KAMA HOLDINGS 2022-23 Annual Report Analysis

Wed, 19 Jul

KAMA HOLDINGS 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.

KAMA HOLDINGS Income Statement Analysis

• Operating income during the year rose 20.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.5% in FY23 as against 25.1% in FY22.
• Depreciation charges increased by 11.3% and finance costs increased by 76.6% YoY, respectively.
• Other income declined by 3.3% YoY.
• Net profit for the year grew by 23.1% YoY.
• Net profit margins during the year grew from 15.1% in FY22 to 15.4% in FY23.

KAMA HOLDINGS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	125,024	150,748	20.6%
Other income	Rs m	858	830	-3.3%
Total Revenues	Rs m	125,882	151,578	20.4%
Gross profit	Rs m	31,379	36,936	17.7%
Depreciation	Rs m	5,152	5,732	11.3%
Interest	Rs m	1,154	2,038	76.6%
Profit before tax	Rs m	25,931	29,996	15.7%
Tax	Rs m	7,043	6,751	-4.1%
Profit after tax	Rs m	18,889	23,244	23.1%
Gross profit margin	%	25.1	24.5
Effective tax rate	%	27.2	22.5
Net profit margin	%	15.1	15.4

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KAMA HOLDINGS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 45 billion as compared to Rs 40 billion in FY22, thereby witnessing an increase of 12.1%.
• Long-term debt stood at Rs 30 billion as compared to Rs 25 billion during FY22, a growth of 20.0%.
• Current assets rose 11% and stood at Rs 59 billion, while fixed assets rose 23% and stood at Rs 134 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 192 billion as against Rs 162 billion during FY22, thereby witnessing a growth of 19%.

KAMA HOLDINGS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	48,342	57,091	18.1
Current Liabilities	Rs m	40,369	45,240	12.1
Long-term Debt	Rs m	25,115	30,128	20.0
Total Liabilities	Rs m	161,980	192,463	18.8
Current assets	Rs m	52,659	58,559	11.2
Fixed Assets	Rs m	109,291	133,904	22.5
Total Assets	Rs m	161,980	192,463	18.8

KAMA HOLDINGS Cash Flow Statement Analysis

• KAMA HOLDINGS's cash flow from operating activities (CFO) during FY23 stood at Rs 30 billion, an improvement of 41.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -31 billion, an improvement of 90.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion, an improvement of 170% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 874 million from the Rs 3 billion net cash flows seen during FY22.

KAMA HOLDINGS 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	21,326	30,206	41.6%
Cash Flow from Investing Activities	Rs m	-16,169	-30,748	-
Cash Flow from Financing Activities	Rs m	-2,047	1,440	-
Net Cash Flow	Rs m	3,125	874	-72.0%

Current Valuations for KAMA HOLDINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3,620.6, an improvement from the EPS of Rs 2,928.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 12,479.9, stands at 3.4 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 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 2.7 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	19,383.6	23,481.0
TTM Earnings per share	Rs	2,928.5	3,620.6
Diluted earnings per share	Rs	2,943.0	3,621.7
Price to Cash Flow	x	3.2	2.7
TTM P/E ratio	x	4.1	3.4
Price / Book Value ratio	x	1.2	1.4
Market Cap	Rs m	59,655	77,707
Dividends per share (Unadj.)	Rs	162.0	166.0

Ratio Analysis for KAMA HOLDINGS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 1.3x 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 15.7x during FY23, from 23.5x 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 improved and stood at 40.7% during FY23, from 39.1% 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 36.7% during FY23, from 36.9% 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 improved and stood at 13.1% during FY23, from 12.4% 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	1.3	1.3
Debtors’ Days	Days	524	433
Interest coverage	x	23.5	15.7
Debt to equity ratio	x	0.5	0.5
Return on assets	%	12.4	13.1
Return on equity	%	39.1	40.7
Return on capital employed	%	36.9	36.7

To see how KAMA HOLDINGS has performed over the last 5 years, please visit here.

KAMA HOLDINGS Share Price Performance

Over the last one year, KAMA HOLDINGS share price has moved up from Rs 10,884.1 to Rs 12,479.9, registering a gain of Rs 1,595.9 or around 14.7%.

Overall, the S&P BSE SENSEX is up 22.7% over the year.

(To know more, check out historical annual results for KAMA HOLDINGS and quarterly results for KAMA HOLDINGS)