KPR MILL 2021-22 Annual Report Analysis

Thu, 28 Jul

KPR MILL has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

KPR MILL Income Statement Analysis

• Operating income during the year rose 36.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 46.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 25.3% in FY22 as against 23.5% in FY21.
• Depreciation charges decreased by 3.8% and finance costs decreased by 29.1% YoY, respectively.
• Other income grew by 126.3% YoY.
• Net profit for the year grew by 63.4% YoY.
• Net profit margins during the year grew from 14.6% in FY21 to 17.5% in FY22.

KPR MILL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	35,274	48,225	36.7%
Other income	Rs m	388	879	126.3%
Total Revenues	Rs m	35,663	49,104	37.7%
Gross profit	Rs m	8,296	12,180	46.8%
Depreciation	Rs m	1,467	1,411	-3.8%
Interest	Rs m	328	233	-29.1%
Profit before tax	Rs m	6,889	11,415	65.7%
Tax	Rs m	1,736	2,997	72.6%
Profit after tax	Rs m	5,153	8,418	63.4%
Gross profit margin	%	23.5	25.3
Effective tax rate	%	25.2	26.3
Net profit margin	%	14.6	17.5

KPR MILL Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 10 billion as compared to Rs 7 billion in FY21, thereby witnessing an increase of 42.3%.
• Long-term debt stood at Rs 6 billion as compared to Rs 2 billion during FY21, a growth of 249.6%.
• Current assets rose 41% and stood at Rs 25 billion, while fixed assets rose 59% and stood at Rs 24 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 49 billion as against Rs 33 billion during FY21, thereby witnessing a growth of 49%.

KPR MILL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	23,502	31,869	35.6
Current Liabilities	Rs m	6,881	9,795	42.3
Long-term Debt	Rs m	1,791	6,261	249.6
Total Liabilities	Rs m	32,514	48,580	49.4
Current assets	Rs m	17,544	24,739	41.0
Fixed Assets	Rs m	14,970	23,841	59.3
Total Assets	Rs m	32,514	48,580	49.4

KPR MILL Cash Flow Statement Analysis

• KPR MILL's cash flow from operating activities (CFO) during FY22 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -9 billion, an improvement of 71.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 5 billion, an improvement of 358% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 534 million from the Rs -839 million net cash flows seen during FY21.

KPR MILL Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	6,589	4,942	-25.0%
Cash Flow from Investing Activities	Rs m	-5,483	-9,421	-
Cash Flow from Financing Activities	Rs m	-1,944	5,012	-
Net Cash Flow	Rs m	-839	534	-

Current Valuations for KPR MILL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.5, an decline from the EPS of Rs 74.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 566.2, stands at 23.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.1 times, while the price to sales ratio stands at 4.0 times.
• The company's price to cash flow (P/CF) ratio stood at 48.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	512.6	140.2
TTM Earnings per share	Rs	74.9	24.5
Diluted earnings per share	Rs	15.1	24.6
Price to Cash Flow	x	55.0	48.3
TTM P/E ratio	x	70.6	23.0
Price / Book Value ratio	x	2.1	14.9
Market Cap	Rs m	50,503	474,798
Dividends per share (Unadj.)	Rs	0.9	0.2

Ratio Analysis for KPR MILL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.5x during FY22, from 2.5x during FY21. 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 50.0x during FY22, from 22.0x during FY21. 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 26.4% during FY22, from 21.9% during FY22. 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 30.5% during FY22, from 28.5% during FY21. 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 17.8% during FY22, from 16.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.5	2.5
Debtors’ Days	Days	332	363
Interest coverage	x	22.0	50.0
Debt to equity ratio	x	0.1	0.2
Return on assets	%	16.9	17.8
Return on equity	%	21.9	26.4
Return on capital employed	%	28.5	30.5

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 down from Rs 1,970.0 to Rs 566.2, registering a loss of Rs 1,403.9 or around 71.3%.

Overall, the S&P BSE SENSEX is up 6.7% 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