KALPATARU POWER 2022-23 Annual Report Analysis

Fri, 23 Jun

KALPATARU POWER 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.

KALPATARU POWER Income Statement Analysis

• Operating income during the year rose 10.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.6% in FY23 as against 9.6% in FY22.
• Depreciation charges increased by 11.7% and finance costs increased by 19.0% YoY, respectively.
• Other income declined by 44.4% YoY.
• Net profit for the year declined by 18.7% YoY.
• Net profit margins during the year declined from 3.6% in FY22 to 2.7% in FY23.

KALPATARU POWER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	147,774	163,614	10.7%
Other income	Rs m	1,518	844	-44.4%
Total Revenues	Rs m	149,291	164,458	10.2%
Gross profit	Rs m	14,174	15,700	10.8%
Depreciation	Rs m	3,508	3,918	11.7%
Interest	Rs m	5,220	6,212	19.0%
Profit before tax	Rs m	6,964	6,415	-7.9%
Tax	Rs m	1,614	2,065	28.0%
Profit after tax	Rs m	5,351	4,350	-18.7%
Gross profit margin	%	9.6	9.6
Effective tax rate	%	23.2	32.2
Net profit margin	%	3.6	2.7

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KALPATARU POWER Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 121 billion as compared to Rs 95 billion in FY22, thereby witnessing an increase of 27.3%.
• Long-term debt down at Rs 12 billion as compared to Rs 16 billion during FY22, a fall of 21.8%.
• Current assets rose 19% and stood at Rs 147 billion, while fixed assets fell 11% and stood at Rs 37 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 194 billion as against Rs 170 billion during FY22, thereby witnessing a growth of 14%.

KALPATARU POWER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	42,786	47,206	10.3
Current Liabilities	Rs m	95,338	121,354	27.3
Long-term Debt	Rs m	15,535	12,148	-21.8
Total Liabilities	Rs m	170,135	194,024	14.0
Current assets	Rs m	123,969	147,286	18.8
Fixed Assets	Rs m	40,997	36,512	-10.9
Total Assets	Rs m	170,135	194,024	14.0

KALPATARU POWER Cash Flow Statement Analysis

• KALPATARU POWER's cash flow from operating activities (CFO) during FY23 stood at Rs 7 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion, an improvement of 27.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 billion from the Rs 5 billion net cash flows seen during FY22.

KALPATARU POWER 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	7,137	6,564	-8.0%
Cash Flow from Investing Activities	Rs m	-2,550	-3,261	-
Cash Flow from Financing Activities	Rs m	250	-4,379	-
Net Cash Flow	Rs m	5,242	-1,043	-

Current Valuations for KALPATARU POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.8, an decline from the EPS of Rs 35.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 525.7, stands at 19.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 9.1 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	992.4	1,007.2
TTM Earnings per share	Rs	35.9	26.8
Diluted earnings per share	Rs	32.9	26.8
Price to Cash Flow	x	6.7	9.1
TTM P/E ratio	x	10.7	19.6
Price / Book Value ratio	x	1.5	1.6
Market Cap	Rs m	62,091	75,493
Dividends per share (Unadj.)	Rs	6.5	7.0

Ratio Analysis for KALPATARU POWER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x 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 deteriorated and stood at 2.0x during FY23, from 2.3x 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 declined and down at 9.2% during FY23, from 12.5% 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 21.3% during FY23, from 20.9% 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 declined and down at 5.4% during FY23, from 6.2% 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	1.2
Debtors’ Days	Days	11	12
Interest coverage	x	2.3	2.0
Debt to equity ratio	x	0.4	0.3
Return on assets	%	6.2	5.4
Return on equity	%	12.5	9.2
Return on capital employed	%	20.9	21.3

To see how KALPATARU POWER has performed over the last 5 years, please visit here.

KALPATARU POWER Share Price Performance

Over the last one year, KALPATARU POWER share price has moved up from Rs 365.3 to Rs 525.7, registering a gain of Rs 160.5 or around 43.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 39,617.5 (down 0.7%). Over the last one year it has moved up from 25,198.2 to 39,617.5, a gain of 14,419 points (up 57.2%).

Overall, the S&P BSE SENSEX is up 20.2% over the year.

(To know more, check out historical annual results for KALPATARU POWER and quarterly results for KALPATARU POWER)