KEI INDUSTRIES 2017-18 Annual Report Analysis

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KEI INDUSTRIES 2017-18 Annual Report Analysis
Tue, 26 Mar

KEI INDUSTRIES has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

KEI INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 31.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 26.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.8% in FY18 as against 10.2% in FY17.
  • Depreciation charges increased by 13.5% and finance costs decreased by 10.1% YoY, respectively.
  • Other income declined by 7.6% YoY.
  • Net profit for the year grew by 54.6% YoY.
  • Net profit margins during the year grew from 3.5% in FY17 to 4.2% in FY18.

KEI INDUSTRIES Income Statement 2017-18

No. of Mths Year Ending12 Mar-17*12 Mar-18*% Change
Net SalesRs m26,28534,65531.8%
Other incomeRs m10193-7.6%
Total RevenuesRs m26,38534,74831.7%
Gross profitRs m2,6903,39326.1%
DepreciationRs m28432213.5%
InterestRs m1,2441,119-10.1%
Profit before taxRs m1,2622,04562.0%
TaxRs m32459784.1%
Profit after taxRs m9371,44854.6%
Gross profit margin%10.29.8
Effective tax rate%25.729.2
Net profit margin%3.54.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



KEI INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 14 billion as compared to Rs 13 billion in FY17, thereby witnessing an increase of 8.0%.
  • Long-term debt stood at Rs 1 billion as compared to Rs 764 million during FY17, a growth of 90.8%.
  • Current assets rose 20% and stood at Rs 18 billion, while fixed assets rose 5% and stood at Rs 4 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 22 billion as against Rs 19 billion during FY17, thereby witnessing a growth of 17%.

KEI INDUSTRIES Balance Sheet as on March 2018

No. of Mths Year Ending12 Mar-17*12 Mar-18*% Change
NetworthRs m4,6116,04731.1
 
Current LiabilitiesRs m13,18014,2318.0
Long-term DebtRs m7641,45790.8
Total LiabilitiesRs m18,95822,19917.1
 
Current assetsRs m14,76217,70720.0
Fixed AssetsRs m 4,0844,3005.3
Total AssetsRs m18,95822,19917.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



KEI INDUSTRIES Cash Flow Statement Analysis

  • KEI INDUSTRIES's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -763 million, an improvement of 21.7% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -690 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 454 million from the Rs 1 billion net cash flows seen during FY17.

KEI INDUSTRIES Cash Flow Statement 2017-18

ParticularsNo. of months1212% Change
Year EndingMar-17Mar-18
Cash Flow from Operating ActivitiesRs m-2881,907-
Cash Flow from Investing ActivitiesRs m-627-763-
Cash Flow from Financing ActivitiesRs m2,287-690-
Net Cash FlowRs m1,371454-66.9%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for KEI INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.5, an improvement from the EPS of Rs 12.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 404.0, stands at 18.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 17.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending12 Mar-17*12 Mar-18*
Sales per share (Unadj.)Rs337.8442.3
TTM Earnings per shareRs12.018.5
Diluted earnings per shareRs12.118.7
Price to Cash Flow x25.717.6
TTM P/E ratiox18.318.2
Price / Book Value ratiox2.43.9
Market CapRs m31,43131,205
Dividends per share (Unadj.)Rs0.61.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for KEI INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.2x during FY18, from 1.1x during FY17. 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 2.8x during FY18, from 2.0x during FY17. 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 23.9% during FY18, from 20.3% during FY18. 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 42.2% during FY18, from 46.6% during FY17. 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 11.6% during FY18, from 11.5% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending12 Mar-17*12 Mar-18*
Current ratiox1.11.2
Debtors’ DaysDays115108
Interest coveragex2.02.8
Debt to equity ratiox0.20.2
Return on assets%11.511.6
Return on equity%20.323.9
Return on capital employed%46.642.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

KEI INDUSTRIES Share Price Performance

Over the last one year, KEI INDUSTRIES share price has moved up from Rs 367.0 to Rs 404.0, registering a gain of Rs 37.1 or around 10.1%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,023.2 (up 0.7%). Over the last one year it has moved down from 2,133.3 to 2,023.2, a loss of 110 points (down 5.2%).

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

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Related Views on News

KEI INDUSTRIES Announces Quarterly Results (1QFY20); Net Profit Up 42.4% (Quarterly Result Update)

Aug 7, 2019 | Updated on Aug 7, 2019

For the quarter ended June 2019, KEI INDUSTRIES has posted a net profit of Rs 458 m (up 42.4% YoY). Sales on the other hand came in at Rs 11 bn (up 22.3% YoY). Read on for a complete analysis of KEI INDUSTRIES's quarterly results.

KEI INDUSTRIES Announces Quarterly Results (4QFY19); Net Profit Up 20.9% (Quarterly Result Update)

May 24, 2019 | Updated on May 24, 2019

For the quarter ended March 2019, KEI INDUSTRIES has posted a net profit of Rs 599 m (up 20.9% YoY). Sales on the other hand came in at Rs 13 bn (up 22.2% YoY). Read on for a complete analysis of KEI INDUSTRIES's quarterly results.

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