Federal-Mogul Goetze cash falls after dividend payout

Federal-Mogul Goetze (India) Limited reported balance-sheet cash and cash equivalents of Rs 225.312 crore at 30 September 2026, down Rs 603.947 crore from Rs 829.259 crore at 31 March 2026, after paying Rs 522.942 crore in interim and special dividends alongside higher capital expenditure and working-capital absorption.

Why did Federal-Mogul Goetze’s cash balance fall by September 2026?

Federal-Mogul Goetze’s balance-sheet cash and cash equivalents fell to Rs 225.312 crore at 30 September 2026 from Rs 829.259 crore at 31 March 2026. The decline occurred in the first half of financial year 2026-27, when the group paid Rs 522.942 crore of interim and special dividends and recorded a Rs 481.845 crore net decrease in cash and cash equivalents in its cash-flow statement.

Financing activities used Rs 549.354 crore in the half year ended 30 September 2026, compared with Rs 8.583 crore used in the corresponding half of 2025-26. This included the Rs 522.942 crore parent dividend, Rs 19.110 crore paid as dividend by the subsidiary, Rs 6.543 crore of finance costs paid and Rs 0.759 crore of lease-principal repayments.

The cash-flow statement reported closing cash and cash equivalents of Rs 224.312 crore, while the consolidated balance sheet showed Rs 225.312 crore at 30 September 2026. The Rs 1 crore difference reflects fixed deposits subject to a lien, which the cash-flow note excludes from its closing cash figure.

How large was Federal-Mogul Goetze’s dividend payment?

Federal-Mogul Goetze paid Rs 522.942 crore after its board declared a total dividend of Rs 94 per equity share on 27 August 2026. The distribution comprised a Rs 7.50 interim dividend and a Rs 86.50 special dividend on shares with a face value of Rs 10 each.

The board considered 4 September 2026 as the record date for the financial year 2026-27 payment. The interim dividend equalled 75% of face value and the special dividend equalled 865%, with the combined payout substantially exceeding the Rs 25.578 crore of operating cash generated during the six months ended 30 September 2026.

Federal-Mogul Goetze’s cash movement therefore changed from a Rs 46.807 crore increase in the first half of 2025-26 to a Rs 481.845 crore decrease in the first half of 2026-27. The new parent dividend was the largest disclosed financing outflow, while the subsidiary’s dividend payment increased by Rs 13.965 crore year on year.

What happened to Federal-Mogul Goetze’s operating cash flow?

Federal-Mogul Goetze generated Rs 25.578 crore of operating cash in the half year ended 30 September 2026, compared with Rs 75.021 crore a year earlier. Profit before tax declined to Rs 116.536 crore from Rs 131.020 crore, and operating cash flow before working-capital changes declined to Rs 150.074 crore from Rs 160.824 crore.

Working capital absorbed Rs 87.856 crore before tax payments in the 2026 half year, compared with a lower absorption in the prior-year period. Trade receivables absorbed Rs 68.553 crore and inventories absorbed Rs 52.233 crore, partly offset by Rs 43.135 crore generated from higher trade payables.

Income tax paid was Rs 36.640 crore, lower than Rs 48.632 crore in the half year ended 30 September 2025. However, cash flow from operations after working-capital changes fell to Rs 62.218 crore from Rs 123.653 crore, leaving the final operating cash figure at Rs 25.578 crore.

The consolidated balance sheet recorded inventories of Rs 277.023 crore at 30 September 2026, up from Rs 224.790 crore at 31 March 2026. Trade receivables rose to Rs 334.461 crore from Rs 266.437 crore, while trade payables to creditors other than micro and small enterprises increased to Rs 402.460 crore from Rs 356.770 crore.

Did Federal-Mogul Goetze increase capital spending in the period?

Federal-Mogul Goetze spent Rs 107.997 crore on acquiring property, plant and equipment, including capital work-in-progress and capital advances, in the half year ended 30 September 2026. This was Rs 72.307 crore above the Rs 35.690 crore spent in the corresponding half of 2025-26.

Investing activities still generated Rs 41.931 crore of net cash in the 2026 half year, compared with a Rs 19.631 crore outflow a year earlier. A Rs 126.020 crore net movement in bank deposits other than cash and cash equivalents, plus Rs 23.457 crore of interest received, exceeded the capital-spending outflow.

Capital work-in-progress increased to Rs 96.649 crore at 30 September 2026 from Rs 72.463 crore at 31 March 2026. Property, plant and equipment rose to Rs 470.953 crore from Rs 469.510 crore, although the filing does not identify individual projects, product lines or capacity additions behind the spending.

Federal-Mogul Goetze operates predominantly in one reportable segment, manufacturing and sale of auto components. Revenue from operations increased to Rs 1,088.852 crore in the half year ended 30 September 2026 from Rs 974.171 crore a year earlier, while profit after tax declined to Rs 82.580 crore from Rs 96.465 crore.

Conclusion

Federal-Mogul Goetze’s lower September 2026 cash balance reflected several uses of cash, led by the Rs 522.942 crore shareholder payout. Operating cash generation fell by Rs 49.443 crore year on year, while Rs 107.997 crore of capital expenditure and higher balances of receivables and inventories also affected cash availability.

The next disclosures should show whether the Rs 334.461 crore receivables and Rs 277.023 crore inventories convert into operating cash, and whether capital work-in-progress of Rs 96.649 crore continues to rise. Investors can also watch whether future filings continue to show the Rs 1 crore difference between the cash-flow closing figure and the balance-sheet cash balance arising from lien-marked fixed deposits.