KEI INDUSTRIES 2023-24 Annual Report Analysis

Wed, 21 Aug

KEI 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.

KEI INDUSTRIES Income Statement Analysis

• Operating income during the year rose 17.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.3% in FY24 as against 10.2% in FY23.
• Depreciation charges increased by 7.5% and finance costs increased by 26.5% YoY, respectively.
• Other income grew by 54.2% YoY.
• Net profit for the year grew by 21.7% YoY.
• Net profit margins during the year grew from 6.9% in FY23 to 7.2% in FY24.

KEI INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	69,082	81,041	17.3%
Other income	Rs m	318	490	54.2%
Total Revenues	Rs m	69,400	81,531	17.5%
Gross profit	Rs m	7,020	8,373	19.3%
Depreciation	Rs m	571	614	7.5%
Interest	Rs m	347	439	26.5%
Profit before tax	Rs m	6,420	7,811	21.7%
Tax	Rs m	1,647	2,002	21.6%
Profit after tax	Rs m	4,773	5,808	21.7%
Gross profit margin	%	10.2	10.3
Effective tax rate	%	25.6	25.6
Net profit margin	%	6.9	7.2

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KEI INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 14 billion as compared to Rs 11 billion in FY23, thereby witnessing an increase of 28.1%.
• Current assets rose 17% and stood at Rs 37 billion, while fixed assets rose 58% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 47 billion as against Rs 38 billion during FY23, thereby witnessing a growth of 24%.

KEI INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	25,823	31,374	21.5
Current Liabilities	Rs m	11,176	14,313	28.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	37,702	46,565	23.5
Current assets	Rs m	31,613	36,974	17.0
Fixed Assets	Rs m	6,088	9,590	57.5
Total Assets	Rs m	37,702	46,565	23.5

KEI INDUSTRIES Cash Flow Statement Analysis

• KEI INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion, an improvement of 18.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 157.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -718 million, an improvement of 72% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs 1 billion net cash flows seen during FY23.

KEI 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	5,139	6,105	18.8%
Cash Flow from Investing Activities	Rs m	-1,371	-3,526	-
Cash Flow from Financing Activities	Rs m	-2,559	-718	-
Net Cash Flow	Rs m	1,209	1,862	54.0%

Current Valuations for KEI INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 64.4, an improvement from the EPS of Rs 52.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,667.5, stands at 69.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.4 times, while the price to sales ratio stands at 5.2 times.
• The company's price to cash flow (P/CF) ratio stood at 37.1 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	765.5	898.1
TTM Earnings per share	Rs	52.9	64.4
Diluted earnings per share	Rs	52.9	64.4
Price to Cash Flow	x	28.7	37.1
TTM P/E ratio	x	32.1	69.1
Price / Book Value ratio	x	4.9	7.6
Market Cap	Rs m	125,627	238,003
Dividends per share (Unadj.)	Rs	3.0	3.5

Ratio Analysis for KEI INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY24, from 2.8x 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 18.8x during FY24, from 19.5x 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 18.5% during FY24, from 18.5% 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 26.3% during FY24, from 26.2% 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 declined and down at 13.4% during FY24, from 13.6% 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	2.8	2.6
Debtors’ Days	Days	73	68
Interest coverage	x	19.5	18.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.6	13.4
Return on equity	%	18.5	18.5
Return on capital employed	%	26.2	26.3

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

KEI INDUSTRIES Share Price Performance

Over the last one year, KEI INDUSTRIES share price has moved up from Rs 2,521.9 to Rs 4,667.5, registering a gain of Rs 2,145.6 or around 85.1%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 8,332.7 (down 0.2%). Over the last one year it has moved up from 4,355.4 to 8,332.7, a gain of 3,977 points (up 91.3%).

Overall, the S&P BSE SENSEX is up 23.7% over the year.

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