KIRLOSKAR INDUSTRIES 2023-24 Annual Report Analysis

Mon, 23 Sep

KIRLOSKAR 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.

KIRLOSKAR INDUSTRIES Income Statement Analysis

• Operating income during the year fell 1.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.8% in FY24 as against 13.3% in FY23.
• Depreciation charges increased by 38.1% and finance costs increased by 26.2% YoY, respectively.
• Other income declined by 38.2% YoY.
• Net profit for the year declined by 21.5% YoY.
• Net profit margins during the year declined from 7.1% in FY23 to 5.7% in FY24.

KIRLOSKAR INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	64,627	63,684	-1.5%
Other income	Rs m	700	433	-38.2%
Total Revenues	Rs m	65,327	64,117	-1.9%
Gross profit	Rs m	8,595	8,771	2.0%
Depreciation	Rs m	1,753	2,421	38.1%
Interest	Rs m	968	1,222	26.2%
Profit before tax	Rs m	6,574	5,561	-15.4%
Tax	Rs m	1,978	1,953	-1.2%
Profit after tax	Rs m	4,596	3,607	-21.5%
Gross profit margin	%	13.3	13.8
Effective tax rate	%	30.1	35.1
Net profit margin	%	7.1	5.7

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KIRLOSKAR INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 17 billion as compared to Rs 18 billion in FY23, thereby witnessing an decrease of -5.2%.
• Long-term debt stood at Rs 8 billion as compared to Rs 5 billion during FY23, a growth of 53.1%.
• Current assets rose 45% and stood at Rs 55 billion, while fixed assets rose 14% and stood at Rs 43 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 98 billion as against Rs 75 billion during FY23, thereby witnessing a growth of 30%.

KIRLOSKAR INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	32,346	49,304	52.4
Current Liabilities	Rs m	17,890	16,955	-5.2
Long-term Debt	Rs m	5,193	7,948	53.1
Total Liabilities	Rs m	75,339	97,615	29.6
Current assets	Rs m	37,704	54,819	45.4
Fixed Assets	Rs m	37,604	42,770	13.7
Total Assets	Rs m	75,339	97,615	29.6

KIRLOSKAR INDUSTRIES Cash Flow Statement Analysis

• KIRLOSKAR INDUSTRIES'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 -6 billion, an improvement of 62.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -46 million, an improvement of 99% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -287 million from the Rs -54 million net cash flows seen during FY23.

KIRLOSKAR 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	7,605	5,762	-24.2%
Cash Flow from Investing Activities	Rs m	-3,689	-6,003	-
Cash Flow from Financing Activities	Rs m	-3,970	-46	-
Net Cash Flow	Rs m	-54	-287	-

Current Valuations for KIRLOSKAR INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 363.3, an decline from the EPS of Rs 465.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,479.1, stands at 16.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 5.6 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	6,541.2	6,413.3
TTM Earnings per share	Rs	465.2	363.3
Diluted earnings per share	Rs	461.6	362.3
Price to Cash Flow	x	3.8	5.6
TTM P/E ratio	x	5.3	16.4
Price / Book Value ratio	x	0.6	0.7
Market Cap	Rs m	18,076	33,789
Dividends per share (Unadj.)	Rs	11.0	13.0

Ratio Analysis for KIRLOSKAR INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.2x during FY24, from 2.1x 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 5.5x during FY24, from 7.8x 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 declined and down at 7.3% during FY24, from 14.2% 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 declined and down at 11.8% during FY24, from 20.1% 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 4.9% during FY24, from 7.4% 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	2.1	3.2
Debtors’ Days	Days	5	5
Interest coverage	x	7.8	5.5
Debt to equity ratio	x	0.2	0.2
Return on assets	%	7.4	4.9
Return on equity	%	14.2	7.3
Return on capital employed	%	20.1	11.8

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

KIRLOSKAR INDUSTRIES Share Price Performance

Over the last one year, KIRLOSKAR INDUSTRIES share price has moved up from Rs 3,274.2 to Rs 5,479.1, registering a gain of Rs 2,204.9 or around 67.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 73,907.8 (up 0.7%). Over the last one year it has moved up from 46,719.8 to 73,907.8, a gain of 27,188 points (up 58.2%).

Overall, the S&P BSE SENSEX is up 27.1% over the year.

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