STOVE KRAFT 2022-23 Annual Report Analysis

Mon, 21 Aug

STOVE KRAFT 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.

STOVE KRAFT Income Statement Analysis

• Operating income during the year rose 13.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.7% in FY23 as against 8.4% in FY22.
• Depreciation charges increased by 60.7% and finance costs increased by 46.2% YoY, respectively.
• Other income grew by 3.0% YoY.
• Net profit for the year declined by 36.4% YoY.
• Net profit margins during the year declined from 4.9% in FY22 to 2.8% in FY23.

STOVE KRAFT Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	11,364	12,838	13.0%
Other income	Rs m	9	10	3.0%
Total Revenues	Rs m	11,373	12,848	13.0%
Gross profit	Rs m	958	991	3.5%
Depreciation	Rs m	197	317	60.7%
Interest	Rs m	144	211	46.2%
Profit before tax	Rs m	625	473	-24.4%
Tax	Rs m	63	115	82.0%
Profit after tax	Rs m	562	358	-36.4%
Gross profit margin	%	8.4	7.7
Effective tax rate	%	10.1	24.3
Net profit margin	%	4.9	2.8

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STOVE KRAFT Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 29.0%.
• Long-term debt stood at Rs 373 million as compared to Rs 342 million during FY22, a growth of 8.9%.
• Current assets rose 16% and stood at Rs 4 billion, while fixed assets rose 30% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 7 billion during FY22, thereby witnessing a growth of 23%.

STOVE KRAFT Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,622	4,027	11.2
Current Liabilities	Rs m	3,240	4,181	29.0
Long-term Debt	Rs m	342	373	8.9
Total Liabilities	Rs m	7,348	9,041	23.0
Current assets	Rs m	3,746	4,353	16.2
Fixed Assets	Rs m	3,601	4,688	30.2
Total Assets	Rs m	7,348	9,041	23.0

STOVE KRAFT Cash Flow Statement Analysis

• STOVE KRAFT's cash flow from operating activities (CFO) during FY23 stood at Rs 763 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 298 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 21 million from the Rs -290 million net cash flows seen during FY22.

STOVE KRAFT 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	-53	763	-
Cash Flow from Investing Activities	Rs m	-1,153	-1,040	-
Cash Flow from Financing Activities	Rs m	916	298	-67.5%
Net Cash Flow	Rs m	-290	21	-

Current Valuations for STOVE KRAFT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.8, an decline from the EPS of Rs 17.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 536.5, stands at 49.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 26.8 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	345.7	388.7
TTM Earnings per share	Rs	17.1	10.8
Diluted earnings per share	Rs	17.0	10.8
Price to Cash Flow	x	26.7	26.8
TTM P/E ratio	x	36.0	49.4
Price / Book Value ratio	x	7.0	4.5
Market Cap	Rs m	25,224	18,066
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for STOVE KRAFT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY23, from 1.2x 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 3.2x during FY23, from 5.3x 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 8.9% during FY23, from 15.5% 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 15.5% during FY23, from 19.4% 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 6.3% during FY23, from 9.6% 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	1.2	1.0
Debtors’ Days	Days	31	40
Interest coverage	x	5.3	3.2
Debt to equity ratio	x	0.1	0.1
Return on assets	%	9.6	6.3
Return on equity	%	15.5	8.9
Return on capital employed	%	19.4	15.5

To see how STOVE KRAFT has performed over the last 5 years, please visit here.

STOVE KRAFT Share Price Performance

Over the last one year, STOVE KRAFT share price has moved down from Rs 623.6 to Rs 536.5, registering a loss of Rs 87.1 or around 14.0%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 43,417.8 (up 0.3%). Over the last one year it has moved up from 41,105.7 to 43,417.8, a gain of 2,312 points (up 5.6%).

Overall, the S&P BSE SENSEX is up 8.2% over the year.

(To know more, check out historical annual results for STOVE KRAFT and quarterly results for STOVE KRAFT)