KEI INDUSTRIES 2020-21 Annual Report Analysis

Wed, 31 Mar

KEI INDUSTRIES has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

KEI INDUSTRIES Income Statement Analysis

• Operating income during the year fell 14.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 7.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.0% in FY21 as against 10.2% in FY20.
• Depreciation charges increased by 2.0% and finance costs decreased by 55.6% YoY, respectively.
• Other income grew by 20.5% YoY.
• Net profit for the year grew by 6.6% YoY.
• Net profit margins during the year grew from 5.2% in FY20 to 6.5% in FY21.

KEI INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	48,878	41,815	-14.4%
Other income	Rs m	167	201	20.5%
Total Revenues	Rs m	49,045	42,016	-14.3%
Gross profit	Rs m	4,971	4,605	-7.4%
Depreciation	Rs m	567	578	2.0%
Interest	Rs m	1,292	573	-55.6%
Profit before tax	Rs m	3,279	3,654	11.5%
Tax	Rs m	716	921	28.7%
Profit after tax	Rs m	2,563	2,733	6.6%
Gross profit margin	%	10.2	11.0
Effective tax rate	%	21.8	25.2
Net profit margin	%	5.2	6.5

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KEI INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 12 billion as compared to Rs 17 billion in FY20, thereby witnessing an decrease of -30.5%.
• Long-term debt down at Rs 314 million as compared to Rs 527 million during FY20, a fall of 40.5%.
• Current assets fell 9% and stood at Rs 25 billion, while fixed assets fell 3% and stood at Rs 6 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 30 billion as against Rs 33 billion during FY20, thereby witnessing a fall of 8%.

KEI INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	14,943	17,665	18.2
Current Liabilities	Rs m	16,545	11,502	-30.5
Long-term Debt	Rs m	527	314	-40.5
Total Liabilities	Rs m	32,708	30,220	-7.6
Current assets	Rs m	26,877	24,536	-8.7
Fixed Assets	Rs m	5,831	5,684	-2.5
Total Assets	Rs m	32,708	30,220	-7.6

KEI INDUSTRIES Cash Flow Statement Analysis

• KEI INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 754 million, an improvement of 584.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 1 billion from the Rs 974 million net cash flows seen during FY20.

KEI INDUSTRIES Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	-130	1,539	-
Cash Flow from Investing Activities	Rs m	110	754	584.4%
Cash Flow from Financing Activities	Rs m	994	-1,286	-
Net Cash Flow	Rs m	974	1,007	3.4%

Current Valuations for KEI INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 30.4, an improvement from the EPS of Rs 28.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 522.7, stands at 17.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 11.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	546.1	465.3
TTM Earnings per share	Rs	28.6	30.4
Diluted earnings per share	Rs	28.4	30.3
Price to Cash Flow	x	7.7	11.0
TTM P/E ratio	x	9.4	17.7
Price / Book Value ratio	x	2.5	2.1
Market Cap	Rs m	36,836	36,502
Dividends per share (Unadj.)	Rs	1.5	2.0

Ratio Analysis for KEI INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY21, from 1.6x during FY20. 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 7.4x during FY21, from 3.5x during FY20. 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 15.5% during FY21, from 17.2% during FY21. 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 23.5% during FY21, from 29.5% during FY20. 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 10.9% during FY21, from 11.8% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.6	2.1
Debtors’ Days	Days	102	118
Interest coverage	x	3.5	7.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.8	10.9
Return on equity	%	17.2	15.5
Return on capital employed	%	29.5	23.5

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 267.8 to Rs 522.7, registering a gain of Rs 255.0 or around 95.2%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,475.1 (down 1.4%). Over the last one year it has moved up from 1,378.0 to 2,475.1, a gain of 1,097 points (up 79.6%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of KEI INDUSTRIES