KIOCL 2022-23 Annual Report Analysis

Fri, 31 Mar

KIOCL 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.

KIOCL Income Statement Analysis

• Operating income during the year fell 48.7% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 10.6% in FY23 as against 12.7% in FY22.
• Depreciation charges decreased by 19.0% and finance costs increased by 11.0% YoY, respectively.
• Other income grew by 8.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 10.4% in FY22 to 6.3% in FY23.

KIOCL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	30,065	15,434	-48.7%
Other income	Rs m	743	804	8.2%
Total Revenues	Rs m	30,807	16,238	-47.3%
Gross profit	Rs m	3,803	-1,641	NA
Depreciation	Rs m	312	253	-19.0%
Interest	Rs m	124	138	11.0%
Profit before tax	Rs m	4,110	-1,228	NA
Tax	Rs m	976	-251	NA
Profit after tax	Rs m	3,134	-977	NA
Gross profit margin	%	12.7	-10.6
Effective tax rate	%	23.8	20.4
Net profit margin	%	10.4	-6.3

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KIOCL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 10 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 65.4%.
• Long-term debt stood at Rs 308 million as compared to Rs 90 million during FY22, a growth of 242.6%.
• Current assets fell 7% and stood at Rs 22 billion, while fixed assets rose 68% and stood at Rs 10 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 32 billion as against Rs 30 billion during FY22, thereby witnessing a growth of 9%.

KIOCL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	21,436	20,020	-6.6
Current Liabilities	Rs m	6,108	10,100	65.4
Long-term Debt	Rs m	90	308	242.6
Total Liabilities	Rs m	29,541	32,076	8.6
Current assets	Rs m	23,419	21,808	-6.9
Fixed Assets	Rs m	6,122	10,268	67.7
Total Assets	Rs m	29,541	32,076	8.6

KIOCL Cash Flow Statement Analysis

• KIOCL's cash flow from operating activities (CFO) during FY23 stood at Rs -3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 3 billion, an improvement of 305% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 billion from the Rs -2 billion net cash flows seen during FY22.

KIOCL 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	699	-3,094	-
Cash Flow from Investing Activities	Rs m	-1,324	1,292	-
Cash Flow from Financing Activities	Rs m	-1,648	3,370	-
Net Cash Flow	Rs m	-2,272	1,569	-

Current Valuations for KIOCL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.6, an decline from the EPS of Rs 5.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 168.6, stands at -104.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.1 times, while the price to sales ratio stands at 6.6 times.
• The company's price to cash flow (P/CF) ratio stood at -173.1 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	49.5	25.4
TTM Earnings per share	Rs	5.2	-1.6
Diluted earnings per share	Rs	5.2	-1.6
Price to Cash Flow	x	36.7	-173.1
TTM P/E ratio	x	40.4	-104.9
Price / Book Value ratio	x	6.5	6.3
Market Cap	Rs m	139,388	125,364
Dividends per share (Unadj.)	Rs	1.8	0.0

Ratio Analysis for KIOCL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY23, from 3.8x 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 -7.9x during FY23, from 34.1x 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 declined and down at -4.9% during FY23, from 14.6% 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 -5.4% during FY23, from 19.7% 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 -2.6% during FY23, from 11.0% 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	3.8	2.2
Debtors’ Days	Days	354	838
Interest coverage	x	34.1	-7.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.0	-2.6
Return on equity	%	14.6	-4.9
Return on capital employed	%	19.7	-5.4

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 208.2 to Rs 168.6, registering a loss of Rs 39.6 or around 19.0%.

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

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