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KIMS 2022-23 Annual Report Analysis

Mon, 14 Aug

KIMS 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.

KIMS Income Statement Analysis

• Operating income during the year rose 33.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 15.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 27.9% in FY23 as against 32.2% in FY22.
• Depreciation charges increased by 77.9% and finance costs increased by 70.4% YoY, respectively.
• Other income grew by 84.7% YoY.
• Net profit for the year grew by 6.4% YoY.
• Net profit margins during the year declined from 20.8% in FY22 to 16.6% in FY23.

KIMS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	16,508	21,977	33.1%
Other income	Rs m	203	374	84.7%
Total Revenues	Rs m	16,711	22,351	33.8%
Gross profit	Rs m	5,311	6,140	15.6%
Depreciation	Rs m	727	1,293	77.9%
Interest	Rs m	219	373	70.4%
Profit before tax	Rs m	4,569	4,849	6.1%
Tax	Rs m	1,131	1,191	5.3%
Profit after tax	Rs m	3,438	3,658	6.4%
Gross profit margin	%	32.2	27.9
Effective tax rate	%	24.7	24.6
Net profit margin	%	20.8	16.6

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KIMS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 37.9%.
• Long-term debt stood at Rs 5 billion as compared to Rs 1 billion during FY22, a growth of 261.3%.
• Current assets rose 21% and stood at Rs 5 billion, while fixed assets rose 60% and stood at Rs 24 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 29 billion as against Rs 19 billion during FY22, thereby witnessing a growth of 52%.

KIMS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	13,873	16,695	20.3
Current Liabilities	Rs m	2,150	2,965	37.9
Long-term Debt	Rs m	1,377	4,974	261.3
Total Liabilities	Rs m	19,041	29,011	52.4
Current assets	Rs m	3,934	4,776	21.4
Fixed Assets	Rs m	15,107	24,235	60.4
Total Assets	Rs m	19,041	29,011	52.4

KIMS Cash Flow Statement Analysis

• KIMS's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion, an improvement of 33.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -6 billion, an improvement of 49.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 883 million, an improvement of 45% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 360 million from the Rs -265 million net cash flows seen during FY22.

KIMS 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	3,240	4,321	33.4%
Cash Flow from Investing Activities	Rs m	-4,115	-6,156	-
Cash Flow from Financing Activities	Rs m	610	883	44.8%
Net Cash Flow	Rs m	-265	360	-

Current Valuations for KIMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 45.7, an improvement from the EPS of Rs 43.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,855.1, stands at 39.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.9 times, while the price to sales ratio stands at 6.8 times.
• The company's price to cash flow (P/CF) ratio stood at 22.5 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	206.3	274.6
TTM Earnings per share	Rs	43.0	45.7
Diluted earnings per share	Rs	43.0	45.7
Price to Cash Flow	x	26.5	22.5
TTM P/E ratio	x	33.0	39.8
Price / Book Value ratio	x	7.1	6.7
Market Cap	Rs m	98,842	111,435
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KIMS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 1.8x 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 14.0x during FY23, from 21.9x 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 declined and down at 21.9% during FY23, from 24.8% 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 24.1% during FY23, from 31.4% 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 declined and down at 13.9% during FY23, from 19.2% 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	1.8	1.6
Debtors’ Days	Days	28	42
Interest coverage	x	21.9	14.0
Debt to equity ratio	x	0.1	0.3
Return on assets	%	19.2	13.9
Return on equity	%	24.8	21.9
Return on capital employed	%	31.4	24.1

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

KIMS Share Price Performance

Over the last one year, KIMS share price has moved up from Rs 1,259.7 to Rs 1,855.1, registering a gain of Rs 595.4 or around 47.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 27,837.7 (down 0.4%). Over the last one year it has moved up from 23,047.5 to 27,837.7, a gain of 4,790 points (up 20.8%).

Overall, the S&P BSE SENSEX is up 10.5% over the year.

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