KEWAL KIRAN CLOTHING 2023-24 Annual Report Analysis

Thu, 26 Sep

KEWAL KIRAN CLOTHING 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.

KEWAL KIRAN CLOTHING Income Statement Analysis

• Operating income during the year rose 10.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.0% in FY24 as against 19.5% in FY23.
• Depreciation charges increased by 18.8% and finance costs decreased by 31.7% YoY, respectively.
• Other income grew by 109.1% YoY.
• Net profit for the year grew by 29.5% YoY.
• Net profit margins during the year grew from 15.3% in FY23 to 17.9% in FY24.

KEWAL KIRAN CLOTHING Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,795	8,605	10.4%
Other income	Rs m	202	423	109.1%
Total Revenues	Rs m	7,997	9,028	12.9%
Gross profit	Rs m	1,518	1,717	13.1%
Depreciation	Rs m	87	104	18.8%
Interest	Rs m	64	44	-31.7%
Profit before tax	Rs m	1,569	1,992	27.0%
Tax	Rs m	379	452	19.3%
Profit after tax	Rs m	1,190	1,541	29.5%
Gross profit margin	%	19.5	20.0
Effective tax rate	%	24.1	22.7
Net profit margin	%	15.3	17.9

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

KEWAL KIRAN CLOTHING Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -44.4%.
• Current assets rose 4% and stood at Rs 7 billion, while fixed assets fell 4% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 3%.

KEWAL KIRAN CLOTHING Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,470	6,757	23.5
Current Liabilities	Rs m	2,569	1,429	-44.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	8,165	8,372	2.5
Current assets	Rs m	6,577	6,840	4.0
Fixed Assets	Rs m	1,588	1,532	-3.6
Total Assets	Rs m	8,165	8,372	2.5

KEWAL KIRAN CLOTHING Cash Flow Statement Analysis

• KEWAL KIRAN CLOTHING's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 80.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -100 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -664 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 595 million from the Rs 48 million net cash flows seen during FY23.

KEWAL KIRAN CLOTHING 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	751	1,359	80.9%
Cash Flow from Investing Activities	Rs m	-179	-100	-
Cash Flow from Financing Activities	Rs m	-524	-664	-
Net Cash Flow	Rs m	48	595	1,140.1%

Current Valuations for KEWAL KIRAN CLOTHING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.0, an improvement from the EPS of Rs 19.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 674.4, stands at 28.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.2 times, while the price to sales ratio stands at 4.8 times.
• The company's price to cash flow (P/CF) ratio stood at 23.1 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	126.5	139.6
TTM Earnings per share	Rs	19.3	25.0
Diluted earnings per share	Rs	19.3	25.0
Price to Cash Flow	x	20.2	23.1
TTM P/E ratio	x	21.6	28.5
Price / Book Value ratio	x	4.3	5.6
Market Cap	Rs m	23,752	37,926
Dividends per share (Unadj.)	Rs	5.0	2.0

Ratio Analysis for KEWAL KIRAN CLOTHING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.8x during FY24, from 2.6x 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 improved and stood at 46.7x during FY24, from 25.6x 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 22.8% during FY24, from 21.8% 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 30.1% during FY24, from 29.8% 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 18.9% during FY24, from 15.4% 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	2.6	4.8
Debtors’ Days	Days	796	860
Interest coverage	x	25.6	46.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.4	18.9
Return on equity	%	21.8	22.8
Return on capital employed	%	29.8	30.1

To see how KEWAL KIRAN CLOTHING has performed over the last 5 years, please visit here.

KEWAL KIRAN CLOTHING Share Price Performance

Over the last one year, KEWAL KIRAN CLOTHING share price has moved down from Rs 707.7 to Rs 674.4, registering a loss of Rs 33.3 or around 4.7%.

Overall, the S&P BSE SENSEX is up 29.3% over the year.

(To know more, check out historical annual results for KEWAL KIRAN CLOTHING and quarterly results for KEWAL KIRAN CLOTHING)