KALYANI STEELS 2021-22 Annual Report Analysis

Sat, 17 Sep

KALYANI STEELS 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 STEELS Income Statement Analysis

• Operating income during the year rose 43.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.8% in FY22 as against 22.2% in FY21.
• Depreciation charges increased by 3.9% and finance costs increased by 90.3% YoY, respectively.
• Other income grew by 20.4% YoY.
• Net profit for the year grew by 30.4% YoY.
• Net profit margins during the year declined from 16.0% in FY21 to 14.5% in FY22.

KALYANI STEELS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	11,880	17,060	43.6%
Other income	Rs m	428	515	20.4%
Total Revenues	Rs m	12,308	17,576	42.8%
Gross profit	Rs m	2,632	3,385	28.6%
Depreciation	Rs m	442	459	3.9%
Interest	Rs m	71	135	90.3%
Profit before tax	Rs m	2,547	3,306	29.8%
Tax	Rs m	647	829	28.1%
Profit after tax	Rs m	1,900	2,477	30.4%
Gross profit margin	%	22.2	19.8
Effective tax rate	%	25.4	25.1
Net profit margin	%	16.0	14.5

Special Anniversary Offer: Vanishing Tomorrow - Your Chance to Save 80%

KALYANI STEELS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 7 billion as compared to Rs 4 billion in FY21, thereby witnessing an increase of 52.1%.
• Long-term debt stood at Rs 2 billion as compared to Rs 233 million during FY21, a growth of 714.4%.
• Current assets rose 51% and stood at Rs 16 billion, while fixed assets rose 13% and stood at Rs 7 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 23 billion as against Rs 17 billion during FY21, thereby witnessing a growth of 37%.

KALYANI STEELS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	11,533	13,675	18.6
Current Liabilities	Rs m	4,391	6,679	52.1
Long-term Debt	Rs m	233	1,895	714.4
Total Liabilities	Rs m	16,505	22,575	36.8
Current assets	Rs m	10,284	15,575	51.5
Fixed Assets	Rs m	6,221	7,000	12.5
Total Assets	Rs m	16,505	22,575	36.8

KALYANI STEELS Cash Flow Statement Analysis

• KALYANI STEELS's cash flow from operating activities (CFO) during FY22 stood at Rs 4 billion, an improvement of 482.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -5 billion, an improvement of 109.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 1 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 108 million from the Rs -34 million net cash flows seen during FY21.

KALYANI STEELS 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	622	3,619	482.0%
Cash Flow from Investing Activities	Rs m	-2,259	-4,739	-
Cash Flow from Financing Activities	Rs m	1,603	1,228	-23.4%
Net Cash Flow	Rs m	-34	108	-

Current Valuations for KALYANI STEELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 56.8, an improvement from the EPS of Rs 43.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 324.6, stands at 7.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 5.4 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	272.2	390.8
TTM Earnings per share	Rs	43.5	56.8
Diluted earnings per share	Rs	43.5	56.7
Price to Cash Flow	x	5.9	5.4
TTM P/E ratio	x	7.3	7.0
Price / Book Value ratio	x	0.9	1.2
Market Cap	Rs m	9,921	15,945
Dividends per share (Unadj.)	Rs	7.5	10.0

Ratio Analysis for KALYANI STEELS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY22, from 2.3x 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 deteriorated and stood at 25.5x during FY22, from 36.9x 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 18.1% during FY22, from 16.5% 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 22.1% during FY22, from 22.3% 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 11.6% during FY22, from 11.9% 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	2.3	2.3
Debtors’ Days	Days	77	68
Interest coverage	x	36.9	25.5
Debt to equity ratio	x	0.0	0.1
Return on assets	%	11.9	11.6
Return on equity	%	16.5	18.1
Return on capital employed	%	22.3	22.1

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 down from Rs 406.2 to Rs 324.6, registering a loss of Rs 81.6 or around 20.1%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 19,164.0 (down 2.0%). Over the last one year it has moved down from 20,477.7 to 19,164.0, a loss of 1,314 points (down 6.4%).

Overall, the S&P BSE SENSEX is up 0.2% over the year.

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

Read: Latest Annual Report Analysis of KALYANI STEELS