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KPR MILL 2022-23 Annual Report Analysis

Sun, 2 Jul

KPR MILL 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.

KPR MILL Income Statement Analysis

• Operating income during the year rose 28.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.6% in FY23 as against 25.3% in FY22.
• Depreciation charges increased by 23.1% and finance costs increased by 238.6% YoY, respectively.
• Other income declined by 28.5% YoY.
• Net profit for the year declined by 3.3% YoY.
• Net profit margins during the year declined from 17.5% in FY22 to 13.2% in FY23.

KPR MILL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	48,225	61,859	28.3%
Other income	Rs m	872	623	-28.5%
Total Revenues	Rs m	49,097	62,482	27.3%
Gross profit	Rs m	12,187	12,744	4.6%
Depreciation	Rs m	1,411	1,737	23.1%
Interest	Rs m	233	789	238.6%
Profit before tax	Rs m	11,415	10,842	-5.0%
Tax	Rs m	2,997	2,701	-9.9%
Profit after tax	Rs m	8,418	8,141	-3.3%
Gross profit margin	%	25.3	20.6
Effective tax rate	%	26.3	24.9
Net profit margin	%	17.5	13.2

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KPR MILL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 13 billion as compared to Rs 10 billion in FY22, thereby witnessing an increase of 35.3%.
• Long-term debt down at Rs 4 billion as compared to Rs 6 billion during FY22, a fall of 28.4%.
• Current assets rose 20% and stood at Rs 30 billion, while fixed assets rose 10% and stood at Rs 26 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 56 billion as against Rs 49 billion during FY22, thereby witnessing a growth of 15%.

KPR MILL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	31,869	37,067	16.3
Current Liabilities	Rs m	9,795	13,252	35.3
Long-term Debt	Rs m	6,261	4,485	-28.4
Total Liabilities	Rs m	48,580	55,976	15.2
Current assets	Rs m	24,739	29,781	20.4
Fixed Assets	Rs m	23,841	26,195	9.9
Total Assets	Rs m	48,580	55,976	15.2

KPR MILL Cash Flow Statement Analysis

• KPR MILL's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -127 million from the Rs 534 million net cash flows seen during FY22.

KPR MILL 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	4,942	2,987	-39.6%
Cash Flow from Investing Activities	Rs m	-9,421	-1,051	-
Cash Flow from Financing Activities	Rs m	5,012	-2,063	-
Net Cash Flow	Rs m	534	-127	-

Current Valuations for KPR MILL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.8, an decline from the EPS of Rs 24.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 664.3, stands at 27.9 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 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 20.5 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	140.2	181.0
TTM Earnings per share	Rs	24.5	23.8
Diluted earnings per share	Rs	24.6	23.8
Price to Cash Flow	x	21.7	20.5
TTM P/E ratio	x	25.3	27.9
Price / Book Value ratio	x	14.9	5.5
Market Cap	Rs m	474,798	202,277
Dividends per share (Unadj.)	Rs	0.2	4.0

Ratio Analysis for KPR MILL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY23, from 2.5x 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 14.7x during FY23, from 50.0x 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 22.0% during FY23, from 26.4% 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 28.0% during FY23, from 30.5% 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 declined and down at 16.0% during FY23, from 17.8% 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	2.5	2.2
Debtors’ Days	Days	363	369
Interest coverage	x	50.0	14.7
Debt to equity ratio	x	0.2	0.1
Return on assets	%	17.8	16.0
Return on equity	%	26.4	22.0
Return on capital employed	%	30.5	28.0

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 508.8 to Rs 664.3, registering a gain of Rs 155.5 or around 30.6%.

Overall, the S&P BSE SENSEX is up 21.7% over the year.

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