K.P. ENERGY 2022-23 Annual Report Analysis

Fri, 31 Mar

K.P. ENERGY 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.

K.P. ENERGY Income Statement Analysis

• Operating income during the year rose 74.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 104.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.1% in FY23 as against 13.8% in FY22.
• Depreciation charges decreased by 7.8% and finance costs increased by 24.6% YoY, respectively.
• Other income grew by 31.7% YoY.
• Net profit for the year grew by 140.4% YoY.
• Net profit margins during the year grew from 7.3% in FY22 to 10.0% in FY23.

K.P. ENERGY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,504	4,375	74.7%
Other income	Rs m	35	46	31.7%
Total Revenues	Rs m	2,538	4,420	74.1%
Gross profit	Rs m	344	705	104.6%
Depreciation	Rs m	56	52	-7.8%
Interest	Rs m	48	60	24.6%
Profit before tax	Rs m	275	638	132.4%
Tax	Rs m	92	199	116.7%
Profit after tax	Rs m	183	439	140.4%
Gross profit margin	%	13.8	16.1
Effective tax rate	%	33.5	31.2
Net profit margin	%	7.3	10.0

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K.P. ENERGY Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an decrease of -7.7%.
• Long-term debt stood at Rs 328 million as compared to Rs 214 million during FY22, a growth of 53.2%.
• Current assets fell 8% and stood at Rs 2 billion, while fixed assets rose 11% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 1%.

K.P. ENERGY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	872	1,285	47.3
Current Liabilities	Rs m	1,455	1,343	-7.7
Long-term Debt	Rs m	214	328	53.2
Total Liabilities	Rs m	3,419	3,456	1.1
Current assets	Rs m	1,791	1,650	-7.9
Fixed Assets	Rs m	1,628	1,806	11.0
Total Assets	Rs m	3,419	3,456	1.1

K.P. ENERGY Cash Flow Statement Analysis

• K.P. ENERGY's cash flow from operating activities (CFO) during FY23 stood at Rs 283 million, an improvement of 10.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -207 million, an improvement of 101.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -154 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -79 million from the Rs 45 million net cash flows seen during FY22.

K.P. ENERGY 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	257	283	10.2%
Cash Flow from Investing Activities	Rs m	-103	-207	-
Cash Flow from Financing Activities	Rs m	-109	-154	-
Net Cash Flow	Rs m	45	-79	-

Current Valuations for K.P. ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.8, an improvement from the EPS of Rs 16.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 151.6, stands at 7.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 7.1 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	225.2	196.8
TTM Earnings per share	Rs	16.4	19.8
Diluted earnings per share	Rs	8.2	19.8
Price to Cash Flow	x	11.7	7.1
TTM P/E ratio	x	15.4	7.5
Price / Book Value ratio	x	2.7	2.7
Market Cap	Rs m	2,354	3,498
Dividends per share (Unadj.)	Rs	0.5	0.4

Ratio Analysis for K.P. ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY23, from 1.2x 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 improved and stood at 11.7x during FY23, from 6.7x 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 improved and stood at 34.2% during FY23, from 20.9% 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 43.3% during FY23, from 29.7% 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 14.4% during FY23, from 6.7% 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	1.2	1.2
Debtors’ Days	Days	234	473
Interest coverage	x	6.7	11.7
Debt to equity ratio	x	0.2	0.3
Return on assets	%	6.7	14.4
Return on equity	%	20.9	34.2
Return on capital employed	%	29.7	43.3

To see how K.P. ENERGY has performed over the last 5 years, please visit here.

K.P. ENERGY Share Price Performance

Over the last one year, K.P. ENERGY share price has moved up from Rs 126.2 to Rs 151.6, registering a gain of Rs 25.4 or around 20.1%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 17,383.4 (up 1.3%). Over the last one year it has moved down from 18,741.2 to 17,383.4, a loss of 1,358 points (down 7.2%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for K.P. ENERGY and quarterly results for K.P. ENERGY)