KRN HEAT EXCHANGER AND REFRIGERATION LTD. 2023-24 Annual Report Analysis

Mon, 7 Oct

KRN HEAT EXCHANGER AND REFRIGERATION LTD. 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.

KRN HEAT EXCHANGER AND REFRIGERATION LTD. Income Statement Analysis

• Operating income during the year rose 24.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.0% in FY24 as against 19.9% in FY23.
• Depreciation charges increased by 25.9% and finance costs increased by 30.5% YoY, respectively.
• Other income grew by 118.7% YoY.
• Net profit for the year grew by 20.9% YoY.
• Net profit margins during the year declined from 13.1% in FY23 to 12.7% in FY24.

KRN HEAT EXCHANGER AND REFRIGERATION LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,475	3,083	24.6%
Other income	Rs m	24	53	118.7%
Total Revenues	Rs m	2,499	3,135	25.5%
Gross profit	Rs m	493	585	18.5%
Depreciation	Rs m	32	40	25.9%
Interest	Rs m	31	40	30.5%
Profit before tax	Rs m	455	557	22.5%
Tax	Rs m	132	167	26.4%
Profit after tax	Rs m	323	391	20.9%
Gross profit margin	%	19.9	19.0
Effective tax rate	%	29.0	29.9
Net profit margin	%	13.1	12.7

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KRN HEAT EXCHANGER AND REFRIGERATION LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 966 million as compared to Rs 720 million in FY23, thereby witnessing an increase of 34.1%.
• Long-term debt down at Rs 130 million as compared to Rs 165 million during FY23, a fall of 21.6%.
• Current assets rose 47% and stood at Rs 2 billion, while fixed assets rose 166% and stood at Rs 876 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 1 billion during FY23, thereby witnessing a growth of 74%.

KRN HEAT EXCHANGER AND REFRIGERATION LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	596	1,316	121.0
Current Liabilities	Rs m	720	966	34.1
Long-term Debt	Rs m	165	130	-21.6
Total Liabilities	Rs m	1,488	2,584	73.7
Current assets	Rs m	1,158	1,707	47.5
Fixed Assets	Rs m	330	876	165.7
Total Assets	Rs m	1,488	2,584	73.7

KRN HEAT EXCHANGER AND REFRIGERATION LTD. Cash Flow Statement Analysis

• KRN HEAT EXCHANGER AND REFRIGERATION LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 28 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -664 million, an improvement of 374.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 665 million, an improvement of 504% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 29 million from the Rs 21 million net cash flows seen during FY23.

KRN HEAT EXCHANGER AND REFRIGERATION LTD. 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	51	28	-45.6%
Cash Flow from Investing Activities	Rs m	-140	-664	-
Cash Flow from Financing Activities	Rs m	110	665	503.5%
Net Cash Flow	Rs m	21	29	36.0%

Current Valuations for KRN HEAT EXCHANGER AND REFRIGERATION LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.5, an improvement from the EPS of Rs 7.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 424.0, stands at 67.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 20.0 times, while the price to sales ratio stands at 6.3 times.
• The company's price to cash flow (P/CF) ratio stood at 61.2 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	56.2	66.8
TTM Earnings per share	Rs	7.3	8.5
Diluted earnings per share	Rs	5.2	6.3
Price to Cash Flow	x	0.0	61.2
TTM P/E ratio	x	0.0	67.4
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	26,351
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KRN HEAT EXCHANGER AND REFRIGERATION LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY24, from 1.6x 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 15.0x during FY24, from 15.9x 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 29.7% during FY24, from 54.2% 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 41.3% during FY24, from 63.8% 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 16.7% during FY24, from 23.8% 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	1.6	1.8
Debtors’ Days	Days	570	621
Interest coverage	x	15.9	15.0
Debt to equity ratio	x	0.3	0.1
Return on assets	%	23.8	16.7
Return on equity	%	54.2	29.7
Return on capital employed	%	63.8	41.3

To see how KRN HEAT EXCHANGER AND REFRIGERATION LTD. has performed over the last 5 years, please visit here.

KRN HEAT EXCHANGER AND REFRIGERATION LTD. Share Price Performance

Over the last one year, KRN HEAT EXCHANGER AND REFRIGERATION LTD. share price has moved up from Rs 0.0 to Rs 424.0, registering a gain of Rs 424.0 or around 0.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 68,376.3 (down 2.7%). Over the last one year it has moved up from 48,205.1 to 68,376.3, a gain of 20,171 points (up 41.8%).

Overall, the S&P BSE SENSEX is up 23.5% over the year.

(To know more, check out historical annual results for KRN HEAT EXCHANGER AND REFRIGERATION LTD. and quarterly results for KRN HEAT EXCHANGER AND REFRIGERATION LTD.)