KRITI NUTRIENTS 2023-24 Annual Report Analysis

Tue, 28 May

KRITI NUTRIENTS 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 NUTRIENTS Income Statement Analysis

• Operating income during the year fell 14.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 99.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.1% in FY24 as against 3.9% in FY23.
• Depreciation charges increased by 12.7% and finance costs decreased by 60.6% YoY, respectively.
• Other income grew by 0.3% YoY.
• Net profit for the year grew by 117.7% YoY.
• Net profit margins during the year grew from 2.6% in FY23 to 6.6% in FY24.

KRITI NUTRIENTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,969	6,844	-14.1%
Other income	Rs m	44	44	0.3%
Total Revenues	Rs m	8,013	6,888	-14.0%
Gross profit	Rs m	312	622	99.5%
Depreciation	Rs m	42	47	12.7%
Interest	Rs m	35	14	-60.6%
Profit before tax	Rs m	279	606	116.9%
Tax	Rs m	71	153	114.4%
Profit after tax	Rs m	208	453	117.7%
Gross profit margin	%	3.9	9.1
Effective tax rate	%	25.5	25.3
Net profit margin	%	2.6	6.6

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KRITI NUTRIENTS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 260 million as compared to Rs 536 million in FY23, thereby witnessing an decrease of -51.6%.
• Current assets fell 10% and stood at Rs 1 billion, while fixed assets rose 44% and stood at Rs 950 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 8%.

KRITI NUTRIENTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,324	1,765	33.3
Current Liabilities	Rs m	536	260	-51.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,931	2,090	8.3
Current assets	Rs m	1,269	1,140	-10.2
Fixed Assets	Rs m	661	950	43.7
Total Assets	Rs m	1,931	2,090	8.3

KRITI NUTRIENTS Cash Flow Statement Analysis

• KRITI NUTRIENTS's cash flow from operating activities (CFO) during FY24 stood at Rs 498 million, an improvement of 150.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -292 million, an improvement of 831.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -304 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -98 million from the Rs 153 million net cash flows seen during FY23.

KRITI NUTRIENTS 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	199	498	150.8%
Cash Flow from Investing Activities	Rs m	-31	-292	-
Cash Flow from Financing Activities	Rs m	-14	-304	-
Net Cash Flow	Rs m	153	-98	-

Current Valuations for KRITI NUTRIENTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.0, an improvement from the EPS of Rs 4.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 103.8, stands at 11.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 8.4 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	159.1	136.6
TTM Earnings per share	Rs	4.2	9.0
Diluted earnings per share	Rs	4.2	9.0
Price to Cash Flow	x	7.6	8.4
TTM P/E ratio	x	9.1	11.5
Price / Book Value ratio	x	2.1	2.4
Market Cap	Rs m	2,833	4,192
Dividends per share (Unadj.)	Rs	0.3	0.3

Ratio Analysis for KRITI NUTRIENTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.4x during FY24, from 2.4x 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 44.6x during FY24, from 8.9x 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 improved and stood at 25.7% during FY24, from 15.7% 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 35.1% during FY24, from 23.8% 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 improved and stood at 22.3% during FY24, from 12.6% 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	2.4	4.4
Debtors’ Days	Days	58	110
Interest coverage	x	8.9	44.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.6	22.3
Return on equity	%	15.7	25.7
Return on capital employed	%	23.8	35.1

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

KRITI NUTRIENTS Share Price Performance

Over the last one year, KRITI NUTRIENTS share price has moved up from Rs 47.1 to Rs 103.8, registering a gain of Rs 56.6 or around 120.2%.

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

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