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KPIT TECHNOLOGIES 2023-24 Annual Report Analysis

Thu, 1 Aug

KPIT TECHNOLOGIES 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.

KPIT TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 44.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 56.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.3% in FY24 as against 18.9% in FY23.
• Depreciation charges increased by 33.8% and finance costs increased by 69.7% YoY, respectively.
• Other income grew by 49.9% YoY.
• Net profit for the year grew by 54.7% YoY.
• Net profit margins during the year grew from 11.5% in FY23 to 12.3% in FY24.

KPIT TECHNOLOGIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	33,650	48,715	44.8%
Other income	Rs m	402	603	49.9%
Total Revenues	Rs m	34,052	49,318	44.8%
Gross profit	Rs m	6,353	9,908	56.0%
Depreciation	Rs m	1,464	1,958	33.8%
Interest	Rs m	323	548	69.7%
Profit before tax	Rs m	4,968	8,004	61.1%
Tax	Rs m	1,099	2,019	83.7%
Profit after tax	Rs m	3,869	5,985	54.7%
Gross profit margin	%	18.9	20.3
Effective tax rate	%	22.1	25.2
Net profit margin	%	11.5	12.3

For Investors: Our Big Prediction

KPIT TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 15 billion as compared to Rs 12 billion in FY23, thereby witnessing an increase of 29.5%.
• Long-term debt down at Rs 1 million as compared to Rs 2 million during FY23, a fall of 73.9%.
• Current assets rose 34% and stood at Rs 20 billion, while fixed assets rose 13% and stood at Rs 21 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 41 billion as against Rs 33 billion during FY23, thereby witnessing a growth of 23%.

KPIT TECHNOLOGIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	16,244	21,156	30.2
Current Liabilities	Rs m	11,681	15,126	29.5
Long-term Debt	Rs m	2	1	-73.9
Total Liabilities	Rs m	33,307	40,891	22.8
Current assets	Rs m	15,016	20,164	34.3
Fixed Assets	Rs m	18,291	20,727	13.3
Total Assets	Rs m	33,307	40,891	22.8

KPIT TECHNOLOGIES Cash Flow Statement Analysis

• KPIT TECHNOLOGIES's cash flow from operating activities (CFO) during FY24 stood at Rs 10 billion, an improvement of 116.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -6 billion, an improvement of 178.6% 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 2 billion from the Rs 1 billion net cash flows seen during FY23.

KPIT TECHNOLOGIES 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	4,624	10,018	116.6%
Cash Flow from Investing Activities	Rs m	-2,023	-5,637	-
Cash Flow from Financing Activities	Rs m	-1,831	-2,400	-
Net Cash Flow	Rs m	1,122	2,008	79.1%

Current Valuations for KPIT TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.1, an improvement from the EPS of Rs 14.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,854.6, stands at 75.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 24.0 times, while the price to sales ratio stands at 10.3 times.
• The company's price to cash flow (P/CF) ratio stood at 42.8 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	124.5	179.6
TTM Earnings per share	Rs	14.3	22.1
Diluted earnings per share	Rs	14.1	21.8
Price to Cash Flow	x	47.6	42.8
TTM P/E ratio	x	66.0	75.9
Price / Book Value ratio	x	11.5	16.1
Market Cap	Rs m	187,418	339,665
Dividends per share (Unadj.)	Rs	4.1	6.7

Ratio Analysis for KPIT TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.3x 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 15.6x during FY24, from 16.4x 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 improved and stood at 28.3% during FY24, from 23.8% 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 improved and stood at 40.4% during FY24, from 32.6% 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 16.0% during FY24, from 12.6% 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	1.3	1.3
Debtors’ Days	Days	84	72
Interest coverage	x	16.4	15.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.6	16.0
Return on equity	%	23.8	28.3
Return on capital employed	%	32.6	40.4

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

KPIT TECHNOLOGIES Share Price Performance

Over the last one year, KPIT TECHNOLOGIES share price has moved up from Rs 1,092.6 to Rs 1,854.6, registering a gain of Rs 762.0 or around 69.7%.

Meanwhile, the S&P BSE IT Index is trading at Rs 41,635.0 (down 0.2%). Over the last one year it has moved up from 30,586.1 to 41,635.0, a gain of 11,049 points (up 36.1%).

Overall, the S&P BSE SENSEX is up 23.1% over the year.

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