KOKUYO CAMLIN 2022-23 Annual Report Analysis

Mon, 10 Jul

KOKUYO CAMLIN has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

KOKUYO CAMLIN Income Statement Analysis

• Operating income during the year rose 52.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 229.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.0% in FY23 as against 3.2% in FY22.
• Depreciation charges decreased by 4.7% and finance costs increased by 4.6% YoY, respectively.
• Other income grew by 192.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 0.9% in FY22 to 3.2% in FY23.

KOKUYO CAMLIN Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,085	7,749	52.4%
Other income	Rs m	7	21	192.0%
Total Revenues	Rs m	5,092	7,770	52.6%
Gross profit	Rs m	165	544	229.3%
Depreciation	Rs m	177	169	-4.7%
Interest	Rs m	43	45	4.6%
Profit before tax	Rs m	-47	351	NA
Tax	Rs m	0	107	0.0
Profit after tax	Rs m	-47	244	NA
Gross profit margin	%	3.2	7.0
Effective tax rate	%	0.0	30.4
Net profit margin	%	-0.9	3.2

RESPONSE PENDING: Your Meeting with Tanushree Banerjee Tomorrow...

KOKUYO CAMLIN Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 24.5%.
• Current assets rose 27% and stood at Rs 3 billion, while fixed assets fell 2% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 14%.

KOKUYO CAMLIN Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,394	2,626	9.7
Current Liabilities	Rs m	1,377	1,714	24.5
Long-term Debt	Rs m	59	0	-100.0
Total Liabilities	Rs m	3,887	4,423	13.8
Current assets	Rs m	2,141	2,711	26.6
Fixed Assets	Rs m	1,711	1,677	-2.0
Total Assets	Rs m	3,887	4,423	13.8

KOKUYO CAMLIN Cash Flow Statement Analysis

• KOKUYO CAMLIN's cash flow from operating activities (CFO) during FY23 stood at Rs 275 million, an improvement of 54.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -74 million, an improvement of 32.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -188 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 12 million from the Rs 3 million net cash flows seen during FY22.

KOKUYO CAMLIN Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	178	275	54.4%
Cash Flow from Investing Activities	Rs m	-56	-74	-
Cash Flow from Financing Activities	Rs m	-119	-188	-
Net Cash Flow	Rs m	3	12	319.2%

Current Valuations for KOKUYO CAMLIN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.4, an improvement from the EPS of Rs -0.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 122.6, stands at 50.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 17.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	50.7	77.3
TTM Earnings per share	Rs	-0.5	2.4
Diluted earnings per share	Rs	-0.5	2.4
Price to Cash Flow	x	45.7	17.8
TTM P/E ratio	x	-125.4	50.3
Price / Book Value ratio	x	2.8	2.8
Market Cap	Rs m	6,623	7,332
Dividends per share (Unadj.)	Rs	0.0	0.5

Ratio Analysis for KOKUYO CAMLIN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY23, from 1.6x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 8.9x during FY23, from -0.1x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 9.3% during FY23, from -2.0% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 15.1% during FY23, from -0.2% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 6.5% during FY23, from -0.1% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.6	1.6
Debtors’ Days	Days	427	346
Interest coverage	x	-0.1	8.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-0.1	6.5
Return on equity	%	-2.0	9.3
Return on capital employed	%	-0.2	15.1

To see how KOKUYO CAMLIN has performed over the last 5 years, please visit here.

KOKUYO CAMLIN Share Price Performance

Over the last one year, KOKUYO CAMLIN share price has moved up from Rs 57.6 to Rs 122.6, registering a gain of Rs 65.0 or around 112.8%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 18,857.9 (down 0.7%). Over the last one year it has moved up from 14,868.3 to 18,857.9, a gain of 3,990 points (up 26.8%).

Overall, the S&P BSE SENSEX is up 23.0% over the year.

(To know more, check out historical annual results for KOKUYO CAMLIN and quarterly results for KOKUYO CAMLIN)