Guindy Machine Annual Reports, Balance Sheet and Financials

Guindy Machine Tools Limited Standalone Balance Sheet (Rs. in crores).

Guindy Machine Tools Limited Standalone Profit & Loss Statement (Rs. in crores).

Guindy Machine Tools Limited Standalone Cash Flow Statement (Rs. in crores).

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

Cash Flow from Operating Activities

Operating cash flow turned negative at Rs. -4.17 crores in 2025, compared to a strong positive Rs. 5.50 crores in 2024. This decline is primarily due to the shift from profit (Rs. 6.35 crores) to loss (Rs. -6.66 crores) before tax. Although non-cash adjustments like depreciation provided some support, they were insufficient to offset the operational loss.

Working capital adjustments showed mixed effects. Improvements in trade receivables and inventories contributed positively to cash flow, but increases in provisions and reductions in payables negatively impacted it. Despite generating Rs. 1.89 crores from operations before tax, the final operating cash flow turned negative, indicating weakening core business performance.

Cash Flow from Investing Activities

Investing activities resulted in a major outflow of Rs. -8.43 crores in 2025, compared to an inflow of Rs. 1.84 crores in 2024. The primary reason for this was a significant investment in mutual funds amounting to Rs. 8.51 crores. Additionally, there was lower inflow from the sale of property, plant, and equipment compared to the previous year.

This suggests that the company deployed a large portion of its cash into investments during the year, which contributed heavily to the decline in overall cash balance.

Cash Flow from Financing Activities

Financing activities showed minimal outflow of Rs. -0.01 crores in 2025, compared to a substantial outflow of Rs. -7.08 crores in 2024. The previous year’s outflow was mainly due to dividend payments, which were absent in 2025. This indicates that the company conserved cash by not distributing dividends during the current year.

Liquidity Position and Cash Balance

The cash and cash equivalents dropped significantly to Rs. 6.99 crores at the end of 2025 from Rs. 19.59 crores in 2024. This sharp decline reflects heavy investment activity and negative operating cash flow. While the company still maintains a positive cash balance, the reduction raises concerns about future liquidity if such trends continue.

Financial ratios of Guindy Machine Tools Limited.

Summary of Financial Ratio of the year 2025 and 2024.

Current Ratio

The current ratio improved slightly from 3.80 in 2024 to 3.88 in 2025, indicating a strong liquidity position. The company has sufficient current assets to cover its short-term liabilities. Despite the improvement, the high ratio may also suggest underutilization of current assets.

Return on Equity

Return on equity declined sharply from 13.24% in 2024 to -20.28% in 2025. This indicates that the company moved from profitability to significant losses, resulting in negative returns for shareholders. It reflects poor financial performance and inefficient use of equity capital during the year.

Inventory Turnover Ratio

The inventory turnover ratio decreased from 1.82 to 0.85, showing slower movement of inventory. This suggests weak demand or inefficient inventory management, leading to higher holding costs and possible stock accumulation.

Trade Receivables Ratio

The trade receivables ratio declined from 10.71 to 5.07, indicating slower collection of receivables. This reflects reduced efficiency in credit management and may lead to cash flow constraints.

Trade Payables Turnover Ratio

The trade payables turnover ratio dropped significantly from 5.85 to 1.29, suggesting that the company is taking longer to pay its suppliers. This could indicate liquidity management issues or an attempt to conserve cash.

Net Capital Turnover Ratio

The net capital turnover ratio decreased from 1.44 to 0.56, indicating reduced efficiency in using working capital to generate sales. This reflects weaker operational performance and lower productivity of capital employed in day-to-day operations.

Net Profit Ratio

The net profit ratio declined drastically from 12.49% to -51.89%, indicating a shift from profitability to heavy losses. This shows that the company’s expenses significantly exceeded its revenues, pointing to serious operational and cost management issues.

Return on Capital Employed

Return on capital employed fell from 16.90% to -21.18%, indicating that the company is generating negative returns from its total capital. This reflects poor utilization of both debt and equity funds and declining operational efficiency.

Return on Investment

Return on investment decreased from 13.24% to -20.28%, showing that investments made by the company are now yielding negative returns. This highlights ineffective investment decisions and overall financial underperformance.