KIRL.FERROUS 2020-21 Annual Report Analysis

Wed, 31 Mar

KIRL.FERROUS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

KIRL.FERROUS Income Statement Analysis

• Operating income during the year rose 10.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 114.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.6% in FY21 as against 11.6% in FY20.
• Depreciation charges increased by 32.1% and finance costs increased by 45.8% YoY, respectively.
• Other income declined by 81.9% YoY.
• Net profit for the year grew by 168.9% YoY.
• Net profit margins during the year grew from 6.1% in FY20 to 14.8% in FY21.

KIRL.FERROUS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	18,497	20,381	10.2%
Other income	Rs m	156	28	-81.9%
Total Revenues	Rs m	18,653	20,409	9.4%
Gross profit	Rs m	2,153	4,615	114.3%
Depreciation	Rs m	575	760	32.1%
Interest	Rs m	173	252	45.8%
Profit before tax	Rs m	1,562	3,632	132.5%
Tax	Rs m	438	611	39.4%
Profit after tax	Rs m	1,124	3,021	168.9%
Gross profit margin	%	11.6	22.6
Effective tax rate	%	28.1	16.8
Net profit margin	%	6.1	14.8

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KIRL.FERROUS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 7 billion as compared to Rs 6 billion in FY20, thereby witnessing an increase of 14.5%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY20, a fall of 18.3%.
• Current assets rose 21% and stood at Rs 7 billion, while fixed assets rose 19% and stood at Rs 12 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 19 billion as against Rs 16 billion during FY20, thereby witnessing a growth of 19%.

KIRL.FERROUS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	7,179	9,964	38.8
Current Liabilities	Rs m	6,224	7,124	14.5
Long-term Debt	Rs m	1,577	1,288	-18.3
Total Liabilities	Rs m	16,193	19,326	19.3
Current assets	Rs m	5,991	7,228	20.6
Fixed Assets	Rs m	10,202	12,098	18.6
Total Assets	Rs m	16,193	19,326	19.3

KIRL.FERROUS Cash Flow Statement Analysis

• KIRL.FERROUS's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 40.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -696 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 31 million from the Rs 59 million net cash flows seen during FY20.

KIRL.FERROUS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	2,036	2,853	40.1%
Cash Flow from Investing Activities	Rs m	-3,159	-2,126	-
Cash Flow from Financing Activities	Rs m	1,182	-696	-
Net Cash Flow	Rs m	59	31	-47.6%

Current Valuations for KIRL.FERROUS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.8, an improvement from the EPS of Rs 8.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 164.3, stands at 7.5 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 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 3.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	134.2	147.3
TTM Earnings per share	Rs	8.2	21.8
Diluted earnings per share	Rs	8.1	21.8
Price to Cash Flow	x	3.5	3.9
TTM P/E ratio	x	5.3	7.5
Price / Book Value ratio	x	1.3	1.5
Market Cap	Rs m	9,524	14,924
Dividends per share (Unadj.)	Rs	2.0	5.0

Ratio Analysis for KIRL.FERROUS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY21, from 1.0x during FY20. 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 15.4x during FY21, from 10.0x during FY20. 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 30.3% during FY21, from 15.7% during FY21. 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 34.5% during FY21, from 19.8% during FY20. 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 16.9% during FY21, from 8.0% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.0	1.0
Debtors’ Days	Days	6	6
Interest coverage	x	10.0	15.4
Debt to equity ratio	x	0.2	0.1
Return on assets	%	8.0	16.9
Return on equity	%	15.7	30.3
Return on capital employed	%	19.8	34.5

To see how KIRL.FERROUS has performed over the last 5 years, please visit here.

KIRL.FERROUS Share Price Performance

Over the last one year, KIRL.FERROUS share price has moved up from Rs 43.0 to Rs 164.3, registering a gain of Rs 121.3 or around 282.1%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 14,350.6 (up 0.4%). Over the last one year it has moved up from 5,713.3 to 14,350.6, a gain of 8,637 points (up 151.2%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for KIRL.FERROUS and quarterly results for KIRL.FERROUS)

Read: Latest Annual Report Analysis of KIRL.FERROUS