KIRLOSKAR BROS 2022-23 Annual Report Analysis

Mon, 10 Jul

KIRLOSKAR BROS 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.

KIRLOSKAR BROS Income Statement Analysis

• Operating income during the year rose 22.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 91.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.6% in FY23 as against 6.7% in FY22.
• Depreciation charges decreased by 1.4% and finance costs increased by 5.7% YoY, respectively.
• Other income declined by 15.9% YoY.
• Net profit for the year grew by 176.0% YoY.
• Net profit margins during the year grew from 2.7% in FY22 to 6.0% in FY23.

KIRLOSKAR BROS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	30,576	37,302	22.0%
Other income	Rs m	324	273	-15.9%
Total Revenues	Rs m	30,901	37,575	21.6%
Gross profit	Rs m	2,060	3,948	91.6%
Depreciation	Rs m	695	686	-1.4%
Interest	Rs m	335	354	5.7%
Profit before tax	Rs m	1,355	3,181	134.8%
Tax	Rs m	540	930	72.4%
Profit after tax	Rs m	815	2,251	176.0%
Gross profit margin	%	6.7	10.6
Effective tax rate	%	39.8	29.2
Net profit margin	%	2.7	6.0

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KIRLOSKAR BROS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 14 billion as compared to Rs 14 billion in FY22, thereby witnessing an decrease of -3.7%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY22, a fall of 18.6%.
• Current assets rose 6% and stood at Rs 21 billion, while fixed assets rose 5% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 30 billion as against Rs 28 billion during FY22, thereby witnessing a growth of 5%.

KIRLOSKAR BROS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	11,774	14,039	19.2
Current Liabilities	Rs m	14,286	13,756	-3.7
Long-term Debt	Rs m	1,364	1,109	-18.6
Total Liabilities	Rs m	28,206	29,750	5.5
Current assets	Rs m	20,139	21,268	5.6
Fixed Assets	Rs m	8,066	8,482	5.2
Total Assets	Rs m	28,206	29,750	5.5

KIRLOSKAR BROS Cash Flow Statement Analysis

• KIRLOSKAR BROS's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 188.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -757 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 870 million from the Rs -393 million net cash flows seen during FY22.

KIRLOSKAR BROS 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	1,143	3,292	188.0%
Cash Flow from Investing Activities	Rs m	-1,819	-757	-
Cash Flow from Financing Activities	Rs m	298	-1,694	-
Net Cash Flow	Rs m	-393	870	-

Current Valuations for KIRLOSKAR BROS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.3, an improvement from the EPS of Rs 10.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 630.5, stands at 22.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 9.0 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	385.0	469.7
TTM Earnings per share	Rs	10.3	28.3
Diluted earnings per share	Rs	10.3	28.3
Price to Cash Flow	x	14.9	9.0
TTM P/E ratio	x	27.6	22.2
Price / Book Value ratio	x	2.4	1.9
Market Cap	Rs m	28,383	26,483
Dividends per share (Unadj.)	Rs	3.0	4.5

Ratio Analysis for KIRLOSKAR BROS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 1.4x 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 improved and stood at 10.0x during FY23, from 5.0x 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 improved and stood at 16.0% during FY23, from 6.9% 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 improved and stood at 23.3% during FY23, from 12.9% 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 improved and stood at 8.8% during FY23, from 4.1% 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	1.4	1.5
Debtors’ Days	Days	62	48
Interest coverage	x	5.0	10.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	4.1	8.8
Return on equity	%	6.9	16.0
Return on capital employed	%	12.9	23.3

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 up from Rs 326.0 to Rs 630.5, registering a gain of Rs 304.5 or around 93.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 40,670.4 (down 0.8%). Over the last one year it has moved up from 27,580.5 to 40,670.4, a gain of 13,090 points (up 47.5%).

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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