KIRLOSKAR BROS 2023-24 Annual Report Analysis

Mon, 8 Jul

KIRLOSKAR BROS 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 BROS Income Statement Analysis

• Operating income during the year rose 7.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.7% in FY24 as against 10.6% in FY23.
• Depreciation charges increased by 14.4% and finance costs decreased by 27.0% YoY, respectively.
• Other income grew by 187.6% YoY.
• Net profit for the year grew by 50.9% YoY.
• Net profit margins during the year grew from 6.0% in FY23 to 8.5% in FY24.

KIRLOSKAR BROS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	37,302	40,012	7.3%
Other income	Rs m	273	784	187.6%
Total Revenues	Rs m	37,575	40,796	8.6%
Gross profit	Rs m	3,948	5,064	28.3%
Depreciation	Rs m	686	784	14.4%
Interest	Rs m	354	258	-27.0%
Profit before tax	Rs m	3,181	4,806	51.1%
Tax	Rs m	930	1,410	51.6%
Profit after tax	Rs m	2,251	3,395	50.9%
Gross profit margin	%	10.6	12.7
Effective tax rate	%	29.2	29.3
Net profit margin	%	6.0	8.5

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KIRLOSKAR BROS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 14 billion as compared to Rs 14 billion in FY23, thereby witnessing an increase of 3.6%.
• Long-term debt down at Rs 646 million as compared to Rs 1 billion during FY23, a fall of 41.8%.
• Current assets rose 12% and stood at Rs 24 billion, while fixed assets rose 7% and stood at Rs 9 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 33 billion as against Rs 30 billion during FY23, thereby witnessing a growth of 11%.

KIRLOSKAR BROS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	14,039	17,190	22.4
Current Liabilities	Rs m	13,559	14,047	3.6
Long-term Debt	Rs m	1,110	646	-41.8
Total Liabilities	Rs m	29,750	32,970	10.8
Current assets	Rs m	21,268	23,865	12.2
Fixed Assets	Rs m	8,482	9,105	7.3
Total Assets	Rs m	29,750	32,970	10.8

KIRLOSKAR BROS Cash Flow Statement Analysis

• KIRLOSKAR BROS's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion, an improvement of 14.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 150.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion, an improvement of 13% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 446 million from the Rs 870 million net cash flows seen during FY23.

KIRLOSKAR BROS 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	3,292	3,761	14.2%
Cash Flow from Investing Activities	Rs m	-757	-1,893	-
Cash Flow from Financing Activities	Rs m	-1,694	-1,473	-
Net Cash Flow	Rs m	870	446	-48.7%

Current Valuations for KIRLOSKAR BROS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 42.8, an improvement from the EPS of Rs 28.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,478.2, stands at 57.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.4 times, while the price to sales ratio stands at 4.9 times.
• The company's price to cash flow (P/CF) ratio stood at 15.5 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	469.7	503.9
TTM Earnings per share	Rs	28.3	42.8
Diluted earnings per share	Rs	28.3	42.8
Price to Cash Flow	x	11.0	15.5
TTM P/E ratio	x	14.4	57.9
Price / Book Value ratio	x	1.9	3.8
Market Cap	Rs m	26,483	64,893
Dividends per share (Unadj.)	Rs	4.5	6.0

Ratio Analysis for KIRLOSKAR BROS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x 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 19.6x during FY24, from 10.0x 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 19.8% during FY24, from 16.0% 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 28.4% during FY24, from 23.3% 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 improved and stood at 11.1% during FY24, from 8.8% 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	1.7
Debtors’ Days	Days	48	48
Interest coverage	x	10.0	19.6
Debt to equity ratio	x	0.1	0.0
Return on assets	%	8.8	11.1
Return on equity	%	16.0	19.8
Return on capital employed	%	23.3	28.4

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

KIRLOSKAR BROS Share Price Performance

Over the last one year, KIRLOSKAR BROS share price has moved up from Rs 630.5 to Rs 2,478.2, registering a gain of Rs 1,847.8 or around 293.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 75,362.7 (up 0.3%). Over the last one year it has moved up from 40,670.4 to 75,362.7, a gain of 34,692 points (up 85.3%).

Overall, the S&P BSE SENSEX is up 22.0% over the year.

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