Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

War Profits
Revealing a Potential 33x
Opportunity in Defence




**Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
**By submitting your email address, you also sign up for Profit Hunter, a Free-for-life newsletter from Equitymaster,
which offers the most profitable investing ideas in India.


AD

KANSAI NEROLAC 2021-22 Annual Report Analysis
Wed, 8 Jun

KANSAI NEROLAC has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

KANSAI NEROLAC Income Statement Analysis

  • Operating income during the year rose 25.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 24.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.2% in FY22 as against 17.0% in FY21.
  • Depreciation charges increased by 2.7% and finance costs increased by 20.4% YoY, respectively.
  • Other income declined by 33.5% YoY.
  • Net profit for the year declined by 34.7% YoY.
  • Net profit margins during the year declined from 10.4% in FY21 to 5.4% in FY22.

KANSAI NEROLAC Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 50,743 63,694 25.5%
Other income Rs m 382 254 -33.5%
Total Revenues Rs m 51,125 63,948 25.1%
Gross profit Rs m 8,633 6,494 -24.8%
Depreciation Rs m 1,653 1,698 2.7%
Interest Rs m 237 286 20.4%
Profit before tax Rs m 7,125 4,764 -33.1%
Tax Rs m 1,867 1,333 -28.6%
Profit after tax Rs m 5,257 3,432 -34.7%
Gross profit margin % 17.0 10.2
Effective tax rate % 26.2 28.0
Net profit margin % 10.4 5.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Get Bullish: 3 Next-Generation Defence Stocks

KANSAI NEROLAC Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 13 billion as compared to Rs 12 billion in FY21, thereby witnessing an increase of 6.9%.
  • Long-term debt down at Rs 109 million as compared to Rs 172 million during FY21, a fall of 36.4%.
  • Current assets rose 2% and stood at Rs 32 billion, while fixed assets rose 5% and stood at Rs 25 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 57 billion as against Rs 55 billion during FY21, thereby witnessing a growth of 3%.

KANSAI NEROLAC Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 40,529 41,322 2.0
 
Current Liabilities Rs m 12,405 13,261 6.9
Long-term Debt Rs m 172 109 -36.4
Total Liabilities Rs m 55,334 57,094 3.2
 
Current assets Rs m 31,779 32,303 1.6
Fixed Assets Rs m 23,555 24,791 5.2
Total Assets Rs m 55,334 57,094 3.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



KANSAI NEROLAC Cash Flow Statement Analysis

  • KANSAI NEROLAC's cash flow from operating activities (CFO) during FY22 stood at Rs 248 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs 2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -361 million from the Rs -802 million net cash flows seen during FY21.

KANSAI NEROLAC Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 6,459 248 -96.2%
Cash Flow from Investing Activities Rs m -4,528 2,495 -
Cash Flow from Financing Activities Rs m -2,742 -3,093 -
Net Cash Flow Rs m -802 -361 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for KANSAI NEROLAC

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.4, an decline from the EPS of Rs 9.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 402.5, stands at 63.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 3.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 57.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 94.2 118.2
TTM Earnings per share Rs 9.8 6.4
Diluted earnings per share Rs 9.8 6.4
Price to Cash Flow x 46.8 57.6
TTM P/E ratio x 61.6 63.2
Price / Book Value ratio x 6.7 7.1
Market Cap Rs m 272,855 295,382
Dividends per share (Unadj.) Rs 5.3 2.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for KANSAI NEROLAC

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.4x during FY22, from 2.6x during FY21. 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 17.7x during FY22, from 31.0x during FY21. 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 8.3% during FY22, from 13.0% during FY22. 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 12.2% during FY22, from 18.1% during FY21. 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 6.5% during FY22, from 9.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 2.6 2.4
Debtors’ Days Days 7 6
Interest coverage x 31.0 17.7
Debt to equity ratio x 0.0 0.0
Return on assets % 9.9 6.5
Return on equity % 13.0 8.3
Return on capital employed % 18.1 12.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how KANSAI NEROLAC has performed over the last 5 years, please visit here.

KANSAI NEROLAC Share Price Performance

Over the last one year, KANSAI NEROLAC share price has moved down from Rs 591.1 to Rs 402.5, registering a loss of Rs 188.6 or around 31.9%.

Overall, the S&P BSE SENSEX is up 5.5% over the year.

(To know more, check out historical annual results for KANSAI NEROLAC and quarterly results for KANSAI NEROLAC)

Annual Report FAQs

What is the current share price of KANSAI NEROLAC?

KANSAI NEROLAC currently trades at Rs 500.1 per share. You can check out the latest share price performance of KANSAI NEROLAC here...

What was the revenue of KANSAI NEROLAC in FY22? How does it compare to earlier years?

The revenues of KANSAI NEROLAC stood at Rs 63,948 m in FY22, which was up 25.1% compared to Rs 51,125 m reported in FY21.

KANSAI NEROLAC's revenue has grown from Rs 45,786 m in FY18 to Rs 63,948 m in FY22.

Over the past 5 years, the revenue of KANSAI NEROLAC has grown at a CAGR of 8.7%.

What was the net profit of KANSAI NEROLAC in FY22? How does it compare to earlier years?

The net profit of KANSAI NEROLAC stood at Rs 3,432 m in FY22, which was down -34.7% compared to Rs 5,257 m reported in FY21.

This compares to a net profit of Rs 5,158 m in FY20 and a net profit of Rs 4,477 m in FY19.

Over the past 5 years, KANSAI NEROLAC net profit has grown at a CAGR of -9.6%.

What does the cash flow statement of KANSAI NEROLAC reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of KANSAI NEROLAC reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 248 m as compared to Rs 6,459 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs 2,495 m as compared to Rs -4,528 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -3,093 m as compared to Rs -2,742 m in FY21.

Here's the cash flow statement of KANSAI NEROLAC for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations3,6009995,9516,459248
From Investments-1,627885-3,762-4,5282,495
From Financial Activity-1,916-2,229-1,407-2,742-3,093
Net Cashflow57-347782-802-361

What does the Key Ratio analysis of KANSAI NEROLAC reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of KANSAI NEROLAC reveals:

  • Operating profit margins witnessed a fall and stood at 10.2% in FY22 as against 17.0% in FY21.
  • Net profit margins declined from 10.4% in FY21 to 5.4% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

Here's the ratio/financial analysis of KANSAI NEROLAC for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)17.613.915.217.010.2
Net Profit Margin (%)11.48.39.810.45.4
Debt to Equity Ratio (x)0.00.00.00.00.0

Equitymaster requests your view! Post a comment on "KANSAI NEROLAC 2021-22 Annual Report Analysis". Click here!