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KNR CONSTRUCTIONS 2023-24 Annual Report Analysis

Mon, 9 Sep

KNR CONSTRUCTIONS 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.

KNR CONSTRUCTIONS Income Statement Analysis

• Operating income during the year rose 9.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.1% in FY24 as against 24.1% in FY23.
• Depreciation charges decreased by 13.2% and finance costs decreased by 31.0% YoY, respectively.
• Other income grew by 294.5% YoY.
• Net profit for the year grew by 71.2% YoY.
• Net profit margins during the year grew from 10.8% in FY23 to 17.0% in FY24.

KNR CONSTRUCTIONS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	40,624	44,295	9.0%
Other income	Rs m	367	1,447	294.5%
Total Revenues	Rs m	40,990	45,742	11.6%
Gross profit	Rs m	9,787	10,665	9.0%
Depreciation	Rs m	1,807	1,568	-13.2%
Interest	Rs m	1,534	1,059	-31.0%
Profit before tax	Rs m	6,812	9,485	39.2%
Tax	Rs m	2,418	1,962	-18.9%
Profit after tax	Rs m	4,394	7,523	71.2%
Gross profit margin	%	24.1	24.1
Effective tax rate	%	35.5	20.7
Net profit margin	%	10.8	17.0

For Investors: Our Big Prediction

KNR CONSTRUCTIONS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 13 billion as compared to Rs 12 billion in FY23, thereby witnessing an increase of 5.4%.
• Long-term debt stood at Rs 12 billion as compared to Rs 5 billion during FY23, a growth of 136.3%.
• Current assets rose 16% and stood at Rs 27 billion, while fixed assets rose 54% and stood at Rs 32 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 59 billion as against Rs 44 billion during FY23, thereby witnessing a growth of 34%.

KNR CONSTRUCTIONS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	27,792	35,541	27.9
Current Liabilities	Rs m	12,332	12,997	5.4
Long-term Debt	Rs m	4,916	11,618	136.3
Total Liabilities	Rs m	43,846	58,650	33.8
Current assets	Rs m	23,247	26,867	15.6
Fixed Assets	Rs m	20,599	31,783	54.3
Total Assets	Rs m	43,846	58,650	33.8

KNR CONSTRUCTIONS Cash Flow Statement Analysis

• KNR CONSTRUCTIONS's cash flow from operating activities (CFO) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -151 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 5 billion, an improvement of 141% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs 436 million net cash flows seen during FY23.

KNR CONSTRUCTIONS 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	11,941	-3,156	-
Cash Flow from Investing Activities	Rs m	668	-151	-
Cash Flow from Financing Activities	Rs m	-12,173	4,961	-
Net Cash Flow	Rs m	436	1,654	279.4%

Current Valuations for KNR CONSTRUCTIONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.8, an improvement from the EPS of Rs 15.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 341.5, stands at 12.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 8.2 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	144.4	157.5
TTM Earnings per share	Rs	15.6	26.8
Diluted earnings per share	Rs	15.6	26.7
Price to Cash Flow	x	11.5	8.2
TTM P/E ratio	x	16.2	12.3
Price / Book Value ratio	x	2.5	2.1
Market Cap	Rs m	70,337	74,731
Dividends per share (Unadj.)	Rs	0.3	0.3

Ratio Analysis for KNR CONSTRUCTIONS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY24, from 1.9x 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 10.0x during FY24, from 5.4x 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 21.2% during FY24, from 15.8% 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 22.4% during FY24, from 25.5% 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 14.6% during FY24, from 13.5% 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	1.9	2.1
Debtors’ Days	Days	560	555
Interest coverage	x	5.4	10.0
Debt to equity ratio	x	0.2	0.3
Return on assets	%	13.5	14.6
Return on equity	%	15.8	21.2
Return on capital employed	%	25.5	22.4

To see how KNR CONSTRUCTIONS has performed over the last 5 years, please visit here.

KNR CONSTRUCTIONS Share Price Performance

Over the last one year, KNR CONSTRUCTIONS share price has moved up from Rs 269.8 to Rs 341.5, registering a gain of Rs 71.8 or around 26.6%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,037.0 (down 0.4%). Over the last one year it has moved up from 4,732.6 to 8,037.0, a gain of 3,304 points (up 69.8%).

Overall, the S&P BSE SENSEX is up 23.7% over the year.

(To know more, check out historical annual results for KNR CONSTRUCTIONS and quarterly results for KNR CONSTRUCTIONS)