KIRLOSKAR PNEUMATIC 2023-24 Annual Report Analysis

Tue, 2 Jul

KIRLOSKAR PNEUMATIC 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.

KIRLOSKAR PNEUMATIC Income Statement Analysis

• Operating income during the year rose 6.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.8% in FY24 as against 13.5% in FY23.
• Depreciation charges increased by 5.8% and finance costs increased by 9.7% YoY, respectively.
• Other income grew by 73.6% YoY.
• Net profit for the year grew by 22.8% YoY.
• Net profit margins during the year grew from 8.8% in FY23 to 10.1% in FY24.

KIRLOSKAR PNEUMATIC Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	12,393	13,226	6.7%
Other income	Rs m	112	194	73.6%
Total Revenues	Rs m	12,505	13,420	7.3%
Gross profit	Rs m	1,676	1,961	17.0%
Depreciation	Rs m	335	355	5.8%
Interest	Rs m	20	22	9.7%
Profit before tax	Rs m	1,433	1,779	24.1%
Tax	Rs m	347	446	28.5%
Profit after tax	Rs m	1,086	1,333	22.8%
Gross profit margin	%	13.5	14.8
Effective tax rate	%	24.2	25.1
Net profit margin	%	8.8	10.1

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KIRLOSKAR PNEUMATIC Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 35.9%.
• Current assets rose 26% and stood at Rs 10 billion, while fixed assets rose 13% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 14 billion as against Rs 12 billion during FY23, thereby witnessing a growth of 22%.

KIRLOSKAR PNEUMATIC Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,920	9,202	16.2
Current Liabilities	Rs m	3,486	4,738	35.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	11,644	14,247	22.4
Current assets	Rs m	7,699	9,692	25.9
Fixed Assets	Rs m	3,945	4,457	13.0
Total Assets	Rs m	11,644	14,247	22.4

KIRLOSKAR PNEUMATIC Cash Flow Statement Analysis

• KIRLOSKAR PNEUMATIC's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 361.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 1,119.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -333 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 137 million from the Rs 2 million net cash flows seen during FY23.

KIRLOSKAR PNEUMATIC 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	398	1,834	361.0%
Cash Flow from Investing Activities	Rs m	-112	-1,364	-
Cash Flow from Financing Activities	Rs m	-284	-333	-
Net Cash Flow	Rs m	2	137	7,515.6%

Current Valuations for KIRLOSKAR PNEUMATIC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.6, an improvement from the EPS of Rs 16.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,345.0, stands at 65.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.5 times, while the price to sales ratio stands at 6.6 times.
• The company's price to cash flow (P/CF) ratio stood at 24.9 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	191.8	204.2
TTM Earnings per share	Rs	16.8	20.6
Diluted earnings per share	Rs	16.8	20.6
Price to Cash Flow	x	25.5	24.9
TTM P/E ratio	x	33.4	65.4
Price / Book Value ratio	x	4.2	4.6
Market Cap	Rs m	33,295	42,100
Dividends per share (Unadj.)	Rs	5.5	6.5

Ratio Analysis for KIRLOSKAR PNEUMATIC

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY24, from 2.2x 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 81.4x during FY24, from 72.0x 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 14.5% during FY24, from 13.7% 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 19.6% during FY24, from 18.3% 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 9.5% during FY24, from 9.5% 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	2.2	2.0
Debtors’ Days	Days	97	103
Interest coverage	x	72.0	81.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.5	9.5
Return on equity	%	13.7	14.5
Return on capital employed	%	18.3	19.6

To see how KIRLOSKAR PNEUMATIC has performed over the last 5 years, please visit here.

KIRLOSKAR PNEUMATIC Share Price Performance

Over the last one year, KIRLOSKAR PNEUMATIC share price has moved up from Rs 646.0 to Rs 1,345.0, registering a gain of Rs 699.1 or around 108.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 73,044.9 (up 0.4%). Over the last one year it has moved up from 40,725.8 to 73,044.9, a gain of 32,319 points (up 79.4%).

Overall, the S&P BSE SENSEX is up 24.3% over the year.

(To know more, check out historical annual results for KIRLOSKAR PNEUMATIC and quarterly results for KIRLOSKAR PNEUMATIC)