KPT INDUSTRIES 2023-24 Annual Report Analysis

Tue, 13 Aug

KPT INDUSTRIES 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.

KPT INDUSTRIES Income Statement Analysis

• Operating income during the year rose 1.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.1% in FY24 as against 12.5% in FY23.
• Depreciation charges increased by 7.0% and finance costs decreased by 8.7% YoY, respectively.
• Other income declined by 7.8% YoY.
• Net profit for the year grew by 43.2% YoY.
• Net profit margins during the year grew from 5.6% in FY23 to 8.0% in FY24.

KPT INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,498	1,516	1.2%
Other income	Rs m	7	6	-7.8%
Total Revenues	Rs m	1,504	1,523	1.2%
Gross profit	Rs m	187	229	22.7%
Depreciation	Rs m	30	32	7.0%
Interest	Rs m	43	40	-8.7%
Profit before tax	Rs m	120	163	36.2%
Tax	Rs m	36	43	19.7%
Profit after tax	Rs m	84	121	43.2%
Gross profit margin	%	12.5	15.1
Effective tax rate	%	29.8	26.2
Net profit margin	%	5.6	8.0

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KPT INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 556 million as compared to Rs 425 million in FY23, thereby witnessing an increase of 30.9%.
• Long-term debt down at Rs 69 million as compared to Rs 72 million during FY23, a fall of 3.9%.
• Current assets rose 29% and stood at Rs 894 million, while fixed assets rose 17% and stood at Rs 310 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1 billion as against Rs 958 million during FY23, thereby witnessing a growth of 26%.

KPT INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	439	554	26.2
Current Liabilities	Rs m	425	556	30.9
Long-term Debt	Rs m	72	69	-3.9
Total Liabilities	Rs m	958	1,205	25.8
Current assets	Rs m	692	894	29.3
Fixed Assets	Rs m	266	310	16.7
Total Assets	Rs m	958	1,205	25.8

KPT INDUSTRIES Cash Flow Statement Analysis

• KPT INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 46 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -62 million, an improvement of 4.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 20 million, an improvement of 123% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 4 million from the Rs -8 million net cash flows seen during FY23.

KPT INDUSTRIES 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	135	46	-65.9%
Cash Flow from Investing Activities	Rs m	-59	-62	-
Cash Flow from Financing Activities	Rs m	-84	20	-
Net Cash Flow	Rs m	-8	4	-

Current Valuations for KPT INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.5, an improvement from the EPS of Rs 24.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,145.0, stands at 28.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.0 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 10.5 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	440.5	446.0
TTM Earnings per share	Rs	24.8	35.5
Diluted earnings per share	Rs	24.8	35.5
Price to Cash Flow	x	8.7	10.5
TTM P/E ratio	x	11.9	28.8
Price / Book Value ratio	x	1.8	2.9
Market Cap	Rs m	775	1,610
Dividends per share (Unadj.)	Rs	1.5	2.5

Ratio Analysis for KPT INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY24, from 1.6x 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 5.1x during FY24, from 3.8x 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 21.8% during FY24, from 19.2% 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 32.6% during FY24, from 32.0% 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 13.3% during FY24, from 13.3% 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	1.6	1.6
Debtors’ Days	Days	715	784
Interest coverage	x	3.8	5.1
Debt to equity ratio	x	0.2	0.1
Return on assets	%	13.3	13.3
Return on equity	%	19.2	21.8
Return on capital employed	%	32.0	32.6

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

KPT INDUSTRIES Share Price Performance

Over the last one year, KPT INDUSTRIES share price has moved up from Rs 396.1 to Rs 1,145.0, registering a gain of Rs 748.9 or around 189.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 71,941.8 (down 0.9%). Over the last one year it has moved up from 43,417.3 to 71,941.8, a gain of 28,525 points (up 65.7%).

Overall, the S&P BSE SENSEX is up 19.6% over the year.

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