KRBL 2023-24 Annual Report Analysis

Tue, 27 Aug

KRBL 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.

KRBL Income Statement Analysis

• Operating income during the year rose 0.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 14.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.9% in FY24 as against 17.5% in FY23.
• Depreciation charges increased by 4.9% and finance costs increased by 63.5% YoY, respectively.
• Other income grew by 4.5% YoY.
• Net profit for the year declined by 15.0% YoY.
• Net profit margins during the year declined from 13.1% in FY23 to 11.1% in FY24.

KRBL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	53,647	53,847	0.4%
Other income	Rs m	928	970	4.5%
Total Revenues	Rs m	54,575	54,817	0.4%
Gross profit	Rs m	9,388	8,023	-14.5%
Depreciation	Rs m	757	794	4.9%
Interest	Rs m	147	241	63.5%
Profit before tax	Rs m	9,412	7,958	-15.4%
Tax	Rs m	2,402	1,999	-16.8%
Profit after tax	Rs m	7,010	5,959	-15.0%
Gross profit margin	%	17.5	14.9
Effective tax rate	%	25.5	25.1
Net profit margin	%	13.1	11.1

Don't Miss: Key Information for Long-term Investors

KRBL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 9 billion as compared to Rs 7 billion in FY23, thereby witnessing an increase of 26.0%.
• Current assets rose 7% and stood at Rs 50 billion, while fixed assets rose 1% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 59 billion as against Rs 56 billion during FY23, thereby witnessing a growth of 6%.

KRBL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	46,926	48,579	3.5
Current Liabilities	Rs m	7,295	9,195	26.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	55,909	59,270	6.0
Current assets	Rs m	46,311	49,615	7.1
Fixed Assets	Rs m	9,598	9,656	0.6
Total Assets	Rs m	55,909	59,270	6.0

KRBL Cash Flow Statement Analysis

• KRBL'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 -874 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -179 million from the Rs -1 billion net cash flows seen during FY23.

KRBL 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	-3,601	2,265	-
Cash Flow from Investing Activities	Rs m	2,064	-874	-
Cash Flow from Financing Activities	Rs m	48	-1,569	-
Net Cash Flow	Rs m	-1,490	-179	-

Current Valuations for KRBL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.0, an decline from the EPS of Rs 29.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 302.9, stands at 14.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 12.7 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	227.9	235.3
TTM Earnings per share	Rs	29.8	26.0
Diluted earnings per share	Rs	30.6	26.0
Price to Cash Flow	x	10.2	12.7
TTM P/E ratio	x	11.3	14.2
Price / Book Value ratio	x	1.6	1.8
Market Cap	Rs m	76,013	85,462
Dividends per share (Unadj.)	Rs	1.0	4.0

Ratio Analysis for KRBL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 5.4x during FY24, from 6.3x 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 34.0x during FY24, from 64.9x 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 declined and down at 12.3% during FY24, from 14.9% 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 16.9% during FY24, from 20.4% 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 10.5% during FY24, from 12.8% 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	6.3	5.4
Debtors’ Days	Days	194	205
Interest coverage	x	64.9	34.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.8	10.5
Return on equity	%	14.9	12.3
Return on capital employed	%	20.4	16.9

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

KRBL Share Price Performance

Over the last one year, KRBL share price has moved down from Rs 398.1 to Rs 302.9, registering a loss of Rs 95.2 or around 23.9%.

Overall, the S&P BSE SENSEX is up 25.0% over the year.

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