KIRLOSKAR ELECTRIC 2023-24 Annual Report Analysis

Tue, 27 Aug

KIRLOSKAR ELECTRIC 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 ELECTRIC Income Statement Analysis

• Operating income during the year rose 17.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 0.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.4% in FY24 as against 6.4% in FY23.
• Depreciation charges increased by 0.3% and finance costs increased by 14.1% YoY, respectively.
• Other income declined by 48.2% YoY.
• Net profit for the year declined by 54.7% YoY.
• Net profit margins during the year declined from 6.6% in FY23 to 2.5% in FY24.

KIRLOSKAR ELECTRIC Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,735	5,574	17.7%
Other income	Rs m	284	147	-48.2%
Total Revenues	Rs m	5,019	5,721	14.0%
Gross profit	Rs m	302	300	-0.5%
Depreciation	Rs m	50	50	0.3%
Interest	Rs m	225	257	14.1%
Profit before tax	Rs m	311	141	-54.7%
Tax	Rs m	0	0	-100.0%
Profit after tax	Rs m	311	141	-54.7%
Gross profit margin	%	6.4	5.4
Effective tax rate	%	0.0	0.0
Net profit margin	%	6.6	2.5

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KIRLOSKAR ELECTRIC Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 3.1%.
• Current assets rose 23% and stood at Rs 2 billion, while fixed assets fell 1% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 5%.

KIRLOSKAR ELECTRIC Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	918	823	-10.3
Current Liabilities	Rs m	4,326	4,458	3.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,125	6,401	4.5
Current assets	Rs m	1,432	1,760	22.9
Fixed Assets	Rs m	4,692	4,641	-1.1
Total Assets	Rs m	6,125	6,401	4.5

KIRLOSKAR ELECTRIC Cash Flow Statement Analysis

• KIRLOSKAR ELECTRIC's cash flow from operating activities (CFO) during FY24 stood at Rs 366 million, an improvement of 401.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -21 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -306 million, an improvement of 8% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 38 million from the Rs -239 million net cash flows seen during FY23.

KIRLOSKAR ELECTRIC 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	73	366	401.2%
Cash Flow from Investing Activities	Rs m	21	-21	-
Cash Flow from Financing Activities	Rs m	-333	-306	-
Net Cash Flow	Rs m	-239	38	-

Current Valuations for KIRLOSKAR ELECTRIC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.1, an decline from the EPS of Rs 4.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 208.0, stands at 97.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 16.8 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 40.2 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	71.3	83.9
TTM Earnings per share	Rs	4.7	2.1
Diluted earnings per share	Rs	4.7	2.1
Price to Cash Flow	x	12.5	40.2
TTM P/E ratio	x	14.6	97.4
Price / Book Value ratio	x	4.0	9.3
Market Cap	Rs m	3,688	7,675
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KIRLOSKAR ELECTRIC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.4x during FY24, from 0.3x 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 1.5x during FY24, from 2.4x 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 17.1% during FY24, from 33.8% 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 48.2% during FY24, from 58.3% 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 declined and down at 6.2% during FY24, from 8.7% 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	0.3	0.4
Debtors’ Days	Days	419	565
Interest coverage	x	2.4	1.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.7	6.2
Return on equity	%	33.8	17.1
Return on capital employed	%	58.3	48.2

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

KIRLOSKAR ELECTRIC Share Price Performance

Over the last one year, KIRLOSKAR ELECTRIC share price has moved up from Rs 113.7 to Rs 208.0, registering a gain of Rs 94.4 or around 83.0%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 63,443.3 (down 0.9%). Over the last one year it has moved up from 43,624.1 to 63,443.3, a gain of 19,819 points (up 45.4%).

Overall, the S&P BSE SENSEX is up 24.9% over the year.

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