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KARDA CONSTRUCTIONS 2020-21 Annual Report Analysis
Wed, 31 Mar

KARDA CONSTRUCTIONS 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.

KARDA CONSTRUCTIONS Income Statement Analysis

  • Operating income during the year rose 6.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 32.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.0% in FY21 as against 23.2% in FY20.
  • Depreciation charges decreased by 37.7% and finance costs decreased by 18.5% YoY, respectively.
  • Other income grew by 78.8% YoY.
  • Net profit for the year grew by 110.2% YoY.
  • Net profit margins during the year grew from 8.4% in FY20 to 16.8% in FY21.

KARDA CONSTRUCTIONS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 1,141 1,209 6.0%
Other income Rs m 42 75 78.8%
Total Revenues Rs m 1,183 1,285 8.6%
Gross profit Rs m 265 351 32.5%
Depreciation Rs m 2 1 -37.7%
Interest Rs m 179 146 -18.5%
Profit before tax Rs m 126 279 120.8%
Tax Rs m 30 77 154.7%
Profit after tax Rs m 96 203 110.2%
Gross profit margin % 23.2 29.0
Effective tax rate % 23.8 27.5
Net profit margin % 8.4 16.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

KARDA CONSTRUCTIONS Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 1 billion as compared to Rs 882 million in FY20, thereby witnessing an increase of 20.2%.
  • Long-term debt down at Rs 170 million as compared to Rs 371 million during FY20, a fall of 54.1%.
  • Current assets rose 7% and stood at Rs 3 billion, while fixed assets rose 21% and stood at Rs 320 million in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 3 billion as against Rs 3 billion during FY20, thereby witnessing a growth of 8%.

KARDA CONSTRUCTIONS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 1,032 1,230 19.3
 
Current Liabilities Rs m 882 1,060 20.2
Long-term Debt Rs m 371 170 -54.1
Total Liabilities Rs m 2,904 3,136 8.0
 
Current assets Rs m 2,640 2,816 6.7
Fixed Assets Rs m 264 320 21.3
Total Assets Rs m 2,904 3,136 8.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



KARDA CONSTRUCTIONS Cash Flow Statement Analysis

  • KARDA CONSTRUCTIONS's cash flow from operating activities (CFO) during FY21 stood at Rs 345 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -23 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -322 million, an improvement of 9% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 0 million from the Rs -61 million net cash flows seen during FY20.

KARDA CONSTRUCTIONS 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 445 345 -22.5%
Cash Flow from Investing Activities Rs m -154 -23 -
Cash Flow from Financing Activities Rs m -352 -322 -
Net Cash Flow Rs m -61 0 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for KARDA CONSTRUCTIONS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.3, an decline from the EPS of Rs 7.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 122.0, stands at 370.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 61.0 times, while the price to sales ratio stands at 6.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 51.5 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 92.8 19.7
TTM Earnings per share Rs 7.8 3.3
Diluted earnings per share Rs 0.2 0.3
Price to Cash Flow x 818.0 51.5
TTM P/E ratio x 832.9 370.4
Price / Book Value ratio x 1.8 8.5
Market Cap Rs m 1,883 10,492
Dividends per share (Unadj.) Rs 0.0 0.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for KARDA CONSTRUCTIONS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.7x during FY21, from 3.0x 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 2.9x during FY21, from 1.7x 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 16.5% during FY21, from 9.3% 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 30.3% during FY21, from 21.7% 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 11.1% during FY21, from 9.5% 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 3.0 2.7
Debtors’ Days Days 389 902
Interest coverage x 1.7 2.9
Debt to equity ratio x 0.4 0.1
Return on assets % 9.5 11.1
Return on equity % 9.3 16.5
Return on capital employed % 21.7 30.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how KARDA CONSTRUCTIONS has performed over the last 5 years, please visit here.

KARDA CONSTRUCTIONS Share Price Performance

Over the last one year, KARDA CONSTRUCTIONS share price has moved down from Rs 130.5 to Rs 122.0, registering a loss of Rs 8.5 or around 6.5%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,670.3 (up 1.9%). Over the last one year it has moved up from 1,353.7 to 2,670.3, a gain of 1,317 points (up 97.3%).

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

(To know more, check out historical annual results for KARDA CONSTRUCTIONS and quarterly results for KARDA CONSTRUCTIONS)

Annual Report FAQs

What is the current share price of KARDA CONSTRUCTIONS?

KARDA CONSTRUCTIONS currently trades at Rs 1.8 per share. You can check out the latest share price performance of KARDA CONSTRUCTIONS here...

What was the revenue of KARDA CONSTRUCTIONS in FY21? How does it compare to earlier years?

The revenues of KARDA CONSTRUCTIONS stood at Rs 1,285 m in FY21, which was up 8.6% compared to Rs 1,183 m reported in FY20.

KARDA CONSTRUCTIONS' revenue has grown from Rs 1,098 m in FY17 to Rs 1,285 m in FY21.

Over the past 5 years, the revenue of KARDA CONSTRUCTIONS has grown at a CAGR of 4.0%.

What was the net profit of KARDA CONSTRUCTIONS in FY21? How does it compare to earlier years?

The net profit of KARDA CONSTRUCTIONS stood at Rs 203 m in FY21, which was up 110.2% compared to Rs 96 m reported in FY20.

This compares to a net profit of Rs 121 m in FY19 and a net profit of Rs 131 m in FY18.

Over the past 5 years, KARDA CONSTRUCTIONS net profit has grown at a CAGR of 26.5%.

What does the cash flow statement of KARDA CONSTRUCTIONS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of KARDA CONSTRUCTIONS reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 345 m as compared to Rs 445 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -23 m as compared to Rs -154 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -322 m as compared to Rs -352 m in FY20.

Here's the cash flow statement of KARDA CONSTRUCTIONS for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations333586-179445345
From Investments-85248-212-154-23
From Financial Activity-23863-463-352-322
Net Cashflow11897-854-610

What does the Key Ratio analysis of KARDA CONSTRUCTIONS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of KARDA CONSTRUCTIONS reveals:

  • Operating profit margins witnessed a fall and down at 29.0% in FY21 as against 23.2% in FY20.
  • Net profit margins grew from 8.4% in FY20 to 16.8% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.1 as compared to 0.4 in FY20.

Here's the ratio/financial analysis of KARDA CONSTRUCTIONS for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)25.225.128.423.229.0
Net Profit Margin (%)7.510.311.58.416.8
Debt to Equity Ratio (x)2.60.80.50.40.1

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