Guindy Machine Annual Reports, Balance Sheet and Financials

Guindy Machine Tools Limited Balance Sheet (Rs in Lakhs)

 Guindy Machine Tools Limited Profit & Loss Statement (Rs in Lakhs)

 Guindy Machine Tools Limited Consolidated Cash Flow Statement (Rs in Lakhs)

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

Cash Flows from Operating Activities

The net income before taxation and extraordinary items decreased to ₹634.99 lakhs in 2023-24 from ₹816.48 lakhs in 2022-23. This decline indicates reduced profitability in the current year. Adjustments for non-cash expenses included depreciation of ₹147.06 lakhs, slightly lower than ₹172.46 lakhs in the previous year, and interest income of ₹100.11 lakhs, which is a minor increase.

An exceptional item credited to the profit and loss statement due to asset valuation adjustments was recorded at ₹21.71 lakhs. There was also a loss from the sale of property, plant, and equipment amounting to ₹76.79 lakhs, which reflects ongoing asset management activities.

After adjusting for a short provision of prior period tax (₹12.00 lakhs) and interest expenses (₹0.02 lakhs), the operating profit before working capital changes was ₹571.47 lakhs, down from ₹875.50 lakhs in the previous year.

In terms of working capital changes, there were positive adjustments in trade receivables (₹40.66 lakhs) and inventory (₹99.48 lakhs), indicating improved management of these assets. However, there were negative adjustments in other current assets (₹-18.21 lakhs) and current liabilities (₹-26.36 lakhs). Overall, the company generated cash of ₹118.70 lakhs from operations, recovering from a loss of ₹-195.77 lakhs in 2022-23.

After accounting for direct tax payments of ₹-139.82 lakhs, the net cash from operating activities was ₹550.35 lakhs, an improvement from ₹457.60 lakhs in the previous year.

Cash Flows from Investing Activities

The cash flows from investing activities showed a positive net cash flow of ₹183.89 lakhs in 2023-24, a significant turnaround from a cash outflow of ₹-195.98 lakhs in 2022-23. The company made purchases of property, plant, and equipment amounting to ₹-107.44 lakhs, which indicates ongoing capital investments but at a reduced level compared to the prior year’s ₹-308.18 lakhs.

The company generated cash inflows through the sale of property, plant, and equipment (₹191.22 lakhs), demonstrating effective asset management. Additionally, it received interest income of ₹100.11 lakhs, slightly higher than the previous year 's ₹95.56 lakhs.

Cash Flows from Financing Activities

The financing activities reflect a net cash outflow of ₹-708.22 lakhs, although slightly improved from the previous year’s outflow of ₹-727.31 lakhs. The company paid dividends and interim dividends of ₹-708.20 lakhs, which shows a commitment to returning value to shareholders, though it is a significant cash outflow.

Interest paid was minimal at ₹-0.02 lakhs, a reduction from ₹-0.95 lakhs in the previous year.

Net Change in Cash and Cash Equivalents

Overall, the company experienced a net increase in cash and cash equivalents of ₹26.01 lakhs in 2023-24, compared to a substantial decrease of ₹-465.69 lakhs in the prior year. The cash and cash equivalents at the beginning of the period were ₹1,932.85 lakhs, leading to an ending balance of ₹1,958.86 lakhs. This indicates improved liquidity and a better cash position at the end of the year compared to the previous year.

 Financial Ratios of Guindy Machine Tools Limited

Here is a summary of the financial and operational metrics for Guindy Machine Tools Limited for the year 2024 and 2023:

Current Ratio

The current ratio measures the company 's ability to cover its short-term liabilities with its short-term assets. The ratio slightly decreased from 3.86 in 2022-23 to 3.78 in 2023-24, indicating a marginal decline in liquidity. Despite this drop, the company maintains a healthy current ratio, suggesting it can comfortably meet its short-term obligations.

Return on Equity (ROE)

ROE reflects the profitability generated for shareholders relative to their equity investment. The ROE decreased from 15.12% in 2022-23 to 13.24% in 2023-24. This decline indicates that the company generated less profit per unit of equity, which may raise concerns among investors about efficiency in utilizing shareholders’ funds.

Inventory Turnover Ratio

This ratio indicates how efficiently a company manages its inventory. The inventory turnover increased slightly from 1.76 to 1.82, suggesting improved inventory management and quicker sales of stock in 2023-24 compared to the previous year. A higher ratio reflects better sales performance or more effective inventory control.

Trade Receivables Turnover Ratio

This ratio measures how quickly a company collects payments from its customers. The turnover ratio increased from 10.56 in 2022-23 to 10.71 in 2023-24, indicating a slight improvement in the company’s collection efficiency. The company is effectively managing its receivables, allowing for quicker cash flow.

Trade Payables Turnover Ratio

This ratio shows how quickly the company pays its suppliers. The ratio decreased from 6.52 in 2022-23 to 5.85 in 2023-24, suggesting that the company is taking longer to settle its payables. This could reflect improved cash flow management strategies or a delay in payments, which may impact supplier relationships if extended too long.

Net Capital Turnover Ratio

The net capital turnover ratio measures how effectively the company utilizes its working capital to generate revenue. The ratio remained stable, slightly increasing from 1.43 in 2022-23 to 1.44 in 2023-24, indicating consistent efficiency in using working capital to support sales.

Return on Capital Employed (ROCE)

ROCE measures a company 's profitability relative to its capital employed. The ROCE declined from 20.63% in 2022-23 to 16.92% in 2023-24, indicating reduced efficiency in generating profits from capital. This decline could signal operational challenges or increased capital investment without a corresponding rise in profits.

Total Capital Turnover Ratio

This ratio assesses how effectively the company uses its total capital to generate sales. It slightly increased from 1.04 in 2022-23 to 1.06 in 2023-24, showing improved utilization of total capital for revenue generation, which is a positive sign for operational efficiency.

Fixed Asset Turnover Ratio

The fixed asset turnover ratio measures how effectively a company generates sales from its fixed assets. This ratio increased from 4.47 in 2022-23 to 5.07 in 2023-24, indicating improved efficiency in utilizing fixed assets to generate revenue, which can reflect better asset management.

Fixed Asset Ratio

This ratio shows the proportion of fixed assets in relation to total assets. A decrease from 0.23 in 2022-23 to 0.21 in 2023-24 indicates a reduction in the reliance on fixed assets, potentially reflecting a shift towards greater liquidity or investment in current assets.

Liquidity Ratio

The liquidity ratio is a measure of the company’s ability to meet its short-term obligations. The ratio improved slightly from 2.53 in 2022-23 to 2.54 in 2023-24, indicating stable liquidity, which is essential for the company to manage short-term liabilities effectively.

Fixed Asset to Current Asset Ratio

This ratio compares fixed assets to current assets. The decrease from 0.24 in 2022-23 to 0.21 in 2023-24 suggests a reduced proportion of fixed assets in relation to current assets, indicating that the company may be prioritizing liquidity and flexibility over long-term asset investment.

Net Profit Ratio

The net profit ratio measures the percentage of revenue that translates into profit. The decrease from 14.60% in 2022-23 to 12.49% in 2023-24 indicates a decline in profitability, suggesting that the company is retaining less of its revenue as profit, which could be due to higher expenses or lower sales margins.

Return on Investment (ROI)

ROI assesses the return generated on investments relative to their cost. The ROI decreased from 15.12% in 2022-23 to 13.24% in 2023-24, reflecting a decline in the effectiveness of the company’s investments in generating profits. This could indicate a need for improved investment strategies or operational efficiencies.

Gross Profit Ratio

The gross profit ratio measures the percentage of revenue that exceeds the cost of goods sold (COGS). The significant decline from 50.31% in 2022-23 to 41.17% in 2023-24 suggests increased costs relative to sales or lower pricing power, which may negatively impact overall profitability.

Operating Profit Ratio

This ratio indicates the proportion of revenue that remains after covering operating expenses. The decline from 16.94% in 2022-23 to 9.68% in 2023-24 reflects a substantial drop in operating profitability, indicating that the company faces challenges in controlling its operating costs or generating sufficient sales to cover them.