GKN driveline (India) limited is involved in an automotive manufacturing industry ever since 1985 and has been a vital cog in it due to wide range of expertise it provides within the industry. It is having technical collaboration with GKN Driveline International GmbH, Germany since 2003 and under the collaboration agreement it draws various state of the art technologies from GKN. It did not make any foreign investments or executed any foreign collaboration. GKN Driveline (India) Ltd has five plants. Two plants are in Haryana, one in Maharashtra one in Tamil Nadu and one in Gujarat.
The Company derives revenues primarily from sale of manufactured goods. In the FY22, the firm made net turnover of INR 852 crore and profit before tax of INR 88.9 crore. Whereas in FY21, the Company had registered net turnover of INR 664.4 crore and profit before tax of INR 710 crore. During the same time, the company posted foreign currency inflows of INR 8.31 Mn in comparison to foreign currency inflows of INR 617.55 Mn in the FY21.
The Company derives revenues primarily from sale of manufactured goods. In the FY22, the firm made net turnover of INR 852 crore and profit before tax of INR 88.9 crore. Whereas in FY21, the Company had registered net turnover of INR 664.4 crore and profit before tax of INR 710 crore. During the same time, the company posted foreign currency inflows of INR 8.31 Mn in comparison to foreign currency inflows of INR 617.55 Mn in the FY21.
| DESCRIPTION | Mar-22 | Mar-21 | Mar-20 | Mar-19 | Mar-18 |
|---|---|---|---|---|---|
| Revenue from Operations | 852.83 | 664.39 | 941.51 | 1077.58 | 1096.98 |
| EBIDTA | 137.31 | 120.10 | 138.18 | 114.18 | 171.85 |
| PBT | 88.95 | 70.97 | 83.52 | 50.45 | 127.94 |
| PAT | 65.66 | 56.52 | 63.25 | 13.66 | 78.74 |
| Cash Flow from Operations | 131.75 | 72.08 | 152.44 | 98.23 | 87.17 |
| Cash Flow from Investing activities | -0.49 | -22.59 | -15.15 | -47.69 | -37.90 |
| Cash Flow from Finance activities | -80.76 | -109.15 | -97.14 | -0.20 | -6.95 |
| EPS | 51.40 | 44.25 | 49.52 | 10.70 | 61.64 |
Face Value of the share is INR 10 each.
Company’s top-line showed a growth of 28.36 % during FY22 compared to FY21 mainly due to higher market demand, lockdown removal & ease in supply chain. The profit before interest, tax and depreciation (EBITDA) is INR 137.31 crore as compared to INR 120.1 crore in previous year. EBITDA is better than previous year due to increase in volume, despite increase in cost on various levels such as raw materials, employees etc.
It mainly operates with a low debt-equity ratio. It raises short term rupee borrowings for cash flow mismatches and hence carries no significant liquidity risk. It also has access to the borrowing facilities to honour any liquidity requirements arising for business needs. GKN Driveline India has invested heavily on large investments in debt mutual funds which can be redeemed on a very short notice and hence carries negligible liquidity risk. Better inventory management and increase in sales owing to improved economic conditions in current year helped the firm to achieve inventory turnover ratio of 5.03 in FY22 compared to 3.73 in FY21. During the same period due to increase in profit owing to increase in sales, the return on equity was around 0.19 & 0.13 respectively. Also, the current ratio was 1.07 (FY22) & 1.33 (FY21).
GKN Driveline supplies components to the worldwide IAM and OES markets. They have the most comprehensive portfolio of CV shafts, joint kits, boot kits and prop shafts. They additionally offer a wide range of suspension springs and steering components. The rich engineering heritage enables them to facilitate flexible solutions for tailormade driveshafts, joints and all-wheel-drive systems.
| Production | Domestic Sales | Exports | ||||
|---|---|---|---|---|---|---|
| FY20-21 | FY21-22 | FY20-21 | FY21-22 | FY20-21 | FY21-22 | |
| Passenger Cars | 17,72,972 | 18,84,985 | 15,41,866 | 14,67,056 | 2,64,907 | 3,74,986 |
| Utility Vehicles | 11,82,144 | 16,91,081 | 10,60,750 | 14,89,178 | 1,37,842 | 2,01,036 |
| Vans | 1,07,164 | 1,14,632 | 1,08,841 | 1,13,265 | 1,648 | 1,853 |
| Total Passenger Vehicles | 30,62,280 | 36,90,698 | 27,11,457 | 30,69,499 | 4,04,397 | 5,77,875 |
The passenger vehicle sales grew 13.2% to 30,69,499 units in FY 2021-22 compared to 27,11,457 units in FY 2020-21 sale. Sales of passenger cars stood at 14,67,056 units, utility vehicles at 14,89,178. The UV segment crossed 1.4 million sales for the first time, and it is the only segment registering 40% growth contributed by new launches and strengthening of new players in auto manufacturing.
GKN India is taking various measures to minimize the operational cost by re-negotiating with suppliers, reduction of expenditures, implementation of solar power projects, product localization and planning on cost rationalization. It is also expected to win some new businesses from existing and potential customers due to rise in demand across India.
GKN Driveline International GmbH is major shareholder which holds around 97.03% stake in the firm.
Mr. Anthony Bell - Chairman & Non-Executive Director
Mr. Sanjay Katyal - Managing Director
Mr. Tushar Jain – Chief Financial Officer
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