KALYANI STEELS has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.
KALYANI STEELS Income Statement Analysis
- Operating income during the year rose 6.9% on a year-on-year (YoY) basis.
- The company's operating profit decreased by 28.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.2% in FY18 as against 22.8% in FY17.
- Depreciation charges and finance costs decreased by 28.4% YoY and 9.4% YoY, respectively.
- Other income grew by 27.5% YoY.
- Net profit for the year declined by 26.1% YoY.
- Net profit margins during the year declined from 12.3% in FY17 to 8.5% in FY18.
KALYANI STEELS Income Statement 2017-18
| No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | % Change | |
|---|---|---|---|---|
| Net Sales | Rs m | 12,574 | 13,442 | 6.9% |
| Other income | Rs m | 136 | 174 | 27.5% |
| Total Revenues | Rs m | 12,711 | 13,615 | 7.1% |
| Gross profit | Rs m | 2,872 | 2,041 | -28.9% |
| Depreciation | Rs m | 521 | 373 | -28.4% |
| Interest | Rs m | 102 | 93 | -9.4% |
| Profit before tax | Rs m | 2,386 | 1,750 | -26.7% |
| Tax | Rs m | 827 | 597 | -27.8% |
| Profit after tax | Rs m | 1,559 | 1,153 | -26.1% |
| Gross profit margin | % | 22.8 | 15.2 | |
| Effective tax rate | % | 34.7 | 34.1 | |
| Net profit margin | % | 12.3 | 8.5 | |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
KALYANI STEELS Balance Sheet Analysis
- The company's current liabilities during FY18 down at Rs 4 billion as compared to Rs 5 billion in FY17, thereby witnessing an decrease of -21.8%.
- Long-term debt down at Rs 236 million as compared to Rs 652 million during FY17, a fall of 63.8%.
- Current assets fell 9% and stood at Rs 7 billion, while fixed assets rose 0% and stood at Rs 4 billion in FY18.
- Overall, the total assets and liabilities for FY18 stood at Rs 13 billion as against Rs 14 billion during FY17, thereby witnessing a fall of 6%.
KALYANI STEELS Balance Sheet as on March 2018
| No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | % Change | |
|---|---|---|---|---|
| Networth | Rs m | 6,780 | 7,673 | 13.2 |
| Current Liabilities | Rs m | 5,406 | 4,229 | -21.8 |
| Long-term Debt | Rs m | 652 | 236 | -63.8 |
| Total Liabilities | Rs m | 13,623 | 12,799 | -6.0 |
| Current assets | Rs m | 7,243 | 6,615 | -8.7 |
| Fixed Assets | Rs m | 4,437 | 4,445 | 0.2 |
| Total Assets | Rs m | 13,623 | 12,799 | -6.0 |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
KALYANI STEELS Cash Flow Statement Analysis
- KALYANI STEELS's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion, an improvement of 26.2% on a YoY basis.
- Cash flow from investing activities (CFI) during FY18 stood at Rs -774 million, an improvement of 102.9% on a YoY basis.
- Cash flow from financial activities (CFF) during FY18 stood at Rs -1 billion on a YoY basis.
- Overall, net cash flows for the company during FY18 stood at Rs 95 million from the Rs 157 million net cash flows seen during FY17.
KALYANI STEELS Cash Flow Statement 2017-18
| Particulars | No. of months | 12 | 12 | % Change |
|---|---|---|---|---|
| Year Ending | Mar-17 | Mar-18 | ||
| Cash Flow from Operating Activities | Rs m | 1,521 | 1,920 | 26.2% |
| Cash Flow from Investing Activities | Rs m | -381 | -774 | - |
| Cash Flow from Financing Activities | Rs m | -982 | -1,051 | - |
| Net Cash Flow | Rs m | 157 | 95 | -39.5% |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
Current Valuations for KALYANI STEELS
- The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.4, an decline from the EPS of Rs 35.7 recorded last year.
- The price to earnings (P/E) ratio, at the current price of Rs 268.2, stands at 10.1 times its trailing twelve months earnings.
- The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 1.2 times.
- The company's price to cash flow (P/CF) ratio stood at 7.7 times its end-of-year operating cash flow earnings.
Per Share Data/Valuations
| No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | |
|---|---|---|---|
| Sales per share (Unadj.) | Rs | 288.1 | 307.9 |
| TTM Earnings per share | Rs | 35.7 | 26.4 |
| Diluted earnings per share | Rs | 35.7 | 26.4 |
| Price to Cash Flow | x | 5.6 | 7.7 |
| TTM P/E ratio | x | 10.1 | 10.1 |
| Price / Book Value ratio | x | 1.8 | 2.1 |
| Market Cap | Rs m | 11,705 | 11,705 |
| Dividends per share (Unadj.) | Rs | 5.0 | 5.0 |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
Ratio Analysis for KALYANI STEELS
Solvency Ratios
Profitability Ratios
Current Ratio: The company's current ratio improved and stood at 1.6x during FY18, from 1.3x during FY17. 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 19.9x during FY18, from 24.4x during FY17. 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.
Return on Equity (ROE): The ROE for the company declined and down at 15.0% during FY18, from 23.0% during FY18. 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 23.3% during FY18, from 33.5% during FY17. 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 9.7% during FY18, from 12.2% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.
Key Ratio Analysis
| No. of Mths Year Ending | 12 Mar-17* | 12 Mar-18* | |
|---|---|---|---|
| Current ratio | x | 1.3 | 1.6 |
| Debtors’ Days | Days | 135 | 102 |
| Interest coverage | x | 24.4 | 19.9 |
| Debt to equity ratio | x | 0.1 | 0.0 |
| Return on assets | % | 12.2 | 9.7 |
| Return on equity | % | 23.0 | 15.0 |
| Return on capital employed | % | 33.5 | 23.3 |
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster
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 417.6 to Rs 268.2, registering a loss of Rs 149.5 or around 35.8%.
Meanwhile, the S&P BSE METAL Index is trading at Rs 13,532.9 (up 1.0%). Over the last one year it has moved up from 13,094.4 to 13,532.9, a gain of 438 points (up 3.3%).
Overall, the S&P BSE SENSEX is up 22.4% over the year.
This article was originally published in English at www.equitymaster.com
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