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KENNAMETAL INDIA 2017-18 Annual Report Analysis
Sat, 30 Jun

KENNAMETAL INDIA has announced its results for the year ended June 2018. Let us have a look at the detailed performance review of the company during FY17-18.

KENNAMETAL INDIA Income Statement Analysis

  • Operating income during the year rose 30.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 75.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.7% in FY as against 8.7% in FY.
  • Depreciation charges decreased by 0.6% increased by 0.0% YoY, respectively.
  • Other income grew by 43.3% YoY.
  • Net profit for the year grew by 114.6% YoY.
  • Net profit margins during the year grew from 4.0% in FY to 6.6% in FY.

KENNAMETAL INDIA Income Statement 2017-18

No. of Mths Year Ending 12 Jun-17* 12 Jun-18* % Change
Net Sales Rs m 6,077 7,931 30.5%
Other income Rs m 59 84 43.3%
Total Revenues Rs m 6,136 8,015 30.6%
Gross profit Rs m 528 927 75.7%
Depreciation Rs m 283 281 -0.6%
Interest Rs m 0 0 0.0%
Profit before tax Rs m 304 730 140.4%
Tax Rs m 60 207 245.6%
Profit after tax Rs m 244 523 114.6%
Gross profit margin % 8.7 11.7
Effective tax rate % 19.7 28.4
Net profit margin % 4.0 6.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

KENNAMETAL INDIA Balance Sheet Analysis

  • The company's current liabilities during FY stood at Rs 2 billion as compared to Rs 1 billion in FY, thereby witnessing an increase of 39.6%.
  • Current assets rose 24% and stood at Rs 4 billion, while fixed assets rose 11% and stood at Rs 5 billion in FY.
  • Overall, the total assets and liabilities for FY stood at Rs 9 billion as against Rs 7 billion during FY, thereby witnessing a growth of 16%.

KENNAMETAL INDIA Balance Sheet as on June 2018

No. of Mths Year Ending 12 Jun-17* 12 Jun-18* % Change
Networth Rs m 3,939 4,385 11.3
 
Current Liabilities Rs m 1,387 1,936 39.6
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 7,436 8,658 16.4
 
Current assets Rs m 3,340 4,131 23.7
Fixed Assets Rs m 4,095 4,527 10.5
Total Assets Rs m 7,436 8,658 16.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



KENNAMETAL INDIA Cash Flow Statement Analysis

  • KENNAMETAL INDIA's cash flow from operating activities (CFO) during FY stood at Rs 629 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY stood at Rs -552 million, an improvement of 23.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY stood at Rs -53 million, an improvement of 0% on a YoY basis.
  • Overall, net cash flows for the company during FY stood at Rs 24 million from the Rs 273 million net cash flows seen during FY.

KENNAMETAL INDIA Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Jun-17 Jun-18
Cash Flow from Operating Activities Rs m 772 629 -18.5%
Cash Flow from Investing Activities Rs m -446 -552 -
Cash Flow from Financing Activities Rs m -53 -53 -
Net Cash Flow Rs m 273 24 -91.2%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for KENNAMETAL INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.8, an improvement from the EPS of Rs 11.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 749.0, stands at 31.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 2.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 21.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Jun-17* 12 Jun-18*
Sales per share (Unadj.) Rs 276.5 360.8
TTM Earnings per share Rs 11.1 23.8
Diluted earnings per share Rs 11.1 23.8
Price to Cash Flow x 25.8 21.9
TTM P/E ratio x 61.5 31.5
Price / Book Value ratio x 3.5 4.0
Market Cap Rs m 13,956 17,572
Dividends per share (Unadj.) Rs 2.0 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for KENNAMETAL INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY, from 2.4x during FY. The current ratio measures the company's ability to pay short-term and long-term obligations.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 11.9% during FY, from 6.2% during FY. 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 improved and stood at 16.6% during FY, from 7.7% during FY. 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 6.0% during FY, from 3.3% during FY. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Jun-17* 12 Jun-18*
Current ratio x 2.4 2.1
Debtors’ Days Days 662 66
Interest coverage x 0.0 0.0
Debt to equity ratio x 0.0 0.0
Return on assets % 3.3 6.0
Return on equity % 6.2 11.9
Return on capital employed % 7.7 16.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how KENNAMETAL INDIA has performed over the last 5 years, please visit here.

KENNAMETAL INDIA Share Price Performance

Over the last one year, KENNAMETAL INDIA share price has moved up from Rs 616.9 to Rs 709.3, registering a gain of Rs 92.5 or around 15.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,476.7 (down 0.1%). Over the last one year it has moved up from 16,446.0 to 18,476.7, a gain of 2,031 points (up 12.3%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for KENNAMETAL INDIA and quarterly results for KENNAMETAL INDIA)

Annual Report FAQs

What is the current share price of KENNAMETAL INDIA?

KENNAMETAL INDIA currently trades at Rs 2,379.2 per share. You can check out the latest share price performance of KENNAMETAL INDIA here...

What was the revenue of KENNAMETAL INDIA in FY? How does it compare to earlier years?

The revenues of KENNAMETAL INDIA stood at Rs 8,015 m in FY, which was up 30.6% compared to Rs 6,136 m reported in FY.

KENNAMETAL INDIA's revenue has grown from Rs 5,371 m in FY to Rs 8,015 m in FY.

Over the past 3 years, the revenue of KENNAMETAL INDIA has grown at a CAGR of 22.2%.

What was the net profit of KENNAMETAL INDIA in FY? How does it compare to earlier years?

The net profit of KENNAMETAL INDIA stood at Rs 523 m in FY, which was up 114.6% compared to Rs 244 m reported in FY.

This compares to a net profit of Rs 207 m in FY.

Over the past 3 years, KENNAMETAL INDIA net profit has grown at a CAGR of 58.8%.

What does the cash flow statement of KENNAMETAL INDIA reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of KENNAMETAL INDIA reveals:

  • Cash flow from operations decreased in FY and stood at Rs 629 m as compared to Rs 772 m in FY.
  • Cash flow from investments decreased in FY and stood at Rs -552 m as compared to Rs -446 m in FY.
  • Cash flow from financial activity increased in FY and stood at Rs -53 m as compared to Rs -53 m in FY.

Here's the cash flow statement of KENNAMETAL INDIA for the past 3 years.

(Rs m)FYFYFY
From Operations174772629
From Investments-424-446-552
From Financial Activity-51-53-53
Net Cashflow-30027324

What does the Key Ratio analysis of KENNAMETAL INDIA reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of KENNAMETAL INDIA reveals:

  • Operating profit margins witnessed a fall and down at 11.7% in FY as against 8.7% in FY.
  • Net profit margins grew from 4.0% in FY to 6.6% in FY.
  • Debt to Equity ratio for FY stood at 0.0 as compared to 0.0 in FY.

Here's the ratio/financial analysis of KENNAMETAL INDIA for the past 3 years.

 FYFYFY
Operating Profit Margin (%)8.78.711.7
Net Profit Margin (%)3.94.06.6
Debt to Equity Ratio (x)0.00.00.0

Read: Latest Annual Report Analysis of KENNAMETAL INDIA

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