KPR MILL 2020-21 Annual Report Analysis

Wed, 31 Mar

KPR MILL 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.

KPR MILL Income Statement Analysis

• Operating income during the year rose 5.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 33.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.5% in FY21 as against 18.6% in FY20.
• Depreciation charges increased by 7.0% and finance costs decreased by 33.9% YoY, respectively.
• Other income grew by 6.5% YoY.
• Net profit for the year grew by 36.8% YoY.
• Net profit margins during the year grew from 11.2% in FY20 to 14.6% in FY21.

KPR MILL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	33,526	35,302	5.3%
Other income	Rs m	365	388	6.5%
Total Revenues	Rs m	33,891	35,690	5.3%
Gross profit	Rs m	6,220	8,296	33.4%
Depreciation	Rs m	1,371	1,467	7.0%
Interest	Rs m	497	328	-33.9%
Profit before tax	Rs m	4,717	6,889	46.0%
Tax	Rs m	950	1,736	82.8%
Profit after tax	Rs m	3,767	5,153	36.8%
Gross profit margin	%	18.6	23.5
Effective tax rate	%	20.1	25.2
Net profit margin	%	11.2	14.6

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KPR MILL Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 7 billion as compared to Rs 8 billion in FY20, thereby witnessing an decrease of -10.7%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY20, a fall of 13.4%.
• Current assets rose 16% and stood at Rs 18 billion, while fixed assets rose 9% and stood at Rs 15 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 33 billion as against Rs 29 billion during FY20, thereby witnessing a growth of 13%.

KPR MILL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	18,659	23,502	26.0
Current Liabilities	Rs m	7,703	6,881	-10.7
Long-term Debt	Rs m	2,068	1,791	-13.4
Total Liabilities	Rs m	28,824	32,514	12.8
Current assets	Rs m	15,102	17,544	16.2
Fixed Assets	Rs m	13,723	14,970	9.1
Total Assets	Rs m	28,824	32,514	12.8

KPR MILL Cash Flow Statement Analysis

• KPR MILL's cash flow from operating activities (CFO) during FY21 stood at Rs 7 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -5 billion, an improvement of 93.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion, an improvement of 53% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -839 million from the Rs 877 million net cash flows seen during FY20.

KPR MILL 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	7,883	6,589	-16.4%
Cash Flow from Investing Activities	Rs m	-2,828	-5,483	-
Cash Flow from Financing Activities	Rs m	-4,178	-1,944	-
Net Cash Flow	Rs m	877	-839	-

Current Valuations for KPR MILL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 74.9, an improvement from the EPS of Rs 54.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,064.9, stands at 70.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.5 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 7.6 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	487.2	513.0
TTM Earnings per share	Rs	54.7	74.9
Diluted earnings per share	Rs	11.0	15.1
Price to Cash Flow	x	22.5	7.6
TTM P/E ratio	x	30.7	70.6
Price / Book Value ratio	x	1.9	2.1
Market Cap	Rs m	35,926	50,503
Dividends per share (Unadj.)	Rs	0.9	0.9

Ratio Analysis for KPR MILL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY21, from 2.0x 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 22.0x during FY21, from 10.5x 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 21.9% during FY21, from 20.2% 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 28.5% during FY21, from 25.2% 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 16.9% during FY21, from 14.8% 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	2.0	2.5
Debtors’ Days	Days	446	332
Interest coverage	x	10.5	22.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	14.8	16.9
Return on equity	%	20.2	21.9
Return on capital employed	%	25.2	28.5

To see how KPR MILL has performed over the last 5 years, please visit here.

KPR MILL Share Price Performance

Over the last one year, KPR MILL share price has moved up from Rs 338.8 to Rs 1,064.9, registering a gain of Rs 726.1 or around 214.3%.

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

(To know more, check out historical annual results for KPR MILL and quarterly results for KPR MILL)

Read: Latest Annual Report Analysis of KPR MILL