KELTECH EN. 2023-24 Annual Report Analysis

Fri, 16 Aug

KELTECH EN. 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.

KELTECH EN. Income Statement Analysis

• Operating income during the year fell 20.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.2% in FY24 as against 4.6% in FY23.
• Depreciation charges increased by 11.7% and finance costs decreased by 16.5% YoY, respectively.
• Other income grew by 101.3% YoY.
• Net profit for the year grew by 62.8% YoY.
• Net profit margins during the year grew from 2.1% in FY23 to 4.3% in FY24.

KELTECH EN. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,628	4,493	-20.2%
Other income	Rs m	25	49	101.3%
Total Revenues	Rs m	5,653	4,543	-19.6%
Gross profit	Rs m	257	324	26.1%
Depreciation	Rs m	61	68	11.7%
Interest	Rs m	54	45	-16.5%
Profit before tax	Rs m	167	260	56.1%
Tax	Rs m	48	66	39.4%
Profit after tax	Rs m	119	194	62.8%
Gross profit margin	%	4.6	7.2
Effective tax rate	%	28.5	25.5
Net profit margin	%	2.1	4.3

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KELTECH EN. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 4.1%.
• Long-term debt down at Rs 49 million as compared to Rs 95 million during FY23, a fall of 48.3%.
• Current assets rose 11% and stood at Rs 1 billion, while fixed assets rose 4% and stood at Rs 777 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 8%.

KELTECH EN. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	812	996	22.6
Current Liabilities	Rs m	1,054	1,098	4.1
Long-term Debt	Rs m	95	49	-48.3
Total Liabilities	Rs m	2,053	2,227	8.4
Current assets	Rs m	1,306	1,450	11.0
Fixed Assets	Rs m	747	777	4.0
Total Assets	Rs m	2,053	2,227	8.4

KELTECH EN. Cash Flow Statement Analysis

• KELTECH EN.'s cash flow from operating activities (CFO) during FY24 stood at Rs 512 million, an improvement of 179.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -168 million, an improvement of 104.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -113 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 231 million from the Rs 57 million net cash flows seen during FY23.

KELTECH EN. 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	183	512	179.8%
Cash Flow from Investing Activities	Rs m	-82	-168	-
Cash Flow from Financing Activities	Rs m	-44	-113	-
Net Cash Flow	Rs m	57	231	304.4%

Current Valuations for KELTECH EN.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 194.1, an improvement from the EPS of Rs 119.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,129.0, stands at 19.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 8.0 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	5,628.5	4,493.4
TTM Earnings per share	Rs	119.2	194.1
Diluted earnings per share	Rs	119.2	194.1
Price to Cash Flow	x	4.8	8.0
TTM P/E ratio	x	7.2	19.4
Price / Book Value ratio	x	0.9	2.1
Market Cap	Rs m	768	2,096
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for KELTECH EN.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.2x 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 6.8x during FY24, from 4.1x 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 19.5% during FY24, from 14.7% 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 29.2% during FY24, from 24.3% 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 10.7% during FY24, from 8.4% 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	1.2	1.3
Debtors’ Days	Days	401	391
Interest coverage	x	4.1	6.8
Debt to equity ratio	x	0.1	0.0
Return on assets	%	8.4	10.7
Return on equity	%	14.7	19.5
Return on capital employed	%	24.3	29.2

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

KELTECH EN. Share Price Performance

Over the last one year, KELTECH EN. share price has moved up from Rs 1,624.2 to Rs 4,129.0, registering a gain of Rs 2,504.8 or around 154.2%.

Overall, the S&P BSE SENSEX is up 21.9% over the year.

(To know more, check out historical annual results for KELTECH EN. and quarterly results for KELTECH EN.)