KIRI INDUSTRIES 2021-22 Annual Report Analysis

Tue, 20 Sep

KIRI INDUSTRIES 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.

KIRI INDUSTRIES Income Statement Analysis

• Operating income during the year rose 56.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 45.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 30.5% in FY22 as against 32.7% in FY21.
• Depreciation charges increased by 8.8% and finance costs increased by 19.3% YoY, respectively.
• Other income declined by 11.3% YoY.
• Net profit for the year grew by 54.0% YoY.
• Net profit margins during the year declined from 26.4% in FY21 to 26.0% in FY22.

KIRI INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	9,570	14,969	56.4%
Other income	Rs m	22	20	-11.3%
Total Revenues	Rs m	9,593	14,989	56.3%
Gross profit	Rs m	3,133	4,571	45.9%
Depreciation	Rs m	461	502	8.8%
Interest	Rs m	40	48	19.3%
Profit before tax	Rs m	2,654	4,042	52.3%
Tax	Rs m	129	154	19.2%
Profit after tax	Rs m	2,525	3,888	54.0%
Gross profit margin	%	32.7	30.5
Effective tax rate	%	4.9	3.8
Net profit margin	%	26.4	26.0

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KIRI INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 5 billion as compared to Rs 4 billion in FY21, thereby witnessing an increase of 15.7%.
• Long-term debt down at Rs 267 million as compared to Rs 952 million during FY21, a fall of 71.9%.
• Current assets rose 7% and stood at Rs 6 billion, while fixed assets rose 15% and stood at Rs 25 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 31 billion as against Rs 27 billion during FY21, thereby witnessing a growth of 14%.

KIRI INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	21,844	25,726	17.8
Current Liabilities	Rs m	4,031	4,665	15.7
Long-term Debt	Rs m	952	267	-71.9
Total Liabilities	Rs m	26,928	30,609	13.7
Current assets	Rs m	5,421	5,794	6.9
Fixed Assets	Rs m	21,508	24,816	15.4
Total Assets	Rs m	26,928	30,609	13.7

KIRI INDUSTRIES Cash Flow Statement Analysis

• KIRI INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs 922 million, an improvement of 27.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -290 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -574 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 58 million from the Rs -50 million net cash flows seen during FY21.

KIRI INDUSTRIES 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	722	922	27.7%
Cash Flow from Investing Activities	Rs m	-702	-290	-
Cash Flow from Financing Activities	Rs m	-70	-574	-
Net Cash Flow	Rs m	-50	58	-

Current Valuations for KIRI INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 75.0, an decline from the EPS of Rs 75.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 493.4, stands at 129.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 6.4 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	284.7	288.8
TTM Earnings per share	Rs	75.1	75.0
Diluted earnings per share	Rs	48.7	75.0
Price to Cash Flow	x	7.3	6.4
TTM P/E ratio	x	99.5	129.7
Price / Book Value ratio	x	0.7	1.1
Market Cap	Rs m	15,142	28,086
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KIRI INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY22, from 1.3x 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 improved and stood at 85.5x during FY22, from 67.2x 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 improved and stood at 15.1% during FY22, from 11.6% 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 improved and stood at 15.7% during FY22, from 11.8% 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 improved and stood at 12.9% during FY22, from 9.5% 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	1.3	1.2
Debtors’ Days	Days	1,256	704
Interest coverage	x	67.2	85.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.5	12.9
Return on equity	%	11.6	15.1
Return on capital employed	%	11.8	15.7

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

KIRI INDUSTRIES Share Price Performance

Over the last one year, KIRI INDUSTRIES share price has moved down from Rs 508.8 to Rs 493.4, registering a loss of Rs 15.4 or around 3.0%.

Overall, the S&P BSE SENSEX is up 0.9% over the year.

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

Read: Latest Annual Report Analysis of KIRI INDUSTRIES