KEC INTERNATIONAL 2023-24 Annual Report Analysis

Fri, 2 Aug

KEC INTERNATIONAL 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.

KEC INTERNATIONAL Income Statement Analysis

• Operating income during the year rose 15.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 46.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.7% in FY24 as against 5.3% in FY23.
• Depreciation charges increased by 14.8% and finance costs increased by 21.5% YoY, respectively.
• Other income grew by 13.3% YoY.
• Net profit for the year grew by 97.0% YoY.
• Net profit margins during the year grew from 1.0% in FY23 to 1.7% in FY24.

KEC INTERNATIONAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	172,817	199,142	15.2%
Other income	Rs m	702	795	13.3%
Total Revenues	Rs m	173,519	199,937	15.2%
Gross profit	Rs m	9,080	13,288	46.4%
Depreciation	Rs m	1,615	1,854	14.8%
Interest	Rs m	6,558	7,965	21.5%
Profit before tax	Rs m	1,610	4,265	164.9%
Tax	Rs m	-151	797	NA
Profit after tax	Rs m	1,760	3,468	97.0%
Gross profit margin	%	5.3	6.7
Effective tax rate	%	-9.3	18.7
Net profit margin	%	1.0	1.7

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KEC INTERNATIONAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 145 billion as compared to Rs 128 billion in FY23, thereby witnessing an increase of 13.2%.
• Long-term debt down at Rs 3 billion as compared to Rs 5 billion during FY23, a fall of 48.7%.
• Current assets rose 12% and stood at Rs 162 billion, while fixed assets rose 0% and stood at Rs 25 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 187 billion as against Rs 170 billion during FY23, thereby witnessing a growth of 10%.

KEC INTERNATIONAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	37,714	40,957	8.6
Current Liabilities	Rs m	128,191	145,098	13.2
Long-term Debt	Rs m	4,932	2,529	-48.7
Total Liabilities	Rs m	169,513	186,778	10.2
Current assets	Rs m	144,356	161,579	11.9
Fixed Assets	Rs m	25,157	25,200	0.2
Total Assets	Rs m	169,513	186,778	10.2

KEC INTERNATIONAL Cash Flow Statement Analysis

• KEC INTERNATIONAL's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 56.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion, an improvement of 64% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -761 million from the Rs 735 million net cash flows seen during FY23.

KEC INTERNATIONAL 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	6,137	3,111	-49.3%
Cash Flow from Investing Activities	Rs m	-1,422	-2,231	-
Cash Flow from Financing Activities	Rs m	-4,008	-1,447	-
Net Cash Flow	Rs m	735	-761	-

Current Valuations for KEC INTERNATIONAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.5, an improvement from the EPS of Rs 6.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 907.1, stands at 59.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.7 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 29.4 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	672.2	774.6
TTM Earnings per share	Rs	6.8	13.5
Diluted earnings per share	Rs	6.8	13.5
Price to Cash Flow	x	34.7	29.4
TTM P/E ratio	x	66.6	59.5
Price / Book Value ratio	x	3.0	3.8
Market Cap	Rs m	111,859	156,188
Dividends per share (Unadj.)	Rs	3.0	4.0

Ratio Analysis for KEC INTERNATIONAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x 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 improved and stood at 1.5x during FY24, from 1.2x 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 8.5% during FY24, from 4.7% 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 28.1% during FY24, from 19.2% 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 6.1% 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	1.1	1.1
Debtors’ Days	Days	9	8
Interest coverage	x	1.2	1.5
Debt to equity ratio	x	0.1	0.1
Return on assets	%	4.9	6.1
Return on equity	%	4.7	8.5
Return on capital employed	%	19.2	28.1

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

KEC INTERNATIONAL Share Price Performance

Over the last one year, KEC INTERNATIONAL share price has moved down from Rs 634.0 to Rs 0.0, registering a loss of Rs 634.0 or around 100.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 74,036.6 (down 1.0%). Over the last one year it has moved up from 43,066.5 to 74,036.6, a gain of 30,970 points (up 71.9%).

Overall, the NIFTY 50 is down 0.9% over the year.

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