KHADIM INDIA 2022-23 Annual Report Analysis

Fri, 31 Mar

KHADIM INDIA 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.

KHADIM INDIA Income Statement Analysis

• Operating income during the year rose 11.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 51.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.3% in FY23 as against 8.3% in FY22.
• Depreciation charges increased by 14.3% and finance costs increased by 29.7% YoY, respectively.
• Other income grew by 7.4% YoY.
• Net profit for the year grew by 171.5% YoY.
• Net profit margins during the year grew from 1.1% in FY22 to 2.6% in FY23.

KHADIM INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,911	6,603	11.7%
Other income	Rs m	163	175	7.4%
Total Revenues	Rs m	6,074	6,777	11.6%
Gross profit	Rs m	492	747	51.9%
Depreciation	Rs m	336	384	14.3%
Interest	Rs m	241	313	29.7%
Profit before tax	Rs m	78	225	190.8%
Tax	Rs m	13	51	285.4%
Profit after tax	Rs m	64	175	171.5%
Gross profit margin	%	8.3	11.3
Effective tax rate	%	17.0	22.5
Net profit margin	%	1.1	2.6

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KHADIM INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 0.1%.
• Long-term debt down at Rs 118 million as compared to Rs 148 million during FY22, a fall of 20.1%.
• Current assets rose 11% and stood at Rs 4 billion, while fixed assets rose 17% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 7 billion as against Rs 7 billion during FY22, thereby witnessing a growth of 14%.

KHADIM INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,065	2,242	8.6
Current Liabilities	Rs m	3,282	3,286	0.1
Long-term Debt	Rs m	148	118	-20.1
Total Liabilities	Rs m	6,582	7,472	13.5
Current assets	Rs m	4,001	4,444	11.1
Fixed Assets	Rs m	2,581	3,028	17.3
Total Assets	Rs m	6,582	7,472	13.5

KHADIM INDIA Cash Flow Statement Analysis

• KHADIM INDIA 's cash flow from operating activities (CFO) during FY23 stood at Rs 394 million, an improvement of 28.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 199 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -628 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -35 million from the Rs -250 million net cash flows seen during FY22.

KHADIM INDIA 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	306	394	28.6%
Cash Flow from Investing Activities	Rs m	-138	199	-
Cash Flow from Financing Activities	Rs m	-418	-628	-
Net Cash Flow	Rs m	-250	-35	-

Current Valuations for KHADIM INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.7, an improvement from the EPS of Rs 3.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 184.6, stands at 19.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 8.1 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	328.9	367.4
TTM Earnings per share	Rs	3.6	9.7
Diluted earnings per share	Rs	3.6	9.7
Price to Cash Flow	x	10.0	8.1
TTM P/E ratio	x	62.0	19.0
Price / Book Value ratio	x	2.1	2.0
Market Cap	Rs m	4,352	4,537
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KHADIM INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY23, from 1.2x 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 1.7x during FY23, from 1.3x 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 7.8% during FY23, from 3.1% 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 22.8% during FY23, from 14.4% 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 6.5% during FY23, from 4.6% 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	1.2	1.4
Debtors’ Days	Days	82	104
Interest coverage	x	1.3	1.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	4.6	6.5
Return on equity	%	3.1	7.8
Return on capital employed	%	14.4	22.8

To see how KHADIM INDIA has performed over the last 5 years, please visit here.

KHADIM INDIA Share Price Performance

Over the last one year, KHADIM INDIA share price has moved down from Rs 222.3 to Rs 184.6, registering a loss of Rs 37.7 or around 16.9%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for KHADIM INDIA and quarterly results for KHADIM INDIA )