KIRLOSKAR INDUSTRIES 2020-21 Annual Report Analysis

Wed, 31 Mar

KIRLOSKAR INDUSTRIES 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.

KIRLOSKAR INDUSTRIES Income Statement Analysis

• Operating income during the year rose 8.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 95.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.3% in FY21 as against 12.5% in FY20.
• Depreciation charges increased by 31.2% and finance costs increased by 43.9% YoY, respectively.
• Other income declined by 42.8% YoY.
• Net profit for the year grew by 106.8% YoY.
• Net profit margins during the year grew from 8.0% in FY20 to 15.2% in FY21.

KIRLOSKAR INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	18,860	20,547	8.9%
Other income	Rs m	442	253	-42.8%
Total Revenues	Rs m	19,301	20,799	7.8%
Gross profit	Rs m	2,348	4,586	95.3%
Depreciation	Rs m	605	793	31.2%
Interest	Rs m	186	268	43.9%
Profit before tax	Rs m	1,999	3,777	89.0%
Tax	Rs m	493	663	34.5%
Profit after tax	Rs m	1,506	3,115	106.8%
Gross profit margin	%	12.5	22.3
Effective tax rate	%	24.7	17.5
Net profit margin	%	8.0	15.2

Download Now: Exclusive Guide About India's Potentially Decade-Long $10 Trillion Bull Run...

KIRLOSKAR INDUSTRIES 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 14.4%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY20, a fall of 9.4%.
• Current assets rose 59% and stood at Rs 18 billion, while fixed assets rose 22% and stood at Rs 16 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 34 billion as against Rs 24 billion during FY20, thereby witnessing a growth of 39%.

KIRLOSKAR INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	10,131	17,184	69.6
Current Liabilities	Rs m	5,681	6,501	14.4
Long-term Debt	Rs m	2,282	2,068	-9.4
Total Liabilities	Rs m	24,181	33,701	39.4
Current assets	Rs m	11,291	17,913	58.7
Fixed Assets	Rs m	12,890	15,788	22.5
Total Assets	Rs m	24,181	33,701	39.4

KIRLOSKAR INDUSTRIES Cash Flow Statement Analysis

• KIRLOSKAR INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 38.1% 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 -559 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 64 million from the Rs 354 million net cash flows seen during FY20.

KIRLOSKAR INDUSTRIES 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	1,854	2,560	38.1%
Cash Flow from Investing Activities	Rs m	-2,576	-1,936	-
Cash Flow from Financing Activities	Rs m	1,077	-559	-
Net Cash Flow	Rs m	354	64	-81.9%

Current Valuations for KIRLOSKAR INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 320.8, an improvement from the EPS of Rs 155.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,241.9, stands at 3.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 2.5 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	1,942.3	2,116.0
TTM Earnings per share	Rs	155.1	320.8
Diluted earnings per share	Rs	153.7	317.9
Price to Cash Flow	x	2.1	2.5
TTM P/E ratio	x	2.9	3.9
Price / Book Value ratio	x	0.6	0.6
Market Cap	Rs m	6,085	9,818
Dividends per share (Unadj.)	Rs	10.0	10.0

Ratio Analysis for KIRLOSKAR INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.8x during FY21, from 2.0x 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 15.1x during FY21, from 11.7x 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 18.1% during FY21, from 14.9% 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 21.0% during FY21, from 17.6% 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 10.0% during FY21, from 7.0% 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	2.0	2.8
Debtors’ Days	Days	566	641
Interest coverage	x	11.7	15.1
Debt to equity ratio	x	0.2	0.1
Return on assets	%	7.0	10.0
Return on equity	%	14.9	18.1
Return on capital employed	%	17.6	21.0

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

KIRLOSKAR INDUSTRIES Share Price Performance

Over the last one year, KIRLOSKAR INDUSTRIES share price has moved up from Rs 444.4 to Rs 1,241.9, registering a gain of Rs 797.5 or around 179.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

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

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

Read: Latest Annual Report Analysis of KIRLOSKAR INDUSTRIES