KRISHNA DEFENCE 2023-24 Annual Report Analysis

Tue, 23 Jul

KRISHNA DEFENCE 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.

KRISHNA DEFENCE Income Statement Analysis

• Operating income during the year rose 67.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 75.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.8% in FY24 as against 14.2% in FY23.
• Depreciation charges increased by 9.6% and finance costs increased by 35.8% YoY, respectively.
• Other income grew by 31.5% YoY.
• Net profit for the year grew by 84.9% YoY.
• Net profit margins during the year grew from 8.3% in FY23 to 9.2% in FY24.

KRISHNA DEFENCE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	637	1,064	67.2%
Other income	Rs m	10	13	31.5%
Total Revenues	Rs m	646	1,077	66.7%
Gross profit	Rs m	90	158	75.3%
Depreciation	Rs m	20	22	9.6%
Interest	Rs m	13	17	35.8%
Profit before tax	Rs m	67	132	95.7%
Tax	Rs m	14	34	135.9%
Profit after tax	Rs m	53	98	84.9%
Gross profit margin	%	14.2	14.8
Effective tax rate	%	21.3	25.7
Net profit margin	%	8.3	9.2

Don't Miss: Key Information for Long-term Investors

KRISHNA DEFENCE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 253 million as compared to Rs 370 million in FY23, thereby witnessing an decrease of -31.6%.
• Long-term debt down at Rs 12 million as compared to Rs 64 million during FY23, a fall of 81.7%.
• Current assets rose 66% and stood at Rs 1 billion, while fixed assets rose 29% and stood at Rs 239 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1 billion as against Rs 847 million during FY23, thereby witnessing a growth of 58%.

KRISHNA DEFENCE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	367	987	169.1
Current Liabilities	Rs m	370	253	-31.6
Long-term Debt	Rs m	64	12	-81.7
Total Liabilities	Rs m	847	1,335	57.6
Current assets	Rs m	662	1,096	65.6
Fixed Assets	Rs m	185	239	29.1
Total Assets	Rs m	847	1,335	57.6

KRISHNA DEFENCE Cash Flow Statement Analysis

• KRISHNA DEFENCE's cash flow from operating activities (CFO) during FY24 stood at Rs -32 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -372 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 454 million, an improvement of 673% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 50 million from the Rs 0 million net cash flows seen during FY23.

KRISHNA DEFENCE 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	-73	-32	-
Cash Flow from Investing Activities	Rs m	14	-372	-
Cash Flow from Financing Activities	Rs m	59	454	673.4%
Net Cash Flow	Rs m	0	50	71,385.7%

Current Valuations for KRISHNA DEFENCE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.1, 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 800.7, stands at 112.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.1 times, while the price to sales ratio stands at 10.3 times.
• The company's price to cash flow (P/CF) ratio stood at 32.6 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	55.6	77.6
TTM Earnings per share	Rs	4.6	7.1
Diluted earnings per share	Rs	3.9	7.1
Price to Cash Flow	x	0.0	32.6
TTM P/E ratio	x	0.0	112.1
Price / Book Value ratio	x	3.7	3.9
Market Cap	Rs m	1,374	3,892
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KRISHNA DEFENCE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.3x during FY24, from 1.8x 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 8.7x during FY24, from 6.3x 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 9.9% during FY24, from 14.4% 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 14.9% during FY24, from 18.6% 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 8.6% during FY24, from 7.7% 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	1.8	4.3
Debtors’ Days	Days	1,542	894
Interest coverage	x	6.3	8.7
Debt to equity ratio	x	0.2	0.0
Return on assets	%	7.7	8.6
Return on equity	%	14.4	9.9
Return on capital employed	%	18.6	14.9

To see how KRISHNA DEFENCE has performed over the last 5 years, please visit here.

KRISHNA DEFENCE Share Price Performance

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(To know more, check out historical annual results for KRISHNA DEFENCE and quarterly results for KRISHNA DEFENCE)