Kesar Enterprises Q1 Results Revenue Down 61.22% QoQ, 47.92% YoY

Kesar Enterprises Q1 Results: Kesar Enterprises saw a significant decrease in its total revenue in the first quarter of 2024, dropping by 61.22% compared to the previous quarter and by 47.92% compared to the same quarter last year. This indicates a sharp decline in their sales performance. The company's expenses on selling, general, and administrative costs were reported at 9.78 crores, which is a reduction from the negative expense reported in the last quarter, but a decrease of 14.30% compared to the same period last year. Depreciation and amortization expenses increased by 6.41% from the last quarter and 21.87% from the previous year, showing higher costs associated with their assets.

Kesar Enterprises’ Other operating expenses fell significantly by 28.79% from the last quarter and by 53.39% from the previous year. Despite this, their total operating expenses decreased by 44.37% from the last quarter and 36.30% from the previous year. However, the company reported an operating loss of 15.17 crores, compared to a profit of 19.96 crores in the last quarter.

Kesar Enterprises’ Net income before taxes and net income both showed a dramatic change, with the company reporting a loss of 17.12 crores in the current quarter compared to a profit in the previous quarter. The diluted normalized earnings per share also went negative, reflecting the overall poor financial performance.

Here's a summary of Kesar Enterprises' Q1 financial results:

Source: Here 

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Kesar Enterprises Q1 Results 

Kesar Enterprises reported its financial performance for the three months ending on June 30, 2024, with some key figures showing both strengths and challenges. The company’s revenue from its main operations was ₹6,948.79 million, which was lower compared to the previous quarter (March 31, 2024) but still significant. Alongside this, Kesar Enterprises earned an additional ₹51.55 million from other income sources, bringing the total income for the quarter to ₹7,000.34 million.

On the expenses side, the company faced substantial costs, totaling ₹8,712.80 million. This included various expenses like the cost of materials consumed (₹8.99 million), employee benefits (₹754.32 million), and finance costs (₹247.23 million). Notably, there was a significant positive adjustment in inventory, adding ₹6,446.35 million, but this wasn’t enough to offset other expenses. Depreciation and repairs also contributed to the costs.

As a result, the company recorded a loss before tax of ₹1,712.46 million for the quarter. This loss is a stark contrast to the profit of ₹12,526.75 million recorded in the previous quarter. No tax expenses were reported for this period, so the net loss remained the same. Despite the overall loss, Kesar Enterprises did report an additional comprehensive income of ₹292.32 million from items that will not be reclassified to profit or loss. This financial quarter reflects a challenging period for the company, with revenue not covering the high operational costs, leading to a net loss.

The financial summary data for three different periods and a full fiscal year. 

Here's a breakdown of the financial results:

(in million INR)

Kesar Enterprises Financial Performance

Kesar Enterprises has a market capitalization of ₹178 crores, which reflects the total value of the company's shares. The current price of each share is ₹176, while the highest price in recent times was ₹196 and the lowest was ₹83. The company's book value per share is ₹190, indicating the value of assets minus liabilities per share.

Here’s the information in table format:

Quarterly Results 

The table for Kesar Enterprises shows financial performance for three quarters: December 2023, March 2024, and June 2024. In December 2023, the company made Rs. 164 crores in sales but spent Rs. 162 crores, leaving a small operating profit of Rs. 2 crores and a net loss of Rs. 9 crores. By March 2024, sales increased to Rs. 179 crores, and expenses dropped to Rs. 147 crores, leading to a higher operating profit of Rs. 32 crores and a significant net profit of Rs. 125 crores.

Sure! Here’s the transposed data for the specified quarters (Dec 2023, Mar 2024, Jun 2024):

About Kesar Enterprises 

Kesar Enterprises is a company with a rich history that goes back more than a hundred years. It was started by Kilachand Devchand, who moved from a small village in Gujarat called Patan to Bombay (now Mumbai). Over the years, the Kilachand family grew their business, making the Kilachand Group a major player in many industries like cotton, oilseeds, shipping, banking, and more. KEL was established in 1933 as a part of this group and has been in operation for over 77 years. The company is now one of the leading industrial houses in Uttar Pradesh, North India.

KEL is involved in three main areas: sugar production, alcohol production, and power generation. The Sugar division focuses on making and selling sugar and its by-products. The Spirits division produces and sells alcohol and alcoholic beverages. The Power division generates electricity from bagasse, which is a by-product of sugar production. 

All these divisions are certified with ISO 9001:2008, which means they meet high-quality standards. KEL has invested in modern technology and research, especially in its Sugar division, helping the company grow steadily. With a strong and integrated business model, KEL continues to achieve success and aims for even higher growth in the future.