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

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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

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	-

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

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

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)

Read: Latest Annual Report Analysis of KINGFA SCIENCE & TECHNOLOGY