KAVERI SEED 2021-22 Annual Report Analysis

Mon, 12 Sep

KAVERI SEED 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.

KAVERI SEED Income Statement Analysis

• Operating income during the year fell 6.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 32.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.9% in FY22 as against 28.8% in FY21.
• Depreciation charges decreased by 5.9% and finance costs decreased by 74.9% YoY, respectively.
• Other income declined by 9.8% YoY.
• Net profit for the year declined by 31.6% YoY.
• Net profit margins during the year declined from 30.0% in FY21 to 21.9% in FY22.

KAVERI SEED Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	10,363	9,700	-6.4%
Other income	Rs m	457	413	-9.8%
Total Revenues	Rs m	10,821	10,113	-6.5%
Gross profit	Rs m	2,980	2,025	-32.0%
Depreciation	Rs m	222	209	-5.9%
Interest	Rs m	5	1	-74.9%
Profit before tax	Rs m	3,210	2,228	-30.6%
Tax	Rs m	98	100	1.5%
Profit after tax	Rs m	3,112	2,128	-31.6%
Gross profit margin	%	28.8	20.9
Effective tax rate	%	3.1	4.5
Net profit margin	%	30.0	21.9

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KAVERI SEED Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 6 billion as compared to Rs 7 billion in FY21, thereby witnessing an decrease of -18.6%.
• Long-term debt down at Rs 6 million as compared to Rs 11 million during FY21, a fall of 44.0%.
• Current assets fell 7% and stood at Rs 15 billion, while fixed assets rose 10% and stood at Rs 4 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 19 billion as against Rs 20 billion during FY21, thereby witnessing a fall of 4%.

KAVERI SEED Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	12,444	12,808	2.9
Current Liabilities	Rs m	6,773	5,514	-18.6
Long-term Debt	Rs m	11	6	-44.0
Total Liabilities	Rs m	19,953	19,178	-3.9
Current assets	Rs m	16,192	15,054	-7.0
Fixed Assets	Rs m	3,761	4,124	9.6
Total Assets	Rs m	19,953	19,178	-3.9

KAVERI SEED Cash Flow Statement Analysis

• KAVERI SEED's cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 661 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 66 million from the Rs 55 million net cash flows seen during FY21.

KAVERI SEED 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	2,519	1,102	-56.2%
Cash Flow from Investing Activities	Rs m	-2,173	661	-
Cash Flow from Financing Activities	Rs m	-291	-1,698	-
Net Cash Flow	Rs m	55	66	20.2%

Current Valuations for KAVERI SEED

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 36.5, an decline from the EPS of Rs 51.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 473.8, stands at 10.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 16.0 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	171.8	166.3
TTM Earnings per share	Rs	51.6	36.5
Diluted earnings per share	Rs	53.4	36.5
Price to Cash Flow	x	9.0	16.0
TTM P/E ratio	x	9.6	10.9
Price / Book Value ratio	x	2.4	2.9
Market Cap	Rs m	29,558	37,438
Dividends per share (Unadj.)	Rs	4.0	4.0

Ratio Analysis for KAVERI SEED

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x during FY22, from 2.4x 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 1,755.0x during FY22, from 636.7x 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 declined and down at 16.6% during FY22, from 25.0% 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 declined and down at 17.4% during FY22, from 25.8% 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 declined and down at 11.1% during FY22, from 15.6% 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	2.4	2.7
Debtors’ Days	Days	372	417
Interest coverage	x	636.7	1,755.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.6	11.1
Return on equity	%	25.0	16.6
Return on capital employed	%	25.8	17.4

To see how KAVERI SEED has performed over the last 5 years, please visit here.

KAVERI SEED Share Price Performance

Over the last one year, KAVERI SEED share price has moved down from Rs 602.8 to Rs 473.8, registering a loss of Rs 129.1 or around 21.4%.

Overall, the S&P BSE SENSEX is up 3.2% over the year.

(To know more, check out historical annual results for KAVERI SEED and quarterly results for KAVERI SEED)

Read: Latest Annual Report Analysis of KAVERI SEED