KCP SUGAR 2022-23 Annual Report Analysis

Thu, 21 Sep

KCP SUGAR 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.

KCP SUGAR Income Statement Analysis

• Operating income during the year fell 9.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 49.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.2% in FY23 as against 4.4% in FY22.
• Depreciation charges increased by 4.3% and finance costs decreased by 27.4% YoY, respectively.
• Other income grew by 322.6% YoY.
• Net profit for the year grew by 1497.8% YoY.
• Net profit margins during the year grew from 1.1% in FY22 to 19.8% in FY23.

KCP SUGAR Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,194	2,893	-9.4%
Other income	Rs m	160	678	322.6%
Total Revenues	Rs m	3,354	3,570	6.4%
Gross profit	Rs m	140	209	49.2%
Depreciation	Rs m	52	54	4.3%
Interest	Rs m	197	143	-27.4%
Profit before tax	Rs m	52	690	1,238.0%
Tax	Rs m	16	118	649.1%
Profit after tax	Rs m	36	572	1,497.8%
Gross profit margin	%	4.4	7.2
Effective tax rate	%	30.6	17.1
Net profit margin	%	1.1	19.8

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KCP SUGAR 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 9.4%.
• Long-term debt down at Rs 437 million as compared to Rs 722 million during FY22, a fall of 39.4%.
• Current assets rose 6% and stood at Rs 4 billion, while fixed assets rose 18% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 6 billion as against Rs 6 billion during FY22, thereby witnessing a growth of 10%.

KCP SUGAR Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,153	3,718	17.9
Current Liabilities	Rs m	1,791	1,960	9.4
Long-term Debt	Rs m	722	437	-39.4
Total Liabilities	Rs m	5,721	6,279	9.7
Current assets	Rs m	3,606	3,833	6.3
Fixed Assets	Rs m	2,031	2,402	18.3
Total Assets	Rs m	5,721	6,279	9.7

KCP SUGAR Cash Flow Statement Analysis

• KCP SUGAR's cash flow from operating activities (CFO) during FY23 stood at Rs 63 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 337 million, an improvement of 3,915.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -204 million, an improvement of 80% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 196 million from the Rs 135 million net cash flows seen during FY22.

KCP SUGAR 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	1,143	63	-94.5%
Cash Flow from Investing Activities	Rs m	8	337	3,915.6%
Cash Flow from Financing Activities	Rs m	-1,016	-204	-
Net Cash Flow	Rs m	135	196	45.1%

Current Valuations for KCP SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.0, an improvement from the EPS of Rs 0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 34.9, stands at 4.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 4.9 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	28.2	25.5
TTM Earnings per share	Rs	0.3	5.0
Diluted earnings per share	Rs	0.3	5.0
Price to Cash Flow	x	32.5	4.9
TTM P/E ratio	x	79.5	4.8
Price / Book Value ratio	x	0.8	0.8
Market Cap	Rs m	2,645	3,067
Dividends per share (Unadj.)	Rs	0.1	0.2

Ratio Analysis for KCP SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY23, from 2.0x 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 5.8x during FY23, from 1.3x 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 improved and stood at 15.4% during FY23, from 1.1% 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 20.0% during FY23, from 6.4% 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 improved and stood at 11.4% during FY23, from 4.1% 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	2.0	2.0
Debtors’ Days	Days	335	279
Interest coverage	x	1.3	5.8
Debt to equity ratio	x	0.2	0.1
Return on assets	%	4.1	11.4
Return on equity	%	1.1	15.4
Return on capital employed	%	6.4	20.0

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 up from Rs 23.0 to Rs 34.9, registering a gain of Rs 12.0 or around 52.1%.

Overall, the S&P BSE SENSEX is up 10.9% over the year.

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