GKN Driveline Annual Reports, Balance Sheet and Financials

GKN Driveline India Limited Standalone Balance Sheet (Rs in Millions)

GKN Driveline India Limited Standalone Profit & Loss Statement (Rs in Millions)

GKN Driveline India Limited Standalone Cash Flow Statement (Rs in Millions)

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

Cash Flow from Operating Activities
Operating activities represent the core cash-generating activities of the company. In 2025, the company reported a profit before tax of Rs. 1,303.69 million, up from Rs. 1,158.52 million in 2024. After adding back non-cash items such as depreciation and amortization (Rs. 421.88 million in 2025) and adjusting for finance costs, unrealized forex loss, interest income, provisions, and other adjustments, the operating profit before working capital changes amounted to Rs. 1,679.91 million, an increase from Rs. 1,543.02 million in 2024.

Changes in working capital had a mixed effect: trade receivables decreased cash by Rs. 139.33 million, but this was partially offset by increases in inventories (Rs. 24.57 million) and trade payables (Rs. 31.72 million). Overall, cash generated from operations was Rs. 1,439.32 million, slightly higher than Rs. 1,432.11 million in 2024, showing stable operational cash generation. After paying income taxes of Rs. 362.35 million, the net cash flow from operating activities stood at Rs. 1,076.97 million, slightly lower than Rs. 1,136.06 million the previous year, reflecting higher tax outflows.

Cash Flow from Investing Activities
Investing activities reflect the company’s investment in long-term assets and income from investments. In 2025, the company spent Rs. 284.82 million on capital expenditure, lower than Rs. 398.20 million in 2024, indicating reduced investment in property, plant, or equipment. Proceeds from the sale of assets were modest at Rs. 3.97 million, similar to the previous year, and interest received contributed Rs. 31.88 million to cash inflow. Additionally, a loan repayment of Rs. 50 million brought in cash. Overall, net cash used in investing activities was Rs. 199.19 million, an improvement compared to Rs. 363.39 million in 2024, indicating more efficient management of investments and lower capital spending.

Cash Flow from Financing Activities
Financing activities include cash flows related to debt, equity, and dividend payments. In 2025, the company paid a significant dividend of Rs. 1,308.79 million, which was the primary reason for net cash outflow from financing activities amounting to Rs. 1,326.41 million. This is much higher than Rs. 18.66 million outflow in 2024. Minor cash outflows were for lease repayments (Rs. 17.25 million) and finance costs (Rs. 0.37 million). The substantial dividend payout indicates the company is returning significant cash to shareholders, though it reduces available liquidity.

Overall Cash Position
The net effect of operating, investing, and financing activities resulted in a net decrease in cash of Rs. 448.63 million in 2025, compared to a net increase of Rs. 754.01 million in 2024. Consequently, the closing cash balance stood at Rs. 656.78 million, down from Rs. 1,105.41 million the previous year. The decline primarily reflects the high dividend payout, partially offset by positive cash flow from operations and reduced capital expenditure. Despite the decrease, the company still maintains a healthy cash balance to meet operational and financial needs.

Financial Ratios of GKN Driveline India Limited

Summary of the financial ratios for GKN Driveline India Limited for the year 2025 and 2024:

Current Ratio
The current ratio measures a company’s ability to meet its short-term liabilities with its short-term assets. A ratio above 1 indicates that the company has more current assets than current liabilities, suggesting adequate liquidity. For 31-03-2025, the current ratio is 1.17 compared to 1.05 in 2024. This slight improvement shows that the company’s short-term financial position has strengthened, providing a better cushion to cover its immediate obligations.

Return on Equity (ROE)
ROE indicates how effectively a company generates profits from shareholders’ equity. In 2025, the ROE is 0.31 compared to 0.29 in 2024, meaning the company earned 31% on the equity invested by shareholders, up from 29% the previous year.

Inventory Turnover Ratio
The inventory turnover ratio measures how quickly a company sells and replaces its inventory within a period. In 2025, it stands at 5.79 times compared to 6.05 in 2024. The slight decline indicates that inventory is moving a bit slower than the previous year, which could mean either slower sales or an increase in stock levels.

Trade Receivables Turnover Ratio

This ratio measures how efficiently a company collects its receivables. A higher ratio indicates faster collection. In 2025, the ratio is 8.44, down from 9.72 in 2024, suggesting that the company is taking longer to collect payments from customers. Trade Payables Turnover Ratio
The trade payables turnover ratio shows how quickly a company pays its suppliers. For 2025, the ratio is 3.13 compared to 3.37 in 2024, indicating that the company is paying its suppliers slightly more slowly than before.

Net Capital Turnover Ratio
Net capital turnover indicates how efficiently a company uses its net capital (equity + long-term debt) to generate sales. In 2025, the ratio is 23.95, a significant drop from 61.79 in 2024. This decline shows that the company generated considerably less sales per unit of capital invested, which may suggest lower operational efficiency or higher capital investment without a proportional increase in sales.

Net Profit Margin
The net profit margin reflects the percentage of revenue that is converted into net profit. In 2025, it stands at 8.90%, slightly higher than 8.16% in 2024. This indicates that the company is slightly more effective at controlling costs or generating higher profits from its revenues.

Return on Capital Employed (RCE)
ROCE measures how efficiently a company generates profits from its total capital employed (equity + debt). In 2025, the ratio is 0.4 compared to 0.39 in 2024. This marginal increase indicates that the company is slightly improving its ability to generate returns on the capital invested.