KILPEST IND 2022-23 Annual Report Analysis

Mon, 19 Feb

KILPEST IND 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.

KILPEST IND Income Statement Analysis

• Operating income during the year fell 23.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 21.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 47.1% in FY23 as against 46.0% in FY22.
• Depreciation charges increased by 28.4% and finance costs increased by 86.8% YoY, respectively.
• Other income grew by 4.7% YoY.
• Net profit for the year declined by 19.5% YoY.
• Net profit margins during the year grew from 39.9% in FY22 to 41.9% in FY23.

KILPEST IND Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	806	618	-23.3%
Other income	Rs m	69	72	4.7%
Total Revenues	Rs m	876	691	-21.1%
Gross profit	Rs m	371	291	-21.4%
Depreciation	Rs m	7	9	28.4%
Interest	Rs m	1	2	86.8%
Profit before tax	Rs m	432	353	-18.3%
Tax	Rs m	110	94	-15.0%
Profit after tax	Rs m	322	259	-19.5%
Gross profit margin	%	46.0	47.1
Effective tax rate	%	25.5	26.5
Net profit margin	%	39.9	41.9

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KILPEST IND Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 142 million as compared to Rs 169 million in FY22, thereby witnessing an decrease of -16.1%.
• Long-term debt stood at Rs 9 million as compared to Rs 8 million during FY22, a growth of 8.7%.
• Current assets rose 40% and stood at Rs 1 billion, while fixed assets fell 10% and stood at Rs 998 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 11%.

KILPEST IND Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,530	1,712	11.9
Current Liabilities	Rs m	169	142	-16.1
Long-term Debt	Rs m	8	9	8.7
Total Liabilities	Rs m	1,921	2,141	11.4
Current assets	Rs m	815	1,142	40.1
Fixed Assets	Rs m	1,106	998	-9.7
Total Assets	Rs m	1,921	2,141	11.4

KILPEST IND Cash Flow Statement Analysis

• KILPEST IND's cash flow from operating activities (CFO) during FY23 stood at Rs 229 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 121 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -50 million, an improvement of 67% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 303 million from the Rs -62 million net cash flows seen during FY22.

KILPEST IND 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	373	229	-38.6%
Cash Flow from Investing Activities	Rs m	-284	121	-
Cash Flow from Financing Activities	Rs m	-151	-50	-
Net Cash Flow	Rs m	-62	303	-

Current Valuations for KILPEST IND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 34.5, an decline from the EPS of Rs 42.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 415.7, stands at 12.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 5.0 times.
• The company's price to cash flow (P/CF) ratio stood at 10.9 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	107.4	82.3
TTM Earnings per share	Rs	42.9	34.5
Diluted earnings per share	Rs	42.9	34.5
Price to Cash Flow	x	7.8	10.9
TTM P/E ratio	x	8.0	12.0
Price / Book Value ratio	x	2.6	1.7
Market Cap	Rs m	3,953	2,932
Dividends per share (Unadj.)	Rs	10.5	2.5

Ratio Analysis for KILPEST IND

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 8.1x during FY23, from 4.8x 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 deteriorated and stood at 179.3x during FY23, from 408.8x 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 declined and down at 15.1% during FY23, from 21.0% 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 declined and down at 20.6% during FY23, from 28.2% 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 declined and down at 12.2% during FY23, from 16.8% 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	4.8	8.1
Debtors’ Days	Days	135,683	200,341
Interest coverage	x	408.8	179.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.8	12.2
Return on equity	%	21.0	15.1
Return on capital employed	%	28.2	20.6

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

KILPEST IND Share Price Performance

Over the last one year, KILPEST IND share price has moved up from Rs 341.3 to Rs 415.7, registering a gain of Rs 74.5 or around 21.8%.

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

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