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KFIN TECHNOLOGIES 2022-23 Annual Report Analysis

Mon, 25 Sep

KFIN TECHNOLOGIES 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.

KFIN TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 12.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 41.0% in FY23 as against 44.9% in FY22.
• Depreciation charges increased by 26.0% and finance costs decreased by 79.8% YoY, respectively.
• Other income grew by 204.3% YoY.
• Net profit for the year grew by 31.8% YoY.
• Net profit margins during the year grew from 23.2% in FY22 to 27.2% in FY23.

KFIN TECHNOLOGIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,395	7,200	12.6%
Other income	Rs m	68	206	204.3%
Total Revenues	Rs m	6,463	7,407	14.6%
Gross profit	Rs m	2,872	2,950	2.7%
Depreciation	Rs m	370	467	26.0%
Interest	Rs m	530	107	-79.8%
Profit before tax	Rs m	2,040	2,582	26.6%
Tax	Rs m	555	625	12.7%
Profit after tax	Rs m	1,485	1,957	31.8%
Gross profit margin	%	44.9	41.0
Effective tax rate	%	27.2	24.2
Net profit margin	%	23.2	27.2

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KFIN TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 79.8%.
• Current assets rose 62% and stood at Rs 7 billion, while fixed assets rose 3% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 15 billion as against Rs 12 billion during FY22, thereby witnessing a growth of 23%.

KFIN TECHNOLOGIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,323	8,556	35.3
Current Liabilities	Rs m	2,410	4,333	79.8
Long-term Debt	Rs m	1,225	0	-100.0
Total Liabilities	Rs m	12,122	14,955	23.4
Current assets	Rs m	4,184	6,757	61.5
Fixed Assets	Rs m	7,938	8,199	3.3
Total Assets	Rs m	12,122	14,955	23.4

KFIN TECHNOLOGIES Cash Flow Statement Analysis

• KFIN TECHNOLOGIES's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 77.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 73 million, an improvement of 106% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 268 million from the Rs 221 million net cash flows seen during FY22.

KFIN TECHNOLOGIES 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	2,526	2,234	-11.6%
Cash Flow from Investing Activities	Rs m	-1,154	-2,044	-
Cash Flow from Financing Activities	Rs m	-1,154	73	-
Net Cash Flow	Rs m	221	268	21.0%

Current Valuations for KFIN TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.6, an improvement from the EPS of Rs 8.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 458.8, stands at 39.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.1 times, while the price to sales ratio stands at 10.8 times.
• The company's price to cash flow (P/CF) ratio stood at 22.5 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	38.2	42.5
TTM Earnings per share	Rs	8.9	11.6
Diluted earnings per share	Rs	8.7	11.5
Price to Cash Flow	x	0.0	22.5
TTM P/E ratio	x	0.0	39.9
Price / Book Value ratio	x	0.0	6.4
Market Cap	Rs m	0	54,445
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KFIN TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 1.7x 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 improved and stood at 25.1x during FY23, from 4.9x 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 22.9% during FY23, from 23.5% 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 31.4% during FY23, from 34.0% 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 13.8% during FY23, from 16.6% 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	1.7	1.6
Debtors’ Days	Days	64	64
Interest coverage	x	4.9	25.1
Debt to equity ratio	x	0.2	0.0
Return on assets	%	16.6	13.8
Return on equity	%	23.5	22.9
Return on capital employed	%	34.0	31.4

To see how KFIN TECHNOLOGIES has performed over the last 5 years, please visit here.

KFIN TECHNOLOGIES Share Price Performance

Over the last one year, KFIN TECHNOLOGIES share price has moved up from Rs 0.0 to Rs 458.8, registering a gain of Rs 458.8 or around 0.0%.

Overall, the S&P BSE SENSEX is up 11.0% over the year.

(To know more, check out historical annual results for KFIN TECHNOLOGIES and quarterly results for KFIN TECHNOLOGIES)