KAYNES TECHNOLOGY 2023-24 Annual Report Analysis

Wed, 21 Aug

KAYNES TECHNOLOGY 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.

KAYNES TECHNOLOGY Income Statement Analysis

• Operating income during the year rose 60.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 51.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.2% in FY24 as against 15.1% in FY23.
• Depreciation charges increased by 34.1% and finance costs increased by 53.2% YoY, respectively.
• Other income grew by 390.6% YoY.
• Net profit for the year grew by 92.5% YoY.
• Net profit margins during the year grew from 8.5% in FY23 to 10.2% in FY24.

KAYNES TECHNOLOGY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	11,261	18,046	60.3%
Other income	Rs m	114	559	390.6%
Total Revenues	Rs m	11,375	18,605	63.6%
Gross profit	Rs m	1,699	2,567	51.1%
Depreciation	Rs m	187	251	34.1%
Interest	Rs m	365	559	53.2%
Profit before tax	Rs m	1,260	2,316	83.7%
Tax	Rs m	308	483	56.5%
Profit after tax	Rs m	952	1,833	92.5%
Gross profit margin	%	15.1	14.2
Effective tax rate	%	24.5	20.8
Net profit margin	%	8.5	10.2

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KAYNES TECHNOLOGY Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 81.9%.
• Long-term debt down at Rs 112 million as compared to Rs 150 million during FY23, a fall of 25.8%.
• Current assets rose 111% and stood at Rs 27 billion, while fixed assets rose 261% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 33 billion as against Rs 14 billion during FY23, thereby witnessing a growth of 131%.

KAYNES TECHNOLOGY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,584	24,856	159.3
Current Liabilities	Rs m	4,418	8,038	81.9
Long-term Debt	Rs m	150	112	-25.8
Total Liabilities	Rs m	14,453	33,327	130.6
Current assets	Rs m	12,574	26,543	111.1
Fixed Assets	Rs m	1,880	6,785	261.0
Total Assets	Rs m	14,453	33,327	130.6

KAYNES TECHNOLOGY Cash Flow Statement Analysis

• KAYNES TECHNOLOGY's cash flow from operating activities (CFO) during FY24 stood at Rs 701 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -15 billion, an improvement of 204.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 14 billion, an improvement of 158% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -65 million from the Rs 191 million net cash flows seen during FY23.

KAYNES TECHNOLOGY 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	-416	701	-
Cash Flow from Investing Activities	Rs m	-4,937	-15,052	-
Cash Flow from Financing Activities	Rs m	5,543	14,286	157.7%
Net Cash Flow	Rs m	191	-65	-

Current Valuations for KAYNES TECHNOLOGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.7, an improvement from the EPS of Rs 16.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,193.4, stands at 158.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.4 times, while the price to sales ratio stands at 18.4 times.
• The company's price to cash flow (P/CF) ratio stood at 64.1 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	193.7	282.3
TTM Earnings per share	Rs	16.4	28.7
Diluted earnings per share	Rs	14.9	28.7
Price to Cash Flow	x	54.0	64.1
TTM P/E ratio	x	64.7	158.4
Price / Book Value ratio	x	5.3	5.4
Market Cap	Rs m	50,469	133,578
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KAYNES TECHNOLOGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.3x during FY24, from 2.8x 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 5.1x 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 declined and down at 7.4% during FY24, from 9.9% 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 declined and down at 11.5% during FY24, from 16.7% 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 7.2% during FY24, from 9.1% 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	2.8	3.3
Debtors’ Days	Days	74	72
Interest coverage	x	4.5	5.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.1	7.2
Return on equity	%	9.9	7.4
Return on capital employed	%	16.7	11.5

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

KAYNES TECHNOLOGY Share Price Performance

Over the last one year, KAYNES TECHNOLOGY share price has moved up from Rs 1,760.2 to Rs 5,193.4, registering a gain of Rs 3,433.2 or around 195.0%.

Overall, the S&P BSE SENSEX is up 23.8% over the year.

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