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KDDL. 2023-24 Annual Report Analysis

Thu, 17 Oct

KDDL. has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

KDDL. Income Statement Analysis

• Operating income during the year fell 68.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 55.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.2% in FY24 as against 15.0% in FY23.
• Depreciation charges decreased by 71.9% and finance costs decreased by 69.2% YoY, respectively.
• Other income grew by 951.4% YoY.
• Net profit for the year grew by 185.9% YoY.
• Net profit margins during the year grew from 6.9% in FY23 to 62.8% in FY24.

KDDL. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	11,194	3,506	-68.7%
Other income	Rs m	193	2,031	951.4%
Total Revenues	Rs m	11,388	5,537	-51.4%
Gross profit	Rs m	1,683	742	-55.9%
Depreciation	Rs m	494	139	-71.9%
Interest	Rs m	306	94	-69.2%
Profit before tax	Rs m	1,076	2,540	136.1%
Tax	Rs m	306	340	10.9%
Profit after tax	Rs m	770	2,201	185.9%
Gross profit margin	%	15.0	21.2
Effective tax rate	%	28.5	13.4
Net profit margin	%	6.9	62.8

For Investors: Our Big Prediction

KDDL. Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -55.2%.
• Long-term debt down at Rs 321 million as compared to Rs 733 million during FY23, a fall of 56.2%.
• Current assets fell 67% and stood at Rs 3 billion, while fixed assets fell 17% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 11 billion during FY23, thereby witnessing a fall of 50%.

KDDL. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,563	3,971	-13.0
Current Liabilities	Rs m	2,833	1,270	-55.2
Long-term Debt	Rs m	733	321	-56.2
Total Liabilities	Rs m	11,427	5,657	-50.5
Current assets	Rs m	7,726	2,570	-66.7
Fixed Assets	Rs m	3,701	3,088	-16.6
Total Assets	Rs m	11,427	5,657	-50.5

KDDL. Cash Flow Statement Analysis

• KDDL.'s cash flow from operating activities (CFO) during FY24 stood at Rs 797 million, an improvement of 73.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -985 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs 63 million net cash flows seen during FY23.

KDDL. Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	459	797	73.8%
Cash Flow from Investing Activities	Rs m	-2,668	1,498	-
Cash Flow from Financing Activities	Rs m	2,272	-985	-
Net Cash Flow	Rs m	63	1,310	1,968.9%

Current Valuations for KDDL.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 175.5, an improvement from the EPS of Rs 61.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,923.0, stands at 27.3 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 10.5 times.
• The company's price to cash flow (P/CF) ratio stood at 11.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	892.7	279.6
TTM Earnings per share	Rs	61.4	175.5
Diluted earnings per share	Rs	62.6	178.9
Price to Cash Flow	x	9.9	11.1
TTM P/E ratio	x	16.4	27.3
Price / Book Value ratio	x	2.5	6.5
Market Cap	Rs m	11,463	25,894
Dividends per share (Unadj.)	Rs	4.0	0.0

Ratio Analysis for KDDL.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY24, from 2.7x during FY23. 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 27.9x during FY24, from 4.5x during FY23. 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 improved and stood at 55.4% during FY24, from 16.9% during FY24. 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 61.4% during FY24, from 26.1% during FY23. 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 40.6% during FY24, from 9.4% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.7	2.0
Debtors’ Days	Days	204	536
Interest coverage	x	4.5	27.9
Debt to equity ratio	x	0.2	0.1
Return on assets	%	9.4	40.6
Return on equity	%	16.9	55.4
Return on capital employed	%	26.1	61.4

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

KDDL. Share Price Performance

Over the last one year, KDDL. share price has moved up from Rs 2,112.9 to Rs 2,923.0, registering a gain of Rs 810.1 or around 38.3%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 65,563.4 (down 1.0%). Over the last one year it has moved up from 46,555.6 to 65,563.4, a gain of 19,008 points (up 40.8%).

Overall, the S&P BSE SENSEX is up 22.8% over the year.

(To know more, check out historical annual results for KDDL. and quarterly results for KDDL.)