KEWAL KIRAN CLOTHING 2017-18 Annual Report Analysis

Sat, 31 Mar

KEWAL KIRAN CLOTHING has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

KEWAL KIRAN CLOTHING Income Statement Analysis

• Operating income during the year rose 0.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 0.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.4% in FY18 as against 21.7% in FY17.
• Depreciation charges increased by 21.4% and finance costs increased by 52.3% YoY, respectively.
• Other income grew by 19.8% YoY.
• Net profit for the year declined by 1.8% YoY.
• Net profit margins during the year declined from 16.4% in FY17 to 16.0% in FY18.

KEWAL KIRAN CLOTHING Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	4,559	4,588	0.6%
Other income	Rs m	176	211	19.8%
Total Revenues	Rs m	4,735	4,799	1.4%
Gross profit	Rs m	987	982	-0.5%
Depreciation	Rs m	48	58	21.4%
Interest	Rs m	33	50	52.3%
Profit before tax	Rs m	1,083	1,086	0.2%
Tax	Rs m	337	353	4.8%
Profit after tax	Rs m	746	733	-1.8%
Gross profit margin	%	21.7	21.4
Effective tax rate	%	31.1	32.5
Net profit margin	%	16.4	16.0

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KEWAL KIRAN CLOTHING Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 2 billion as compared to Rs 1 billion in FY17, thereby witnessing an increase of 9.8%.
• Current assets rose 10% and stood at Rs 3 billion, while fixed assets rose 6% and stood at Rs 2 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 6 billion as against Rs 5 billion during FY17, thereby witnessing a growth of 9%.

KEWAL KIRAN CLOTHING Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	3,741	3,992	6.7
Current Liabilities	Rs m	1,374	1,509	9.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	5,127	5,564	8.5
Current assets	Rs m	3,048	3,361	10.3
Fixed Assets	Rs m	2,080	2,203	5.9
Total Assets	Rs m	5,127	5,564	8.5

KEWAL KIRAN CLOTHING Cash Flow Statement Analysis

• KEWAL KIRAN CLOTHING's cash flow from operating activities (CFO) during FY18 stood at Rs 556 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -140 million, an improvement of 51.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -456 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -40 million from the Rs 434 million net cash flows seen during FY17.

KEWAL KIRAN CLOTHING Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	801	556	-30.6%
Cash Flow from Investing Activities	Rs m	-93	-140	-
Cash Flow from Financing Activities	Rs m	-274	-456	-
Net Cash Flow	Rs m	434	-40	-

Current Valuations for KEWAL KIRAN CLOTHING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 59.4, an decline from the EPS of Rs 60.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,521.6, stands at 127.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 23.5 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 28.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	369.8	372.1
TTM Earnings per share	Rs	60.5	59.4
Diluted earnings per share	Rs	12.1	11.9
Price to Cash Flow	x	134.7	28.4
TTM P/E ratio	x	147.1	127.9
Price / Book Value ratio	x	6.0	5.6
Market Cap	Rs m	22,451	22,444
Dividends per share (Unadj.)	Rs	19.0	33.0

Ratio Analysis for KEWAL KIRAN CLOTHING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY18, from 2.2x during FY17. 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 22.8x during FY18, from 34.1x during FY17. 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 18.4% during FY18, from 19.9% during FY18. 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 28.4% during FY18, from 29.8% during FY17. 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 14.1% during FY18, from 15.2% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	2.2	2.2
Debtors’ Days	Days	850	960
Interest coverage	x	34.1	22.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.2	14.1
Return on equity	%	19.9	18.4
Return on capital employed	%	29.8	28.4

To see how KEWAL KIRAN CLOTHING has performed over the last 5 years, please visit here.

KEWAL KIRAN CLOTHING Share Price Performance

Over the last one year, KEWAL KIRAN CLOTHING share price has moved down from Rs 1,735.0 to Rs 1,521.6, registering a loss of Rs 213.5 or around 12.3%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for KEWAL KIRAN CLOTHING and quarterly results for KEWAL KIRAN CLOTHING)