KANCHI KARPOORAM 2020-21 Annual Report Analysis

Wed, 31 Mar

KANCHI KARPOORAM 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.

KANCHI KARPOORAM Income Statement Analysis

• Operating income during the year fell 9.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 122.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 44.2% in FY21 as against 18.0% in FY20.
• Depreciation charges increased by 7.8% and finance costs decreased by 64.5% YoY, respectively.
• Other income grew by 214.1% YoY.
• Net profit for the year grew by 141.6% YoY.
• Net profit margins during the year grew from 12.8% in FY20 to 34.1% in FY21.

KANCHI KARPOORAM Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,029	1,841	-9.3%
Other income	Rs m	8	25	214.1%
Total Revenues	Rs m	2,037	1,866	-8.4%
Gross profit	Rs m	365	813	122.7%
Depreciation	Rs m	13	14	7.8%
Interest	Rs m	9	3	-64.5%
Profit before tax	Rs m	352	821	133.5%
Tax	Rs m	92	195	110.8%
Profit after tax	Rs m	259	627	141.6%
Gross profit margin	%	18.0	44.2
Effective tax rate	%	26.2	23.7
Net profit margin	%	12.8	34.1

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KANCHI KARPOORAM Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 289 million as compared to Rs 137 million in FY20, thereby witnessing an increase of 110.8%.
• Current assets rose 104% and stood at Rs 1 billion, while fixed assets rose 16% and stood at Rs 440 million in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 2 billion as against Rs 1 billion during FY20, thereby witnessing a growth of 73%.

KANCHI KARPOORAM Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	910	1,561	71.4
Current Liabilities	Rs m	137	289	110.8
Long-term Debt	Rs m	1	0	-100.0
Total Liabilities	Rs m	1,077	1,863	72.9
Current assets	Rs m	697	1,422	104.1
Fixed Assets	Rs m	380	440	15.9
Total Assets	Rs m	1,077	1,863	72.9

KANCHI KARPOORAM Cash Flow Statement Analysis

• KANCHI KARPOORAM's cash flow from operating activities (CFO) during FY21 stood at Rs 445 million, an improvement of 48.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -64 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -57 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 325 million from the Rs 234 million net cash flows seen during FY20.

KANCHI KARPOORAM 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	300	445	48.3%
Cash Flow from Investing Activities	Rs m	-83	-64	-
Cash Flow from Financing Activities	Rs m	16	-57	-
Net Cash Flow	Rs m	234	325	38.8%

Current Valuations for KANCHI KARPOORAM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 144.4, an improvement from the EPS of Rs 60.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 839.4, stands at 5.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 3.7 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	476.3	424.2
TTM Earnings per share	Rs	60.9	144.4
Diluted earnings per share	Rs	59.7	144.3
Price to Cash Flow	x	2.8	3.7
TTM P/E ratio	x	2.9	5.8
Price / Book Value ratio	x	1.2	1.5
Market Cap	Rs m	1,065	2,362
Dividends per share (Unadj.)	Rs	3.0	4.0

Ratio Analysis for KANCHI KARPOORAM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.9x during FY21, from 5.1x 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 improved and stood at 265.1x during FY21, from 41.1x 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 improved and stood at 40.2% during FY21, from 28.5% 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 improved and stood at 52.8% during FY21, from 39.6% 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 improved and stood at 33.8% during FY21, from 24.9% 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	5.1	4.9
Debtors’ Days	Days	203	223
Interest coverage	x	41.1	265.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	24.9	33.8
Return on equity	%	28.5	40.2
Return on capital employed	%	39.6	52.8

To see how KANCHI KARPOORAM has performed over the last 5 years, please visit here.

KANCHI KARPOORAM Share Price Performance

Over the last one year, KANCHI KARPOORAM share price has moved up from Rs 174.3 to Rs 839.4, registering a gain of Rs 665.2 or around 381.7%.

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

(To know more, check out historical annual results for KANCHI KARPOORAM and quarterly results for KANCHI KARPOORAM)