KALYANI STEELS 2023-24 Annual Report Analysis

Mon, 29 Jul

KALYANI STEELS 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.

KALYANI STEELS Income Statement Analysis

• Operating income during the year rose 3.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 51.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.0% in FY24 as against 12.9% in FY23.
• Depreciation charges increased by 24.2% and finance costs decreased by 8.1% YoY, respectively.
• Other income declined by 17.0% YoY.
• Net profit for the year grew by 48.9% YoY.
• Net profit margins during the year grew from 8.8% in FY23 to 12.7% in FY24.

KALYANI STEELS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	18,994	19,595	3.2%
Other income	Rs m	564	468	-17.0%
Total Revenues	Rs m	19,558	20,063	2.6%
Gross profit	Rs m	2,457	3,728	51.8%
Depreciation	Rs m	489	608	24.2%
Interest	Rs m	281	258	-8.1%
Profit before tax	Rs m	2,251	3,331	48.0%
Tax	Rs m	580	843	45.3%
Profit after tax	Rs m	1,670	2,488	48.9%
Gross profit margin	%	12.9	19.0
Effective tax rate	%	25.8	25.3
Net profit margin	%	8.8	12.7

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KALYANI STEELS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 7 billion in FY23, thereby witnessing an increase of 16.4%.
• Long-term debt down at Rs 834 million as compared to Rs 2 billion during FY23, a fall of 49.3%.
• Current assets fell 13% and stood at Rs 14 billion, while fixed assets rose 54% and stood at Rs 12 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 26 billion as against Rs 24 billion during FY23, thereby witnessing a growth of 9%.

KALYANI STEELS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	14,895	16,798	12.8
Current Liabilities	Rs m	6,715	7,814	16.4
Long-term Debt	Rs m	1,644	834	-49.3
Total Liabilities	Rs m	23,505	25,733	9.5
Current assets	Rs m	15,703	13,727	-12.6
Fixed Assets	Rs m	7,803	12,006	53.9
Total Assets	Rs m	23,505	25,733	9.5

KALYANI STEELS Cash Flow Statement Analysis

• KALYANI STEELS's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -97 million, an improvement of 75% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 88 million from the Rs -116 million net cash flows seen during FY23.

KALYANI STEELS 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	-1,257	3,015	-
Cash Flow from Investing Activities	Rs m	1,531	-2,830	-
Cash Flow from Financing Activities	Rs m	-390	-97	-
Net Cash Flow	Rs m	-116	88	-

Current Valuations for KALYANI STEELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 57.0, an improvement from the EPS of Rs 38.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 881.8, stands at 15.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 9.7 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	435.1	448.9
TTM Earnings per share	Rs	38.3	57.0
Diluted earnings per share	Rs	38.3	57.0
Price to Cash Flow	x	6.0	9.7
TTM P/E ratio	x	7.7	15.6
Price / Book Value ratio	x	1.0	1.8
Market Cap	Rs m	14,268	30,004
Dividends per share (Unadj.)	Rs	10.0	10.0

Ratio Analysis for KALYANI STEELS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY24, from 2.3x 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 13.9x during FY24, from 9.0x 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 14.8% during FY24, from 11.2% 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 20.4% during FY24, from 15.3% 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 10.7% during FY24, from 8.3% 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	2.3	1.8
Debtors’ Days	Days	78	78
Interest coverage	x	9.0	13.9
Debt to equity ratio	x	0.1	0.0
Return on assets	%	8.3	10.7
Return on equity	%	11.2	14.8
Return on capital employed	%	15.3	20.4

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

KALYANI STEELS Share Price Performance

Over the last one year, KALYANI STEELS share price has moved up from Rs 400.1 to Rs 881.8, registering a gain of Rs 481.8 or around 120.4%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 32,309.1 (up 0.1%). Over the last one year it has moved up from 21,804.0 to 32,309.1, a gain of 10,505 points (up 48.2%).

Overall, the S&P BSE SENSEX is up 22.6% over the year.

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