KCP 2023-24 Annual Report Analysis

Wed, 31 Jul

KCP 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.

KCP Income Statement Analysis

• Operating income during the year rose 26.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 101.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.5% in FY24 as against 7.8% in FY23.
• Depreciation charges decreased by 0.6% and finance costs increased by 5.5% YoY, respectively.
• Other income grew by 80.7% YoY.
• Net profit for the year grew by 207.8% YoY.
• Net profit margins during the year grew from 4.0% in FY23 to 9.7% in FY24.

KCP Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	22,537	28,467	26.3%
Other income	Rs m	384	695	80.7%
Total Revenues	Rs m	22,921	29,162	27.2%
Gross profit	Rs m	1,765	3,560	101.7%
Depreciation	Rs m	899	894	-0.6%
Interest	Rs m	409	432	5.5%
Profit before tax	Rs m	841	2,929	248.3%
Tax	Rs m	-57	167	NA
Profit after tax	Rs m	898	2,762	207.8%
Gross profit margin	%	7.8	12.5
Effective tax rate	%	-6.7	5.7
Net profit margin	%	4.0	9.7

Don't Miss: Key Information for Long-term Investors

KCP Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 8 billion as compared to Rs 8 billion in FY23, thereby witnessing an decrease of -8.8%.
• Long-term debt down at Rs 840 million as compared to Rs 1 billion during FY23, a fall of 35.9%.
• Current assets rose 13% and stood at Rs 18 billion, while fixed assets fell 2% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 28 billion as against Rs 27 billion during FY23, thereby witnessing a growth of 6%.

KCP Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	12,246	14,103	15.2
Current Liabilities	Rs m	8,427	7,689	-8.8
Long-term Debt	Rs m	1,310	840	-35.9
Total Liabilities	Rs m	26,682	28,413	6.5
Current assets	Rs m	15,626	17,606	12.7
Fixed Assets	Rs m	11,055	10,807	-2.3
Total Assets	Rs m	26,682	28,413	6.5

KCP Cash Flow Statement Analysis

• KCP's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 711 million, an improvement of 2,206.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 76 million from the Rs -7 million net cash flows seen during FY23.

KCP 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	-721	1,053	-
Cash Flow from Investing Activities	Rs m	31	711	2,206.8%
Cash Flow from Financing Activities	Rs m	683	-1,688	-
Net Cash Flow	Rs m	-7	76	-

Current Valuations for KCP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.4, an improvement from the EPS of Rs 7.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 253.0, stands at 11.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 5.9 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	174.8	220.8
TTM Earnings per share	Rs	7.0	21.4
Diluted earnings per share	Rs	7.0	21.4
Price to Cash Flow	x	7.4	5.9
TTM P/E ratio	x	14.7	11.8
Price / Book Value ratio	x	1.2	1.5
Market Cap	Rs m	14,829	21,475
Dividends per share (Unadj.)	Rs	0.1	1.0

Ratio Analysis for KCP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY24, from 1.9x 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 7.8x during FY24, from 3.1x 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 19.6% during FY24, from 7.3% 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 22.5% during FY24, from 9.2% 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 11.2% during FY24, from 4.9% 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	1.9	2.3
Debtors’ Days	Days	3	2
Interest coverage	x	3.1	7.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	4.9	11.2
Return on equity	%	7.3	19.6
Return on capital employed	%	9.2	22.5

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

KCP Share Price Performance

Over the last one year, KCP share price has moved up from Rs 115.2 to Rs 253.0, registering a gain of Rs 137.8 or around 119.6%.

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

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