KITEX GARMENTS 2020-21 Annual Report Analysis

Wed, 31 Mar

KITEX GARMENTS 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.

KITEX GARMENTS Income Statement Analysis

• Operating income during the year fell 38.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 24.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.0% in FY21 as against 17.9% in FY20.
• Depreciation charges decreased by 12.7% and finance costs decreased by 63.6% YoY, respectively.
• Other income declined by 89.0% YoY.
• Net profit for the year declined by 47.5% YoY.
• Net profit margins during the year declined from 14.0% in FY20 to 11.9% in FY21.

KITEX GARMENTS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	7,392	4,554	-38.4%
Other income	Rs m	392	43	-89.0%
Total Revenues	Rs m	7,784	4,597	-40.9%
Gross profit	Rs m	1,322	1,003	-24.1%
Depreciation	Rs m	265	231	-12.7%
Interest	Rs m	70	26	-63.6%
Profit before tax	Rs m	1,379	789	-42.8%
Tax	Rs m	345	247	-28.5%
Profit after tax	Rs m	1,034	543	-47.5%
Gross profit margin	%	17.9	22.0
Effective tax rate	%	25.0	31.2
Net profit margin	%	14.0	11.9

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KITEX GARMENTS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 1 billion as compared to Rs 2 billion in FY20, thereby witnessing an decrease of -45.7%.
• Current assets fell 7% and stood at Rs 6 billion, while fixed assets fell 6% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 9 billion as against Rs 9 billion during FY20, thereby witnessing a fall of 7%.

KITEX GARMENTS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,414	6,958	8.5
Current Liabilities	Rs m	2,451	1,331	-45.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,092	8,500	-6.5
Current assets	Rs m	6,296	5,864	-6.9
Fixed Assets	Rs m	2,796	2,636	-5.7
Total Assets	Rs m	9,092	8,500	-6.5

KITEX GARMENTS Cash Flow Statement Analysis

• KITEX GARMENTS's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion, an improvement of 126.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -84 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -988 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 98 million from the Rs 5 million net cash flows seen during FY20.

KITEX GARMENTS 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	512	1,161	126.8%
Cash Flow from Investing Activities	Rs m	-286	-84	-
Cash Flow from Financing Activities	Rs m	-248	-988	-
Net Cash Flow	Rs m	5	98	1,938.5%

Current Valuations for KITEX GARMENTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.2, an decline from the EPS of Rs 15.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 99.0, stands at 12.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 9.0 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	111.2	68.5
TTM Earnings per share	Rs	15.5	8.2
Diluted earnings per share	Rs	15.5	8.2
Price to Cash Flow	x	4.4	9.0
TTM P/E ratio	x	5.5	12.1
Price / Book Value ratio	x	1.3	1.0
Market Cap	Rs m	8,018	6,951
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for KITEX GARMENTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.4x during FY21, from 2.6x 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 31.9x during FY21, from 20.6x 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 declined and down at 7.8% during FY21, from 16.1% 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 declined and down at 11.7% during FY21, from 22.6% 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 declined and down at 6.7% during FY21, from 12.1% 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	2.6	4.4
Debtors’ Days	Days	1,242	1,424
Interest coverage	x	20.6	31.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.1	6.7
Return on equity	%	16.1	7.8
Return on capital employed	%	22.6	11.7

To see how KITEX GARMENTS has performed over the last 5 years, please visit here.

KITEX GARMENTS Share Price Performance

Over the last one year, KITEX GARMENTS share price has moved up from Rs 86.3 to Rs 99.0, registering a gain of Rs 12.7 or around 14.7%.

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

(To know more, check out historical annual results for KITEX GARMENTS and quarterly results for KITEX GARMENTS)

Read: Latest Annual Report Analysis of KITEX GARMENTS