KALYANI STEELS 2022-23 Annual Report Analysis

Fri, 25 Aug

KALYANI STEELS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

KALYANI STEELS Income Statement Analysis

• Operating income during the year rose 11.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 27.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.9% in FY23 as against 19.8% in FY22.
• Depreciation charges increased by 6.6% and finance costs increased by 108.2% YoY, respectively.
• Other income grew by 9.4% YoY.
• Net profit for the year declined by 32.6% YoY.
• Net profit margins during the year declined from 14.5% in FY22 to 8.8% in FY23.

KALYANI STEELS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	17,060	18,994	11.3%
Other income	Rs m	515	564	9.4%
Total Revenues	Rs m	17,576	19,558	11.3%
Gross profit	Rs m	3,385	2,457	-27.4%
Depreciation	Rs m	459	489	6.6%
Interest	Rs m	135	281	108.2%
Profit before tax	Rs m	3,306	2,251	-31.9%
Tax	Rs m	829	580	-30.0%
Profit after tax	Rs m	2,477	1,670	-32.6%
Gross profit margin	%	19.8	12.9
Effective tax rate	%	25.1	25.8
Net profit margin	%	14.5	8.8

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KALYANI STEELS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 7 billion as compared to Rs 7 billion in FY22, thereby witnessing an decrease of -2.5%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY22, a fall of 2.4%.
• Current assets rose 1% and stood at Rs 16 billion, while fixed assets rose 11% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 24 billion as against Rs 23 billion during FY22, thereby witnessing a growth of 4%.

KALYANI STEELS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	13,675	14,895	8.9
Current Liabilities	Rs m	6,679	6,509	-2.5
Long-term Debt	Rs m	1,895	1,850	-2.4
Total Liabilities	Rs m	22,575	23,505	4.1
Current assets	Rs m	15,575	15,703	0.8
Fixed Assets	Rs m	7,000	7,803	11.5
Total Assets	Rs m	22,575	23,505	4.1

KALYANI STEELS Cash Flow Statement Analysis

• KALYANI STEELS's cash flow from operating activities (CFO) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -390 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -116 million from the Rs 108 million net cash flows seen during FY22.

KALYANI STEELS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	3,619	-1,257	-
Cash Flow from Investing Activities	Rs m	-4,739	1,531	-
Cash Flow from Financing Activities	Rs m	1,228	-390	-
Net Cash Flow	Rs m	108	-116	-

Current Valuations for KALYANI STEELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 38.3, an decline from the EPS of Rs 56.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 477.0, stands at 10.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 6.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	390.8	435.1
TTM Earnings per share	Rs	56.8	38.3
Diluted earnings per share	Rs	56.7	38.3
Price to Cash Flow	x	4.4	6.6
TTM P/E ratio	x	5.2	10.2
Price / Book Value ratio	x	1.2	1.0
Market Cap	Rs m	15,945	14,268
Dividends per share (Unadj.)	Rs	10.0	10.0

Ratio Analysis for KALYANI STEELS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY23, from 2.3x during FY22. 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 9.0x during FY23, from 25.5x during FY22. 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 11.2% during FY23, from 18.1% during FY23. 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 15.1% during FY23, from 22.1% during FY22. 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 8.3% during FY23, from 11.6% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	2.3	2.4
Debtors’ Days	Days	68	78
Interest coverage	x	25.5	9.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	11.6	8.3
Return on equity	%	18.1	11.2
Return on capital employed	%	22.1	15.1

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 up from Rs 292.7 to Rs 477.0, registering a gain of Rs 184.4 or around 63.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 21,256.9 (down 1.1%). Over the last one year it has moved up from 18,781.4 to 21,256.9, a gain of 2,475 points (up 13.2%).

Overall, the S&P BSE SENSEX is up 9.9% over the year.

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