KIRLOSKAR INDUSTRIES 2022-23 Annual Report Analysis

Fri, 21 Jul

KIRLOSKAR INDUSTRIES 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 INDUSTRIES Income Statement Analysis

• Operating income during the year rose 70.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.3% in FY23 as against 17.4% in FY22.
• Depreciation charges increased by 84.2% and finance costs increased by 211.9% YoY, respectively.
• Other income grew by 83.1% YoY.
• Net profit for the year grew by 45.3% YoY.
• Net profit margins during the year declined from 8.4% in FY22 to 7.1% in FY23.

KIRLOSKAR INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	37,826	64,660	70.9%
Other income	Rs m	382	700	83.1%
Total Revenues	Rs m	38,208	65,360	71.1%
Gross profit	Rs m	6,567	8,607	31.1%
Depreciation	Rs m	955	1,759	84.2%
Interest	Rs m	311	970	211.9%
Profit before tax	Rs m	5,683	6,578	15.7%
Tax	Rs m	2,521	1,983	-21.4%
Profit after tax	Rs m	3,162	4,595	45.3%
Gross profit margin	%	17.4	13.3
Effective tax rate	%	44.4	30.1
Net profit margin	%	8.4	7.1

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KIRLOSKAR INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 18 billion as compared to Rs 22 billion in FY22, thereby witnessing an decrease of -19.0%.
• Long-term debt stood at Rs 5 billion as compared to Rs 3 billion during FY22, a growth of 95.5%.
• Current assets rose 12% and stood at Rs 38 billion, while fixed assets rose 10% and stood at Rs 38 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 75 billion as against Rs 68 billion during FY22, thereby witnessing a growth of 11%.

KIRLOSKAR INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	23,060	30,511	32.3
Current Liabilities	Rs m	22,098	17,889	-19.0
Long-term Debt	Rs m	2,656	5,193	95.5
Total Liabilities	Rs m	67,859	75,332	11.0
Current assets	Rs m	33,739	37,710	11.8
Fixed Assets	Rs m	34,120	37,623	10.3
Total Assets	Rs m	67,859	75,332	11.0

KIRLOSKAR INDUSTRIES Cash Flow Statement Analysis

• KIRLOSKAR INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 8 billion, an improvement of 140.2% 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 -54 million from the Rs 496 million net cash flows seen during FY22.

KIRLOSKAR INDUSTRIES 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	3,166	7,605	140.2%
Cash Flow from Investing Activities	Rs m	-9,306	-3,689	-
Cash Flow from Financing Activities	Rs m	-556	-3,970	-
Net Cash Flow	Rs m	496	-54	-

Current Valuations for KIRLOSKAR INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 465.1, an improvement from the EPS of Rs 323.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,229.9, stands at 6.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 2.8 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	3,867.7	6,544.6
TTM Earnings per share	Rs	323.3	465.1
Diluted earnings per share	Rs	319.8	464.8
Price to Cash Flow	x	3.7	2.8
TTM P/E ratio	x	4.8	6.9
Price / Book Value ratio	x	0.7	0.6
Market Cap	Rs m	15,477	18,076
Dividends per share (Unadj.)	Rs	10.0	11.0

Ratio Analysis for KIRLOSKAR INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY23, from 1.5x 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 7.8x during FY23, from 19.3x 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 15.1% during FY23, from 13.7% 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 declined and down at 21.1% during FY23, from 23.3% 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 7.4% during FY23, from 5.1% 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	1.5	2.1
Debtors’ Days	Days	781	462
Interest coverage	x	19.3	7.8
Debt to equity ratio	x	0.1	0.2
Return on assets	%	5.1	7.4
Return on equity	%	13.7	15.1
Return on capital employed	%	23.3	21.1

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 1,321.4 to Rs 3,229.9, registering a gain of Rs 1,908.5 or around 144.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 42,401.9 (up 1.7%). Over the last one year it has moved up from 29,013.8 to 42,401.9, a gain of 13,388 points (up 46.1%).

Overall, the S&P BSE SENSEX is up 20.4% over the year.

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