KEI INDUSTRIES 2021-22 Annual Report Analysis

Mon, 5 Sep

KEI INDUSTRIES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

KEI INDUSTRIES Income Statement Analysis

• Operating income during the year rose 36.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.3% in FY22 as against 10.9% in FY21.
• Depreciation charges decreased by 4.1% and finance costs decreased by 29.5% YoY, respectively.
• Other income declined by 27.2% YoY.
• Net profit for the year grew by 39.5% YoY.
• Net profit margins during the year grew from 6.4% in FY21 to 6.6% in FY22.

KEI INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	41,815	57,266	36.9%
Other income	Rs m	201	146	-27.2%
Total Revenues	Rs m	42,016	57,411	36.6%
Gross profit	Rs m	4,555	5,887	29.3%
Depreciation	Rs m	578	555	-4.1%
Interest	Rs m	573	404	-29.5%
Profit before tax	Rs m	3,604	5,075	40.8%
Tax	Rs m	909	1,315	44.7%
Profit after tax	Rs m	2,695	3,760	39.5%
Gross profit margin	%	10.9	10.3
Effective tax rate	%	25.2	25.9
Net profit margin	%	6.4	6.6

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KEI INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 13 billion as compared to Rs 11 billion in FY21, thereby witnessing an increase of 16.7%.
• Current assets rose 21% and stood at Rs 30 billion, while fixed assets fell 0% and stood at Rs 6 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 35 billion as against Rs 30 billion during FY21, thereby witnessing a growth of 17%.

KEI INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	17,624	21,281	20.8
Current Liabilities	Rs m	11,422	13,327	16.7
Long-term Debt	Rs m	314	0	-100.0
Total Liabilities	Rs m	30,085	35,271	17.2
Current assets	Rs m	24,401	29,611	21.3
Fixed Assets	Rs m	5,684	5,660	-0.4
Total Assets	Rs m	30,085	35,271	17.2

KEI INDUSTRIES Cash Flow Statement Analysis

• KEI INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs 2 billion, an improvement of 48.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -584 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -314 million, an improvement of 76% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 1 billion from the Rs 1 billion net cash flows seen during FY21.

KEI INDUSTRIES Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	1,539	2,286	48.5%
Cash Flow from Investing Activities	Rs m	754	-584	-
Cash Flow from Financing Activities	Rs m	-1,286	-314	-
Net Cash Flow	Rs m	1,007	1,389	37.9%

Current Valuations for KEI INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 41.7, an improvement from the EPS of Rs 30.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,480.3, stands at 32.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.3 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 18.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	465.3	635.5
TTM Earnings per share	Rs	30.0	41.7
Diluted earnings per share	Rs	29.9	41.7
Price to Cash Flow	x	14.4	18.3
TTM P/E ratio	x	17.7	32.4
Price / Book Value ratio	x	2.1	3.7
Market Cap	Rs m	36,502	78,930
Dividends per share (Unadj.)	Rs	2.0	2.5

Ratio Analysis for KEI INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY22, from 2.1x during FY21. 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 13.6x during FY22, from 7.3x during FY21. 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 17.7% during FY22, from 15.3% during FY22. 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 25.7% during FY22, from 23.3% during FY21. 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 11.8% during FY22, from 10.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.1	2.2
Debtors’ Days	Days	118	89
Interest coverage	x	7.3	13.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.9	11.8
Return on equity	%	15.3	17.7
Return on capital employed	%	23.3	25.7

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 777.7 to Rs 1,480.3, registering a gain of Rs 702.6 or around 90.3%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 5,148.0 (up 0.0%). Over the last one year it has moved up from 2,998.4 to 5,148.0, a gain of 2,150 points (up 71.7%).

Overall, the S&P BSE SENSEX is up 3.4% 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