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KOTHARI PET. 2022-23 Annual Report Analysis

Tue, 22 Aug

KOTHARI PET. 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.

KOTHARI PET. Income Statement Analysis

• Operating income during the year rose 26.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.0% in FY23 as against 12.5% in FY22.
• Depreciation charges increased by 19.3% and finance costs increased by 315.6% YoY, respectively.
• Other income grew by 41.6% YoY.
• Net profit for the year grew by 19.1% YoY.
• Net profit margins during the year declined from 8.6% in FY22 to 8.1% in FY23.

KOTHARI PET. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,815	4,821	26.4%
Other income	Rs m	45	64	41.6%
Total Revenues	Rs m	3,861	4,886	26.6%
Gross profit	Rs m	477	579	21.5%
Depreciation	Rs m	55	66	19.3%
Interest	Rs m	6	26	315.6%
Profit before tax	Rs m	461	552	19.8%
Tax	Rs m	132	160	21.6%
Profit after tax	Rs m	329	392	19.1%
Gross profit margin	%	12.5	12.0
Effective tax rate	%	28.6	29.0
Net profit margin	%	8.6	8.1

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KOTHARI PET. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 494 million as compared to Rs 487 million in FY22, thereby witnessing an increase of 1.6%.
• Long-term debt stood at Rs 155 million as compared to Rs 83 million during FY22, a growth of 87.4%.
• Current assets rose 32% and stood at Rs 1 billion, while fixed assets rose 11% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 21%.

KOTHARI PET. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,558	1,921	23.3
Current Liabilities	Rs m	487	494	1.6
Long-term Debt	Rs m	83	155	87.4
Total Liabilities	Rs m	2,230	2,703	21.2
Current assets	Rs m	1,065	1,410	32.4
Fixed Assets	Rs m	1,165	1,293	11.0
Total Assets	Rs m	2,230	2,703	21.2

KOTHARI PET. Cash Flow Statement Analysis

• KOTHARI PET.'s cash flow from operating activities (CFO) during FY23 stood at Rs 262 million, an improvement of 41.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -262 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 49 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 49 million from the Rs -59 million net cash flows seen during FY22.

KOTHARI PET. 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	185	262	41.5%
Cash Flow from Investing Activities	Rs m	-320	-262	-
Cash Flow from Financing Activities	Rs m	76	49	-35.7%
Net Cash Flow	Rs m	-59	49	-

Current Valuations for KOTHARI PET.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.7, an improvement from the EPS of Rs 5.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 108.3, stands at 12.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 11.5 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	64.8	81.9
TTM Earnings per share	Rs	5.6	6.7
Diluted earnings per share	Rs	5.6	6.7
Price to Cash Flow	x	0.0	11.5
TTM P/E ratio	x	0.0	12.3
Price / Book Value ratio	x	2.7	2.7
Market Cap	Rs m	4,193	5,258
Dividends per share (Unadj.)	Rs	0.0	1.3

Ratio Analysis for KOTHARI PET.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.9x during FY23, from 2.2x 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 22.6x during FY23, from 75.8x 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 declined and down at 20.4% during FY23, from 21.1% 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 declined and down at 27.8% during FY23, from 28.5% 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 15.4% during FY23, from 15.0% 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	2.2	2.9
Debtors’ Days	Days	277	355
Interest coverage	x	75.8	22.6
Debt to equity ratio	x	0.1	0.1
Return on assets	%	15.0	15.4
Return on equity	%	21.1	20.4
Return on capital employed	%	28.5	27.8

To see how KOTHARI PET. has performed over the last 5 years, please visit here.

KOTHARI PET. Share Price Performance

Over the last one year, KOTHARI PET. share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is down 0.0% over the year.

(To know more, check out historical annual results for KOTHARI PET. and quarterly results for KOTHARI PET.)