KIRLOSKAR BROS 2021-22 Annual Report Analysis

Fri, 7 Oct

KIRLOSKAR BROS 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.

KIRLOSKAR BROS Income Statement Analysis

• Operating income during the year rose 12.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 14.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.7% in FY22 as against 8.9% in FY21.
• Depreciation charges increased by 2.2% and finance costs decreased by 24.2% YoY, respectively.
• Other income declined by 39.6% YoY.
• Net profit for the year declined by 47.0% YoY.
• Net profit margins during the year declined from 5.7% in FY21 to 2.7% in FY22.

KIRLOSKAR BROS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	27,165	30,576	12.6%
Other income	Rs m	537	324	-39.6%
Total Revenues	Rs m	27,703	30,901	11.5%
Gross profit	Rs m	2,405	2,060	-14.3%
Depreciation	Rs m	680	695	2.2%
Interest	Rs m	442	335	-24.2%
Profit before tax	Rs m	1,821	1,355	-25.6%
Tax	Rs m	282	540	91.5%
Profit after tax	Rs m	1,539	815	-47.0%
Gross profit margin	%	8.9	6.7
Effective tax rate	%	15.5	39.8
Net profit margin	%	5.7	2.7

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KIRLOSKAR BROS Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 14 billion as compared to Rs 15 billion in FY21, thereby witnessing an decrease of -1.1%.
• Long-term debt stood at Rs 1 billion as compared to Rs 840 million during FY21, a growth of 62.3%.
• Current assets rose 9% and stood at Rs 20 billion, while fixed assets rose 1% and stood at Rs 8 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 28 billion as against Rs 27 billion during FY21, thereby witnessing a growth of 6%.

KIRLOSKAR BROS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	11,047	11,774	6.6
Current Liabilities	Rs m	14,586	14,429	-1.1
Long-term Debt	Rs m	840	1,364	62.3
Total Liabilities	Rs m	26,674	28,349	6.3
Current assets	Rs m	18,660	20,283	8.7
Fixed Assets	Rs m	8,014	8,066	0.7
Total Assets	Rs m	26,674	28,349	6.3

KIRLOSKAR BROS Cash Flow Statement Analysis

• KIRLOSKAR BROS's cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -854 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 298 million, an improvement of 109% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 840 million from the Rs -1 billion net cash flows seen during FY21.

KIRLOSKAR BROS 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	3,166	1,412	-55.4%
Cash Flow from Investing Activities	Rs m	-1,439	-854	-
Cash Flow from Financing Activities	Rs m	-3,154	298	-
Net Cash Flow	Rs m	-1,434	840	-

Current Valuations for KIRLOSKAR BROS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.3, an decline from the EPS of Rs 19.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 345.9, stands at 31.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 18.8 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	342.1	385.0
TTM Earnings per share	Rs	19.4	10.3
Diluted earnings per share	Rs	19.4	10.3
Price to Cash Flow	x	8.6	18.8
TTM P/E ratio	x	12.4	31.9
Price / Book Value ratio	x	1.2	2.4
Market Cap	Rs m	13,057	28,383
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for KIRLOSKAR BROS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY22, from 1.3x 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 deteriorated and stood at 5.0x during FY22, from 5.1x 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 6.9% during FY22, from 13.9% 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 12.9% during FY22, from 19.0% 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 4.1% during FY22, from 7.4% 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	1.3	1.4
Debtors’ Days	Days	62	63
Interest coverage	x	5.1	5.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.4	4.1
Return on equity	%	13.9	6.9
Return on capital employed	%	19.0	12.9

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

KIRLOSKAR BROS Share Price Performance

Over the last one year, KIRLOSKAR BROS share price has moved down from Rs 412.7 to Rs 345.9, registering a loss of Rs 66.8 or around 16.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 32,244.3 (up 0.0%). Over the last one year it has moved up from 26,291.0 to 32,244.3, a gain of 5,953 points (up 22.6%).

Overall, the S&P BSE SENSEX is down 2.0% over the year.

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

Read: Latest Annual Report Analysis of KIRLOSKAR BROS