KAKATIYA CEM 2021-22 Annual Report Analysis

Tue, 6 Sep

KAKATIYA CEM 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.

KAKATIYA CEM Income Statement Analysis

• Operating income during the year rose 25.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 640.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.5% in FY22 as against 2.5% in FY21.
• Depreciation charges decreased by 10.1% and finance costs decreased by 43.9% YoY, respectively.
• Other income declined by 10.3% YoY.
• Net profit for the year grew by 1444.0% YoY.
• Net profit margins during the year grew from 1.0% in FY21 to 12.5% in FY22.

KAKATIYA CEM Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,228	1,544	25.7%
Other income	Rs m	109	97	-10.3%
Total Revenues	Rs m	1,337	1,641	22.8%
Gross profit	Rs m	30	223	640.3%
Depreciation	Rs m	25	23	-10.1%
Interest	Rs m	23	13	-43.9%
Profit before tax	Rs m	91	286	213.5%
Tax	Rs m	79	92	17.0%
Profit after tax	Rs m	13	194	1,444.0%
Gross profit margin	%	2.5	14.5
Effective tax rate	%	86.2	32.2
Net profit margin	%	1.0	12.5

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KAKATIYA CEM Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 747 million as compared to Rs 803 million in FY21, thereby witnessing an decrease of -7.0%.
• Current assets fell 34% and stood at Rs 1 billion, while fixed assets rose 65% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 3 billion as against Rs 3 billion during FY21, thereby witnessing a growth of 4%.

KAKATIYA CEM Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	2,185	2,357	7.9
Current Liabilities	Rs m	803	747	-7.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,087	3,199	3.6
Current assets	Rs m	1,916	1,269	-33.8
Fixed Assets	Rs m	1,171	1,930	64.8
Total Assets	Rs m	3,087	3,199	3.6

KAKATIYA CEM Cash Flow Statement Analysis

• KAKATIYA CEM's cash flow from operating activities (CFO) during FY22 stood at Rs -4 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -4 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 6 million, an improvement of 103% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -2 million from the Rs 2 million net cash flows seen during FY21.

KAKATIYA CEM 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	130	-4	-
Cash Flow from Investing Activities	Rs m	110	-4	-
Cash Flow from Financing Activities	Rs m	-238	6	-
Net Cash Flow	Rs m	2	-2	-

Current Valuations for KAKATIYA CEM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.9, an improvement from the EPS of Rs 1.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 208.1, stands at 12.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 8.7 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	158.0	198.7
TTM Earnings per share	Rs	1.6	24.9
Diluted earnings per share	Rs	1.6	24.9
Price to Cash Flow	x	34.9	8.7
TTM P/E ratio	x	105.2	12.4
Price / Book Value ratio	x	0.6	0.8
Market Cap	Rs m	1,261	1,889
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for KAKATIYA CEM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY22, from 2.4x 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 improved and stood at 23.6x during FY22, from 5.0x 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 improved and stood at 8.2% during FY22, from 0.6% 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 improved and stood at 12.6% during FY22, from 5.2% 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 improved and stood at 6.4% during FY22, from 1.1% 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	2.4	1.7
Debtors’ Days	Days	351	340
Interest coverage	x	5.0	23.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.1	6.4
Return on equity	%	0.6	8.2
Return on capital employed	%	5.2	12.6

To see how KAKATIYA CEM has performed over the last 5 years, please visit here.

KAKATIYA CEM Share Price Performance

Over the last one year, KAKATIYA CEM share price has moved down from Rs 249.3 to Rs 208.1, registering a loss of Rs 41.2 or around 16.5%.

Overall, the S&P BSE SENSEX is up 2.6% over the year.

(To know more, check out historical annual results for KAKATIYA CEM and quarterly results for KAKATIYA CEM)