GKN Driveline Annual Reports, Balance Sheet and Financials

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

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

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

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

Cash Flow from Operating Activities:

Profit Before Tax:

For the year ending 31-03-2024, the profit before tax is ₹1,158.52 million, up from ₹1,045.26 million for the previous year. This indicates an increase in profitability.

Adjustments for Non-Cash Items:

Depreciation and Amortization: There is a slight decrease in depreciation and amortization expense from ₹413.45 million to ₹412.99 million. This reflects consistent capital asset wear and tear expenses.

Finance Costs: These have decreased from ₹25.89 million to ₹22.54 million, suggesting a reduction in interest expenses.

Unrealised Loss/Gain on Foreign Currency Transactions: The unrealised loss has increased from ₹3.81 million to ₹8.64 million, likely due to foreign currency fluctuations.

Interest Income: Interest income has increased slightly from ₹30.18 million to ₹32.49 million.

Net Gain/Loss on Sale of Assets: There was a loss of ₹3.6 million in 2024 compared to ₹1.51 million in 2023, indicating higher losses from asset disposals.

Write-Down of Inventories: The write-down decreased significantly from ₹31.56 million to ₹5.3 million, implying a reduction in inventory impairments.

Mark to Market Losses/Gains on Forward Contracts: There has been a net gain of ₹4.36 million in 2024 compared to a loss of ₹5.1 million in 2023.

Provisions for Contingencies: There was a reversal of provision of ₹8.84 million in 2024 compared to a provision of ₹2.66 million in 2023.

Doubtful Receivables: The provision for doubtful receivables is minimal, with a slight increase from ₹1.29 million (write-back) to ₹0.24 million.

Operating Profit Before Working Capital Changes:

The operating profit before working capital changes has increased to ₹1,556.60 million from ₹1,420.94 million, reflecting improved operational efficiency.

Changes in Working Capital:

Trade Receivables: There has been a significant increase in trade receivables by ₹284.59 million, indicating more money is tied up in receivables.

Other Assets and Liabilities: Adjustments in other assets and liabilities reflect varied changes, including a decrease in inventories and an increase in trade payables.

Cash Generated from Operations: Overall, cash generated from operations increased to ₹1,432.11 million from ₹1,262.30 million.

Income Tax Paid:

Income tax payments decreased to ₹296.05 million from ₹326.46 million, suggesting a lower effective tax rate or reduced taxable income.

Net Cash Flow from Operating Activities:

The net cash flow from operating activities has increased to ₹1,136.06 million from ₹935.84 million, reflecting a stronger cash generation from core operations.

2. Cash Flow from Investing Activities:

Capital Expenditure:

Capital expenditure increased from ₹292.98 million to ₹398.2 million, indicating higher investment in property, plant, and equipment.

Loans:

There were no loans granted in 2024, but a loan repayment occurred in 2023.

Proceeds from Asset Sales:

Proceeds from the sale of assets increased slightly from ₹3.4 million to ₹4.22 million.

Interest Received:

Interest income received increased marginally to ₹30.59 million from ₹29.65 million.

Net Cash Used in Investing Activities:

The net cash used in investing activities decreased to ₹363.39 million from ₹409.58 million, showing a reduction in net cash outflow for investments.

3. Cash Flow from Financing Activities:

Finance Costs Paid:

Finance costs paid decreased significantly from ₹5.97 million to ₹2.23 million.

Dividend Payments:

There were no dividend payments in 2024, whereas in 2023, there was a substantial dividend payout of ₹1,673.01 million.

Repayment of Lease Liabilities:

Payments for lease liabilities slightly increased from ₹15.65 million to ₹16.43 million.

Net Cash Used in Financing Activities:

The net cash used in financing activities decreased dramatically to ₹18.66 million from ₹1,694.63 million due to the absence of dividend payments in 2024.

4. Net Increase in Cash and Cash Equivalents:

Net Increase:

There was a significant increase in cash and cash equivalents by ₹754.01 million compared to a decrease of ₹1,168.37 million in the previous year.

Cash and Cash Equivalents at Year-End:

The cash and cash equivalents at the end of 2024 rose to ₹1,105.41 million from ₹351.39 million, reflecting a strong improvement in liquidity.

Financial Ratios of GKN Driveline (India) Limited

Here is a summary of the financial and operational metrics for GKN Driveline (India) Limited for the years 2024 and 2023:

Current Ratio: 1.05 (2024) vs. 1.06 (2023)

Insight:

The current ratio has slightly decreased from 1.06 to 1.05. This indicates a marginal reduction in the company 's short-term liquidity. The ratio is still above 1, suggesting that the company can cover its short-term liabilities with its short-term assets, though the cushion is slightly narrower than the previous year.

2. Return on Equity Ratio (ROE): 0.29 (2024) vs. 0.26 (2023)

Insight:

The ROE has improved from 26% to 29%, indicating better returns on shareholders ' equity. This increase suggests that the company has enhanced its profitability and is generating higher returns for its shareholders, reflecting strong financial performance and effective use of equity capital.

3. Inventory Turnover Ratio: 6.05 (2024) vs. 6.13 (2023)

Insight:

The inventory turnover ratio has slightly decreased from 6.13 to 6.05. This small decline indicates a minor reduction in how efficiently the company is managing its inventory. While the ratio is still strong, it suggests a slight increase in inventory levels relative to sales or a marginal slowdown in inventory turnover.

4. Trade Receivables Turnover Ratio: 9.72 (2024) vs. 10.13 (2023)

Insight:

The trade receivables turnover ratio has decreased from 10.13 to 9.72. This decline indicates that the company is taking slightly longer to collect its receivables compared to the previous year. It could suggest an increase in credit sales or delays in collection, which may impact cash flow.

5. Trade Payables Turnover Ratio: 3.25 (2024) vs. 3.14 (2023)

Insight:

The trade payables turnover ratio has increased from 3.14 to 3.25. This improvement means the company is paying off its trade payables slightly faster than before, which can be a positive sign of efficient supplier payments and good vendor relationships.

6. Net Capital Turnover Ratio: 61.79 (2024) vs. 67.58 (2023)

Insight:

The net capital turnover ratio has decreased from 67.58 to 61.79. This decline suggests that the company is generating slightly less revenue per unit of net capital employed. It may indicate a reduction in capital efficiency or increased capital investment with slower revenue growth.

7. Net Profit Ratio: 8.16% (2024) vs. 7.85% (2023)

Insight:

The net profit ratio has improved from 7.85% to 8.16%. This increase indicates that the company’s net profit margin has improved, reflecting better overall profitability. It shows that the company is managing its costs effectively and generating higher profit from its sales.

8. Return on Capital Employed (ROCE): 0.39 (2024) vs. 0.36 (2023)

Insight:

ROCE has increased from 36% to 39%. This improvement signifies that the company is using its capital more efficiently to generate profits. A higher ROCE indicates better financial performance and efficient utilization of capital.

9. Return on Investment (ROI): 0.29 (2024) vs. 0.26 (2023)

Insight:

ROI has increased from 26% to 29%, reflecting a higher return on investments. This improvement suggests that the company 's investments are yielding better returns, demonstrating effective investment strategies and operational efficiency.