KEYSTONE REALTORS 2023-24 Annual Report Analysis

Tue, 3 Sep

KEYSTONE REALTORS 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.

KEYSTONE REALTORS Income Statement Analysis

• Operating income during the year rose 224.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.1% in FY24 as against 15.1% in FY23.
• Depreciation charges increased by 57.5% and finance costs increased by 11.5% YoY, respectively.
• Other income grew by 23.8% YoY.
• Net profit for the year grew by 39.7% YoY.
• Net profit margins during the year declined from 11.6% in FY23 to 5.0% in FY24.

KEYSTONE REALTORS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,857	22,223	224.1%
Other income	Rs m	448	554	23.8%
Total Revenues	Rs m	7,304	22,777	211.8%
Gross profit	Rs m	1,036	1,364	31.7%
Depreciation	Rs m	46	73	57.5%
Interest	Rs m	360	401	11.5%
Profit before tax	Rs m	1,077	1,445	34.1%
Tax	Rs m	282	334	18.5%
Profit after tax	Rs m	795	1,110	39.7%
Gross profit margin	%	15.1	6.1
Effective tax rate	%	26.2	23.1
Net profit margin	%	11.6	5.0

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KEYSTONE REALTORS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 33 billion as compared to Rs 25 billion in FY23, thereby witnessing an increase of 31.8%.
• Long-term debt stood at Rs 6 billion as compared to Rs 1 billion during FY23, a growth of 493.2%.
• Current assets rose 35% and stood at Rs 50 billion, while fixed assets rose 19% and stood at Rs 9 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 59 billion as against Rs 45 billion during FY23, thereby witnessing a growth of 32%.

KEYSTONE REALTORS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	16,632	17,809	7.1
Current Liabilities	Rs m	25,297	33,337	31.8
Long-term Debt	Rs m	1,027	6,093	493.2
Total Liabilities	Rs m	44,743	59,225	32.4
Current assets	Rs m	36,945	49,971	35.3
Fixed Assets	Rs m	7,798	9,254	18.7
Total Assets	Rs m	44,743	59,225	32.4

KEYSTONE REALTORS Cash Flow Statement Analysis

• KEYSTONE REALTORS's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -383 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 billion from the Rs 3 billion net cash flows seen during FY23.

KEYSTONE REALTORS 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	3,062	1,834	-40.1%
Cash Flow from Investing Activities	Rs m	267	-2,775	-
Cash Flow from Financing Activities	Rs m	-302	-383	-
Net Cash Flow	Rs m	3,026	-1,324	-

Current Valuations for KEYSTONE REALTORS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.7, an improvement from the EPS of Rs 7.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 716.4, stands at 142.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.1 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 56.1 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	60.2	195.1
TTM Earnings per share	Rs	7.0	9.7
Diluted earnings per share	Rs	6.3	8.8
Price to Cash Flow	x	69.3	56.1
TTM P/E ratio	x	73.4	142.4
Price / Book Value ratio	x	3.5	3.7
Market Cap	Rs m	58,413	66,422
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KEYSTONE REALTORS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY24, from 1.5x 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 4.6x during FY24, from 4.0x 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 6.2% during FY24, from 4.8% 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 7.7% during FY24, from 8.1% 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 2.6% during FY24, from 2.6% 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	1.5	1.5
Debtors’ Days	Days	328	172
Interest coverage	x	4.0	4.6
Debt to equity ratio	x	0.1	0.3
Return on assets	%	2.6	2.6
Return on equity	%	4.8	6.2
Return on capital employed	%	8.1	7.7

To see how KEYSTONE REALTORS has performed over the last 5 years, please visit here.

KEYSTONE REALTORS Share Price Performance

Over the last one year, KEYSTONE REALTORS share price has moved up from Rs 608.5 to Rs 716.4, registering a gain of Rs 107.9 or around 17.7%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,207.3 (down 0.0%). Over the last one year it has moved up from 4,511.3 to 8,207.3, a gain of 3,696 points (up 81.9%).

Overall, the S&P BSE SENSEX is up 26.8% over the year.

(To know more, check out historical annual results for KEYSTONE REALTORS and quarterly results for KEYSTONE REALTORS)