KIRLOSKAR INDUSTRIES 2020-21 Annual Report Analysis

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KIRLOSKAR INDUSTRIES 2020-21 Annual Report Analysis
Tue, 9 Nov

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 7.8% in FY20 to 15.0% 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 % 7.8 15.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 1,657.6, stands at 3.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.1 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 154.2 318.9
Price to Cash Flow x 7.6 4.1
TTM P/E ratio x 3.0 3.1
Price / Book Value ratio x 0.6 0.6
Market Cap Rs m 16,093 16,189
Dividends per share (Unadj.) Rs 10.0 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 605.7 to Rs 1,657.6, registering a gain of Rs 1,051.9 or around 173.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 28,527.5 (up 1.5%). Over the last one year it has moved up from 14,989.1 to 28,527.5, a gain of 13,538 points (up 90.3%).

Overall, the S&P BSE SENSEX is up 49.1% over the year.

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

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