KAYA 2022-23 Annual Report Analysis

Thu, 13 Jul

KAYA 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.

KAYA Income Statement Analysis

• Operating income during the year rose 16.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 47.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.7% in FY23 as against 8.3% in FY22.
• Depreciation charges increased by 8.6% and finance costs increased by 99.9% YoY, respectively.
• Other income declined by 61.7% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 21.0% in FY22 to 30.9% in FY23.

KAYA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,240	3,767	16.3%
Other income	Rs m	118	45	-61.7%
Total Revenues	Rs m	3,357	3,812	13.6%
Gross profit	Rs m	270	140	-47.9%
Depreciation	Rs m	859	933	8.6%
Interest	Rs m	208	415	99.9%
Profit before tax	Rs m	-680	-1,163	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-680	-1,163	NA
Gross profit margin	%	8.3	3.7
Effective tax rate	%	0.0	0.0
Net profit margin	%	-21.0	-30.9

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KAYA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 27.0%.
• Long-term debt stood at Rs 1 billion as compared to Rs 786 million during FY22, a growth of 80.8%.
• Current assets rose 35% and stood at Rs 1 billion, while fixed assets fell 11% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 2%.

KAYA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-28	-1,066	NA
Current Liabilities	Rs m	1,958	2,486	27.0
Long-term Debt	Rs m	786	1,421	80.8
Total Liabilities	Rs m	3,610	3,700	2.5
Current assets	Rs m	1,056	1,426	35.1
Fixed Assets	Rs m	2,555	2,274	-11.0
Total Assets	Rs m	3,610	3,700	2.5

KAYA Cash Flow Statement Analysis

• KAYA's cash flow from operating activities (CFO) during FY23 stood at Rs 628 million, an improvement of 110.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -398 million, an improvement of 14.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -183 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 53 million from the Rs 76 million net cash flows seen during FY22.

KAYA 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	299	628	110.0%
Cash Flow from Investing Activities	Rs m	-347	-398	-
Cash Flow from Financing Activities	Rs m	118	-183	-
Net Cash Flow	Rs m	76	53	-30.0%

Current Valuations for KAYA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -89.0, an decline from the EPS of Rs -52.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 335.0, stands at -3.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -4.1 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at -18.9 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	248.1	288.5
TTM Earnings per share	Rs	-52.0	-89.0
Diluted earnings per share	Rs	-52.0	-89.0
Price to Cash Flow	x	25.5	-18.9
TTM P/E ratio	x	-6.7	-3.8
Price / Book Value ratio	x	-185.8	-4.1
Market Cap	Rs m	5,275	4,345
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KAYA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x during FY23, from 0.5x 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 -1.8x 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 109.1% during FY23, from 2,392.9% 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 declined and down at -210.5% during FY23, from -62.3% 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 -20.2% during FY23, from -13.1% 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	0.5	0.6
Debtors’ Days	Days	43	34
Interest coverage	x	-2.3	-1.8
Debt to equity ratio	x	-27.7	-1.3
Return on assets	%	-13.1	-20.2
Return on equity	%	2,392.9	109.1
Return on capital employed	%	-62.3	-210.5

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

KAYA Share Price Performance

Over the last one year, KAYA share price has moved up from Rs 288.6 to Rs 335.0, registering a gain of Rs 46.4 or around 16.1%.

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

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