KIRLOSKAR OIL 2023-24 Annual Report Analysis

Tue, 16 Jul

KIRLOSKAR OIL 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 OIL Income Statement Analysis

• Operating income during the year rose 17.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 37.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.1% in FY24 as against 14.6% in FY23.
• Depreciation charges increased by 13.5% and finance costs increased by 56.4% YoY, respectively.
• Other income grew by 12.5% YoY.
• Net profit for the year grew by 32.6% YoY.
• Net profit margins during the year grew from 6.6% in FY23 to 7.5% in FY24.

KIRLOSKAR OIL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	50,238	58,983	17.4%
Other income	Rs m	281	316	12.5%
Total Revenues	Rs m	50,519	59,299	17.4%
Gross profit	Rs m	7,354	10,107	37.4%
Depreciation	Rs m	1,047	1,188	13.5%
Interest	Rs m	2,099	3,282	56.4%
Profit before tax	Rs m	4,489	5,952	32.6%
Tax	Rs m	1,173	1,555	32.6%
Profit after tax	Rs m	3,317	4,397	32.6%
Gross profit margin	%	14.6	17.1
Effective tax rate	%	26.1	26.1
Net profit margin	%	6.6	7.5

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KIRLOSKAR OIL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 35 billion as compared to Rs 25 billion in FY23, thereby witnessing an increase of 40.5%.
• Long-term debt stood at Rs 20 billion as compared to Rs 18 billion during FY23, a growth of 9.3%.
• Current assets rose 9% and stood at Rs 37 billion, while fixed assets rose 39% and stood at Rs 45 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 83 billion as against Rs 67 billion during FY23, thereby witnessing a growth of 23%.

KIRLOSKAR OIL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	22,900	26,602	16.2
Current Liabilities	Rs m	25,257	35,474	40.5
Long-term Debt	Rs m	18,019	19,703	9.3
Total Liabilities	Rs m	67,096	82,647	23.2
Current assets	Rs m	33,916	36,952	9.0
Fixed Assets	Rs m	32,821	45,487	38.6
Total Assets	Rs m	67,096	82,647	23.2

KIRLOSKAR OIL Cash Flow Statement Analysis

• KIRLOSKAR OIL's cash flow from operating activities (CFO) during FY24 stood at Rs -5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 8 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs 1 billion net cash flows seen during FY23.

KIRLOSKAR OIL 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	-9,203	-4,688	-
Cash Flow from Investing Activities	Rs m	-1,444	-1,089	-
Cash Flow from Financing Activities	Rs m	11,822	8,003	-32.3%
Net Cash Flow	Rs m	1,174	2,226	89.7%

Current Valuations for KIRLOSKAR OIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 30.3, an improvement from the EPS of Rs 22.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,330.4, stands at 44.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.3 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 17.4 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	347.1	406.9
TTM Earnings per share	Rs	22.9	30.3
Diluted earnings per share	Rs	22.9	30.3
Price to Cash Flow	x	13.1	17.4
TTM P/E ratio	x	17.3	44.0
Price / Book Value ratio	x	1.7	3.7
Market Cap	Rs m	38,321	97,392
Dividends per share (Unadj.)	Rs	5.0	6.0

Ratio Analysis for KIRLOSKAR OIL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.3x 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 2.8x during FY24, from 3.1x 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 16.5% during FY24, from 14.5% 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 19.9% during FY24, from 16.1% 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 improved and stood at 9.3% during FY24, from 8.1% 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	1.3	1.0
Debtors’ Days	Days	4	4
Interest coverage	x	3.1	2.8
Debt to equity ratio	x	0.8	0.7
Return on assets	%	8.1	9.3
Return on equity	%	14.5	16.5
Return on capital employed	%	16.1	19.9

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

KIRLOSKAR OIL Share Price Performance

Over the last one year, KIRLOSKAR OIL share price has moved up from Rs 404.0 to Rs 1,330.4, registering a gain of Rs 926.4 or around 229.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 74,783.5 (down 0.1%). Over the last one year it has moved up from 41,347.4 to 74,783.5, a gain of 33,436 points (up 80.9%).

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

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