KELLTON TECH 2020-21 Annual Report Analysis

Wed, 31 Mar

KELLTON TECH has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

KELLTON TECH Income Statement Analysis

• Operating income during the year rose 0.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 4.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.9% in FY21 as against 14.6% in FY20.
• Depreciation charges increased by 0.9% and finance costs decreased by 21.8% YoY, respectively.
• Other income grew by 18.6% YoY.
• Net profit for the year grew by 0.8% YoY.
• Net profit margins during the year grew from 9.2% in FY20 to 9.2% in FY21.

KELLTON TECH Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	7,707	7,756	0.6%
Other income	Rs m	39	47	18.6%
Total Revenues	Rs m	7,746	7,803	0.7%
Gross profit	Rs m	1,124	1,078	-4.1%
Depreciation	Rs m	128	129	0.9%
Interest	Rs m	164	128	-21.8%
Profit before tax	Rs m	871	867	-0.4%
Tax	Rs m	165	156	-5.7%
Profit after tax	Rs m	705	711	0.8%
Gross profit margin	%	14.6	13.9
Effective tax rate	%	19.0	18.0
Net profit margin	%	9.2	9.2

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KELLTON TECH Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 2 billion as compared to Rs 2 billion in FY20, thereby witnessing an decrease of -22.4%.
• Long-term debt down at Rs 227 million as compared to Rs 286 million during FY20, a fall of 20.7%.
• Current assets fell 1% and stood at Rs 4 billion, while fixed assets fell 27% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 6 billion as against Rs 7 billion during FY20, thereby witnessing a fall of 12%.

KELLTON TECH Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,141	4,181	1.0
Current Liabilities	Rs m	2,116	1,643	-22.4
Long-term Debt	Rs m	286	227	-20.7
Total Liabilities	Rs m	7,184	6,319	-12.0
Current assets	Rs m	4,184	4,128	-1.3
Fixed Assets	Rs m	3,000	2,191	-27.0
Total Assets	Rs m	7,184	6,319	-12.0

KELLTON TECH Cash Flow Statement Analysis

• KELLTON TECH's cash flow from operating activities (CFO) during FY21 stood at Rs 795 million, an improvement of 40.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 316 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 89 million from the Rs 41 million net cash flows seen during FY20.

KELLTON TECH Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	565	795	40.7%
Cash Flow from Investing Activities	Rs m	-391	316	-
Cash Flow from Financing Activities	Rs m	-133	-1,022	-
Net Cash Flow	Rs m	41	89	116.4%

Current Valuations for KELLTON TECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.4, an improvement from the EPS of Rs 7.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 72.0, stands at 9.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.9 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-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	80.0	80.5
TTM Earnings per share	Rs	7.3	7.4
Diluted earnings per share	Rs	7.3	7.4
Price to Cash Flow	x	0.8	5.4
TTM P/E ratio	x	1.0	9.8
Price / Book Value ratio	x	0.6	1.1
Market Cap	Rs m	2,682	4,516
Dividends per share (Unadj.)	Rs	0.0	0.3

Ratio Analysis for KELLTON TECH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY21, from 2.0x during FY20. 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 improved and stood at 7.7x during FY21, from 6.3x during FY20. 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 17.0% during FY21, from 17.0% during FY21. 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 22.6% during FY21, from 23.4% during FY20. 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 13.3% during FY21, from 12.1% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	2.0	2.5
Debtors’ Days	Days	95,946,803	96,869,001
Interest coverage	x	6.3	7.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	12.1	13.3
Return on equity	%	17.0	17.0
Return on capital employed	%	23.4	22.6

To see how KELLTON TECH has performed over the last 5 years, please visit here.

KELLTON TECH Share Price Performance

Over the last one year, KELLTON TECH share price has moved up from Rs 7.1 to Rs 72.0, registering a gain of Rs 64.8 or around 912.0%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for KELLTON TECH and quarterly results for KELLTON TECH)

Read: Latest Annual Report Analysis of KELLTON TECH