KAJARIA CERAMICS 2022-23 Annual Report Analysis

Tue, 22 Aug

KAJARIA CERAMICS 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.

KAJARIA CERAMICS Income Statement Analysis

• Operating income during the year rose 18.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 4.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.3% in FY23 as against 16.5% in FY22.
• Depreciation charges increased by 15.2% and finance costs increased by 75.3% YoY, respectively.
• Other income grew by 21.9% YoY.
• Net profit for the year declined by 9.5% YoY.
• Net profit margins during the year declined from 10.3% in FY22 to 7.9% in FY23.

KAJARIA CERAMICS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	37,052	43,819	18.3%
Other income	Rs m	276	336	21.9%
Total Revenues	Rs m	37,328	44,156	18.3%
Gross profit	Rs m	6,107	5,840	-4.4%
Depreciation	Rs m	1,154	1,329	15.2%
Interest	Rs m	127	223	75.3%
Profit before tax	Rs m	5,102	4,625	-9.4%
Tax	Rs m	1,274	1,163	-8.8%
Profit after tax	Rs m	3,827	3,462	-9.5%
Gross profit margin	%	16.5	13.3
Effective tax rate	%	25.0	25.1
Net profit margin	%	10.3	7.9

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KAJARIA CERAMICS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 7 billion as compared to Rs 7 billion in FY22, thereby witnessing an increase of 7.7%.
• Long-term debt stood at Rs 518 million as compared to Rs 238 million during FY22, a growth of 117.6%.
• Current assets rose 11% and stood at Rs 16 billion, while fixed assets rose 7% and stood at Rs 16 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 33 billion as against Rs 30 billion during FY22, thereby witnessing a growth of 11%.

KAJARIA CERAMICS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	21,205	23,179	9.3
Current Liabilities	Rs m	6,591	7,097	7.7
Long-term Debt	Rs m	238	518	117.6
Total Liabilities	Rs m	29,858	33,279	11.5
Current assets	Rs m	14,513	16,110	11.0
Fixed Assets	Rs m	15,345	16,414	7.0
Total Assets	Rs m	29,858	33,279	11.5

KAJARIA CERAMICS Cash Flow Statement Analysis

• KAJARIA CERAMICS'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 -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -218 million from the Rs 75 million net cash flows seen during FY22.

KAJARIA CERAMICS 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	4,255	2,955	-30.6%
Cash Flow from Investing Activities	Rs m	-2,979	-1,837	-
Cash Flow from Financing Activities	Rs m	-1,201	-1,348	-
Net Cash Flow	Rs m	75	-218	-

Current Valuations for KAJARIA CERAMICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.7, an decline from the EPS of Rs 24.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,490.4, stands at 65.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.2 times, while the price to sales ratio stands at 5.4 times.
• The company's price to cash flow (P/CF) ratio stood at 36.2 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	232.7	275.2
TTM Earnings per share	Rs	24.0	21.7
Diluted earnings per share	Rs	24.0	21.7
Price to Cash Flow	x	32.5	36.2
TTM P/E ratio	x	42.4	65.5
Price / Book Value ratio	x	8.4	7.5
Market Cap	Rs m	177,966	173,400
Dividends per share (Unadj.)	Rs	11.0	9.0

Ratio Analysis for KAJARIA CERAMICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY23, from 2.2x 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 21.7x during FY23, from 41.1x 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 14.9% during FY23, from 18.0% 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 20.5% during FY23, from 24.4% 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 11.1% during FY23, from 13.2% 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	2.2	2.3
Debtors’ Days	Days	5	5
Interest coverage	x	41.1	21.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.2	11.1
Return on equity	%	18.0	14.9
Return on capital employed	%	24.4	20.5

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 up from Rs 1,177.4 to Rs 1,490.4, registering a gain of Rs 313.0 or around 26.6%.

Overall, the S&P BSE SENSEX is up 8.2% over the year.

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