KPR MILL 2023-24 Annual Report Analysis

Tue, 18 Jun

KPR MILL 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.

KPR MILL Income Statement Analysis

• Operating income during the year fell 2.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.4% in FY24 as against 20.6% in FY23.
• Depreciation charges increased by 8.9% and finance costs decreased by 5.7% YoY, respectively.
• Other income grew by 7.9% YoY.
• Net profit for the year declined by 1.1% YoY.
• Net profit margins during the year grew from 13.2% in FY23 to 13.3% in FY24.

KPR MILL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	61,859	60,597	-2.0%
Other income	Rs m	623	673	7.9%
Total Revenues	Rs m	62,482	61,269	-1.9%
Gross profit	Rs m	12,744	12,367	-3.0%
Depreciation	Rs m	1,737	1,892	8.9%
Interest	Rs m	789	744	-5.7%
Profit before tax	Rs m	10,842	10,404	-4.0%
Tax	Rs m	2,701	2,350	-13.0%
Profit after tax	Rs m	8,141	8,054	-1.1%
Gross profit margin	%	20.6	20.4
Effective tax rate	%	24.9	22.6
Net profit margin	%	13.2	13.3

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KPR MILL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 11 billion as compared to Rs 13 billion in FY23, thereby witnessing an decrease of -18.1%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY23, a fall of 34.2%.
• Current assets rose 5% and stood at Rs 31 billion, while fixed assets rose 4% and stood at Rs 27 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 59 billion as against Rs 56 billion during FY23, thereby witnessing a growth of 5%.

KPR MILL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	37,067	43,582	17.6
Current Liabilities	Rs m	13,252	10,858	-18.1
Long-term Debt	Rs m	4,485	2,952	-34.2
Total Liabilities	Rs m	55,976	58,640	4.8
Current assets	Rs m	29,781	31,399	5.4
Fixed Assets	Rs m	26,195	27,241	4.0
Total Assets	Rs m	55,976	58,640	4.8

KPR MILL Cash Flow Statement Analysis

• KPR MILL's cash flow from operating activities (CFO) during FY24 stood at Rs 7 billion, an improvement of 127.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 179.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -335 million from the Rs -127 million net cash flows seen during FY23.

KPR MILL 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	2,987	6,779	127.0%
Cash Flow from Investing Activities	Rs m	-1,051	-2,941	-
Cash Flow from Financing Activities	Rs m	-2,063	-4,173	-
Net Cash Flow	Rs m	-127	-335	-

Current Valuations for KPR MILL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.6, an decline from the EPS of Rs 23.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 850.0, stands at 36.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.7 times, while the price to sales ratio stands at 4.8 times.
• The company's price to cash flow (P/CF) ratio stood at 25.4 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	181.0	177.3
TTM Earnings per share	Rs	23.8	23.6
Diluted earnings per share	Rs	23.8	23.6
Price to Cash Flow	x	19.9	25.4
TTM P/E ratio	x	24.2	36.1
Price / Book Value ratio	x	5.5	5.8
Market Cap	Rs m	202,277	252,771
Dividends per share (Unadj.)	Rs	4.0	5.0

Ratio Analysis for KPR MILL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.9x during FY24, from 2.2x 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 15.0x during FY24, from 14.7x 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 18.5% during FY24, from 22.0% 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 24.0% during FY24, from 28.0% 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 15.0% during FY24, from 16.0% 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	2.2	2.9
Debtors’ Days	Days	369	403
Interest coverage	x	14.7	15.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	16.0	15.0
Return on equity	%	22.0	18.5
Return on capital employed	%	28.0	24.0

To see how KPR MILL has performed over the last 5 years, please visit here.

KPR MILL Share Price Performance

Over the last one year, KPR MILL share price has moved up from Rs 634.5 to Rs 850.0, registering a gain of Rs 215.6 or around 34.0%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for KPR MILL and quarterly results for KPR MILL)