KALYAN JEWELLERS 2022-23 Annual Report Analysis

Mon, 24 Jul

KALYAN JEWELLERS 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.

KALYAN JEWELLERS Income Statement Analysis

• Operating income during the year rose 30.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 32.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.0% in FY23 as against 7.9% in FY22.
• Depreciation charges increased by 5.6% and finance costs decreased by 1.9% YoY, respectively.
• Other income declined by 1.0% YoY.
• Net profit for the year grew by 92.8% YoY.
• Net profit margins during the year grew from 2.1% in FY22 to 3.1% in FY23.

KALYAN JEWELLERS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	108,179	140,714	30.1%
Other income	Rs m	383	379	-1.0%
Total Revenues	Rs m	108,562	141,093	30.0%
Gross profit	Rs m	8,525	11,317	32.7%
Depreciation	Rs m	2,316	2,446	5.6%
Interest	Rs m	3,604	3,535	-1.9%
Profit before tax	Rs m	2,989	5,715	91.2%
Tax	Rs m	748	1,396	86.6%
Profit after tax	Rs m	2,240	4,319	92.8%
Gross profit margin	%	7.9	8.0
Effective tax rate	%	25.0	24.4
Net profit margin	%	2.1	3.1

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KALYAN JEWELLERS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 68 billion as compared to Rs 52 billion in FY22, thereby witnessing an increase of 31.2%.
• Long-term debt down at Rs 78 million as compared to Rs 243 million during FY22, a fall of 68.0%.
• Current assets rose 29% and stood at Rs 88 billion, while fixed assets fell 9% and stood at Rs 21 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 111 billion as against Rs 92 billion during FY22, thereby witnessing a growth of 21%.

KALYAN JEWELLERS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	31,370	36,347	15.9
Current Liabilities	Rs m	51,818	67,984	31.2
Long-term Debt	Rs m	243	78	-68.0
Total Liabilities	Rs m	91,971	110,864	20.5
Current assets	Rs m	68,414	88,116	28.8
Fixed Assets	Rs m	23,558	21,409	-9.1
Total Assets	Rs m	91,971	110,864	20.5

KALYAN JEWELLERS Cash Flow Statement Analysis

• KALYAN JEWELLERS's cash flow from operating activities (CFO) during FY23 stood at Rs 10 billion, an improvement of 283.7% 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 -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -81 million from the Rs -2 billion net cash flows seen during FY22.

KALYAN JEWELLERS 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	2,641	10,134	283.7%
Cash Flow from Investing Activities	Rs m	636	-3,839	-
Cash Flow from Financing Activities	Rs m	-5,435	-6,376	-
Net Cash Flow	Rs m	-2,158	-81	-

Current Valuations for KALYAN JEWELLERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.2, an improvement from the EPS of Rs 2.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 173.0, stands at 41.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 14.4 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	105.0	136.6
TTM Earnings per share	Rs	2.2	4.2
Diluted earnings per share	Rs	2.2	4.2
Price to Cash Flow	x	13.3	14.4
TTM P/E ratio	x	27.0	41.2
Price / Book Value ratio	x	2.4	2.7
Market Cap	Rs m	74,936	97,443
Dividends per share (Unadj.)	Rs	0.0	0.5

Ratio Analysis for KALYAN JEWELLERS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 1.3x 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 improved and stood at 2.6x during FY23, from 1.8x 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 11.9% during FY23, from 7.1% 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 25.4% during FY23, from 20.9% 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 7.1% during FY23, from 6.4% 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	1.3	1.3
Debtors’ Days	Days	4	6
Interest coverage	x	1.8	2.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.4	7.1
Return on equity	%	7.1	11.9
Return on capital employed	%	20.9	25.4

To see how KALYAN JEWELLERS has performed over the last 5 years, please visit here.

KALYAN JEWELLERS Share Price Performance

Over the last one year, KALYAN JEWELLERS share price has moved up from Rs 64.8 to Rs 173.0, registering a gain of Rs 108.2 or around 166.9%.

Overall, the S&P BSE SENSEX is up 19.8% over the year.

(To know more, check out historical annual results for KALYAN JEWELLERS and quarterly results for KALYAN JEWELLERS)