KELLTON TECH 2021-22 Annual Report Analysis

Fri, 7 Oct

KELLTON TECH 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.

KELLTON TECH Income Statement Analysis

• Operating income during the year rose 8.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.4% in FY22 as against 13.9% in FY21.
• Depreciation charges decreased by 15.4% and finance costs decreased by 10.1% YoY, respectively.
• Other income declined by 70.6% YoY.
• Net profit for the year declined by 1.0% YoY.
• Net profit margins during the year declined from 9.2% in FY21 to 8.4% in FY22.

KELLTON TECH Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	7,756	8,427	8.6%
Other income	Rs m	47	14	-70.6%
Total Revenues	Rs m	7,803	8,440	8.2%
Gross profit	Rs m	1,078	1,046	-3.0%
Depreciation	Rs m	129	109	-15.4%
Interest	Rs m	128	116	-10.1%
Profit before tax	Rs m	867	835	-3.8%
Tax	Rs m	156	130	-16.6%
Profit after tax	Rs m	711	704	-1.0%
Gross profit margin	%	13.9	12.4
Effective tax rate	%	18.0	15.6
Net profit margin	%	9.2	8.4

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KELLTON TECH Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 2 billion as compared to Rs 2 billion in FY21, thereby witnessing an decrease of -4.7%.
• Long-term debt down at Rs 132 million as compared to Rs 227 million during FY21, a fall of 41.6%.
• Current assets rose 12% and stood at Rs 5 billion, while fixed assets fell 4% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 7 billion as against Rs 6 billion during FY21, thereby witnessing a growth of 6%.

KELLTON TECH Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	4,181	4,770	14.1
Current Liabilities	Rs m	1,643	1,565	-4.7
Long-term Debt	Rs m	227	132	-41.6
Total Liabilities	Rs m	6,319	6,720	6.3
Current assets	Rs m	4,128	4,627	12.1
Fixed Assets	Rs m	2,191	2,093	-4.5
Total Assets	Rs m	6,319	6,720	6.3

KELLTON TECH Cash Flow Statement Analysis

• KELLTON TECH's cash flow from operating activities (CFO) during FY22 stood at Rs 7 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -41 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -105 million, an improvement of 90% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -140 million from the Rs 89 million net cash flows seen during FY21.

KELLTON TECH 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	795	7	-99.2%
Cash Flow from Investing Activities	Rs m	315	-41	-
Cash Flow from Financing Activities	Rs m	-1,022	-105	-
Net Cash Flow	Rs m	89	-140	-

Current Valuations for KELLTON TECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.3, an decline from the EPS of Rs 7.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 65.0, stands at 8.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 10.3 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	80.5	87.3
TTM Earnings per share	Rs	7.4	7.3
Diluted earnings per share	Rs	7.4	7.3
Price to Cash Flow	x	8.3	10.3
TTM P/E ratio	x	9.8	8.9
Price / Book Value ratio	x	1.1	1.8
Market Cap	Rs m	4,516	8,405
Dividends per share (Unadj.)	Rs	0.3	0.0

Ratio Analysis for KELLTON TECH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x during FY22, from 2.5x 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 improved and stood at 8.2x during FY22, from 7.7x 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 declined and down at 14.8% during FY22, from 17.0% 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 19.4% during FY22, from 22.6% 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 12.2% during FY22, from 13.3% 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	2.5	3.0
Debtors’ Days	Days	96,869,001	96,418,966
Interest coverage	x	7.7	8.2
Debt to equity ratio	x	0.1	0.0
Return on assets	%	13.3	12.2
Return on equity	%	17.0	14.8
Return on capital employed	%	22.6	19.4

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 51.1 to Rs 65.0, registering a gain of Rs 14.0 or around 27.3%.

Overall, the S&P BSE SENSEX is down 2.0% 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