KALYANI FORGE 2021-22 Annual Report Analysis

Wed, 7 Sep

KALYANI FORGE 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.

KALYANI FORGE Income Statement Analysis

• Operating income during the year rose 36.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 55.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.6% in FY22 as against 6.7% in FY21.
• Depreciation charges decreased by 3.8% and finance costs increased by 17.7% YoY, respectively.
• Other income declined by 26.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 1.0% in FY21 to 1.3% in FY22.

KALYANI FORGE Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,808	2,465	36.4%
Other income	Rs m	18	13	-26.9%
Total Revenues	Rs m	1,826	2,478	35.7%
Gross profit	Rs m	120	187	55.2%
Depreciation	Rs m	128	123	-3.8%
Interest	Rs m	31	36	17.7%
Profit before tax	Rs m	-21	40	NA
Tax	Rs m	-3	9	NA
Profit after tax	Rs m	-18	31	NA
Gross profit margin	%	6.7	7.6
Effective tax rate	%	15.1	22.1
Net profit margin	%	-1.0	1.3

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KALYANI FORGE Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 740 million as compared to Rs 766 million in FY21, thereby witnessing an decrease of -3.5%.
• Long-term debt stood at Rs 1 million as compared to Rs 0 million during FY21, a fall of 0.0%.
• Current assets rose 6% and stood at Rs 1 billion, while fixed assets fell 14% and stood at Rs 510 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 2 billion as against Rs 2 billion during FY21, thereby witnessing a fall of 1%.

KALYANI FORGE Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,002	1,029	2.7
Current Liabilities	Rs m	766	740	-3.5
Long-term Debt	Rs m	0	1	0.0
Total Liabilities	Rs m	1,808	1,798	-0.5
Current assets	Rs m	1,212	1,288	6.3
Fixed Assets	Rs m	596	510	-14.4
Total Assets	Rs m	1,808	1,798	-0.5

KALYANI FORGE Cash Flow Statement Analysis

• KALYANI FORGE's cash flow from operating activities (CFO) during FY22 stood at Rs 111 million, an improvement of 49.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -41 million, an improvement of 226.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -52 million, an improvement of 30% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 18 million from the Rs -13 million net cash flows seen during FY21.

KALYANI FORGE 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	74	111	49.8%
Cash Flow from Investing Activities	Rs m	-13	-41	-
Cash Flow from Financing Activities	Rs m	-75	-52	-
Net Cash Flow	Rs m	-13	18	-

Current Valuations for KALYANI FORGE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.6, an improvement from the EPS of Rs -4.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 191.9, stands at 20.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 4.8 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	496.7	677.2
TTM Earnings per share	Rs	-4.8	8.6
Diluted earnings per share	Rs	-4.8	8.6
Price to Cash Flow	x	6.3	4.8
TTM P/E ratio	x	-39.9	20.0
Price / Book Value ratio	x	0.6	0.7
Market Cap	Rs m	571	739
Dividends per share (Unadj.)	Rs	1.5	3.0

Ratio Analysis for KALYANI FORGE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY22, from 1.6x 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 2.1x during FY22, from 0.3x 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 3.0% during FY22, from -1.8% 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 7.4% during FY22, from 1.0% 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 3.8% during FY22, from 0.7% 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	1.6	1.7
Debtors’ Days	Days	1,353	1,078
Interest coverage	x	0.3	2.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	0.7	3.8
Return on equity	%	-1.8	3.0
Return on capital employed	%	1.0	7.4

To see how KALYANI FORGE has performed over the last 5 years, please visit here.

KALYANI FORGE Share Price Performance

Over the last one year, KALYANI FORGE share price has moved down from Rs 196.2 to Rs 191.9, registering a loss of Rs 4.4 or around 2.2%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 19,266.1 (up 0.1%). Over the last one year it has moved down from 20,569.3 to 19,266.1, a loss of 1,303 points (down 6.3%).

Overall, the S&P BSE SENSEX is up 1.2% over the year.

(To know more, check out historical annual results for KALYANI FORGE and quarterly results for KALYANI FORGE)

Read: Latest Annual Report Analysis of KALYANI FORGE