KEC INTERNATIONAL 2019-20 Annual Report Analysis

Fri, 4 Dec

KEC INTERNATIONAL has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

KEC INTERNATIONAL Income Statement Analysis

• Operating income during the year rose 8.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.3% in FY20 as against 10.5% in FY19.
• Depreciation charges increased by 25.7% and finance costs decreased by 1.2% YoY, respectively.
• Other income declined by 50.9% YoY.
• Net profit for the year grew by 16.3% YoY.
• Net profit margins during the year grew from 4.4% in FY19 to 4.7% in FY20.

KEC INTERNATIONAL Income Statement 2019-20

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KEC INTERNATIONAL Balance Sheet Analysis

• The company's current liabilities during FY20 stood at Rs 97 billion as compared to Rs 86 billion in FY19, thereby witnessing an increase of 13.7%.
• Long-term debt down at Rs 2 billion as compared to Rs 5 billion during FY19, a fall of 71.8%.
• Current assets rose 9% and stood at Rs 110 billion, while fixed assets rose 21% and stood at Rs 14 billion in FY20.
• Overall, the total assets and liabilities for FY20 stood at Rs 129 billion as against Rs 117 billion during FY19, thereby witnessing a growth of 10%.

KEC INTERNATIONAL Balance Sheet as on March 2020

KEC INTERNATIONAL Cash Flow Statement Analysis

• KEC INTERNATIONAL's cash flow from operating activities (CFO) during FY20 stood at Rs 875 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY20 stood at Rs -1 billion, an improvement of 69.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY20 stood at Rs 25 million, an improvement of 102% on a YoY basis.
• Overall, net cash flows for the company during FY20 stood at Rs -226 million from the Rs -178 million net cash flows seen during FY19.

KEC INTERNATIONAL Cash Flow Statement 2019-20

Current Valuations for KEC INTERNATIONAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.0, an improvement from the EPS of Rs 18.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 364.1, stands at 17.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 13.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

Ratio Analysis for KEC INTERNATIONAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY20, from 1.2x during FY19. 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 3.6x during FY20, from 3.4x during FY19. 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 20.2% during FY20, from 20.0% during FY20. 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 37.2% during FY20, from 35.5% during FY19. 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 6.8% during FY20, from 6.8% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

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

KEC INTERNATIONAL Share Price Performance

Over the last one year, KEC INTERNATIONAL share price has moved up from Rs 269.5 to Rs 364.1, registering a gain of Rs 94.6 or around 35.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 17,549.1 (up 0.7%). Over the last one year it has moved up from 16,937.3 to 17,549.1, a gain of 612 points (up 3.6%).

Overall, the S&P BSE SENSEX is up 10.0% over the year.

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