KALYANI FORGE 2022-23 Annual Report Analysis

Tue, 26 Sep

KALYANI FORGE has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

KALYANI FORGE Income Statement Analysis

• Operating income during the year rose 8.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 32.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.7% in FY23 as against 7.6% in FY22.
• Depreciation charges decreased by 9.3% and finance costs decreased by 7.0% YoY, respectively.
• Other income grew by 430.9% YoY.
• Net profit for the year grew by 15.2% YoY.
• Net profit margins during the year grew from 1.3% in FY22 to 1.4% in FY23.

KALYANI FORGE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,465	2,667	8.2%
Other income	Rs m	13	70	430.9%
Total Revenues	Rs m	2,478	2,737	10.4%
Gross profit	Rs m	187	126	-32.3%
Depreciation	Rs m	123	112	-9.3%
Interest	Rs m	36	34	-7.0%
Profit before tax	Rs m	40	51	26.0%
Tax	Rs m	9	15	64.0%
Profit after tax	Rs m	31	36	15.2%
Gross profit margin	%	7.6	4.7
Effective tax rate	%	22.1	28.8
Net profit margin	%	1.3	1.4

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KALYANI FORGE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 928 million as compared to Rs 740 million in FY22, thereby witnessing an increase of 25.5%.
• Long-term debt stood at Rs 9 million as compared to Rs 1 million during FY22, a growth of 937.2%.
• Current assets rose 22% and stood at Rs 2 billion, while fixed assets fell 12% and stood at Rs 449 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 12%.

KALYANI FORGE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,029	1,055	2.5
Current Liabilities	Rs m	740	928	25.5
Long-term Debt	Rs m	1	9	937.2
Total Liabilities	Rs m	1,798	2,016	12.1
Current assets	Rs m	1,288	1,567	21.6
Fixed Assets	Rs m	510	449	-11.9
Total Assets	Rs m	1,798	2,016	12.1

KALYANI FORGE Cash Flow Statement Analysis

• KALYANI FORGE's cash flow from operating activities (CFO) during FY23 stood at Rs -25 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -58 million, an improvement of 41.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 75 million, an improvement of 244% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -8 million from the Rs 18 million net cash flows seen during FY22.

KALYANI FORGE Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	111	-25	-
Cash Flow from Investing Activities	Rs m	-41	-58	-
Cash Flow from Financing Activities	Rs m	-52	75	-
Net Cash Flow	Rs m	18	-8	-

Current Valuations for KALYANI FORGE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.9, an improvement from the EPS of Rs 8.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 534.1, stands at 55.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 5.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	677.2	732.6
TTM Earnings per share	Rs	8.6	9.9
Diluted earnings per share	Rs	8.6	9.9
Price to Cash Flow	x	4.3	5.6
TTM P/E ratio	x	21.3	55.7
Price / Book Value ratio	x	0.7	0.8
Market Cap	Rs m	739	822
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for KALYANI FORGE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY23, from 1.7x during FY22. 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 2.5x during FY23, from 2.1x during FY22. 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 3.4% during FY23, from 3.0% during FY23. 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 7.9% during FY23, from 7.4% during FY22. 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 3.5% during FY23, from 3.8% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.7	1.7
Debtors’ Days	Days	1,078	1,045
Interest coverage	x	2.1	2.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.8	3.5
Return on equity	%	3.0	3.4
Return on capital employed	%	7.4	7.9

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

KALYANI FORGE Share Price Performance

Over the last one year, KALYANI FORGE share price has moved up from Rs 198.8 to Rs 534.1, registering a gain of Rs 335.3 or around 168.6%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 22,801.3 (up 0.3%). Over the last one year it has moved up from 17,843.8 to 22,801.3, a gain of 4,958 points (up 27.8%).

Overall, the S&P BSE SENSEX is up 11.5% over the year.

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