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KAJARIA CERAMICS 2019-20 Annual Report Analysis
Tue, 31 Mar

KAJARIA CERAMICS has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

KAJARIA CERAMICS Income Statement Analysis

  • Operating income during the year fell 5.0% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 6.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.8% in FY20 as against 15.0% in FY19.
  • Depreciation charges increased by 21.4% and finance costs increased by 25.1% YoY, respectively.
  • Other income grew by 33.9% YoY.
  • Net profit for the year grew by 10.8% YoY.
  • Net profit margins during the year grew from 7.7% in FY19 to 9.0% in FY20.

KAJARIA CERAMICS Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 29,562 28,080 -5.0%
Other income Rs m 180 242 33.9%
Total Revenues Rs m 29,742 28,322 -4.8%
Gross profit Rs m 4,447 4,159 -6.5%
Depreciation Rs m 891 1,081 21.4%
Interest Rs m 156 195 25.1%
Profit before tax Rs m 3,580 3,125 -12.7%
Tax Rs m 1,293 589 -54.4%
Profit after tax Rs m 2,288 2,535 10.8%
Gross profit margin % 15.0 14.8
Effective tax rate % 36.1 18.9
Net profit margin % 7.7 9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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KAJARIA CERAMICS Balance Sheet Analysis

  • The company's current liabilities during FY20 down at Rs 5 billion as compared to Rs 6 billion in FY19, thereby witnessing an decrease of -11.9%.
  • Long-term debt down at Rs 215 million as compared to Rs 315 million during FY19, a fall of 31.6%.
  • Current assets rose 1% and stood at Rs 12 billion, while fixed assets rose 4% and stood at Rs 12 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 24 billion as against Rs 24 billion during FY19, thereby witnessing a growth of 3%.

KAJARIA CERAMICS Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 15,698 17,087 8.9
 
Current Liabilities Rs m 5,866 5,168 -11.9
Long-term Debt Rs m 315 215 -31.6
Total Liabilities Rs m 23,719 24,371 2.8
 
Current assets Rs m 11,712 11,876 1.4
Fixed Assets Rs m 11,988 12,495 4.2
Total Assets Rs m 23,719 24,371 2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



KAJARIA CERAMICS Cash Flow Statement Analysis

  • KAJARIA CERAMICS's cash flow from operating activities (CFO) during FY20 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -901 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -1 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -60 million from the Rs -576 million net cash flows seen during FY19.

KAJARIA CERAMICS Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 3,174 2,244 -29.3%
Cash Flow from Investing Activities Rs m -2,609 -901 -
Cash Flow from Financing Activities Rs m -1,141 -1,404 -
Net Cash Flow Rs m -576 -60 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for KAJARIA CERAMICS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.9, an improvement from the EPS of Rs 14.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 376.6, stands at 23.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 2.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 21.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 186.0 176.6
TTM Earnings per share Rs 14.4 15.9
Diluted earnings per share Rs 14.4 15.9
Price to Cash Flow x 29.6 21.5
TTM P/E ratio x 40.2 23.6
Price / Book Value ratio x 4.6 4.6
Market Cap Rs m 72,635 77,802
Dividends per share (Unadj.) Rs 3.0 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for KAJARIA CERAMICS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.3x during FY20, from 2.0x during FY19. 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 17.0x during FY20, from 24.0x during FY19. 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 14.8% during FY20, from 14.6% during FY20. 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 19.2% during FY20, from 23.3% during FY19. 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 11.2% during FY20, from 10.3% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 2.0 2.3
Debtors’ Days Days 6 5
Interest coverage x 24.0 17.0
Debt to equity ratio x 0.0 0.0
Return on assets % 10.3 11.2
Return on equity % 14.6 14.8
Return on capital employed % 23.3 19.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

KAJARIA CERAMICS Share Price Performance

Over the last one year, KAJARIA CERAMICS share price has moved down from Rs 590.7 to Rs 376.6, registering a loss of Rs 214.2 or around 36.3%.

Overall, the S&P BSE SENSEX is down 24.2% over the year.

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

Annual Report FAQs

What is the current share price of KAJARIA CERAMICS?

KAJARIA CERAMICS currently trades at Rs 1,156.5 per share. You can check out the latest share price performance of KAJARIA CERAMICS here...

What was the revenue of KAJARIA CERAMICS in FY20? How does it compare to earlier years?

The revenues of KAJARIA CERAMICS stood at Rs 28,322 m in FY20, which was down -4.8% compared to Rs 29,742 m reported in FY19.

KAJARIA CERAMICS' revenue has grown from Rs 21,368 m in FY16 to Rs 28,322 m in FY20.

Over the past 5 years, the revenue of KAJARIA CERAMICS has grown at a CAGR of 7.3%.

What was the net profit of KAJARIA CERAMICS in FY20? How does it compare to earlier years?

The net profit of KAJARIA CERAMICS stood at Rs 2,535 m in FY20, which was up 10.8% compared to Rs 2,288 m reported in FY19.

This compares to a net profit of Rs 2,286 m in FY18 and a net profit of Rs 2,538 m in FY17.

Over the past 5 years, KAJARIA CERAMICS net profit has grown at a CAGR of 1.9%.

What does the cash flow statement of KAJARIA CERAMICS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of KAJARIA CERAMICS reveals:

  • Cash flow from operations decreased in FY20 and stood at Rs 2,244 m as compared to Rs 3,174 m in FY19.
  • Cash flow from investments increased in FY20 and stood at Rs -901 m as compared to Rs -2,609 m in FY19.
  • Cash flow from financial activity decreased in FY20 and stood at Rs -1,404 m as compared to Rs -1,141 m in FY19.

Here's the cash flow statement of KAJARIA CERAMICS for the past 5 years.

(Rs m)FY16FY17FY18FY19FY20
From Operations3,1563,3772,3823,1742,244
From Investments-2,670-1,397-1,368-2,609-901
From Financial Activity-387-1,679-718-1,141-1,404
Net Cashflow100301298-576-60

What does the Key Ratio analysis of KAJARIA CERAMICS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of KAJARIA CERAMICS reveals:

  • Operating profit margins witnessed a fall and stood at 14.8% in FY20 as against 15.0% in FY19.
  • Net profit margins grew from 7.7% in FY19 to 9.0% in FY20.
  • Debt to Equity ratio for FY20 stood at 0.0 as compared to 0.0 in FY19.

Here's the ratio/financial analysis of KAJARIA CERAMICS for the past 5 years.

 FY16FY17FY18FY19FY20
Operating Profit Margin (%)21.522.117.315.014.8
Net Profit Margin (%)11.111.38.77.79.0
Debt to Equity Ratio (x)0.10.10.00.00.0

Read: Latest Annual Report Analysis of KAJARIA CERAMICS

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