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KINGFA SCIENCE & TECHNOLOGY 2020-21 Annual Report Analysis
Wed, 31 Mar

KINGFA SCIENCE & TECHNOLOGY has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

KINGFA SCIENCE & TECHNOLOGY Income Statement Analysis

  • Operating income during the year fell 15.4% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 53.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.2% in FY21 as against 5.8% in FY20.
  • Depreciation charges increased by 20.5% and finance costs decreased by 6.7% YoY, respectively.
  • Other income grew by 131.4% YoY.
  • Net profit for the year declined by 78.4% YoY.
  • Net profit margins during the year declined from 3.3% in FY20 to 0.8% in FY21.

KINGFA SCIENCE & TECHNOLOGY Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 7,415 6,272 -15.4%
Other income Rs m 26 59 131.4%
Total Revenues Rs m 7,441 6,332 -14.9%
Gross profit Rs m 433 200 -53.7%
Depreciation Rs m 90 108 20.5%
Interest Rs m 35 33 -6.7%
Profit before tax Rs m 333 119 -64.5%
Tax Rs m 87 65 -25.2%
Profit after tax Rs m 246 53 -78.4%
Gross profit margin % 5.8 3.2
Effective tax rate % 26.2 55.1
Net profit margin % 3.3 0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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KINGFA SCIENCE & TECHNOLOGY Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 25.3%.
  • Long-term debt stood at Rs 244 million as compared to Rs 182 million during FY20, a growth of 34.2%.
  • Current assets rose 14% and stood at Rs 4 billion, while fixed assets rose 10% and stood at Rs 3 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 7 billion as against Rs 6 billion during FY20, thereby witnessing a growth of 13%.

KINGFA SCIENCE & TECHNOLOGY Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 3,486 3,540 1.5
 
Current Liabilities Rs m 2,271 2,845 25.3
Long-term Debt Rs m 182 244 34.2
Total Liabilities Rs m 5,963 6,710 12.5
 
Current assets Rs m 3,616 4,122 14.0
Fixed Assets Rs m 2,347 2,589 10.3
Total Assets Rs m 5,963 6,710 12.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



KINGFA SCIENCE & TECHNOLOGY Cash Flow Statement Analysis

  • KINGFA SCIENCE & TECHNOLOGY's cash flow from operating activities (CFO) during FY21 stood at Rs -19 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -139 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 173 million on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 14 million from the Rs -108 million net cash flows seen during FY20.

KINGFA SCIENCE & TECHNOLOGY Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 303 -19 -
Cash Flow from Investing Activities Rs m -629 -139 -
Cash Flow from Financing Activities Rs m 218 173 -20.7%
Net Cash Flow Rs m -108 14 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for KINGFA SCIENCE & TECHNOLOGY

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.4, an decline from the EPS of Rs 20.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 583.4, stands at 132.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 41.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 612.3 517.9
TTM Earnings per share Rs 20.3 4.4
Diluted earnings per share Rs 20.3 4.4
Price to Cash Flow x 13.3 41.3
TTM P/E ratio x 18.2 132.7
Price / Book Value ratio x 1.9 1.9
Market Cap Rs m 6,515 6,652
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for KINGFA SCIENCE & TECHNOLOGY

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY21, from 1.6x during FY20. 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 4.6x during FY21, from 10.4x during FY20. 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 1.5% during FY21, from 7.1% during FY21. 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 4.0% during FY21, from 10.1% during FY20. 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 1.3% during FY21, from 4.7% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 1.6 1.4
Debtors’ Days Days 968 1,233
Interest coverage x 10.4 4.6
Debt to equity ratio x 0.1 0.1
Return on assets % 4.7 1.3
Return on equity % 7.1 1.5
Return on capital employed % 10.1 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how KINGFA SCIENCE & TECHNOLOGY has performed over the last 5 years, please visit here.

KINGFA SCIENCE & TECHNOLOGY Share Price Performance

Over the last one year, KINGFA SCIENCE & TECHNOLOGY share price has moved up from Rs 369.7 to Rs 583.4, registering a gain of Rs 213.7 or around 57.8%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for KINGFA SCIENCE & TECHNOLOGY and quarterly results for KINGFA SCIENCE & TECHNOLOGY)

Annual Report FAQs

What is the current share price of KINGFA SCIENCE & TECHNOLOGY?

KINGFA SCIENCE & TECHNOLOGY currently trades at Rs 1,105.5 per share. You can check out the latest share price performance of KINGFA SCIENCE & TECHNOLOGY here...

What was the revenue of KINGFA SCIENCE & TECHNOLOGY in FY21? How does it compare to earlier years?

The revenues of KINGFA SCIENCE & TECHNOLOGY stood at Rs 6,332 m in FY21, which was down -14.9% compared to Rs 7,441 m reported in FY20.

KINGFA SCIENCE & TECHNOLOGY's revenue has grown from Rs 3,746 m in FY17 to Rs 6,332 m in FY21.

Over the past 5 years, the revenue of KINGFA SCIENCE & TECHNOLOGY has grown at a CAGR of 14.0%.

What was the net profit of KINGFA SCIENCE & TECHNOLOGY in FY21? How does it compare to earlier years?

The net profit of KINGFA SCIENCE & TECHNOLOGY stood at Rs 53 m in FY21, which was down -78.4% compared to Rs 246 m reported in FY20.

This compares to a net profit of Rs 191 m in FY19 and a net profit of Rs 246 m in FY18.

Over the past 5 years, KINGFA SCIENCE & TECHNOLOGY net profit has grown at a CAGR of -19.1%.

What does the cash flow statement of KINGFA SCIENCE & TECHNOLOGY 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 KINGFA SCIENCE & TECHNOLOGY reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs -19 m as compared to Rs 303 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -139 m as compared to Rs -629 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs 173 m as compared to Rs 218 m in FY20.

Here's the cash flow statement of KINGFA SCIENCE & TECHNOLOGY for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations-1,195-1,156956303-19
From Investments-184-65-768-629-139
From Financial Activity1,3671,621-70218173
Net Cashflow-12401118-10814

What does the Key Ratio analysis of KINGFA SCIENCE & TECHNOLOGY 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 KINGFA SCIENCE & TECHNOLOGY reveals:

  • Operating profit margins witnessed a fall and stood at 3.2% in FY21 as against 5.8% in FY20.
  • Net profit margins declined from 3.3% in FY20 to 0.8% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.1 as compared to 0.1 in FY20.

Here's the ratio/financial analysis of KINGFA SCIENCE & TECHNOLOGY for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)5.27.05.05.83.2
Net Profit Margin (%)3.34.22.73.30.8
Debt to Equity Ratio (x)0.10.10.10.10.1

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