KM SUGAR 2023-24 Annual Report Analysis

Wed, 10 Jul

KM SUGAR 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.

KM SUGAR Income Statement Analysis

• Operating income during the year rose 14.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.6% in FY24 as against 8.6% in FY23.
• Depreciation charges increased by 42.3% and finance costs increased by 19.4% YoY, respectively.
• Other income declined by 25.3% YoY.
• Net profit for the year grew by 21.0% YoY.
• Net profit margins during the year grew from 4.0% in FY23 to 4.3% in FY24.

KM SUGAR Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,755	6,572	14.2%
Other income	Rs m	114	85	-25.3%
Total Revenues	Rs m	5,869	6,657	13.4%
Gross profit	Rs m	497	698	40.4%
Depreciation	Rs m	159	226	42.3%
Interest	Rs m	139	165	19.4%
Profit before tax	Rs m	313	391	24.8%
Tax	Rs m	81	110	35.7%
Profit after tax	Rs m	232	281	21.0%
Gross profit margin	%	8.6	10.6
Effective tax rate	%	25.9	28.2
Net profit margin	%	4.0	4.3

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

KM SUGAR Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 19.7%.
• Long-term debt down at Rs 281 million as compared to Rs 502 million during FY23, a fall of 44.2%.
• Current assets rose 17% and stood at Rs 4 billion, while fixed assets rose 5% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 7 billion during FY23, thereby witnessing a growth of 11%.

KM SUGAR Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,753	3,032	10.2
Current Liabilities	Rs m	3,718	4,450	19.7
Long-term Debt	Rs m	502	281	-44.2
Total Liabilities	Rs m	7,106	7,897	11.1
Current assets	Rs m	3,808	4,441	16.6
Fixed Assets	Rs m	3,298	3,456	4.8
Total Assets	Rs m	7,106	7,897	11.1

KM SUGAR Cash Flow Statement Analysis

• KM SUGAR's cash flow from operating activities (CFO) during FY24 stood at Rs 288 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -342 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 68 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 14 million from the Rs -26 million net cash flows seen during FY23.

KM SUGAR 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	730	288	-60.6%
Cash Flow from Investing Activities	Rs m	-1,054	-342	-
Cash Flow from Financing Activities	Rs m	298	68	-77.2%
Net Cash Flow	Rs m	-26	14	-

Current Valuations for KM SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.1, an improvement from the EPS of Rs 2.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 43.7, stands at 14.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 5.8 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	62.6	71.4
TTM Earnings per share	Rs	2.5	3.1
Diluted earnings per share	Rs	2.5	3.1
Price to Cash Flow	x	6.1	5.8
TTM P/E ratio	x	10.3	14.3
Price / Book Value ratio	x	1.1	1.0
Market Cap	Rs m	3,118	2,919
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KM SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.0x 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 3.4x during FY24, from 3.3x 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 9.3% during FY24, from 8.4% 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 16.8% during FY24, from 13.9% 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 5.7% during FY24, from 5.2% 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	1.0	1.0
Debtors’ Days	Days	38	163
Interest coverage	x	3.3	3.4
Debt to equity ratio	x	0.2	0.1
Return on assets	%	5.2	5.7
Return on equity	%	8.4	9.3
Return on capital employed	%	13.9	16.8

To see how KM SUGAR has performed over the last 5 years, please visit here.

KM SUGAR Share Price Performance

Over the last one year, KM SUGAR share price has moved up from Rs 26.2 to Rs 43.7, registering a gain of Rs 17.5 or around 66.7%.

Overall, the S&P BSE SENSEX is up 22.3% over the year.

(To know more, check out historical annual results for KM SUGAR and quarterly results for KM SUGAR)