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KALYANI STEELS 2017-18 Annual Report Analysis

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KALYANI STEELS 2017-18 Annual Report Analysis
Tue, 28 Aug

KALYANI STEELS has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

KALYANI STEELS Income Statement Analysis

  • Operating income during the year rose 6.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 28.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.2% in FY18 as against 22.8% in FY17.
  • Depreciation charges and finance costs decreased by 28.4% YoY and 9.4% YoY, respectively.
  • Other income grew by 27.5% YoY.
  • Net profit for the year declined by 26.1% YoY.
  • Net profit margins during the year declined from 12.3% in FY17 to 8.5% in FY18.

KALYANI STEELS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 12,574 13,442 6.9%
Other income Rs m 136 174 27.5%
Total Revenues Rs m 12,711 13,615 7.1%
Gross profit Rs m 2,872 2,041 -28.9%
Depreciation Rs m 521 373 -28.4%
Interest Rs m 102 93 -9.4%
Profit before tax Rs m 2,386 1,750 -26.7%
Tax Rs m 827 597 -27.8%
Profit after tax Rs m 1,559 1,153 -26.1%
Gross profit margin % 22.8 15.2
Effective tax rate % 34.7 34.1
Net profit margin % 12.3 8.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



KALYANI STEELS Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 4 billion as compared to Rs 5 billion in FY17, thereby witnessing an decrease of -21.8%.
  • Long-term debt down at Rs 236 million as compared to Rs 652 million during FY17, a fall of 63.8%.
  • Current assets fell 9% and stood at Rs 7 billion, while fixed assets rose 0% and stood at Rs 4 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 13 billion as against Rs 14 billion during FY17, thereby witnessing a fall of 6%.

KALYANI STEELS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 6,780 7,673 13.2
 
Current Liabilities Rs m 5,406 4,229 -21.8
Long-term Debt Rs m 652 236 -63.8
Total Liabilities Rs m 13,623 12,799 -6.0
 
Current assets Rs m 7,243 6,615 -8.7
Fixed Assets Rs m 4,437 4,445 0.2
Total Assets Rs m 13,623 12,799 -6.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



KALYANI STEELS Cash Flow Statement Analysis

  • KALYANI STEELS's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion, an improvement of 26.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -774 million, an improvement of 102.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -1 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 95 million from the Rs 157 million net cash flows seen during FY17.

KALYANI STEELS Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 1,521 1,920 26.2%
Cash Flow from Investing Activities Rs m -381 -774 -
Cash Flow from Financing Activities Rs m -982 -1,051 -
Net Cash Flow Rs m 157 95 -39.5%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for KALYANI STEELS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.4, an decline from the EPS of Rs 35.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 268.2, stands at 10.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 288.1 307.9
TTM Earnings per share Rs 35.7 26.4
Diluted earnings per share Rs 35.7 26.4
Price to Cash Flow x 5.6 7.7
TTM P/E ratio x 10.1 10.1
Price / Book Value ratio x 1.8 2.1
Market Cap Rs m 11,705 11,705
Dividends per share (Unadj.) Rs 5.0 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for KALYANI STEELS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.6x during FY18, from 1.3x during FY17. 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 19.9x during FY18, from 24.4x during FY17. 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 15.0% during FY18, from 23.0% during FY18. 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 23.3% during FY18, from 33.5% during FY17. 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 9.7% during FY18, from 12.2% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.3 1.6
Debtors’ Days Days 135 102
Interest coverage x 24.4 19.9
Debt to equity ratio x 0.1 0.0
Return on assets % 12.2 9.7
Return on equity % 23.0 15.0
Return on capital employed % 33.5 23.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

KALYANI STEELS Share Price Performance

Over the last one year, KALYANI STEELS share price has moved up from Rs 417.6 to Rs 268.2, registering a loss of Rs 149.5 or around 35.8%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 13,532.9 (up 1.0%). Over the last one year it has moved up from 13,094.4 to 13,532.9, a gain of 438 points (up 3.3%).

Overall, the S&P BSE SENSEX is up 22.4% over the year.

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

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Related Views on News

KALYANI STEELS Announces Quarterly Results (2QFY19); Net Profit Up 7.1% (Quarterly Result Update)

Nov 9, 2018 | Updated on Nov 9, 2018

For the quarter ended September 2018, KALYANI STEELS has posted a net profit of Rs 285 m (up 7.1% YoY). Sales on the other hand came in at Rs 4 bn (up 22.4% YoY). Read on for a complete analysis of KALYANI STEELS's quarterly results.

KALYANI STEELS Announces Quarterly Results (1QFY19); Net Profit Up 2.2% (Quarterly Result Update)

Jul 27, 2018 | Updated on Jul 27, 2018

For the quarter ended June 2018, KALYANI STEELS has posted a net profit of Rs 280 m (up 2.2% YoY). Sales on the other hand came in at Rs 3 bn (down 14.5% YoY). Read on for a complete analysis of KALYANI STEELS's quarterly results.

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