EVEREST KANTO CYLINDER 2022-23 Annual Report Analysis

Fri, 31 Mar

EVEREST KANTO CYLINDER 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.

EVEREST KANTO CYLINDER Income Statement Analysis

• Operating income during the year fell 25.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 66.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.7% in FY23 as against 23.9% in FY22.
• Depreciation charges increased by 12.9% and finance costs increased by 6.4% YoY, respectively.
• Other income declined by 10.7% YoY.
• Net profit for the year declined by 71.3% YoY.
• Net profit margins during the year declined from 15.6% in FY22 to 6.0% in FY23.

EVEREST KANTO CYLINDER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	16,988	12,745	-25.0%
Other income	Rs m	136	122	-10.7%
Total Revenues	Rs m	17,124	12,866	-24.9%
Gross profit	Rs m	4,065	1,367	-66.4%
Depreciation	Rs m	350	395	12.9%
Interest	Rs m	137	146	6.4%
Profit before tax	Rs m	3,714	947	-74.5%
Tax	Rs m	1,068	188	-82.4%
Profit after tax	Rs m	2,645	759	-71.3%
Gross profit margin	%	23.9	10.7
Effective tax rate	%	28.8	19.9
Net profit margin	%	15.6	6.0

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EVEREST KANTO CYLINDER Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -5.9%.
• Long-term debt stood at Rs 19 million as compared to Rs 7 million during FY22, a growth of 148.6%.
• Current assets rose 5% and stood at Rs 9 billion, while fixed assets rose 9% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 14 billion as against Rs 13 billion during FY22, thereby witnessing a growth of 6%.

EVEREST KANTO CYLINDER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	9,027	9,991	10.7
Current Liabilities	Rs m	3,415	3,214	-5.9
Long-term Debt	Rs m	7	19	148.6
Total Liabilities	Rs m	12,906	13,728	6.4
Current assets	Rs m	8,319	8,749	5.2
Fixed Assets	Rs m	4,479	4,860	8.5
Total Assets	Rs m	12,906	13,728	6.4

EVEREST KANTO CYLINDER Cash Flow Statement Analysis

• EVEREST KANTO CYLINDER's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -787 million, an improvement of 32.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -426 million, an improvement of 62% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -135 million from the Rs -79 million net cash flows seen during FY22.

EVEREST KANTO CYLINDER 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	1,642	1,061	-35.4%
Cash Flow from Investing Activities	Rs m	-594	-787	-
Cash Flow from Financing Activities	Rs m	-1,130	-426	-
Net Cash Flow	Rs m	-79	-135	-

Current Valuations for EVEREST KANTO CYLINDER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.8, an decline from the EPS of Rs 23.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 90.1, stands at 13.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 14.9 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	151.4	113.6
TTM Earnings per share	Rs	23.6	6.8
Diluted earnings per share	Rs	23.6	6.8
Price to Cash Flow	x	8.4	14.9
TTM P/E ratio	x	9.5	13.3
Price / Book Value ratio	x	2.2	1.7
Market Cap	Rs m	20,181	17,179
Dividends per share (Unadj.)	Rs	0.7	0.7

Ratio Analysis for EVEREST KANTO CYLINDER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x during FY23, from 2.4x 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 deteriorated and stood at 7.5x during FY23, from 28.1x 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 declined and down at 7.6% during FY23, from 29.3% 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 declined and down at 10.9% during FY23, from 42.6% 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 declined and down at 6.6% during FY23, from 21.6% 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	2.4	2.7
Debtors’ Days	Days	487	527
Interest coverage	x	28.1	7.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	21.6	6.6
Return on equity	%	29.3	7.6
Return on capital employed	%	42.6	10.9

To see how EVEREST KANTO CYLINDER has performed over the last 5 years, please visit here.

EVEREST KANTO CYLINDER Share Price Performance

Over the last one year, EVEREST KANTO CYLINDER share price has moved down from Rs 224.7 to Rs 90.1, registering a loss of Rs 134.6 or around 59.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 34,369.7 (up 1.2%). Over the last one year it has moved up from 27,506.0 to 34,369.7, a gain of 6,864 points (up 25.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for EVEREST KANTO CYLINDER and quarterly results for EVEREST KANTO CYLINDER)