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KIOCL (NSE:KIOCL) Beneish M-Score : -3.42 (As of Dec. 13, 2024)


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What is KIOCL Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.42 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for KIOCL's Beneish M-Score or its related term are showing as below:

NSE:KIOCL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.42   Med: -1.73   Max: 1.38
Current: -3.42

During the past 13 years, the highest Beneish M-Score of KIOCL was 1.38. The lowest was -3.42. And the median was -1.73.


KIOCL Beneish M-Score Historical Data

The historical data trend for KIOCL's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

KIOCL Beneish M-Score Chart

KIOCL Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.77 0.20 -1.68 -1.18 -3.42

KIOCL Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - -3.42 - -

Competitive Comparison of KIOCL's Beneish M-Score

For the Steel subindustry, KIOCL's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


KIOCL's Beneish M-Score Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, KIOCL's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where KIOCL's Beneish M-Score falls into.



KIOCL Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of KIOCL for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.0633+0.528 * 0.8031+0.404 * 1.047+0.892 * 1.2014+0.115 * 0.9873
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6542+4.679 * -0.07712-0.327 * 0.6115
=-3.42

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was ₹294 Mil.
Revenue was ₹18,541 Mil.
Gross Profit was ₹3,882 Mil.
Total Current Assets was ₹13,220 Mil.
Total Assets was ₹24,381 Mil.
Property, Plant and Equipment(Net PPE) was ₹10,441 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹274 Mil.
Selling, General, & Admin. Expense(SGA) was ₹15 Mil.
Total Current Liabilities was ₹2,991 Mil.
Long-Term Debt & Capital Lease Obligation was ₹1,311 Mil.
Net Income was ₹-833 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹1,047 Mil.
Total Receivables was ₹3,868 Mil.
Revenue was ₹15,432 Mil.
Gross Profit was ₹2,595 Mil.
Total Current Assets was ₹18,809 Mil.
Total Assets was ₹29,380 Mil.
Property, Plant and Equipment(Net PPE) was ₹9,743 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹253 Mil.
Selling, General, & Admin. Expense(SGA) was ₹19 Mil.
Total Current Liabilities was ₹7,101 Mil.
Long-Term Debt & Capital Lease Obligation was ₹1,377 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(294.295 / 18540.708) / (3868.161 / 15432.035)
=0.015873 / 0.250658
=0.0633

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(2594.622 / 15432.035) / (3881.79 / 18540.708)
=0.168132 / 0.209366
=0.8031

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (13220.348 + 10440.627) / 24381.462) / (1 - (18808.56 + 9742.623) / 29380.453)
=0.029551 / 0.028225
=1.047

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=18540.708 / 15432.035
=1.2014

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(252.525 / (252.525 + 9742.623)) / (274.204 / (274.204 + 10440.627))
=0.025265 / 0.025591
=0.9873

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(14.9 / 18540.708) / (18.971 / 15432.035)
=0.000804 / 0.001229
=0.6542

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1310.881 + 2991.466) / 24381.462) / ((1377.44 + 7100.73) / 29380.453)
=0.17646 / 0.288565
=0.6115

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-833.052 - 0 - 1047.255) / 24381.462
=-0.07712

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

KIOCL has a M-score of -3.42 suggests that the company is unlikely to be a manipulator.


KIOCL Business Description

Traded in Other Exchanges
Address
Sarjapura Road, Block II, Koramangala, Bengaluru, KA, IND, 560034
KIOCL Ltd is engaged in the manufacturing and export of iron oxide pellets. It is primarily engaged in the business of iron ore mining, beneficiation, and production of high-quality pellets. The company operates through two segments namely Iron oxide pellet and Pig iron. Geographically it operates through the region of India and generates the majority of the revenue from outside India. The company is also engaged in also engage in mineral exploration and are involved in the exploration of minerals such as iron, manganese, limestone, nickel, chromium, copper, gold, lead, zinc, kyanite & phosphorite. The company generates the majority of its revenue from the Pellets segment.

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