KIRLOSKAR PNEUMATIC 2022-23 Annual Report Analysis

Fri, 30 Jun

KIRLOSKAR PNEUMATIC 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.

KIRLOSKAR PNEUMATIC Income Statement Analysis

• Operating income during the year rose 21.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.5% in FY23 as against 13.8% in FY22.
• Depreciation charges decreased by 4.8% and finance costs decreased by 50.7% YoY, respectively.
• Other income declined by 9.2% YoY.
• Net profit for the year grew by 27.9% YoY.
• Net profit margins during the year grew from 8.3% in FY22 to 8.8% in FY23.

KIRLOSKAR PNEUMATIC Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	10,212	12,393	21.4%
Other income	Rs m	123	112	-9.2%
Total Revenues	Rs m	10,335	12,505	21.0%
Gross profit	Rs m	1,411	1,676	18.8%
Depreciation	Rs m	352	335	-4.8%
Interest	Rs m	41	20	-50.7%
Profit before tax	Rs m	1,141	1,433	25.5%
Tax	Rs m	292	347	18.8%
Profit after tax	Rs m	849	1,086	27.9%
Gross profit margin	%	13.8	13.5
Effective tax rate	%	25.6	24.2
Net profit margin	%	8.3	8.8

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KIRLOSKAR PNEUMATIC Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -8.2%.
• Current assets rose 6% and stood at Rs 8 billion, while fixed assets rose 23% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 12 billion as against Rs 11 billion during FY22, thereby witnessing a growth of 11%.

KIRLOSKAR PNEUMATIC Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,555	7,920	20.8
Current Liabilities	Rs m	3,797	3,486	-8.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	10,507	11,644	10.8
Current assets	Rs m	7,289	7,699	5.6
Fixed Assets	Rs m	3,219	3,945	22.6
Total Assets	Rs m	10,507	11,644	10.8

KIRLOSKAR PNEUMATIC Cash Flow Statement Analysis

• KIRLOSKAR PNEUMATIC's cash flow from operating activities (CFO) during FY23 stood at Rs 398 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -112 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -284 million, an improvement of 61% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 million from the Rs -89 million net cash flows seen during FY22.

KIRLOSKAR PNEUMATIC 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	1,091	398	-63.5%
Cash Flow from Investing Activities	Rs m	-458	-112	-
Cash Flow from Financing Activities	Rs m	-722	-284	-
Net Cash Flow	Rs m	-89	2	-

Current Valuations for KIRLOSKAR PNEUMATIC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.8, an improvement from the EPS of Rs 13.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 651.2, stands at 38.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.3 times, while the price to sales ratio stands at 3.4 times.
• The company's price to cash flow (P/CF) ratio stood at 23.4 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	158.4	191.7
TTM Earnings per share	Rs	13.2	16.8
Diluted earnings per share	Rs	13.1	16.8
Price to Cash Flow	x	22.0	23.4
TTM P/E ratio	x	31.1	38.8
Price / Book Value ratio	x	3.7	4.2
Market Cap	Rs m	24,315	33,295
Dividends per share (Unadj.)	Rs	4.0	5.5

Ratio Analysis for KIRLOSKAR PNEUMATIC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY23, from 1.9x 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 72.0x during FY23, from 28.9x 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 13.7% during FY23, from 13.0% 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 18.3% during FY23, from 18.0% 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 9.5% during FY23, from 8.5% 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	1.9	2.2
Debtors’ Days	Days	107	97
Interest coverage	x	28.9	72.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.5	9.5
Return on equity	%	13.0	13.7
Return on capital employed	%	18.0	18.3

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 420.1 to Rs 651.2, registering a gain of Rs 231.1 or around 55.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 40,280.1 (up 0.6%). Over the last one year it has moved up from 26,025.5 to 40,280.1, a gain of 14,255 points (up 54.8%).

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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