KIRI INDUSTRIES 2022-23 Annual Report Analysis

Thu, 14 Sep

KIRI INDUSTRIES 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.

KIRI INDUSTRIES Income Statement Analysis

• Operating income during the year fell 36.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 61.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.4% in FY23 as against 30.5% in FY22.
• Depreciation charges decreased by 2.6% and finance costs increased by 32.0% YoY, respectively.
• Other income grew by 68.1% YoY.
• Net profit for the year declined by 72.6% YoY.
• Net profit margins during the year declined from 26.0% in FY22 to 11.3% in FY23.

KIRI INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,969	9,451	-36.9%
Other income	Rs m	20	33	68.1%
Total Revenues	Rs m	14,989	9,484	-36.7%
Gross profit	Rs m	4,571	1,741	-61.9%
Depreciation	Rs m	502	489	-2.6%
Interest	Rs m	48	63	32.0%
Profit before tax	Rs m	4,042	1,223	-69.7%
Tax	Rs m	154	156	1.5%
Profit after tax	Rs m	3,888	1,066	-72.6%
Gross profit margin	%	30.5	18.4
Effective tax rate	%	3.8	12.8
Net profit margin	%	26.0	11.3

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KIRI INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 1.0%.
• Long-term debt stood at Rs 412 million as compared to Rs 267 million during FY22, a growth of 54.1%.
• Current assets fell 8% and stood at Rs 5 billion, while fixed assets rose 7% and stood at Rs 27 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 32 billion as against Rs 31 billion during FY22, thereby witnessing a growth of 4%.

KIRI INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	25,726	26,793	4.1
Current Liabilities	Rs m	4,665	4,713	1.0
Long-term Debt	Rs m	267	412	54.1
Total Liabilities	Rs m	30,609	31,861	4.1
Current assets	Rs m	5,794	5,330	-8.0
Fixed Assets	Rs m	24,816	26,518	6.9
Total Assets	Rs m	30,609	31,861	4.1

KIRI INDUSTRIES Cash Flow Statement Analysis

• KIRI INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 892 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -179 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -570 million, an improvement of 1% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 142 million from the Rs 58 million net cash flows seen during FY22.

KIRI INDUSTRIES 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	922	892	-3.3%
Cash Flow from Investing Activities	Rs m	-290	-179	-
Cash Flow from Financing Activities	Rs m	-574	-570	-
Net Cash Flow	Rs m	58	142	145.3%

Current Valuations for KIRI INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.6, an decline from the EPS of Rs 75.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 282.6, stands at -15.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 13.7 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	288.8	182.3
TTM Earnings per share	Rs	75.0	20.6
Diluted earnings per share	Rs	75.0	20.6
Price to Cash Flow	x	5.8	13.7
TTM P/E ratio	x	48.0	-15.6
Price / Book Value ratio	x	1.1	0.8
Market Cap	Rs m	28,086	21,304
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 1.1x during FY23, from 1.2x 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 deteriorated and stood at 20.4x during FY23, from 85.5x 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 4.0% during FY23, from 15.1% 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 declined and down at 4.7% during FY23, from 15.7% 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 3.5% during FY23, from 12.9% 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	1.2	1.1
Debtors’ Days	Days	704	795
Interest coverage	x	85.5	20.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.9	3.5
Return on equity	%	15.1	4.0
Return on capital employed	%	15.7	4.7

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 496.9 to Rs 282.6, registering a loss of Rs 214.4 or around 43.1%.

Overall, the S&P BSE SENSEX is up 12.3% over the year.

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