KARDA CONSTRUCTIONS 2023-24 Annual Report Analysis

Mon, 11 Nov

KARDA CONSTRUCTIONS 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.

KARDA CONSTRUCTIONS Income Statement Analysis

• Operating income during the year fell 80.9% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 259.2% in FY24 as against 3.0% in FY23.
• Depreciation charges decreased by 4.5% and finance costs decreased by 16.3% YoY, respectively.
• Other income grew by 120.9% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 3.3% in FY23 to 177.4% in FY24.

KARDA CONSTRUCTIONS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,082	206	-80.9%
Other income	Rs m	125	275	120.9%
Total Revenues	Rs m	1,207	482	-60.1%
Gross profit	Rs m	-32	-534	NA
Depreciation	Rs m	1	1	-4.5%
Interest	Rs m	126	106	-16.3%
Profit before tax	Rs m	-35	-366	NA
Tax	Rs m	0	0	-38.1%
Profit after tax	Rs m	-35	-366	NA
Gross profit margin	%	-3.0	-259.2
Effective tax rate	%	-0.6	0.0
Net profit margin	%	-3.3	-177.4

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KARDA CONSTRUCTIONS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 783 million as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -32.6%.
• Long-term debt down at Rs 332 million as compared to Rs 450 million during FY23, a fall of 26.4%.
• Current assets rose 180% and stood at Rs 10 billion, while fixed assets fell 90% and stood at Rs 789 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 11 billion as against Rs 11 billion during FY23, thereby witnessing a fall of 3%.

KARDA CONSTRUCTIONS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,176	9,099	-0.8
Current Liabilities	Rs m	1,162	783	-32.6
Long-term Debt	Rs m	450	332	-26.4
Total Liabilities	Rs m	11,283	10,925	-3.2
Current assets	Rs m	3,619	10,136	180.1
Fixed Assets	Rs m	7,664	789	-89.7
Total Assets	Rs m	11,283	10,925	-3.2

KARDA CONSTRUCTIONS Cash Flow Statement Analysis

• KARDA CONSTRUCTIONS's cash flow from operating activities (CFO) during FY24 stood at Rs 684 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 7 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -470 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 7 billion from the Rs 30 million net cash flows seen during FY23.

KARDA CONSTRUCTIONS 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	-1,633	684	-
Cash Flow from Investing Activities	Rs m	-6,543	6,645	-
Cash Flow from Financing Activities	Rs m	8,206	-470	-
Net Cash Flow	Rs m	30	6,858	23,023.1%

Current Valuations for KARDA CONSTRUCTIONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.3, an decline from the EPS of Rs -0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2.4, stands at -12.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 12.9 times.
• The company's price to cash flow (P/CF) ratio stood at -8.1 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	1.6	0.2
TTM Earnings per share	Rs	-0.1	-0.3
Diluted earnings per share	Rs	0.0	-0.1
Price to Cash Flow	x	-179.4	-8.1
TTM P/E ratio	x	-347.6	-12.2
Price / Book Value ratio	x	0.6	0.3
Market Cap	Rs m	5,299	2,935
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KARDA CONSTRUCTIONS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 12.9x during FY24, from 3.1x 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 deteriorated and stood at -2.5x during FY24, from 0.7x 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 -4.0% during FY24, from -0.4% 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 -2.8% during FY24, from 0.9% 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 -2.4% during FY24, from 0.8% 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	3.1	12.9
Debtors’ Days	Days	2,897	14,866
Interest coverage	x	0.7	-2.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	0.8	-2.4
Return on equity	%	-0.4	-4.0
Return on capital employed	%	0.9	-2.8

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

KARDA CONSTRUCTIONS Share Price Performance

Over the last one year, KARDA CONSTRUCTIONS share price has moved up from Rs 2.1 to Rs 2.4, registering a gain of Rs 0.3 or around 14.6%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 7,549.4 (down 0.1%). Over the last one year it has moved up from 5,240.6 to 7,549.4, a gain of 2,309 points (up 44.1%).

Overall, the S&P BSE SENSEX is up 22.4% over the year.

(To know more, check out historical annual results for KARDA CONSTRUCTIONS and quarterly results for KARDA CONSTRUCTIONS)