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KINGFA SCIENCE & TECHNOLOGY 2022-23 Annual Report Analysis

Tue, 12 Sep

KINGFA SCIENCE & TECHNOLOGY 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.

KINGFA SCIENCE & TECHNOLOGY Income Statement Analysis

• Operating income during the year rose 34.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 118.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.1% in FY23 as against 5.6% in FY22.
• Depreciation charges increased by 9.1% and finance costs increased by 23.5% YoY, respectively.
• Other income grew by 150.8% YoY.
• Net profit for the year grew by 165.8% YoY.
• Net profit margins during the year grew from 2.9% in FY22 to 5.8% in FY23.

KINGFA SCIENCE & TECHNOLOGY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	10,479	14,037	34.0%
Other income	Rs m	9	23	150.8%
Total Revenues	Rs m	10,488	14,060	34.1%
Gross profit	Rs m	587	1,280	118.1%
Depreciation	Rs m	130	141	9.1%
Interest	Rs m	53	65	23.5%
Profit before tax	Rs m	413	1,096	165.1%
Tax	Rs m	107	282	163.1%
Profit after tax	Rs m	306	814	165.8%
Gross profit margin	%	5.6	9.1
Effective tax rate	%	25.9	25.7
Net profit margin	%	2.9	5.8

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KINGFA SCIENCE & TECHNOLOGY Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 14.5%.
• Current assets rose 21% and stood at Rs 7 billion, while fixed assets rose 2% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 10 billion as against Rs 9 billion during FY22, thereby witnessing a growth of 15%.

KINGFA SCIENCE & TECHNOLOGY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,846	4,660	21.2
Current Liabilities	Rs m	4,709	5,394	14.5
Long-term Debt	Rs m	169	0	-100.0
Total Liabilities	Rs m	8,800	10,103	14.8
Current assets	Rs m	6,123	7,380	20.5
Fixed Assets	Rs m	2,677	2,723	1.7
Total Assets	Rs m	8,800	10,103	14.8

KINGFA SCIENCE & TECHNOLOGY Cash Flow Statement Analysis

• KINGFA SCIENCE & TECHNOLOGY's cash flow from operating activities (CFO) during FY23 stood at Rs 272 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -242 million, an improvement of 28.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -93 million, an improvement of 35% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -62 million from the Rs 48 million net cash flows seen during FY22.

KINGFA SCIENCE & TECHNOLOGY 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	378	272	-28.0%
Cash Flow from Investing Activities	Rs m	-187	-242	-
Cash Flow from Financing Activities	Rs m	-143	-93	-
Net Cash Flow	Rs m	48	-62	-

Current Valuations for KINGFA SCIENCE & TECHNOLOGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 67.2, an improvement from the EPS of Rs 25.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,369.0, stands at 25.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.2 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 14.5 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	865.3	1,159.1
TTM Earnings per share	Rs	25.3	67.2
Diluted earnings per share	Rs	25.3	67.2
Price to Cash Flow	x	35.2	14.5
TTM P/E ratio	x	50.1	25.2
Price / Book Value ratio	x	3.4	3.0
Market Cap	Rs m	13,067	13,820
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KINGFA SCIENCE & TECHNOLOGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY23, from 1.3x 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 17.8x during FY23, from 8.8x 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 17.5% during FY23, from 8.0% 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 24.9% during FY23, from 11.6% 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 improved and stood at 8.7% during FY23, from 4.1% 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	1.3	1.4
Debtors’ Days	Days	985	931
Interest coverage	x	8.8	17.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.1	8.7
Return on equity	%	8.0	17.5
Return on capital employed	%	11.6	24.9

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 1,261.5 to Rs 2,369.0, registering a gain of Rs 1,107.6 or around 87.8%.

Overall, the S&P BSE SENSEX is up 12.5% over the year.

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