KIRI INDUSTRIES 2023-24 Annual Report Analysis

Mon, 14 Oct

KIRI INDUSTRIES 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.

KIRI INDUSTRIES Income Statement Analysis

• Operating income during the year rose 0.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.0% in FY24 as against 18.4% in FY23.
• Depreciation charges decreased by 0.5% and finance costs increased by 261.7% YoY, respectively.
• Other income grew by 159.9% YoY.
• Net profit for the year grew by 24.7% YoY.
• Net profit margins during the year grew from 11.3% in FY23 to 14.0% in FY24.

KIRI INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,451	9,492	0.4%
Other income	Rs m	33	87	159.9%
Total Revenues	Rs m	9,484	9,579	1.0%
Gross profit	Rs m	1,741	2,088	19.9%
Depreciation	Rs m	489	486	-0.5%
Interest	Rs m	63	228	261.7%
Profit before tax	Rs m	1,223	1,460	19.4%
Tax	Rs m	156	130	-17.1%
Profit after tax	Rs m	1,066	1,330	24.7%
Gross profit margin	%	18.4	22.0
Effective tax rate	%	12.8	8.9
Net profit margin	%	11.3	14.0

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KIRI INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 19.5%.
• Long-term debt down at Rs 237 million as compared to Rs 412 million during FY23, a fall of 42.4%.
• Current assets rose 4% and stood at Rs 6 billion, while fixed assets rose 7% and stood at Rs 28 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 34 billion as against Rs 32 billion during FY23, thereby witnessing a growth of 6%.

KIRI INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	26,793	28,117	4.9
Current Liabilities	Rs m	4,748	5,673	19.5
Long-term Debt	Rs m	412	237	-42.4
Total Liabilities	Rs m	31,896	33,924	6.4
Current assets	Rs m	5,365	5,587	4.1
Fixed Assets	Rs m	26,518	28,307	6.7
Total Assets	Rs m	31,896	33,924	6.4

KIRI INDUSTRIES Cash Flow Statement Analysis

• KIRI INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs -606 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 1 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 497 million, an improvement of 188% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -108 million from the Rs 142 million net cash flows seen during FY23.

KIRI INDUSTRIES 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	887	-606	-
Cash Flow from Investing Activities	Rs m	-179	1	-
Cash Flow from Financing Activities	Rs m	-565	497	-
Net Cash Flow	Rs m	142	-108	-

Current Valuations for KIRI INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.7, an improvement from the EPS of Rs 20.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 355.0, stands at -24.5 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 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 10.2 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	182.3	183.1
TTM Earnings per share	Rs	20.6	25.7
Diluted earnings per share	Rs	20.6	25.7
Price to Cash Flow	x	9.5	10.2
TTM P/E ratio	x	-14.0	-24.5
Price / Book Value ratio	x	0.8	0.7
Market Cap	Rs m	21,304	18,557
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KIRI INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.1x 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 7.4x during FY24, from 20.4x 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 4.7% during FY24, from 4.0% 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 6.0% during FY24, from 4.7% 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 improved and stood at 4.6% during FY24, from 3.5% 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	1.1	1.0
Debtors’ Days	Days	809	878
Interest coverage	x	20.4	7.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.5	4.6
Return on equity	%	4.0	4.7
Return on capital employed	%	4.7	6.0

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

KIRI INDUSTRIES Share Price Performance

Over the last one year, KIRI INDUSTRIES share price has moved up from Rs 272.3 to Rs 355.0, registering a gain of Rs 82.7 or around 30.4%.

Overall, the S&P BSE SENSEX is up 24.1% over the year.

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