KIMS 2023-24 Annual Report Analysis

Thu, 8 Aug

KIMS 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.

KIMS Income Statement Analysis

• Operating income during the year rose 13.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 25.8% in FY24 as against 27.9% in FY23.
• Depreciation charges increased by 13.4% and finance costs increased by 46.4% YoY, respectively.
• Other income declined by 56.8% YoY.
• Net profit for the year declined by 8.1% YoY.
• Net profit margins during the year declined from 16.6% in FY23 to 13.5% in FY24.

KIMS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	21,977	24,981	13.7%
Other income	Rs m	374	162	-56.8%
Total Revenues	Rs m	22,351	25,143	12.5%
Gross profit	Rs m	6,140	6,446	5.0%
Depreciation	Rs m	1,293	1,465	13.4%
Interest	Rs m	373	546	46.4%
Profit before tax	Rs m	4,849	4,596	-5.2%
Tax	Rs m	1,191	1,236	3.8%
Profit after tax	Rs m	3,658	3,360	-8.1%
Gross profit margin	%	27.9	25.8
Effective tax rate	%	24.6	26.9
Net profit margin	%	16.6	13.5

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KIMS 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 52.6%.
• Long-term debt stood at Rs 9 billion as compared to Rs 5 billion during FY23, a growth of 86.5%.
• Current assets rose 15% and stood at Rs 5 billion, while fixed assets rose 35% and stood at Rs 33 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 38 billion as against Rs 29 billion during FY23, thereby witnessing a growth of 32%.

KIMS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	16,695	18,284	9.5
Current Liabilities	Rs m	2,965	4,523	52.6
Long-term Debt	Rs m	4,974	9,276	86.5
Total Liabilities	Rs m	29,011	38,201	31.7
Current assets	Rs m	4,776	5,474	14.6
Fixed Assets	Rs m	24,235	32,727	35.0
Total Assets	Rs m	29,011	38,201	31.7

KIMS Cash Flow Statement Analysis

• KIMS's cash flow from operating activities (CFO) during FY24 stood at Rs 5 billion, an improvement of 20.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -8 billion, an improvement of 37.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 1,004% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -147 million from the Rs 360 million net cash flows seen during FY23.

KIMS 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	4,321	5,211	20.6%
Cash Flow from Investing Activities	Rs m	-5,469	-7,526	-
Cash Flow from Financing Activities	Rs m	196	2,168	1,003.5%
Net Cash Flow	Rs m	360	-147	-

Current Valuations for KIMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 42.0, an decline from the EPS of Rs 45.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,165.7, stands at 50.3 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 6.9 times.
• The company's price to cash flow (P/CF) ratio stood at 31.0 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	274.6	312.2
TTM Earnings per share	Rs	45.7	42.0
Diluted earnings per share	Rs	45.7	42.0
Price to Cash Flow	x	22.7	31.0
TTM P/E ratio	x	30.8	50.3
Price / Book Value ratio	x	6.7	8.2
Market Cap	Rs m	111,435	149,534
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KIMS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.6x 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 9.4x during FY24, from 14.0x 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 declined and down at 18.4% during FY24, from 21.9% 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 18.7% during FY24, from 24.1% 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 10.2% during FY24, from 13.9% 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	1.6	1.2
Debtors’ Days	Days	42	43
Interest coverage	x	14.0	9.4
Debt to equity ratio	x	0.3	0.5
Return on assets	%	13.9	10.2
Return on equity	%	21.9	18.4
Return on capital employed	%	24.1	18.7

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

KIMS Share Price Performance

Over the last one year, KIMS share price has moved up from Rs 1,818.7 to Rs 2,165.7, registering a gain of Rs 347.0 or around 19.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 41,165.2 (up 0.8%). Over the last one year it has moved up from 28,343.8 to 41,165.2, a gain of 12,821 points (up 45.2%).

Overall, the S&P BSE SENSEX is up 19.8% over the year.

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