GFCL EV Products Annual Reports, Balance Sheet and Financials

GFCL EV Products Limited Consolidated Balance Sheet (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Non-Current Assets
Property, Plant and Equipment	48,042.02	44,114.42
Capital Work-in-Progress	57,682.54	17,739.64
Right of use assets	717.92	708.32
Other non-current financial assets	144.94	90.75
Deferred tax assets	580.21	74.01
Other non-current assets	25,575.26	12,511.64
Income tax Assets	43.90	7.02
Current Assets
Inventories	13,181.75	3,502.85
Other investments	18,834.10	-
Trade Receivable	982.24	39.52
Cash And Cash Equivalents	530.38	30.63
Other currentr financial assets	-	0.10
Other Current Assets	186.33	2,452.52
Total Assets	1,66,501.59	81,271.42
Equity
Equity Share Capital	73,035.52	70,752.66
Other Equity	78,141.62	-675.53
Non Current Liabilities
Borrowings	-	4,522.08
Lease Liabilities	525.87	489.62
Provisions	264.32	154.33
Current Liabilities
Lease Liabilities	12.71	10.46
Trade Payables:
Total Outstanding dues of Micro and Small enterprises	725.75	412.27
Total dues other then Micro and Small enterprises	3,710.49	1,702.45
Other Current Financial Liabilities	9,318.70	3,651.16
Other Current Liabilities	742.68	128.91
Provisions	23.93	123.01
Total Equity and Liabilities	1,66,501.59	81,271.42

GFCL EV Products Limited Consolidated Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operations	944.30	36.82
Other Income	2,091.95	22.1
Total Income	3,036.25	58.92
Expenses
Cost of Materials Consumed	6,519.63	624.35
Changes in Inventories of finished goods, stock in trade and WIP	-6,479.61	-631.34
Power & Fuel	865.79	52.57
Employee Benefit Expense	994.28	44.09
Finance Costs	264.50	52.78
Depreciation	2,251.57	154.06
Other Expenses	1,823.58	124.83
Total Expenses	6,239.74	421.34
Loss before Tax	-3,203.49	-362.42
Deferred Tax	-504.31	-61.85
Taxation pertaining to earlier years	1.39	-
Loss for the Year	-2,700.57	-300.57
Other Comprehensive Income
Items that will not be reclassified to profit or loss:
Re-measeurement of the defined benefit plan	-11.04	-70.84
Tax on above	1.89	12.16
Items that will be reclassified to profit or loss:
Exchange differences in translating the financial statements of foreign operations	17.24	-
Total Comprehensive Income for the Year	-2,692.48	-359.35
Basic and Diluted loss per Equity share	-0.04	-0.01

 GFCL EV Products Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Loss for the Year	-2,700.57	-300.57
Adjustment for:
Tax Expenses	-502.92	-61.85
Depreciation	2,251.57	154.06
Liabilities and provisions no longer required, written back	-0.87	-
Unrealized foreign exchange loss (net)	4.66	0.04
Gain on fair value changes in investments classified at FVTPL (net)	-1,756.01	-
Interest Income	-330.74	-4.94
Finance Costs	264.50	52.78
Exchange difference on translation of assets and liabilities of foreign subsidiaries	17.24	-
Operating Profit before Working Capital Charges	-2,753.14	-160.48
Movement in Working Capital:
(Increase)/Decrease in Inventories	-9,678.90	-3,502.85
(Increase)/Decrease in Trade Receivables	-942.72	-39.52
(Increase)/Decrease in Other financial assets	-49.59	5.87
(Increase)/Decrease in Other Assets	-5,721.77	-4,730.03
Increase/(Decrease) in Provisions	-0.13	131.23
Increase/(Decrease) in Trade Payables	2,317.88	2,011.20
Increase/(Decrease) in Other Financial liablities	805.08	224.62
Increase/(Decrease) in Other Liabilities	613.77	-21.44
Cash generated from Operations	-15,409.51	-6,081.40
Income Tax paid (net)	-38.27	-4.11
Net Cash Flow From Operating Activities	-15,447.78	-6,085.51
Cash Flow from Investing Activities
Purchase of Property, plant & Equipment	-44,382.61	-28,770.77
Payments for acquiring right-of-use assets	-71.57	-
Purchase of other current investments	-81,995.90	-
Redemption/sale of other current investments	64,917.81	-
Interest income	326.07	-
Net Cash Flow From Investing Activities	-61,206.20	-28,770.77
Cash Flow from Financing Activities
Proceeds from Issue of equity shares	78,792.49	31,452.85
Proceeds from issue of share warrants	5,000.00	-
Proceeds from/(repayment of) current borrowings (net)	-	-1,109.36
Proceeds from inter-corporate deposits received from holding company	29,975.00	4,500.00
Repayment of inter-corporate deposits received from holding company	-34,475.00	-
Payment of lease liabilities	-68.00	-60.00
Finance Costs	-2,070.76	-53.14
Net Cash Flow From Financing Activities	77,153.73	34,730.35
Net Increase in Cash & Cash Equivalents	499.75	-125.93
Cash  & Cash equivalents at the beginning of the Year	30.63	156.56
Cash & Cash equivalents at the end of the Year	530.38	30.63

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

The company reported a net loss of ₹2,700.57 lakhs in FY25, which is significantly higher than the previous year’s loss of ₹300.57 lakhs. While non-cash adjustments such as depreciation (₹2,251.57 lakhs) and finance costs (₹264.50 lakhs) provided some add-back to cash flow, these were outweighed by a sharp negative impact from working capital movements. Inventories alone increased by ₹9,678.90 lakhs, indicating either heavy stockpiling of raw materials or slower sales conversion. Trade receivables and other assets also rose, further straining cash. Although trade payables and other liabilities increased, they weren’t enough to offset the drain. As a result, net operating cash outflow widened to ₹15,447.78 lakhs in FY25, compared to ₹6,085.51 lakhs in FY24. This suggests that the company is still in an aggressive growth or buildup phase, with operations consuming large amounts of cash.

Cash Flow from Investing Activities

Investing activities show a very large outflow, reflecting heavy capital expenditure and investment in securities. The company spent ₹44,382.61 lakhs on property, plant, and equipment in FY25 (up from ₹28,770.77 lakhs in FY24), highlighting ongoing capacity expansion in the EV space. A significant new activity in FY25 was the purchase of current investments worth ₹81,995.90 lakhs, partly funded by redemptions of ₹64,917.81 lakhs. This pattern indicates short-term treasury or liquidity management, but still resulted in a net outflow. Altogether, the investing cash outflow stood at ₹61,206.20 lakhs in FY25, more than double the outflow of the prior year. This confirms that the company is in an investment-heavy stage, prioritizing future growth over short-term liquidity.

Cash Flow from Financing Activities

To support its large operating and investing outflows, the company raised substantial financing. Proceeds from the issue of equity shares stood at ₹78,792.49 lakhs in FY25, much higher than the ₹31,452.85 lakhs raised in FY24. In addition, ₹5,000 lakhs was raised through share warrants, and significant support came in the form of inter-corporate deposits (₹29,975 lakhs received) from the holding company, though part of it (₹34,475 lakhs) was repaid during the year. Despite higher finance costs (₹2,070.76 lakhs) and lease repayments, financing activities resulted in a strong net inflow of ₹77,153.73 lakhs in FY25, compared to ₹34,730.35 lakhs in FY24. This shows strong backing from investors and the parent company, reflecting confidence in the EV expansion plans.

Net Increase in Cash and Cash Equivalents

Despite huge operational losses and heavy investments, the company ended FY25 with a positive net cash increase of ₹499.75 lakhs, against a decline of ₹125.93 lakhs in FY24. This turnaround was only possible due to the massive infusion of equity and funds from financing sources, which outweighed the operating and investing cash drain. Cash and cash equivalents closed at ₹530.38 lakhs in FY25, up from just ₹30.63 lakhs in FY24.

Financial Ratios of Standalone GFCL EV Products

Particulars	2025	2024
Current Ratio	2.22	0.97
Debt Equity Ratio	0.004	0.07
Return on Equity	-2.28%	-0.55%
Inventory Turnover Ratio	0.11	0.01
Trade Receivables Turnover Ratio	1.85	0.93
Trade Payables Turnover Ratio	1.65	0.34
Net Capital Turnover Ratio	0.17	0.03
Net Profit Ratio	-267.23%	-816.32%
Return on Capital Employed	-1.83%	-0.41%

Summary of the financial ratios of GFCL EV Products Limited for the year 2025 & 2024:

Current Ratio

The current ratio improved significantly to 2.22 in FY25 from 0.97 in FY24. This indicates that the company now has more than twice the current assets compared to current liabilities, suggesting better short-term liquidity. The improvement likely comes from higher infusion of equity and growth in current assets. While this looks healthy, it also reflects cash and investments raised through financing rather than operational efficiency.

Debt-Equity Ratio

The debt-equity ratio has dropped drastically from 0.07 in FY24 to a very negligible 0.004 in FY25. This means the company is virtually debt-free and almost entirely financed by equity. Such a structure reduces financial risk, but it also shows that expansion is being funded through heavy equity dilution instead of borrowings.

Return on Equity (ROE)

ROE remains negative, deteriorating to -2.28% in FY25 from -0.55% in FY24. Despite large equity infusion, the company is still posting losses, leading to negative returns for shareholders. The widening loss suggests that funds are being used for capacity building and expansion, but profitability has not yet been achieved.

Inventory Turnover Ratio

The inventory turnover ratio improved slightly to 0.11 in FY25 from 0.01 in FY24, but it is still extremely low. This shows that the company holds large volumes of inventory relative to sales, which could be due to slow product movement or ongoing buildup for future demand. Such low turnover ties up cash in stock and indicates inefficiency in converting inventory into sales.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio nearly doubled from 0.93 in FY24 to 1.85 in FY25. This means the company is collecting receivables faster than before, reflecting better credit management and cash recovery. However, the level is still low compared to industry benchmarks, suggesting that a lot of sales are locked up in receivables.

Trade Payables Turnover Ratio

The payables turnover ratio rose sharply from 0.34 in FY24 to 1.65 in FY25. This indicates the company is paying off its suppliers faster than before. While this may improve vendor relationships, it reduces the benefit of supplier credit and puts pressure on liquidity. Ideally, in a growth phase, companies balance payments to suppliers with receivable collection cycles.

Net Capital Turnover Ratio

The net capital turnover ratio increased from 0.03 in FY24 to 0.17 in FY25. This shows that the company is generating more sales per unit of capital employed compared to the previous year, though efficiency is still very low. It suggests that while investments are being made, they are yet to translate into strong revenue generation.

Net Profit Ratio

The net profit ratio remains deeply negative at -267.23% in FY25, though better than -816.32% in FY24. This means that for every ₹100 of revenue, the company is losing ₹267. The improvement shows revenues are rising, but expenses still far outweigh income. The business is not yet profitable and remains in a heavy investment and loss-making phase.

Return on Capital Employed (ROCE)

ROCE worsened slightly from -0.41% in FY24 to -1.83% in FY25. This indicates that the company’s capital—both equity and minimal debt—is not yet generating positive returns. The negative ROCE reflects that heavy capital investments are not yielding sufficient operating profits at this stage.