KRBL 2022-23 Annual Report Analysis

Mon, 11 Sep

KRBL 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.

KRBL Income Statement Analysis

• Operating income during the year rose 27.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 41.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.5% in FY23 as against 15.7% in FY22.
• Depreciation charges increased by 1.9% and finance costs increased by 10.0% YoY, respectively.
• Other income grew by 117.2% YoY.
• Net profit for the year grew by 52.6% YoY.
• Net profit margins during the year grew from 10.9% in FY22 to 13.1% in FY23.

KRBL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	42,106	53,632	27.4%
Other income	Rs m	427	928	117.2%
Total Revenues	Rs m	42,533	54,560	28.3%
Gross profit	Rs m	6,620	9,388	41.8%
Depreciation	Rs m	742	757	1.9%
Interest	Rs m	134	147	10.0%
Profit before tax	Rs m	6,171	9,412	52.5%
Tax	Rs m	1,577	2,402	52.3%
Profit after tax	Rs m	4,594	7,010	52.6%
Gross profit margin	%	15.7	17.5
Effective tax rate	%	25.6	25.5
Net profit margin	%	10.9	13.1

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

KRBL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 7 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 49.8%.
• Current assets rose 29% and stood at Rs 46 billion, while fixed assets fell 17% and stood at Rs 10 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 56 billion as against Rs 47 billion during FY22, thereby witnessing a growth of 18%.

KRBL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	40,702	46,926	15.3
Current Liabilities	Rs m	4,870	7,295	49.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	47,480	55,909	17.8
Current assets	Rs m	35,947	46,311	28.8
Fixed Assets	Rs m	11,533	9,598	-16.8
Total Assets	Rs m	47,480	55,909	17.8

KRBL Cash Flow Statement Analysis

• KRBL's cash flow from operating activities (CFO) during FY23 stood at Rs -4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 48 million, an improvement of 101% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 billion from the Rs 323 million net cash flows seen during FY22.

KRBL 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	5,608	-3,601	-
Cash Flow from Investing Activities	Rs m	-2,063	2,064	-
Cash Flow from Financing Activities	Rs m	-3,222	48	-
Net Cash Flow	Rs m	323	-1,490	-

Current Valuations for KRBL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.8, an improvement from the EPS of Rs 19.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 448.0, stands at 14.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 9.8 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	178.9	227.8
TTM Earnings per share	Rs	19.5	29.8
Diluted earnings per share	Rs	19.5	29.8
Price to Cash Flow	x	8.9	9.8
TTM P/E ratio	x	10.3	14.4
Price / Book Value ratio	x	1.5	1.6
Market Cap	Rs m	60,130	76,013
Dividends per share (Unadj.)	Rs	3.5	1.0

Ratio Analysis for KRBL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 6.3x during FY23, from 7.4x 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 64.9x during FY23, from 47.1x 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 14.9% during FY23, from 11.3% 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 20.4% during FY23, from 15.5% 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 12.8% during FY23, from 10.0% 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	7.4	6.3
Debtors’ Days	Days	251	194
Interest coverage	x	47.1	64.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.0	12.8
Return on equity	%	11.3	14.9
Return on capital employed	%	15.5	20.4

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

KRBL Share Price Performance

Over the last one year, KRBL share price has moved up from Rs 303.8 to Rs 448.0, registering a gain of Rs 144.3 or around 47.5%.

Overall, the S&P BSE SENSEX is up 13.4% over the year.

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