KM SUGAR 2022-23 Annual Report Analysis

Thu, 31 Aug

KM SUGAR 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.

KM SUGAR Income Statement Analysis

• Operating income during the year rose 5.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 31.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.6% in FY23 as against 13.3% in FY22.
• Depreciation charges increased by 4.6% and finance costs increased by 17.5% YoY, respectively.
• Other income grew by 14.7% YoY.
• Net profit for the year declined by 44.0% YoY.
• Net profit margins during the year declined from 7.6% in FY22 to 4.0% in FY23.

KM SUGAR Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,483	5,755	5.0%
Other income	Rs m	99	114	14.7%
Total Revenues	Rs m	5,583	5,869	5.1%
Gross profit	Rs m	730	497	-31.9%
Depreciation	Rs m	152	159	4.6%
Interest	Rs m	118	139	17.5%
Profit before tax	Rs m	559	313	-44.0%
Tax	Rs m	145	81	-43.9%
Profit after tax	Rs m	415	232	-44.0%
Gross profit margin	%	13.3	8.6
Effective tax rate	%	25.9	25.9
Net profit margin	%	7.6	4.0

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KM SUGAR Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 4 billion in FY22, thereby witnessing an increase of 2.1%.
• Long-term debt stood at Rs 502 million as compared to Rs 261 million during FY22, a growth of 92.5%.
• Current assets fell 8% and stood at Rs 4 billion, while fixed assets rose 37% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 7 billion as against Rs 7 billion during FY22, thereby witnessing a growth of 8%.

KM SUGAR Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,523	2,753	9.1
Current Liabilities	Rs m	3,641	3,718	2.1
Long-term Debt	Rs m	261	502	92.5
Total Liabilities	Rs m	6,564	7,106	8.2
Current assets	Rs m	4,156	3,808	-8.4
Fixed Assets	Rs m	2,408	3,298	37.0
Total Assets	Rs m	6,564	7,106	8.2

KM SUGAR Cash Flow Statement Analysis

• KM SUGAR's cash flow from operating activities (CFO) during FY23 stood at Rs 730 million, an improvement of 1,272.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 801.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 298 million, an improvement of 217% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -26 million from the Rs 30 million net cash flows seen during FY22.

KM SUGAR 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	53	730	1,272.8%
Cash Flow from Investing Activities	Rs m	-117	-1,054	-
Cash Flow from Financing Activities	Rs m	94	298	217.2%
Net Cash Flow	Rs m	30	-26	-

Current Valuations for KM SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.5, an decline from the EPS of Rs 4.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 31.1, stands at 8.9 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 8.0 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	59.6	62.6
TTM Earnings per share	Rs	4.5	2.5
Diluted earnings per share	Rs	4.5	2.5
Price to Cash Flow	x	4.7	8.0
TTM P/E ratio	x	6.5	8.9
Price / Book Value ratio	x	0.9	1.1
Market Cap	Rs m	2,327	3,118
Dividends per share (Unadj.)	Rs	0.2	0.0

Ratio Analysis for KM SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x 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 3.3x during FY23, from 5.7x 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 declined and down at 8.4% during FY23, from 16.4% 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 13.9% during FY23, from 24.3% 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 declined and down at 5.2% during FY23, from 8.1% 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	1.1	1.0
Debtors’ Days	Days	99	38
Interest coverage	x	5.7	3.3
Debt to equity ratio	x	0.1	0.2
Return on assets	%	8.1	5.2
Return on equity	%	16.4	8.4
Return on capital employed	%	24.3	13.9

To see how KM SUGAR has performed over the last 5 years, please visit here.

KM SUGAR Share Price Performance

Over the last one year, KM SUGAR share price has moved up from Rs 27.2 to Rs 31.1, registering a gain of Rs 3.9 or around 14.4%.

Overall, the S&P BSE SENSEX is up 12.3% over the year.

(To know more, check out historical annual results for KM SUGAR and quarterly results for KM SUGAR)