KSOLVES INDIA 2021-22 Annual Report Analysis

Mon, 10 Oct

KSOLVES INDIA 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.

KSOLVES INDIA Income Statement Analysis

• Operating income during the year rose 66.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 64.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 42.4% in FY22 as against 43.1% in FY21.
• Depreciation charges increased by 28.9% and finance costs increased by 11.4% YoY, respectively.
• Other income grew by 505.3% YoY.
• Net profit for the year grew by 76.0% YoY.
• Net profit margins during the year grew from 31.7% in FY21 to 33.4% in FY22.

KSOLVES INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	282	471	66.8%
Other income	Rs m	2	13	505.3%
Total Revenues	Rs m	284	483	70.0%
Gross profit	Rs m	122	200	64.1%
Depreciation	Rs m	4	5	28.9%
Interest	Rs m	0	0	11.4%
Profit before tax	Rs m	120	207	73.0%
Tax	Rs m	30	50	64.4%
Profit after tax	Rs m	89	157	76.0%
Gross profit margin	%	43.1	42.4
Effective tax rate	%	25.3	24.0
Net profit margin	%	31.7	33.4

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KSOLVES INDIA Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 63 million as compared to Rs 36 million in FY21, thereby witnessing an increase of 77.6%.
• Current assets rose 43% and stood at Rs 221 million, while fixed assets fell 9% and stood at Rs 13 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 236 million as against Rs 171 million during FY21, thereby witnessing a growth of 38%.

KSOLVES INDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	134	168	25.7
Current Liabilities	Rs m	36	63	77.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	171	236	37.8
Current assets	Rs m	155	221	43.1
Fixed Assets	Rs m	14	13	-9.4
Total Assets	Rs m	171	236	37.8

KSOLVES INDIA Cash Flow Statement Analysis

• KSOLVES INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 102 million, an improvement of 102.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 9 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -123 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -12 million from the Rs 80 million net cash flows seen during FY21.

KSOLVES INDIA 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	50	102	102.9%
Cash Flow from Investing Activities	Rs m	-4	9	-
Cash Flow from Financing Activities	Rs m	34	-123	-
Net Cash Flow	Rs m	80	-12	-

Current Valuations for KSOLVES INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.3, an decline from the EPS of Rs 60.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 434.0, stands at 30.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 30.6 times, while the price to sales ratio stands at 10.9 times.
• The company's price to cash flow (P/CF) ratio stood at 73.5 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	190.6	39.7
TTM Earnings per share	Rs	60.4	13.3
Diluted earnings per share	Rs	7.5	13.3
Price to Cash Flow	x	0.0	73.5
TTM P/E ratio	x	0.0	30.7
Price / Book Value ratio	x	1.2	71.0
Market Cap	Rs m	156	11,920
Dividends per share (Unadj.)	Rs	40.0	5.8

Ratio Analysis for KSOLVES INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.5x during FY22, from 4.3x 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 531.6x during FY22, from 342.7x 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 improved and stood at 93.6% during FY22, from 66.9% 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 123.4% during FY22, from 89.7% 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 66.8% during FY22, from 52.4% 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	4.3	3.5
Debtors’ Days	Days	471	718
Interest coverage	x	342.7	531.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	52.4	66.8
Return on equity	%	66.9	93.6
Return on capital employed	%	89.7	123.4

To see how KSOLVES INDIA has performed over the last 5 years, please visit here.

KSOLVES INDIA Share Price Performance

Over the last one year, KSOLVES INDIA share price has moved up from Rs 0.0 to Rs 434.0, registering a gain of Rs 434.0 or around 0.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 27,926.7 (down 0.9%). Over the last one year it has moved down from 35,753.4 to 27,926.7, a loss of 7,827 points (down 21.9%).

Overall, the S&P BSE SENSEX is down 2.7% over the year.

(To know more, check out historical annual results for KSOLVES INDIA and quarterly results for KSOLVES INDIA)

Read: Latest Annual Report Analysis of KSOLVES INDIA