KRITI INDUSTRIES 2023-24 Annual Report Analysis

Tue, 28 May

KRITI 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.

KRITI INDUSTRIES Income Statement Analysis

• Operating income during the year rose 18.3% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.9% in FY24 as against 1.1% in FY23.
• Depreciation charges increased by 31.3% and finance costs increased by 21.7% YoY, respectively.
• Other income declined by 3.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 3.1% in FY23 to 2.5% in FY24.

KRITI INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,325	8,666	18.3%
Other income	Rs m	35	34	-3.9%
Total Revenues	Rs m	7,360	8,700	18.2%
Gross profit	Rs m	-77	595	NA
Depreciation	Rs m	91	120	31.3%
Interest	Rs m	167	204	21.7%
Profit before tax	Rs m	-301	305	NA
Tax	Rs m	-73	86	NA
Profit after tax	Rs m	-228	219	NA
Gross profit margin	%	-1.1	6.9
Effective tax rate	%	24.2	28.3
Net profit margin	%	-3.1	2.5

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KRITI INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -4.9%.
• Long-term debt stood at Rs 492 million as compared to Rs 252 million during FY23, a growth of 94.8%.
• Current assets rose 4% and stood at Rs 3 billion, while fixed assets rose 21% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 10%.

KRITI INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,301	1,517	16.6
Current Liabilities	Rs m	2,459	2,338	-4.9
Long-term Debt	Rs m	252	492	94.8
Total Liabilities	Rs m	4,114	4,537	10.3
Current assets	Rs m	2,660	2,775	4.3
Fixed Assets	Rs m	1,454	1,762	21.2
Total Assets	Rs m	4,114	4,537	10.3

KRITI INDUSTRIES Cash Flow Statement Analysis

• KRITI INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 584 million, an improvement of 117.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -459 million, an improvement of 49.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -123 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 million from the Rs -1 million net cash flows seen during FY23.

KRITI 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	268	584	117.9%
Cash Flow from Investing Activities	Rs m	-307	-459	-
Cash Flow from Financing Activities	Rs m	38	-123	-
Net Cash Flow	Rs m	-1	2	-

Current Valuations for KRITI INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.4, an improvement from the EPS of Rs -4.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 114.3, stands at 25.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 19.7 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	147.7	174.7
TTM Earnings per share	Rs	-4.6	4.4
Diluted earnings per share	Rs	-4.6	4.4
Price to Cash Flow	x	-41.6	19.7
TTM P/E ratio	x	-24.9	25.9
Price / Book Value ratio	x	3.5	4.4
Market Cap	Rs m	4,608	6,679
Dividends per share (Unadj.)	Rs	0.0	0.2

Ratio Analysis for KRITI INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY24, from 1.1x 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 improved and stood at 2.5x during FY24, from -0.8x 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 improved and stood at 14.4% during FY24, from -17.5% 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 25.3% during FY24, from -8.6% 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 -1.5% 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	1.1	1.2
Debtors’ Days	Days	266	281
Interest coverage	x	-0.8	2.5
Debt to equity ratio	x	0.2	0.3
Return on assets	%	-1.5	9.3
Return on equity	%	-17.5	14.4
Return on capital employed	%	-8.6	25.3

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

KRITI INDUSTRIES Share Price Performance

Over the last one year, KRITI INDUSTRIES share price has moved up from Rs 109.5 to Rs 114.3, registering a gain of Rs 4.9 or around 4.4%.

Overall, the S&P BSE SENSEX is up 22.1% over the year.

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