KAMDHENU ISPAT 2023-24 Annual Report Analysis

Thu, 18 Jul

KAMDHENU ISPAT 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.

KAMDHENU ISPAT Income Statement Analysis

• Operating income during the year fell 1.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.1% in FY24 as against 8.2% in FY23.
• Depreciation charges increased by 5.5% and finance costs decreased by 67.6% YoY, respectively.
• Other income grew by 756.2% YoY.
• Net profit for the year grew by 22.2% YoY.
• Net profit margins during the year grew from 5.6% in FY23 to 6.9% in FY24.

KAMDHENU ISPAT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,321	7,247	-1.0%
Other income	Rs m	16	136	756.2%
Total Revenues	Rs m	7,337	7,383	0.6%
Gross profit	Rs m	600	590	-1.7%
Depreciation	Rs m	48	50	5.5%
Interest	Rs m	19	6	-67.6%
Profit before tax	Rs m	549	669	21.9%
Tax	Rs m	139	168	21.1%
Profit after tax	Rs m	410	501	22.2%
Gross profit margin	%	8.2	8.1
Effective tax rate	%	25.3	25.1
Net profit margin	%	5.6	6.9

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KAMDHENU ISPAT Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 348 million as compared to Rs 295 million in FY23, thereby witnessing an increase of 17.8%.
• Current assets rose 48% and stood at Rs 2 billion, while fixed assets rose 11% and stood at Rs 722 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 36%.

KAMDHENU ISPAT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,667	2,131	27.9
Current Liabilities	Rs m	295	348	17.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,085	2,841	36.2
Current assets	Rs m	1,434	2,118	47.7
Fixed Assets	Rs m	651	722	10.9
Total Assets	Rs m	2,085	2,841	36.2

KAMDHENU ISPAT Cash Flow Statement Analysis

• KAMDHENU ISPAT's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 53.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -924 million, an improvement of 2,191.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 185 million, an improvement of 134% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 282 million from the Rs -18 million net cash flows seen during FY23.

KAMDHENU ISPAT 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	668	1,021	53.0%
Cash Flow from Investing Activities	Rs m	-40	-924	-
Cash Flow from Financing Activities	Rs m	-545	185	-
Net Cash Flow	Rs m	-18	282	-

Current Valuations for KAMDHENU ISPAT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.6, an improvement from the EPS of Rs 15.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 528.1, stands at 29.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.9 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 22.8 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	271.7	269.0
TTM Earnings per share	Rs	15.2	18.6
Diluted earnings per share	Rs	14.8	18.1
Price to Cash Flow	x	19.0	22.8
TTM P/E ratio	x	21.2	29.2
Price / Book Value ratio	x	4.6	5.9
Market Cap	Rs m	7,708	12,561
Dividends per share (Unadj.)	Rs	1.5	2.0

Ratio Analysis for KAMDHENU ISPAT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.1x during FY24, from 4.9x 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 107.9x during FY24, from 29.4x 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 declined and down at 23.5% during FY24, from 24.6% 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 declined and down at 31.7% during FY24, from 34.1% 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 declined and down at 17.9% during FY24, from 20.6% 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	4.9	6.1
Debtors’ Days	Days	409	275
Interest coverage	x	29.4	107.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	20.6	17.9
Return on equity	%	24.6	23.5
Return on capital employed	%	34.1	31.7

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

KAMDHENU ISPAT Share Price Performance

Over the last one year, KAMDHENU ISPAT share price has moved up from Rs 319.0 to Rs 528.1, registering a gain of Rs 209.1 or around 65.5%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 32,896.4 (down 0.9%). Over the last one year it has moved up from 21,248.5 to 32,896.4, a gain of 11,648 points (up 54.8%).

Overall, the S&P BSE SENSEX is up 21.3% over the year.

(To know more, check out historical annual results for KAMDHENU ISPAT and quarterly results for KAMDHENU ISPAT)