GKN driveline (India) limited is involved in 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. As it is completely inclined towards catering Indian market, it didn’t engage into overseas collaboration. GKN Driveline (India) Ltd has five plants. Two plants are in Haryana, one in Maharashtra one in Tamil Nadu and one in Gujarat.
Side shafts, Constant Velocity Joints, Driveshaft boots, Prop shafts, Suspension Springs, Steering Components.
GKN Driveline supplies components to the worldwide Independent After Market and Original Equipment Supplier 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.
GKN Driveline (India) primarily derives its revenues from sale of manufacturing goods. In FY23, the firm accounted net turnover of INR 984 crore and profit before tax of INR 104.5 crore. Whereas in FY22, GKN managed to register net turnover worth of INR 852.83 crore and registered profit before tax worth of INR 88.95 crore. During the same time, GKN India witnessed foreign currency inflows worth of INR 56.63 crore in comparison to foreign currency inflows of INR 61.75 crore in the FY22.
| DESCRIPTION | Mar-23 | Mar-22 | Mar-21 | Mar-20 | Mar-19 | Mar-18 |
|---|---|---|---|---|---|---|
| Revenue from Operations | 984.55 | 852.83 | 664.39 | 941.51 | 1077.58 | 1096.98 |
| EBIDTA | 148.46 | 137.31 | 120.10 | 138.18 | 114.18 | 171.85 |
| PBT | 104.5 | 88.95 | 70.97 | 83.52 | 50.45 | 127.94 |
| PAT | 77.3 | 65.66 | 56.52 | 63.25 | 13.66 | 78.74 |
| Cash Flow from Operations | 93.5 | 131.75 | 72.08 | 152.44 | 98.23 | 87.17 |
| Cash Flow from Investing | -40.9 | -0.49 | -22.59 | -15.15 | -47.69 | -37.90 |
| Cash Flow from Finance | -169.4 | -80.76 | -109.15 | -97.14 | -0.20 | -6.95 |
| EPS | 60.53 | 51.40 | 44.25 | 49.52 | 10.70 | 61.64 |
Company’s top-line showed a growth of 15.38 % during FY23 compared to FY22 mainly due to higher market demand, lockdown removal & ease in supply chain. The profit before interest, tax and depreciation (EBITDA) is INR 148.46 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.
The company has 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).
As per the data released by apex automobile body SIAM in FY23, cumulative sales of four vehicle segments- passenger vehicles, commercial vehicles, two & three wheelers were close to 21 million units. Which has shown growth of 20% on YoY basis (FY22- 1,76,17,606). Given the current momentum, FY24 is looking good at this stage albeit the rate of growth will moderate from the high double digits to single digit on the high base of FY23 due to cyclical pattern of automobile industry. However, the segment which might witness the downfall likely to be passenger vehicle.
| INDIA AUTO INC RECORD 20% GROWTH IN FY2023 | |||
|---|---|---|---|
| VEHICLE CATEGORY | Domestic Market Wholesales | ||
| FY2023 | FY2022 | Change % | |
| Passenger Vehicles | |||
| Passenger Cars | 17,47,376 | 14,67,039 | 19% |
| Utility Vehicles | 20,03,718 | 14,89,219 | 35% |
| Vans | 1,39,020 | 1,13,265 | 23% |
| Total PVs | 38,90,114 | 30,39,523 | 27% |
| Commercial Vehicles | |||
| Medium & Heavy CVs | |||
| Passenger Carriers | 38,410 | 11,804 | 225% |
| Goods Carriers | 3,20,593 | 2,28,773 | 40% |
| Total M&HCVs | 3,59,003 | 2,40,577 | 49% |
| Lights CVs (LCVs) | |||
| Passenger Carriers | 44,315 | 19957 | 122% |
| Goods Carriers | 5,59,150 | 456032 | 23% |
| Total LCVs | 603465 | 475989 | 27% |
| Total CVs | 962468 | 716566 | 34% |
| Three- Wheelers | |||
| Passengers Carriers | 361094 | 173356 | 108% |
| Goods Carriers | 97540 | 76174 | 28% |
| Electric Rickshaws | 26654 | 10580 | 152% |
| Electric Carts | 3480 | 1275 | 173% |
| Total Three-Wheelers | 488768 | 261385 | 87% |
| Two Wheelers | |||
| Scooters | 5190018 | 4112672 | 26% |
| Motorcycles | 10230502 | 8984186 | 14% |
| Mopeds | 441567 | 473150 | -7% |
| Total Two- Wheelers | 15862087 | 13570008 | 17% |
| Quadricycles | 725 | 124 | 485% |
| Grand Total | 21204162 | 17617606 | 20% |
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
For any queries, reach out to: unlisted@rurashfin.com or Call: +91 224157 1111