KCP SUGAR 2023-24 Annual Report Analysis

Wed, 18 Sep

KCP SUGAR 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 SUGAR Income Statement Analysis

• Operating income during the year rose 19.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.9% in FY24 as against 7.2% in FY23.
• Depreciation charges increased by 8.8% and finance costs decreased by 21.7% YoY, respectively.
• Other income grew by 1.2% YoY.
• Net profit for the year grew by 15.8% YoY.
• Net profit margins during the year declined from 19.8% in FY23 to 19.1% in FY24.

KCP SUGAR Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,893	3,457	19.5%
Other income	Rs m	678	686	1.2%
Total Revenues	Rs m	3,570	4,143	16.0%
Gross profit	Rs m	209	274	31.0%
Depreciation	Rs m	54	59	8.8%
Interest	Rs m	143	112	-21.7%
Profit before tax	Rs m	690	789	14.4%
Tax	Rs m	118	127	7.6%
Profit after tax	Rs m	572	662	15.8%
Gross profit margin	%	7.2	7.9
Effective tax rate	%	17.1	16.1
Net profit margin	%	19.8	19.1

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KCP SUGAR Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -13.0%.
• Long-term debt down at Rs 329 million as compared to Rs 437 million during FY23, a fall of 24.8%.
• Current assets fell 4% and stood at Rs 4 billion, while fixed assets rose 24% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 6%.

KCP SUGAR Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,718	4,387	18.0
Current Liabilities	Rs m	1,960	1,706	-13.0
Long-term Debt	Rs m	437	329	-24.8
Total Liabilities	Rs m	6,279	6,658	6.0
Current assets	Rs m	3,833	3,667	-4.3
Fixed Assets	Rs m	2,402	2,967	23.5
Total Assets	Rs m	6,279	6,658	6.0

KCP SUGAR Cash Flow Statement Analysis

• KCP SUGAR's cash flow from operating activities (CFO) during FY24 stood at Rs 425 million, an improvement of 574.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -71 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -504 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -150 million from the Rs 196 million net cash flows seen during FY23.

KCP SUGAR 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	63	425	574.0%
Cash Flow from Investing Activities	Rs m	337	-71	-
Cash Flow from Financing Activities	Rs m	-204	-504	-
Net Cash Flow	Rs m	196	-150	-

Current Valuations for KCP SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.8, an improvement from the EPS of Rs 5.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 55.5, stands at 7.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 6.1 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	25.5	30.5
TTM Earnings per share	Rs	5.0	5.8
Diluted earnings per share	Rs	5.0	5.8
Price to Cash Flow	x	4.3	6.1
TTM P/E ratio	x	5.9	7.0
Price / Book Value ratio	x	0.8	1.0
Market Cap	Rs m	3,067	4,376
Dividends per share (Unadj.)	Rs	0.2	0.0

Ratio Analysis for KCP SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY24, from 2.0x 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 8.0x during FY24, from 5.8x 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 15.1% during FY24, from 15.4% 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 19.1% during FY24, from 20.0% 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 11.6% during FY24, from 11.4% 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	2.0	2.1
Debtors’ Days	Days	279	308
Interest coverage	x	5.8	8.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	11.4	11.6
Return on equity	%	15.4	15.1
Return on capital employed	%	20.0	19.1

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

KCP SUGAR Share Price Performance

Over the last one year, KCP SUGAR share price has moved up from Rs 35.9 to Rs 55.5, registering a gain of Rs 19.6 or around 54.5%.

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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