KAVERI SEED 2023-24 Annual Report Analysis

Wed, 11 Sep

KAVERI SEED 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.

KAVERI SEED Income Statement Analysis

• Operating income during the year fell 0.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 25.5% in FY24 as against 22.8% in FY23.
• Depreciation charges increased by 27.5% and finance costs increased by 25.5% YoY, respectively.
• Other income grew by 6.4% YoY.
• Net profit for the year grew by 7.5% YoY.
• Net profit margins during the year grew from 25.5% in FY23 to 27.6% in FY24.

KAVERI SEED Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,704	10,624	-0.7%
Other income	Rs m	622	662	6.4%
Total Revenues	Rs m	11,326	11,286	-0.3%
Gross profit	Rs m	2,444	2,704	10.6%
Depreciation	Rs m	205	262	27.5%
Interest	Rs m	2	2	25.5%
Profit before tax	Rs m	2,859	3,102	8.5%
Tax	Rs m	133	172	29.8%
Profit after tax	Rs m	2,726	2,930	7.5%
Gross profit margin	%	22.8	25.5
Effective tax rate	%	4.6	5.5
Net profit margin	%	25.5	27.6

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KAVERI SEED Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 7 billion as compared to Rs 7 billion in FY23, thereby witnessing an increase of 14.2%.
• Current assets fell 9% and stood at Rs 14 billion, while fixed assets rose 22% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 21 billion as against Rs 21 billion during FY23, thereby witnessing a fall of 2%.

KAVERI SEED Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	13,651	12,325	-9.7
Current Liabilities	Rs m	6,531	7,459	14.2
Long-term Debt	Rs m	1	0	-100.0
Total Liabilities	Rs m	20,939	20,591	-1.7
Current assets	Rs m	15,900	14,458	-9.1
Fixed Assets	Rs m	5,037	6,132	21.7
Total Assets	Rs m	20,939	20,591	-1.7

KAVERI SEED Cash Flow Statement Analysis

• KAVERI SEED's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion, an improvement of 30.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 446 million 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 44 million from the Rs 15 million net cash flows seen during FY23.

KAVERI SEED 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	2,965	3,874	30.6%
Cash Flow from Investing Activities	Rs m	-1,188	446	-
Cash Flow from Financing Activities	Rs m	-1,762	-4,275	-
Net Cash Flow	Rs m	15	44	199.9%

Current Valuations for KAVERI SEED

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 57.0, an improvement from the EPS of Rs 48.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,176.0, stands at 19.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 5.7 times.
• The company's price to cash flow (P/CF) ratio stood at 10.0 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	191.4	206.5
TTM Earnings per share	Rs	48.8	57.0
Diluted earnings per share	Rs	53.0	57.0
Price to Cash Flow	x	8.4	10.0
TTM P/E ratio	x	9.0	19.2
Price / Book Value ratio	x	2.1	2.6
Market Cap	Rs m	29,247	31,886
Dividends per share (Unadj.)	Rs	4.0	5.0

Ratio Analysis for KAVERI SEED

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x 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 deteriorated and stood at 1,315.4x during FY24, from 1,521.7x 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 improved and stood at 23.8% during FY24, from 20.0% 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 improved and stood at 25.2% during FY24, from 21.0% 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 improved and stood at 14.2% during FY24, from 13.0% 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	2.4	1.9
Debtors’ Days	Days	455	206
Interest coverage	x	1,521.7	1,315.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.0	14.2
Return on equity	%	20.0	23.8
Return on capital employed	%	21.0	25.2

To see how KAVERI SEED has performed over the last 5 years, please visit here.

KAVERI SEED Share Price Performance

Over the last one year, KAVERI SEED share price has moved up from Rs 579.4 to Rs 1,176.0, registering a gain of Rs 596.6 or around 103.0%.

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

(To know more, check out historical annual results for KAVERI SEED and quarterly results for KAVERI SEED)