KITEX GARMENTS 2023-24 Annual Report Analysis

Tue, 1 Oct

KITEX GARMENTS 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.

KITEX GARMENTS Income Statement Analysis

• Operating income during the year rose 10.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 65.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.3% in FY24 as against 10.9% in FY23.
• Depreciation charges decreased by 2.4% and finance costs increased by 64.0% YoY, respectively.
• Other income declined by 67.7% YoY.
• Net profit for the year declined by 1.9% YoY.
• Net profit margins during the year declined from 10.2% in FY23 to 9.0% in FY24.

KITEX GARMENTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,570	6,169	10.8%
Other income	Rs m	441	143	-67.7%
Total Revenues	Rs m	6,011	6,312	5.0%
Gross profit	Rs m	609	1,005	65.1%
Depreciation	Rs m	212	207	-2.4%
Interest	Rs m	45	73	64.0%
Profit before tax	Rs m	793	867	9.4%
Tax	Rs m	223	309	38.3%
Profit after tax	Rs m	569	558	-1.9%
Gross profit margin	%	10.9	16.3
Effective tax rate	%	28.2	35.6
Net profit margin	%	10.2	9.0

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KITEX GARMENTS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 67.0%.
• Long-term debt stood at Rs 6 billion as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets rose 25% and stood at Rs 6 billion, while fixed assets rose 100% and stood at Rs 13 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 19 billion as against Rs 12 billion during FY23, thereby witnessing a growth of 69%.

KITEX GARMENTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,583	9,046	5.4
Current Liabilities	Rs m	1,074	1,794	67.0
Long-term Debt	Rs m	0	6,047	0.0
Total Liabilities	Rs m	11,500	19,425	68.9
Current assets	Rs m	4,775	5,990	25.5
Fixed Assets	Rs m	6,725	13,435	99.8
Total Assets	Rs m	11,500	19,425	68.9

KITEX GARMENTS Cash Flow Statement Analysis

• KITEX GARMENTS's cash flow from operating activities (CFO) during FY24 stood at Rs -383 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -6 billion, an improvement of 46.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 6 billion, an improvement of 1,040% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 43 million from the Rs -623 million net cash flows seen during FY23.

KITEX GARMENTS 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	2,953	-383	-
Cash Flow from Investing Activities	Rs m	-4,139	-6,074	-
Cash Flow from Financing Activities	Rs m	570	6,499	1,039.6%
Net Cash Flow	Rs m	-623	43	-

Current Valuations for KITEX GARMENTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.4, an decline from the EPS of Rs 8.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 541.4, stands at 48.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 5.8 times.
• The company's price to cash flow (P/CF) ratio stood at 18.4 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	83.8	92.8
TTM Earnings per share	Rs	8.6	8.4
Diluted earnings per share	Rs	8.6	8.4
Price to Cash Flow	x	11.6	18.4
TTM P/E ratio	x	16.0	48.2
Price / Book Value ratio	x	1.7	1.6
Market Cap	Rs m	14,776	14,103
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for KITEX GARMENTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.3x during FY24, from 4.4x 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 12.8x during FY24, from 18.7x 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 declined and down at 6.2% during FY24, from 6.6% 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 6.2% during FY24, from 9.8% 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 3.3% during FY24, from 5.3% 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	4.4	3.3
Debtors’ Days	Days	1,333	1,519
Interest coverage	x	18.7	12.8
Debt to equity ratio	x	0.0	0.7
Return on assets	%	5.3	3.3
Return on equity	%	6.6	6.2
Return on capital employed	%	9.8	6.2

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

KITEX GARMENTS Share Price Performance

Over the last one year, KITEX GARMENTS share price has moved up from Rs 207.7 to Rs 541.4, registering a gain of Rs 333.8 or around 160.7%.

Overall, the S&P BSE SENSEX is up 27.5% over the year.

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