KIRLOSKAR PNEUMATIC 2021-22 Annual Report Analysis

Tue, 5 Jul

KIRLOSKAR PNEUMATIC 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.

KIRLOSKAR PNEUMATIC Income Statement Analysis

• Operating income during the year rose 24.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.8% in FY22 as against 14.0% in FY21.
• Depreciation charges decreased by 6.3% and finance costs increased by 7.4% YoY, respectively.
• Other income grew by 21.8% YoY.
• Net profit for the year grew by 33.0% YoY.
• Net profit margins during the year grew from 7.8% in FY21 to 8.3% in FY22.

KIRLOSKAR PNEUMATIC Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	8,233	10,212	24.0%
Other income	Rs m	101	123	21.8%
Total Revenues	Rs m	8,334	10,335	24.0%
Gross profit	Rs m	1,152	1,411	22.5%
Depreciation	Rs m	376	352	-6.3%
Interest	Rs m	38	41	7.4%
Profit before tax	Rs m	839	1,141	36.1%
Tax	Rs m	200	292	45.7%
Profit after tax	Rs m	638	849	33.0%
Gross profit margin	%	14.0	13.8
Effective tax rate	%	23.9	25.6
Net profit margin	%	7.8	8.3

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KIRLOSKAR PNEUMATIC Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 4 billion as compared to Rs 3 billion in FY21, thereby witnessing an increase of 24.7%.
• Current assets rose 5% and stood at Rs 7 billion, while fixed assets rose 30% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 11 billion as against Rs 9 billion during FY21, thereby witnessing a growth of 12%.

KIRLOSKAR PNEUMATIC Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	5,860	6,555	11.9
Current Liabilities	Rs m	3,045	3,797	24.7
Long-term Debt	Rs m	375	0	-100.0
Total Liabilities	Rs m	9,401	10,507	11.8
Current assets	Rs m	6,922	7,289	5.3
Fixed Assets	Rs m	2,479	3,219	29.8
Total Assets	Rs m	9,401	10,507	11.8

KIRLOSKAR PNEUMATIC Cash Flow Statement Analysis

• KIRLOSKAR PNEUMATIC's cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion, an improvement of 92.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -458 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -722 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -89 million from the Rs 176 million net cash flows seen during FY21.

KIRLOSKAR PNEUMATIC 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	566	1,091	92.6%
Cash Flow from Investing Activities	Rs m	-488	-458	-
Cash Flow from Financing Activities	Rs m	98	-722	-
Net Cash Flow	Rs m	176	-89	-

Current Valuations for KIRLOSKAR PNEUMATIC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.2, an improvement from the EPS of Rs 9.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 428.1, stands at 32.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 20.2 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	128.1	158.4
TTM Earnings per share	Rs	9.9	13.2
Diluted earnings per share	Rs	9.9	13.2
Price to Cash Flow	x	16.3	20.2
TTM P/E ratio	x	26.0	32.5
Price / Book Value ratio	x	2.1	3.7
Market Cap	Rs m	12,508	24,315
Dividends per share (Unadj.)	Rs	3.5	4.0

Ratio Analysis for KIRLOSKAR PNEUMATIC

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY22, from 2.3x 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 28.9x during FY22, from 23.0x 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 13.0% during FY22, from 10.9% 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 18.0% during FY22, from 14.1% 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 improved and stood at 8.5% during FY22, from 7.2% 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	2.3	1.9
Debtors’ Days	Days	137	107
Interest coverage	x	23.0	28.9
Debt to equity ratio	x	0.1	0.0
Return on assets	%	7.2	8.5
Return on equity	%	10.9	13.0
Return on capital employed	%	14.1	18.0

To see how KIRLOSKAR PNEUMATIC has performed over the last 5 years, please visit here.

KIRLOSKAR PNEUMATIC Share Price Performance

Over the last one year, KIRLOSKAR PNEUMATIC share price has moved up from Rs 405.3 to Rs 428.1, registering a gain of Rs 22.8 or around 5.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 26,245.6 (down 0.1%). Over the last one year it has moved up from 22,867.2 to 26,245.6, a gain of 3,378 points (up 14.8%).

Overall, the S&P BSE SENSEX is up 1.5% over the year.

(To know more, check out historical annual results for KIRLOSKAR PNEUMATIC and quarterly results for KIRLOSKAR PNEUMATIC)

Read: Latest Annual Report Analysis of KIRLOSKAR PNEUMATIC