KAJARIA CERAMICS 2023-24 Annual Report Analysis

Wed, 14 Aug

KAJARIA CERAMICS 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.

KAJARIA CERAMICS Income Statement Analysis

• Operating income during the year rose 4.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.3% in FY24 as against 13.3% in FY23.
• Depreciation charges increased by 11.4% and finance costs decreased by 5.4% YoY, respectively.
• Other income grew by 37.5% YoY.
• Net profit for the year grew by 24.8% YoY.
• Net profit margins during the year grew from 7.9% in FY23 to 9.4% in FY24.

KAJARIA CERAMICS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	43,819	45,784	4.5%
Other income	Rs m	336	462	37.5%
Total Revenues	Rs m	44,156	46,247	4.7%
Gross profit	Rs m	5,840	6,985	19.6%
Depreciation	Rs m	1,329	1,480	11.4%
Interest	Rs m	223	211	-5.4%
Profit before tax	Rs m	4,625	5,756	24.5%
Tax	Rs m	1,163	1,435	23.4%
Profit after tax	Rs m	3,462	4,322	24.8%
Gross profit margin	%	13.3	15.3
Effective tax rate	%	25.1	24.9
Net profit margin	%	7.9	9.4

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

KAJARIA CERAMICS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 7 billion as compared to Rs 7 billion in FY23, thereby witnessing an decrease of -6.1%.
• Long-term debt stood at Rs 635 million as compared to Rs 518 million during FY23, a growth of 22.5%.
• Current assets rose 9% and stood at Rs 18 billion, while fixed assets rose 8% and stood at Rs 18 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 35 billion as against Rs 33 billion during FY23, thereby witnessing a growth of 6%.

KAJARIA CERAMICS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	23,179	26,010	12.2
Current Liabilities	Rs m	7,097	6,667	-6.1
Long-term Debt	Rs m	518	635	22.5
Total Liabilities	Rs m	33,279	35,392	6.4
Current assets	Rs m	16,110	17,628	9.4
Fixed Assets	Rs m	16,414	17,764	8.2
Total Assets	Rs m	33,279	35,392	6.4

KAJARIA CERAMICS Cash Flow Statement Analysis

• KAJARIA CERAMICS's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion, an improvement of 103.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 62.0% 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 878 million from the Rs -218 million net cash flows seen during FY23.

KAJARIA CERAMICS 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	2,955	6,017	103.6%
Cash Flow from Investing Activities	Rs m	-1,837	-2,976	-
Cash Flow from Financing Activities	Rs m	-1,348	-2,163	-
Net Cash Flow	Rs m	-218	878	-

Current Valuations for KAJARIA CERAMICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.1, an improvement from the EPS of Rs 21.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,396.8, stands at 53.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.6 times, while the price to sales ratio stands at 4.9 times.
• The company's price to cash flow (P/CF) ratio stood at 35.2 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	275.2	287.5
TTM Earnings per share	Rs	21.7	27.1
Diluted earnings per share	Rs	21.7	27.1
Price to Cash Flow	x	35.0	35.2
TTM P/E ratio	x	48.5	53.1
Price / Book Value ratio	x	7.5	7.9
Market Cap	Rs m	173,400	204,336
Dividends per share (Unadj.)	Rs	9.0	12.0

Ratio Analysis for KAJARIA CERAMICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x during FY24, from 2.3x 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 improved and stood at 28.3x during FY24, from 21.7x 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 16.6% 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 improved and stood at 22.4% during FY24, from 20.5% 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 12.8% during FY24, from 11.1% 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	2.3	2.6
Debtors’ Days	Days	5	5
Interest coverage	x	21.7	28.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.1	12.8
Return on equity	%	14.9	16.6
Return on capital employed	%	20.5	22.4

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

KAJARIA CERAMICS Share Price Performance

Over the last one year, KAJARIA CERAMICS share price has moved down from Rs 1,457.1 to Rs 1,396.8, registering a loss of Rs 60.4 or around 4.1%.

Overall, the S&P BSE SENSEX is up 20.9% over the year.

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