KIOCL 2023-24 Annual Report Analysis

Mon, 9 Sep

KIOCL 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.

KIOCL Income Statement Analysis

• Operating income during the year rose 20.1% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 3.9% in FY24 as against 10.6% in FY23.
• Depreciation charges increased by 8.6% and finance costs increased by 5.9% YoY, respectively.
• Other income declined by 37.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 6.3% in FY23 to 4.5% in FY24.

KIOCL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	15,434	18,543	20.1%
Other income	Rs m	804	504	-37.3%
Total Revenues	Rs m	16,238	19,047	17.3%
Gross profit	Rs m	-1,641	-721	NA
Depreciation	Rs m	253	274	8.6%
Interest	Rs m	138	146	5.9%
Profit before tax	Rs m	-1,228	-637	NA
Tax	Rs m	-251	196	NA
Profit after tax	Rs m	-977	-833	NA
Gross profit margin	%	-10.6	-3.9
Effective tax rate	%	20.4	-30.8
Net profit margin	%	-6.3	-4.5

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KIOCL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 10 billion in FY23, thereby witnessing an decrease of -69.2%.
• Long-term debt down at Rs 308 million as compared to Rs 308 million during FY23, a fall of 0.0%.
• Current assets fell 39% and stood at Rs 13 billion, while fixed assets rose 8% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 24 billion as against Rs 32 billion during FY23, thereby witnessing a fall of 24%.

KIOCL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	20,020	19,185	-4.2
Current Liabilities	Rs m	10,100	3,116	-69.2
Long-term Debt	Rs m	308	308	0.0
Total Liabilities	Rs m	32,076	24,398	-23.9
Current assets	Rs m	21,808	13,345	-38.8
Fixed Assets	Rs m	10,268	11,053	7.6
Total Assets	Rs m	32,076	24,398	-23.9

KIOCL Cash Flow Statement Analysis

• KIOCL's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -4 billion from the Rs 2 billion net cash flows seen during FY23.

KIOCL 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	-3,094	1,047	-
Cash Flow from Investing Activities	Rs m	1,292	-1,274	-
Cash Flow from Financing Activities	Rs m	3,370	-3,724	-
Net Cash Flow	Rs m	1,569	-3,951	-

Current Valuations for KIOCL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.4, an improvement from the EPS of Rs -1.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 393.0, stands at -314.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.4 times, while the price to sales ratio stands at 12.9 times.
• The company's price to cash flow (P/CF) ratio stood at -406.0 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	25.4	30.5
TTM Earnings per share	Rs	-1.6	-1.4
Diluted earnings per share	Rs	-1.6	-1.4
Price to Cash Flow	x	-141.5	-406.0
TTM P/E ratio	x	-104.9	-314.3
Price / Book Value ratio	x	6.3	11.8
Market Cap	Rs m	125,364	226,873
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KIOCL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.3x 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 -3.4x during FY24, from -7.9x 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 improved and stood at -4.3% during FY24, from -4.9% 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 improved and stood at -2.5% during FY24, from -5.4% 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 -2.8% 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	2.2	4.3
Debtors’ Days	Days	838	14
Interest coverage	x	-7.9	-3.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-2.6	-2.8
Return on equity	%	-4.9	-4.3
Return on capital employed	%	-5.4	-2.5

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

KIOCL Share Price Performance

Over the last one year, KIOCL share price has moved up from Rs 267.4 to Rs 393.0, registering a gain of Rs 125.6 or around 47.0%.

Overall, the S&P BSE SENSEX is up 24.0% over the year.

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