KIRL.FERROUS 2022-23 Annual Report Analysis

Mon, 17 Jul

KIRL.FERROUS 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.

KIRL.FERROUS Income Statement Analysis

• Operating income during the year rose 71.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 30.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.0% in FY23 as against 17.2% in FY22.
• Depreciation charges increased by 87.5% and finance costs increased by 222.8% YoY, respectively.
• Other income grew by 313.8% YoY.
• Net profit for the year grew by 45.9% YoY.
• Net profit margins during the year declined from 8.0% in FY22 to 6.8% in FY23.

KIRL.FERROUS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	37,483	64,175	71.2%
Other income	Rs m	119	493	313.8%
Total Revenues	Rs m	37,602	64,668	72.0%
Gross profit	Rs m	6,429	8,357	30.0%
Depreciation	Rs m	920	1,726	87.5%
Interest	Rs m	296	955	222.8%
Profit before tax	Rs m	5,332	6,170	15.7%
Tax	Rs m	2,335	1,797	-23.0%
Profit after tax	Rs m	2,997	4,373	45.9%
Gross profit margin	%	17.2	13.0
Effective tax rate	%	43.8	29.1
Net profit margin	%	8.0	6.8

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KIRL.FERROUS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 19 billion as compared to Rs 20 billion in FY22, thereby witnessing an decrease of -7.3%.
• Long-term debt down at Rs 4 billion as compared to Rs 4 billion during FY22, a fall of 17.3%.
• Current assets fell 5% and stood at Rs 21 billion, while fixed assets rose 9% and stood at Rs 34 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 55 billion as against Rs 53 billion during FY22, thereby witnessing a growth of 3%.

KIRL.FERROUS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	17,623	20,824	18.2
Current Liabilities	Rs m	20,282	18,797	-7.3
Long-term Debt	Rs m	4,470	3,698	-17.3
Total Liabilities	Rs m	53,144	54,815	3.1
Current assets	Rs m	22,186	21,062	-5.1
Fixed Assets	Rs m	30,957	33,754	9.0
Total Assets	Rs m	53,144	54,815	3.1

KIRL.FERROUS Cash Flow Statement Analysis

• KIRL.FERROUS's cash flow from operating activities (CFO) during FY23 stood at Rs 8 billion, an improvement of 131.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -248 million from the Rs 705 million net cash flows seen during FY22.

KIRL.FERROUS 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	3,450	7,977	131.2%
Cash Flow from Investing Activities	Rs m	-9,092	-3,991	-
Cash Flow from Financing Activities	Rs m	-845	-4,234	-
Net Cash Flow	Rs m	705	-248	-

Current Valuations for KIRL.FERROUS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.5, an improvement from the EPS of Rs 21.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 484.5, stands at 15.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 7.4 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	270.2	461.8
TTM Earnings per share	Rs	21.6	31.5
Diluted earnings per share	Rs	21.6	31.5
Price to Cash Flow	x	7.6	7.4
TTM P/E ratio	x	16.6	15.4
Price / Book Value ratio	x	1.9	2.2
Market Cap	Rs m	33,143	45,370
Dividends per share (Unadj.)	Rs	5.5	5.5

Ratio Analysis for KIRL.FERROUS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY23, from 1.1x 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 7.5x during FY23, from 19.0x 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 21.0% during FY23, from 17.0% 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 improved and stood at 29.1% during FY23, from 25.5% 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 9.7% during FY23, from 6.2% 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	1.1	1.1
Debtors’ Days	Days	8	5
Interest coverage	x	19.0	7.5
Debt to equity ratio	x	0.3	0.2
Return on assets	%	6.2	9.7
Return on equity	%	17.0	21.0
Return on capital employed	%	25.5	29.1

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 201.2 to Rs 484.5, registering a gain of Rs 283.3 or around 140.8%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 21,445.2 (up 0.2%). Over the last one year it has moved up from 15,924.6 to 21,445.2, a gain of 5,521 points (up 34.7%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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