adjustments for:
Depreciation of property, plant and equipment	35.47	32.83
Amortisation of intangible assets	0.56	0.56
Provision for expected credit loss	3.35	(1.33)
Liabilities written back	(0.13)	(2.64)
Interest income on bank deposits	(0.30)	(0.01)
Finance costs	28.58	35.42
Unrealised foreign exchange (gain)/loss	0.11	0.26
Loss on disposal of property, plant & equipment	0.05	4.04
Operating cash flows  before working capital changes	167.29	75.03
Change in operating assets and liabilities
(Increase)/Decrease in Inventories	(13.76)	50.00
(Increase)/Decrease in Trade receivables	(71.15)	39.80
(Increase)/Decrease in Financial and other assets	(18.64)	13.04
Increase/(Decrease) in Trade paybales	71.81	(19.28)
Increase/(Decrease) in Financial and other current liability	4.99	(1.61)
Increase/(Decrease) in Provisions	0.93	(1.25)
Cash generated from operations	141.47	155.73
Income taxes paid (net of refunds)	(2.44)	(3.51)
Net cash from /(used in) Operating Activities (A)	139.03	152.22
B. Cash flow from investing activities
Purchase of property, plant and equipment and intangible assets	(40.91)	(42.77)
Movement in fixed deposits	(20.21)	-
Interest received	0.30	-
Net cash from/(used in) investing activities (B)	(60.82)	(42.77)
C. Cash flow from financiang activities
Repayment of short term borrowings	(50.00)	(65.60)
Proceeds from short term borrowings	-	40.00
Interest paid	(25.58)	(35.42)
Net cash from/(used in) financing activities(C)	(78.58)	(61.02)
Net increase/(decrease) in cash and cash equivalents (A)+(B)+(C)	(0.37)	48.43
Cash and cash equivalents at the beginning of the financial year	49.48	1.05
Cash and cash equivalents at end of the year	49.11	49.48

 Cash Flow Statement Analysis

1. Cash Flow from Operating Activities

The Company reported a significant improvement in Profit Before Tax, increasing to INR 99.60 million in FY 2025 from INR 5.90 million in FY 2024, reflecting improved operational performance.

After considering non-cash adjustments such as depreciation (INR 35.47 million), amortisation (INR 0.56 million), finance costs (INR 28.58 million), and provision for expected credit loss (INR 3.35 million), operating cash flow before working capital changes stood at INR 167.29 million in FY 2025 compared to INR 75.03 million in FY 2024 — more than doubling year-on-year.

However, working capital movements impacted cash generation in FY 2025:

• Inventories increased by INR 13.76 million (cash outflow), compared to a reduction of INR 50.00 million in FY 2024.

• Trade receivables increased significantly by INR 71.15 million (cash outflow), whereas FY 2024 saw a reduction of INR 39.80 million.

• Trade payables increased by INR 71.81 million (cash inflow), partially offsetting the working capital outflow.

Due to these movements, cash generated from operations stood at INR 141.47 million in FY 2025 compared to INR 155.73 million in FY 2024.

After tax payments of INR 2.44 million, net cash from operating activities amounted to INR 139.03 million in FY 2025 as against INR 152.22 million in FY 2024.

Overall Assessment:
While profitability improved substantially, higher receivables and inventory buildup reduced operating cash conversion in FY 2025. Nevertheless, operating cash flows remain strong and sufficient to support business requirements.

2. Cash Flow from Investing Activities

Net cash used in investing activities increased to INR 60.82 million in FY 2025 compared to INR 42.77 million in FY 2024.

Key components:

• Capital expenditure on property, plant and equipment amounted to INR 40.91 million (similar to prior year).

• Additional investment in fixed deposits resulted in an outflow of INR 20.21 million.

• Interest income received was INR 0.30 million.

Overall Assessment:
The Company continues to invest steadily in capital assets, indicating maintenance or expansion of operational capacity. The increase in fixed deposits suggests prudent treasury management.

3. Cash Flow from Financing Activities

Net cash used in financing activities was INR 78.58 million in FY 2025 compared to INR 61.02 million in FY 2024.

Major movements include:

• Repayment of short-term borrowings amounting to INR 50.00 million.

• No new short-term borrowings in FY 2025 (FY 2024 had inflow of INR 40.00 million).

• Interest payments reduced to INR 25.58 million from INR 35.42 million.

Overall Assessment:
The Company reduced its reliance on short-term borrowings and continued debt servicing, reflecting improved financial discipline and strengthening of the balance sheet.

4. Net Movement in Cash & Cash Equivalents

• Net decrease in cash during FY 2025: INR 0.37 million

• Net increase in cash during FY 2024: INR 48.43 million

• Closing cash balance FY 2025: INR 49.11 million

• Closing cash balance FY 2024: INR 49.48 million

Despite higher investing and financing outflows, strong operating cash flows helped maintain a stable cash position.

Overall Conclusion

In FY 2025, Federal-Mogul Sealings India Limited demonstrated:

• Significant improvement in profitability.

• Strong operating cash generation.

• Controlled capital expenditure.

• Active debt repayment and reduced borrowing dependence.

• Stable liquidity position.

Although working capital absorption increased during the year, the Company’s operating strength and disciplined financial management indicate improved financial stability and sustainable cash flow generation.

Financial Ratios of Federal Mogul Anand Sealings India Limited

Particulars	2025	2024
Current ratio	0.76	0.65
Debt Service coverage ratio	5.75	2.11
Return on equity ratio	68.81%	3.21%
Inventory turnover ratio	4.75	4.45
Trade receivables turnover ratio	5.29	5.29
Trade Payables turnover ratio	2.98	3.28
Net capital turnover ratio	(7.77)	(5.28)
Net profit ratio	8.73%	0.28%
Return on capital employed	0.26	0.09
Debt to equity ratio	1.68	3.98

 

Ratio-wise Analysis of  Federal Mogul Sealings India Limited

1. Current Ratio

• FY 2025: 0.76

• FY 2024: 0.65

The current ratio has improved during FY 2025, indicating a better short-term liquidity position compared to the previous year. However, as the ratio remains below 1, current liabilities continue to exceed current assets. This suggests tight working capital management and reliance on efficient cash flow generation to meet short-term obligations.

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2. Debt to Equity Ratio

• FY 2025: 1.68

• FY 2024: 3.98

There has been a substantial reduction in the debt-to-equity ratio, reflecting repayment of borrowings and strengthening of the equity base due to improved profitability. The decline in leverage significantly reduces financial risk and improves the Company’s long-term solvency position.

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3. Debt Service Coverage Ratio (DSCR)

• FY 2025: 5.75

• FY 2024: 2.11

The DSCR has improved sharply, indicating a strong capacity to service interest and principal obligations from operating earnings. A ratio of 5.75 reflects excellent debt servicing capability and enhanced financial stability.

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4. Return on Equity (ROE)

• FY 2025: 68.81%

• FY 2024: 3.21%

ROE has increased significantly, demonstrating a substantial improvement in profitability and value generation for shareholders. The sharp rise reflects stronger net earnings combined with improved capital efficiency.

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5. Net Profit Ratio

• FY 2025: 8.73%

• FY 2024: 0.28%

The Company has moved from a near break-even position in FY 2024 to a healthy profit margin in FY 2025. This improvement indicates better cost control, operational efficiency, and improved pricing or volume performance.

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6. Return on Capital Employed (ROCE)

• FY 2025: 0.26 (26%)

• FY 2024: 0.09 (9%)

ROCE has improved considerably, showing more efficient utilization of both debt and equity capital. This reflects improved operating performance and stronger returns on total invested funds.

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7. Inventory Turnover Ratio

• FY 2025: 4.75 times

• FY 2024: 4.45 times

The slight increase indicates improved inventory management and faster movement of stock. Efficient inventory turnover supports better working capital utilization and reduces holding costs.

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8. Trade Receivables Turnover Ratio

• FY 2025: 5.29 times

• FY 2024: 5.29 times

The ratio remains unchanged, reflecting consistent credit policies and stable collection efficiency. While there is no significant improvement, the Company has maintained effective receivables management.

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9. Trade Payables Turnover Ratio

• FY 2025: 2.98 times

• FY 2024: 3.28 times

The decrease suggests that the Company is taking slightly longer to pay suppliers. This may be a working capital management strategy to conserve cash, but prolonged delays should be carefully managed to maintain supplier relationships.

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10. Net Capital Turnover Ratio

• FY 2025: (7.77)

• FY 2024: (5.28)

The negative ratio indicates negative working capital, meaning current liabilities exceed current assets. While this structure can be sustainable in certain manufacturing industries, it reflects reliance on supplier credit and efficient cash conversion cycles.

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Overall Conclusion

During FY 2025, Federal-Mogul Sealings India Limited has shown substantial improvement in profitability, capital efficiency, and debt servicing capability. Financial leverage has reduced significantly, strengthening solvency. However, liquidity remains moderately tight due to negative working capital, requiring continued focus on working capital management.

Overall, the Company’s financial position has improved considerably compared to FY 2024, particularly in terms of profitability and financial stability.