KESORAM IND 2021-22 Annual Report Analysis

Tue, 31 May

KESORAM IND 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.

KESORAM IND Income Statement Analysis

• Operating income during the year rose 35.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 217.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.6% in FY22 as against 5.8% in FY21.
• Depreciation charges decreased by 5.3% and finance costs increased by 81.9% YoY, respectively.
• Other income declined by 49.5% YoY.
• Net profit for the year declined by 155.2% YoY.
• Net profit margins during the year declined from 5.3% in FY21 to 2.1% in FY22.

KESORAM IND Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	26,528	36,059	35.9%
Other income	Rs m	724	366	-49.5%
Total Revenues	Rs m	27,252	36,425	33.7%
Gross profit	Rs m	1,544	4,897	217.2%
Depreciation	Rs m	1,180	1,118	-5.3%
Interest	Rs m	2,758	5,017	81.9%
Profit before tax	Rs m	-1,669	-872	-47.8%
Tax	Rs m	-3,071	-99	-96.8%
Profit after tax	Rs m	1,401	-773	-155.2%
Gross profit margin	%	5.8	13.6
Effective tax rate	%	183.9	11.3
Net profit margin	%	5.3	-2.1

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KESORAM IND Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 11 billion as compared to Rs 10 billion in FY21, thereby witnessing an increase of 8.9%.
• Long-term debt down at Rs 17 billion as compared to Rs 19 billion during FY21, a fall of 10.7%.
• Current assets rose 31% and stood at Rs 10 billion, while fixed assets fell 2% and stood at Rs 22 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 32 billion as against Rs 30 billion during FY21, thereby witnessing a growth of 6%.

KESORAM IND Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,975	5,096	158.0
Current Liabilities	Rs m	9,846	10,724	8.9
Long-term Debt	Rs m	19,411	17,325	-10.7
Total Liabilities	Rs m	29,699	31,605	6.4
Current assets	Rs m	7,587	9,961	31.3
Fixed Assets	Rs m	22,112	21,645	-2.1
Total Assets	Rs m	29,699	31,605	6.4

KESORAM IND Cash Flow Statement Analysis

• KESORAM IND's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion, an improvement of 25.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -633 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 245 million from the Rs 761 million net cash flows seen during FY21.

KESORAM IND 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	2,589	3,239	25.1%
Cash Flow from Investing Activities	Rs m	-1,504	-633	-
Cash Flow from Financing Activities	Rs m	2,006	-2,244	-
Net Cash Flow	Rs m	761	245	-67.8%

Current Valuations for KESORAM IND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.2, an decline from the EPS of Rs 8.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 53.5, stands at -16.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 54.5 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	161.0	147.3
TTM Earnings per share	Rs	8.5	-3.2
Diluted earnings per share	Rs	5.7	-3.2
Price to Cash Flow	x	6.6	54.5
TTM P/E ratio	x	12.2	-16.9
Price / Book Value ratio	x	4.5	3.7
Market Cap	Rs m	8,929	18,752
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KESORAM IND

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY22, from 0.8x 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 0.8x during FY22, from 0.4x 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 declined and down at -15.2% during FY22, from 70.9% 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 18.5% during FY22, from 5.1% 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 declined and down at 13.4% during FY22, from 14.0% 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	0.8	0.9
Debtors’ Days	Days	4	3
Interest coverage	x	0.4	0.8
Debt to equity ratio	x	9.8	3.4
Return on assets	%	14.0	13.4
Return on equity	%	70.9	-15.2
Return on capital employed	%	5.1	18.5

To see how KESORAM IND has performed over the last 5 years, please visit here.

KESORAM IND Share Price Performance

Over the last one year, KESORAM IND share price has moved down from Rs 80.7 to Rs 53.5, registering a loss of Rs 27.3 or around 33.8%.

Overall, the S&P BSE SENSEX is up 9.3% over the year.

(To know more, check out historical annual results for KESORAM IND and quarterly results for KESORAM IND)

Read: Latest Annual Report Analysis of KESORAM IND