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KELTECH EN. 2022-23 Annual Report Analysis

Wed, 16 Aug

KELTECH EN. 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.

KELTECH EN. Income Statement Analysis

• Operating income during the year rose 58.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 71.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.6% in FY23 as against 4.2% in FY22.
• Depreciation charges increased by 9.2% and finance costs increased by 107.3% YoY, respectively.
• Other income grew by 47.9% YoY.
• Net profit for the year grew by 79.8% YoY.
• Net profit margins during the year grew from 1.9% in FY22 to 2.1% in FY23.

KELTECH EN. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,546	5,628	58.7%
Other income	Rs m	17	25	47.9%
Total Revenues	Rs m	3,563	5,653	58.7%
Gross profit	Rs m	150	257	71.3%
Depreciation	Rs m	55	61	9.2%
Interest	Rs m	26	54	107.3%
Profit before tax	Rs m	85	167	96.3%
Tax	Rs m	19	48	154.8%
Profit after tax	Rs m	66	119	79.8%
Gross profit margin	%	4.2	4.6
Effective tax rate	%	22.0	28.5
Net profit margin	%	1.9	2.1

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KELTECH EN. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 874 million in FY22, thereby witnessing an increase of 20.6%.
• Long-term debt down at Rs 95 million as compared to Rs 111 million during FY22, a fall of 14.3%.
• Current assets rose 30% and stood at Rs 1 billion, while fixed assets rose 1% and stood at Rs 859 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 17%.

KELTECH EN. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	703	812	15.5
Current Liabilities	Rs m	874	1,054	20.6
Long-term Debt	Rs m	111	95	-14.3
Total Liabilities	Rs m	1,848	2,165	17.2
Current assets	Rs m	1,001	1,306	30.4
Fixed Assets	Rs m	847	859	1.4
Total Assets	Rs m	1,848	2,165	17.2

KELTECH EN. Cash Flow Statement Analysis

• KELTECH EN.'s cash flow from operating activities (CFO) during FY23 stood at Rs 183 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -82 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -44 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 57 million from the Rs -6 million net cash flows seen during FY22.

KELTECH EN. 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	206	183	-11.1%
Cash Flow from Investing Activities	Rs m	-231	-82	-
Cash Flow from Financing Activities	Rs m	19	-44	-
Net Cash Flow	Rs m	-6	57	-

Current Valuations for KELTECH EN.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 119.2, an improvement from the EPS of Rs 66.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,638.6, stands at 11.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 4.3 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	3,546.2	5,628.5
TTM Earnings per share	Rs	66.3	119.2
Diluted earnings per share	Rs	66.3	119.2
Price to Cash Flow	x	4.5	4.3
TTM P/E ratio	x	8.2	11.3
Price / Book Value ratio	x	1.0	0.9
Market Cap	Rs m	728	768
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for KELTECH EN.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY23, from 1.1x 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 4.1x during FY23, from 4.3x 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 14.7% during FY23, from 9.4% 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 24.3% during FY23, from 13.6% 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 8.0% during FY23, from 5.0% 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	1.1	1.2
Debtors’ Days	Days	476	401
Interest coverage	x	4.3	4.1
Debt to equity ratio	x	0.2	0.1
Return on assets	%	5.0	8.0
Return on equity	%	9.4	14.7
Return on capital employed	%	13.6	24.3

To see how KELTECH EN. has performed over the last 5 years, please visit here.

KELTECH EN. Share Price Performance

Over the last one year, KELTECH EN. share price has moved up from Rs 650.3 to Rs 1,638.6, registering a gain of Rs 988.4 or around 152.0%.

Overall, the S&P BSE SENSEX is up 10.2% over the year.

(To know more, check out historical annual results for KELTECH EN. and quarterly results for KELTECH EN.)