KEI INDUSTRIES 2022-23 Annual Report Analysis

Tue, 15 Aug

KEI INDUSTRIES 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.

KEI INDUSTRIES Income Statement Analysis

• Operating income during the year rose 20.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.2% in FY23 as against 10.3% in FY22.
• Depreciation charges increased by 2.9% and finance costs decreased by 14.1% YoY, respectively.
• Other income grew by 89.3% YoY.
• Net profit for the year grew by 26.9% YoY.
• Net profit margins during the year grew from 6.6% in FY22 to 6.9% in FY23.

KEI INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	57,270	69,123	20.7%
Other income	Rs m	146	276	89.3%
Total Revenues	Rs m	57,416	69,400	20.9%
Gross profit	Rs m	5,888	7,062	19.9%
Depreciation	Rs m	555	571	2.9%
Interest	Rs m	404	347	-14.1%
Profit before tax	Rs m	5,075	6,420	26.5%
Tax	Rs m	1,315	1,647	25.2%
Profit after tax	Rs m	3,760	4,773	26.9%
Gross profit margin	%	10.3	10.2
Effective tax rate	%	25.9	25.6
Net profit margin	%	6.6	6.9

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

KEI INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 11 billion as compared to Rs 13 billion in FY22, thereby witnessing an decrease of -16.1%.
• Current assets rose 7% and stood at Rs 32 billion, while fixed assets rose 8% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 38 billion as against Rs 35 billion during FY22, thereby witnessing a growth of 7%.

KEI INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	21,281	25,823	21.3
Current Liabilities	Rs m	13,327	11,176	-16.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	35,271	37,702	6.9
Current assets	Rs m	29,611	31,613	6.8
Fixed Assets	Rs m	5,660	6,088	7.6
Total Assets	Rs m	35,271	37,702	6.9

KEI INDUSTRIES Cash Flow Statement Analysis

• KEI INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 5 billion, an improvement of 124.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 135.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 billion from the Rs 1 billion net cash flows seen during FY22.

KEI INDUSTRIES 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	2,286	5,139	124.9%
Cash Flow from Investing Activities	Rs m	-584	-1,371	-
Cash Flow from Financing Activities	Rs m	-314	-2,559	-
Net Cash Flow	Rs m	1,389	1,209	-13.0%

Current Valuations for KEI INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 52.9, an improvement from the EPS of Rs 41.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,278.8, stands at 41.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.0 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 23.5 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	635.6	766.4
TTM Earnings per share	Rs	41.7	52.9
Diluted earnings per share	Rs	41.7	52.9
Price to Cash Flow	x	26.4	23.5
TTM P/E ratio	x	30.3	41.5
Price / Book Value ratio	x	3.7	4.9
Market Cap	Rs m	78,930	125,559
Dividends per share (Unadj.)	Rs	2.5	3.0

Ratio Analysis for KEI INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.8x during FY23, from 2.2x 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 improved and stood at 19.5x during FY23, from 13.6x 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 18.5% during FY23, from 17.7% 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 26.2% during FY23, from 25.7% 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 13.6% during FY23, from 11.8% 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	2.2	2.8
Debtors’ Days	Days	89	73
Interest coverage	x	13.6	19.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.8	13.6
Return on equity	%	17.7	18.5
Return on capital employed	%	25.7	26.2

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 1,399.3 to Rs 2,278.8, registering a gain of Rs 879.6 or around 62.9%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 4,198.7 (down 0.9%). Over the last one year it has moved down from 4,858.0 to 4,198.7, a loss of 659 points (down 13.6%).

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

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