KIRLOSKAR OIL 2022-23 Annual Report Analysis

Wed, 30 Aug

KIRLOSKAR OIL 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 OIL Income Statement Analysis

• Operating income during the year rose 24.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 79.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.7% in FY23 as against 10.2% in FY22.
• Depreciation charges increased by 3.3% and finance costs increased by 98.0% YoY, respectively.
• Other income declined by 3.2% YoY.
• Net profit for the year grew by 94.1% YoY.
• Net profit margins during the year grew from 4.3% in FY22 to 6.6% in FY23.

KIRLOSKAR OIL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	40,177	50,158	24.8%
Other income	Rs m	291	282	-3.2%
Total Revenues	Rs m	40,468	50,440	24.6%
Gross profit	Rs m	4,101	7,353	79.3%
Depreciation	Rs m	1,013	1,047	3.3%
Interest	Rs m	1,060	2,099	98.0%
Profit before tax	Rs m	2,319	4,489	93.6%
Tax	Rs m	610	1,173	92.2%
Profit after tax	Rs m	1,709	3,317	94.1%
Gross profit margin	%	10.2	14.7
Effective tax rate	%	26.3	26.1
Net profit margin	%	4.3	6.6

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KIRLOSKAR OIL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 25 billion as compared to Rs 18 billion in FY22, thereby witnessing an increase of 41.7%.
• Long-term debt stood at Rs 18 billion as compared to Rs 11 billion during FY22, a growth of 69.1%.
• Current assets rose 24% and stood at Rs 34 billion, while fixed assets rose 45% and stood at Rs 33 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 67 billion as against Rs 50 billion during FY22, thereby witnessing a growth of 34%.

KIRLOSKAR OIL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	20,704	22,900	10.6
Current Liabilities	Rs m	17,826	25,257	41.7
Long-term Debt	Rs m	10,658	18,019	69.1
Total Liabilities	Rs m	50,212	67,096	33.6
Current assets	Rs m	27,536	34,275	24.5
Fixed Assets	Rs m	22,676	32,821	44.7
Total Assets	Rs m	50,212	67,096	33.6

KIRLOSKAR OIL Cash Flow Statement Analysis

• KIRLOSKAR OIL's cash flow from operating activities (CFO) during FY23 stood at Rs -9 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 4,829.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 12 billion, an improvement of 24% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 billion from the Rs -931 million net cash flows seen during FY22.

KIRLOSKAR OIL 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	-10,407	-9,203	-
Cash Flow from Investing Activities	Rs m	-29	-1,444	-
Cash Flow from Financing Activities	Rs m	9,505	11,822	24.4%
Net Cash Flow	Rs m	-931	1,174	-

Current Valuations for KIRLOSKAR OIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.9, an improvement from the EPS of Rs 11.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 470.4, stands at 18.2 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 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 8.8 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	277.8	346.5
TTM Earnings per share	Rs	11.8	22.9
Diluted earnings per share	Rs	11.8	22.9
Price to Cash Flow	x	7.0	8.8
TTM P/E ratio	x	11.2	18.2
Price / Book Value ratio	x	1.4	1.7
Market Cap	Rs m	28,952	38,321
Dividends per share (Unadj.)	Rs	4.0	5.0

Ratio Analysis for KIRLOSKAR OIL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x 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 3.1x during FY23, from 3.2x 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 14.5% during FY23, from 8.3% 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 16.1% during FY23, from 10.8% 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 8.1% during FY23, from 5.5% 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	1.4
Debtors’ Days	Days	4	4
Interest coverage	x	3.2	3.1
Debt to equity ratio	x	0.5	0.8
Return on assets	%	5.5	8.1
Return on equity	%	8.3	14.5
Return on capital employed	%	10.8	16.1

To see how KIRLOSKAR OIL has performed over the last 5 years, please visit here.

KIRLOSKAR OIL Share Price Performance

Over the last one year, KIRLOSKAR OIL share price has moved up from Rs 226.8 to Rs 470.4, registering a gain of Rs 243.6 or around 107.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 45,166.2 (up 0.5%). Over the last one year it has moved up from 32,224.8 to 45,166.2, a gain of 12,941 points (up 40.2%).

Overall, the S&P BSE SENSEX is up 12.8% over the year.

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