KAYA 2023-24 Annual Report Analysis

Tue, 23 Jul

KAYA 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.

KAYA Income Statement Analysis

• Operating income during the year rose 7.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 107.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.2% in FY24 as against 3.7% in FY23.
• Depreciation charges increased by 39.0% and finance costs increased by 1.9% YoY, respectively.
• Other income grew by 193.0% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 30.9% in FY23 to 32.1% in FY24.

KAYA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,767	4,043	7.3%
Other income	Rs m	45	132	193.0%
Total Revenues	Rs m	3,812	4,175	9.5%
Gross profit	Rs m	140	291	107.4%
Depreciation	Rs m	933	1,297	39.0%
Interest	Rs m	415	423	1.9%
Profit before tax	Rs m	-1,163	-1,297	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-1,163	-1,297	NA
Gross profit margin	%	3.7	7.2
Effective tax rate	%	0.0	0.0
Net profit margin	%	-30.9	-32.1

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KAYA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 15.0%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY23, a fall of 0.5%.
• Current assets fell 29% and stood at Rs 1 billion, while fixed assets fell 15% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 4 billion during FY23, thereby witnessing a fall of 20%.

KAYA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	-1,066	-2,285	NA
Current Liabilities	Rs m	2,486	2,860	15.0
Long-term Debt	Rs m	1,421	1,413	-0.5
Total Liabilities	Rs m	3,700	2,955	-20.1
Current assets	Rs m	1,426	1,017	-28.7
Fixed Assets	Rs m	2,274	1,938	-14.8
Total Assets	Rs m	3,700	2,955	-20.1

KAYA Cash Flow Statement Analysis

• KAYA's cash flow from operating activities (CFO) during FY24 stood at Rs 388 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -85 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -375 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -71 million from the Rs 53 million net cash flows seen during FY23.

KAYA 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	628	388	-38.2%
Cash Flow from Investing Activities	Rs m	-398	-85	-
Cash Flow from Financing Activities	Rs m	-183	-375	-
Net Cash Flow	Rs m	53	-71	-

Current Valuations for KAYA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -99.3, an decline from the EPS of Rs -89.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 558.0, stands at -5.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -3.2 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 8,625.6 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	288.5	309.5
TTM Earnings per share	Rs	-89.0	-99.3
Diluted earnings per share	Rs	-89.0	-99.2
Price to Cash Flow	x	-14.4	8,625.6
TTM P/E ratio	x	-2.8	-5.7
Price / Book Value ratio	x	-4.1	-1.9
Market Cap	Rs m	4,345	4,270
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KAYA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY24, from 0.6x 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 -2.1x during FY24, from -1.8x 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 56.7% during FY24, from 109.1% 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 100.2% during FY24, from -210.5% 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 -29.6% during FY24, from -20.2% 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	0.6	0.4
Debtors’ Days	Days	34	35
Interest coverage	x	-1.8	-2.1
Debt to equity ratio	x	-1.3	-0.6
Return on assets	%	-20.2	-29.6
Return on equity	%	109.1	56.7
Return on capital employed	%	-210.5	100.2

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

KAYA Share Price Performance

Over the last one year, KAYA share price has moved up from Rs 350.6 to Rs 558.0, registering a gain of Rs 207.5 or around 59.2%.

Overall, the S&P BSE SENSEX is up 19.8% over the year.

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