KIOCL 2021-22 Annual Report Analysis

Wed, 24 Aug

KIOCL has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

KIOCL Income Statement Analysis

• Operating income during the year rose 26.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.7% in FY22 as against 14.8% in FY21.
• Depreciation charges increased by 13.6% and finance costs decreased by 18.3% YoY, respectively.
• Other income declined by 26.7% YoY.
• Net profit for the year grew by 4.1% YoY.
• Net profit margins during the year declined from 12.7% in FY21 to 10.4% in FY22.

KIOCL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	23,764	30,065	26.5%
Other income	Rs m	1,013	743	-26.7%
Total Revenues	Rs m	24,778	30,807	24.3%
Gross profit	Rs m	3,515	3,803	8.2%
Depreciation	Rs m	275	312	13.6%
Interest	Rs m	152	124	-18.3%
Profit before tax	Rs m	4,102	4,110	0.2%
Tax	Rs m	1,091	976	-10.5%
Profit after tax	Rs m	3,012	3,134	4.1%
Gross profit margin	%	14.8	12.7
Effective tax rate	%	26.6	23.8
Net profit margin	%	12.7	10.4

KIOCL Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 6 billion as compared to Rs 5 billion in FY21, thereby witnessing an increase of 17.5%.
• Long-term debt stood at Rs 90 million as compared to Rs 0 million during FY21, a fall of 0.0%.
• Current assets fell 0% and stood at Rs 23 billion, while fixed assets rose 74% and stood at Rs 6 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 30 billion as against Rs 27 billion during FY21, thereby witnessing a growth of 9%.

KIOCL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	19,860	21,436	7.9
Current Liabilities	Rs m	5,178	6,083	17.5
Long-term Debt	Rs m	0	90	0.0
Total Liabilities	Rs m	27,009	29,541	9.4
Current assets	Rs m	23,493	23,419	-0.3
Fixed Assets	Rs m	3,516	6,122	74.1
Total Assets	Rs m	27,009	29,541	9.4

KIOCL Cash Flow Statement Analysis

• KIOCL's cash flow from operating activities (CFO) during FY22 stood at Rs 699 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion, an improvement of 33% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -2 billion from the Rs 1 billion net cash flows seen during FY21.

KIOCL Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	970	699	-27.9%
Cash Flow from Investing Activities	Rs m	2,985	-1,324	-
Cash Flow from Financing Activities	Rs m	-2,463	-1,648	-
Net Cash Flow	Rs m	1,492	-2,272	-

Current Valuations for KIOCL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.2, an improvement from the EPS of Rs 5.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 191.6, stands at 216.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.4 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 40.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	39.1	49.5
TTM Earnings per share	Rs	5.0	5.2
Diluted earnings per share	Rs	5.0	5.2
Price to Cash Flow	x	26.6	40.5
TTM P/E ratio	x	29.0	216.8
Price / Book Value ratio	x	3.8	6.5
Market Cap	Rs m	75,437	139,388
Dividends per share (Unadj.)	Rs	1.6	1.8

Ratio Analysis for KIOCL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.9x during FY22, from 4.5x during FY21. 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 34.1x during FY22, from 28.0x during FY21. 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 14.6% during FY22, from 15.2% during FY22. 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 19.7% during FY22, from 21.4% during FY21. 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 11.0% during FY22, from 11.7% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	4.5	3.9
Debtors’ Days	Days	373	354
Interest coverage	x	28.0	34.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.7	11.0
Return on equity	%	15.2	14.6
Return on capital employed	%	21.4	19.7

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

KIOCL Share Price Performance

Over the last one year, KIOCL share price has moved down from Rs 252.4 to Rs 191.6, registering a loss of Rs 60.8 or around 24.1%.

Overall, the S&P BSE SENSEX is up 6.4% over the year.

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

Read: Latest Annual Report Analysis of KIOCL