KSE 2023-24 Annual Report Analysis

Wed, 14 Aug

KSE 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.

KSE Income Statement Analysis

• Operating income during the year rose 4.6% 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 1.7% in FY24 as against 0.1% in FY23.
• Depreciation charges increased by 8.7% and finance costs increased by 36.8% YoY, respectively.
• Other income declined by 27.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 0.1% in FY23 to 1.0% in FY24.

KSE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	16,099	16,835	4.6%
Other income	Rs m	55	40	-27.9%
Total Revenues	Rs m	16,154	16,875	4.5%
Gross profit	Rs m	-20	279	NA
Depreciation	Rs m	44	47	8.7%
Interest	Rs m	21	29	36.8%
Profit before tax	Rs m	-30	242	NA
Tax	Rs m	-6	66	NA
Profit after tax	Rs m	-24	176	NA
Gross profit margin	%	-0.1	1.7
Effective tax rate	%	20.3	27.4
Net profit margin	%	-0.1	1.0

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

KSE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 386 million as compared to Rs 404 million in FY23, thereby witnessing an decrease of -4.4%.
• Long-term debt stood at Rs 138 million as compared to Rs 134 million during FY23, a growth of 3.2%.
• Current assets rose 2% and stood at Rs 2 billion, while fixed assets rose 10% and stood at Rs 599 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 4%.

KSE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,141	2,248	5.0
Current Liabilities	Rs m	404	386	-4.4
Long-term Debt	Rs m	134	138	3.2
Total Liabilities	Rs m	2,679	2,773	3.5
Current assets	Rs m	2,135	2,174	1.8
Fixed Assets	Rs m	544	599	10.1
Total Assets	Rs m	2,679	2,773	3.5

KSE Cash Flow Statement Analysis

• KSE's cash flow from operating activities (CFO) during FY24 stood at Rs -150 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 237 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -72 million, an improvement of 13% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 15 million from the Rs -57 million net cash flows seen during FY23.

KSE 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	343	-150	-
Cash Flow from Investing Activities	Rs m	-317	237	-
Cash Flow from Financing Activities	Rs m	-83	-72	-
Net Cash Flow	Rs m	-57	15	-

Current Valuations for KSE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 55.0, an improvement from the EPS of Rs -7.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,700.0, stands at 49.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 24.1 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	5,030.9	5,260.9
TTM Earnings per share	Rs	-7.4	55.0
Diluted earnings per share	Rs	-7.4	55.0
Price to Cash Flow	x	264.5	24.1
TTM P/E ratio	x	-219.2	49.1
Price / Book Value ratio	x	2.9	2.4
Market Cap	Rs m	6,283	5,390
Dividends per share (Unadj.)	Rs	20.0	30.0

Ratio Analysis for KSE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.6x during FY24, from 5.3x 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 9.3x during FY24, from -0.4x 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 7.8% during FY24, from -1.1% 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 11.4% during FY24, from -0.4% 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 7.4% during FY24, from -0.1% 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	5.3	5.6
Debtors’ Days	Days	3	2
Interest coverage	x	-0.4	9.3
Debt to equity ratio	x	0.1	0.1
Return on assets	%	-0.1	7.4
Return on equity	%	-1.1	7.8
Return on capital employed	%	-0.4	11.4

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

KSE Share Price Performance

Over the last one year, KSE share price has moved up from Rs 1,640.7 to Rs 2,700.0, registering a gain of Rs 1,059.4 or around 64.6%.

Overall, the S&P BSE SENSEX is up 20.9% over the year.

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