KIRL.FERROUS 2023-24 Annual Report Analysis

Thu, 12 Sep

KIRL.FERROUS 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.

KIRL.FERROUS Income Statement Analysis

• Operating income during the year fell 4.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.9% in FY24 as against 13.0% in FY23.
• Depreciation charges increased by 38.7% and finance costs increased by 26.2% YoY, respectively.
• Other income declined by 60.8% YoY.
• Net profit for the year declined by 31.9% YoY.
• Net profit margins during the year declined from 6.8% in FY23 to 4.8% in FY24.

KIRL.FERROUS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	64,175	61,463	-4.2%
Other income	Rs m	493	193	-60.8%
Total Revenues	Rs m	64,668	61,656	-4.7%
Gross profit	Rs m	8,357	7,934	-5.1%
Depreciation	Rs m	1,726	2,394	38.7%
Interest	Rs m	955	1,205	26.2%
Profit before tax	Rs m	6,170	4,529	-26.6%
Tax	Rs m	1,797	1,552	-13.6%
Profit after tax	Rs m	4,373	2,977	-31.9%
Gross profit margin	%	13.0	12.9
Effective tax rate	%	29.1	34.3
Net profit margin	%	6.8	4.8

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

KIRL.FERROUS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 19 billion as compared to Rs 19 billion in FY23, thereby witnessing an increase of 1.5%.
• Long-term debt stood at Rs 5 billion as compared to Rs 4 billion during FY23, a growth of 40.9%.
• Current assets fell 0% and stood at Rs 21 billion, while fixed assets rose 13% and stood at Rs 38 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 59 billion as against Rs 55 billion during FY23, thereby witnessing a growth of 8%.

KIRL.FERROUS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	29,968	32,169	7.3
Current Liabilities	Rs m	18,797	19,083	1.5
Long-term Debt	Rs m	3,698	5,209	40.9
Total Liabilities	Rs m	54,815	59,071	7.8
Current assets	Rs m	21,061	20,992	-0.3
Fixed Assets	Rs m	33,754	38,078	12.8
Total Assets	Rs m	54,815	59,071	7.8

KIRL.FERROUS Cash Flow Statement Analysis

• KIRL.FERROUS's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion, an improvement of 30.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -616 million, an improvement of 85% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -201 million from the Rs -248 million net cash flows seen during FY23.

KIRL.FERROUS 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	7,977	5,627	-29.5%
Cash Flow from Investing Activities	Rs m	-3,991	-5,213	-
Cash Flow from Financing Activities	Rs m	-4,234	-616	-
Net Cash Flow	Rs m	-248	-201	-

Current Valuations for KIRL.FERROUS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.1, an decline from the EPS of Rs 26.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 669.0, stands at 40.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 16.1 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	391.6	374.2
TTM Earnings per share	Rs	26.7	18.1
Diluted earnings per share	Rs	26.6	18.1
Price to Cash Flow	x	12.5	16.1
TTM P/E ratio	x	17.5	40.1
Price / Book Value ratio	x	1.8	2.7
Market Cap	Rs m	53,501	86,218
Dividends per share (Unadj.)	Rs	5.5	5.5

Ratio Analysis for KIRL.FERROUS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.1x 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 4.8x during FY24, from 7.5x 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 declined and down at 9.3% during FY24, from 14.6% 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 declined and down at 15.3% during FY24, from 21.2% 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 7.1% during FY24, from 9.7% 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	1.1	1.1
Debtors’ Days	Days	5	5
Interest coverage	x	7.5	4.8
Debt to equity ratio	x	0.1	0.2
Return on assets	%	9.7	7.1
Return on equity	%	14.6	9.3
Return on capital employed	%	21.2	15.3

To see how KIRL.FERROUS has performed over the last 5 years, please visit here.

KIRL.FERROUS Share Price Performance

Over the last one year, KIRL.FERROUS share price has moved up from Rs 455.7 to Rs 669.0, registering a gain of Rs 213.3 or around 46.8%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 31,634.1 (up 3.0%). Over the last one year it has moved up from 22,920.8 to 31,634.1, a gain of 8,713 points (up 38.0%).

Overall, the S&P BSE SENSEX is up 23.6% over the year.

(To know more, check out historical annual results for KIRL.FERROUS and quarterly results for KIRL.FERROUS)