KCP SUGAR 2021-22 Annual Report Analysis

Fri, 7 Oct

KCP SUGAR 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.

KCP SUGAR Income Statement Analysis

• Operating income during the year fell 2.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8083.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.4% in FY22 as against 0.1% in FY21.
• Depreciation charges decreased by 18.5% and finance costs decreased by 19.2% YoY, respectively.
• Other income declined by 66.4% YoY.
• Net profit for the year declined by 84.6% YoY.
• Net profit margins during the year declined from 7.1% in FY21 to 1.1% in FY22.

KCP SUGAR Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	3,286	3,194	-2.8%
Other income	Rs m	477	160	-66.4%
Total Revenues	Rs m	3,762	3,354	-10.8%
Gross profit	Rs m	2	140	8,083.6%
Depreciation	Rs m	64	52	-18.5%
Interest	Rs m	244	197	-19.2%
Profit before tax	Rs m	171	52	-69.9%
Tax	Rs m	-62	16	NA
Profit after tax	Rs m	233	36	-84.6%
Gross profit margin	%	0.1	4.4
Effective tax rate	%	-36.2	30.6
Net profit margin	%	7.1	1.1

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KCP SUGAR Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 2 billion as compared to Rs 2 billion in FY21, thereby witnessing an decrease of -20.9%.
• Long-term debt down at Rs 722 million as compared to Rs 926 million during FY21, a fall of 22.1%.
• Current assets fell 14% and stood at Rs 4 billion, while fixed assets fell 2% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 6 billion as against Rs 6 billion during FY21, thereby witnessing a fall of 10%.

KCP SUGAR Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	3,133	3,153	0.6
Current Liabilities	Rs m	2,263	1,791	-20.9
Long-term Debt	Rs m	926	722	-22.1
Total Liabilities	Rs m	6,384	5,721	-10.4
Current assets	Rs m	4,303	3,690	-14.2
Fixed Assets	Rs m	2,081	2,031	-2.4
Total Assets	Rs m	6,384	5,721	-10.4

KCP SUGAR Cash Flow Statement Analysis

• KCP SUGAR's cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion, an improvement of 555.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 8 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 135 million from the Rs -46 million net cash flows seen during FY21.

KCP SUGAR 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	174	1,143	555.3%
Cash Flow from Investing Activities	Rs m	-109	8	-
Cash Flow from Financing Activities	Rs m	-112	-1,016	-
Net Cash Flow	Rs m	-46	135	-

Current Valuations for KCP SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.3, an decline from the EPS of Rs 2.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 22.5, stands at -24.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 30.2 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	29.0	28.2
TTM Earnings per share	Rs	2.1	0.3
Diluted earnings per share	Rs	2.1	0.3
Price to Cash Flow	x	5.6	30.2
TTM P/E ratio	x	7.2	-24.9
Price / Book Value ratio	x	0.6	0.8
Market Cap	Rs m	1,757	2,645
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for KCP SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY22, from 1.9x 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 deteriorated and stood at 1.3x during FY22, from 1.7x 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 declined and down at 1.1% during FY22, from 7.4% 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 declined and down at 6.4% during FY22, from 10.2% 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 declined and down at 4.1% during FY22, from 7.5% 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	1.9	2.1
Debtors’ Days	Days	514	335
Interest coverage	x	1.7	1.3
Debt to equity ratio	x	0.3	0.2
Return on assets	%	7.5	4.1
Return on equity	%	7.4	1.1
Return on capital employed	%	10.2	6.4

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

KCP SUGAR Share Price Performance

Over the last one year, KCP SUGAR share price has moved down from Rs 23.2 to Rs 22.5, registering a loss of Rs 0.7 or around 3.0%.

Overall, the S&P BSE SENSEX is down 1.9% over the year.

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

Read: Latest Annual Report Analysis of KCP SUGAR