KNR CONSTRUCTIONS 2020-21 Annual Report Analysis

Wed, 31 Mar

KNR CONSTRUCTIONS 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.

KNR CONSTRUCTIONS Income Statement Analysis

• Operating income during the year rose 18.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.1% in FY21 as against 25.0% in FY20.
• Depreciation charges decreased by 25.3% and finance costs increased by 23.1% YoY, respectively.
• Other income declined by 21.4% YoY.
• Net profit for the year grew by 53.5% YoY.
• Net profit margins during the year grew from 10.0% in FY20 to 12.9% in FY21.

KNR CONSTRUCTIONS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	24,517	29,036	18.4%
Other income	Rs m	657	516	-21.4%
Total Revenues	Rs m	25,174	29,553	17.4%
Gross profit	Rs m	6,123	7,870	28.5%
Depreciation	Rs m	2,541	1,899	-25.3%
Interest	Rs m	1,108	1,364	23.1%
Profit before tax	Rs m	3,130	5,124	63.7%
Tax	Rs m	685	1,370	99.9%
Profit after tax	Rs m	2,445	3,754	53.5%
Gross profit margin	%	25.0	27.1
Effective tax rate	%	21.9	26.7
Net profit margin	%	10.0	12.9

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KNR CONSTRUCTIONS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 15 billion as compared to Rs 12 billion in FY20, thereby witnessing an increase of 21.0%.
• Long-term debt down at Rs 7 billion as compared to Rs 8 billion during FY20, a fall of 8.0%.
• Current assets rose 22% and stood at Rs 15 billion, while fixed assets rose 13% and stood at Rs 25 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 41 billion as against Rs 35 billion during FY20, thereby witnessing a growth of 16%.

KNR CONSTRUCTIONS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	15,607	19,678	26.1
Current Liabilities	Rs m	12,209	14,779	21.0
Long-term Debt	Rs m	7,917	7,282	-8.0
Total Liabilities	Rs m	35,013	40,770	16.4
Current assets	Rs m	12,593	15,382	22.1
Fixed Assets	Rs m	22,420	25,387	13.2
Total Assets	Rs m	35,013	40,770	16.4

KNR CONSTRUCTIONS Cash Flow Statement Analysis

• KNR CONSTRUCTIONS's cash flow from operating activities (CFO) during FY21 stood at Rs -756 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -978 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 868 million from the Rs 308 million net cash flows seen during FY20.

KNR CONSTRUCTIONS 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	2,306	-756	-
Cash Flow from Investing Activities	Rs m	-2,021	2,602	-
Cash Flow from Financing Activities	Rs m	22	-978	-
Net Cash Flow	Rs m	308	868	182.2%

Current Valuations for KNR CONSTRUCTIONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.3, an decline from the EPS of Rs 17.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 213.2, stands at 16.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 16.4 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	174.3	103.2
TTM Earnings per share	Rs	17.4	13.3
Diluted earnings per share	Rs	8.7	13.3
Price to Cash Flow	x	11.1	16.4
TTM P/E ratio	x	22.6	16.0
Price / Book Value ratio	x	2.2	4.7
Market Cap	Rs m	33,938	92,660
Dividends per share (Unadj.)	Rs	0.5	0.3

Ratio Analysis for KNR CONSTRUCTIONS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY21, from 1.0x 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 4.8x during FY21, from 3.8x 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 19.1% during FY21, from 15.7% 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 24.1% during FY21, from 18.0% 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 12.6% during FY21, from 10.1% 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	1.0	1.0
Debtors’ Days	Days	260	418
Interest coverage	x	3.8	4.8
Debt to equity ratio	x	0.5	0.4
Return on assets	%	10.1	12.6
Return on equity	%	15.7	19.1
Return on capital employed	%	18.0	24.1

To see how KNR CONSTRUCTIONS has performed over the last 5 years, please visit here.

KNR CONSTRUCTIONS Share Price Performance

Over the last one year, KNR CONSTRUCTIONS share price has moved up from Rs 196.4 to Rs 213.2, registering a gain of Rs 16.8 or around 8.5%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,670.3 (up 1.9%). Over the last one year it has moved up from 1,353.7 to 2,670.3, a gain of 1,317 points (up 97.3%).

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

(To know more, check out historical annual results for KNR CONSTRUCTIONS and quarterly results for KNR CONSTRUCTIONS)

Read: Latest Annual Report Analysis of KNR CONSTRUCTIONS