BALAJI AMINES 2022-23 Annual Report Analysis

Tue, 20 Jun

BALAJI AMINES 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.

BALAJI AMINES Income Statement Analysis

• Operating income during the year rose 1.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 25.9% in FY23 as against 26.8% in FY22.
• Depreciation charges increased by 8.5% and finance costs decreased by 30.0% YoY, respectively.
• Other income grew by 3.6% YoY.
• Net profit for the year declined by 2.9% YoY.
• Net profit margins during the year declined from 18.0% in FY22 to 17.2% in FY23.

BALAJI AMINES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	23,229	23,554	1.4%
Other income	Rs m	147	152	3.6%
Total Revenues	Rs m	23,376	23,706	1.4%
Gross profit	Rs m	6,227	6,091	-2.2%
Depreciation	Rs m	420	456	8.5%
Interest	Rs m	171	120	-30.0%
Profit before tax	Rs m	5,783	5,668	-2.0%
Tax	Rs m	1,604	1,611	0.5%
Profit after tax	Rs m	4,179	4,057	-2.9%
Gross profit margin	%	26.8	25.9
Effective tax rate	%	27.7	28.4
Net profit margin	%	18.0	17.2

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BALAJI AMINES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -50.3%.
• Long-term debt down at Rs 303 million as compared to Rs 576 million during FY22, a fall of 47.4%.
• Current assets rose 14% and stood at Rs 10 billion, while fixed assets rose 11% and stood at Rs 9 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 20 billion as against Rs 17 billion during FY22, thereby witnessing a growth of 12%.

BALAJI AMINES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	12,498	15,542	24.4
Current Liabilities	Rs m	3,007	1,493	-50.3
Long-term Debt	Rs m	576	303	-47.4
Total Liabilities	Rs m	17,453	19,628	12.5
Current assets	Rs m	9,071	10,328	13.9
Fixed Assets	Rs m	8,382	9,300	11.0
Total Assets	Rs m	17,453	19,628	12.5

BALAJI AMINES Cash Flow Statement Analysis

• BALAJI AMINES's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion, an improvement of 74.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 26.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -812 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 billion from the Rs 158 million net cash flows seen during FY22.

BALAJI AMINES 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	2,196	3,822	74.1%
Cash Flow from Investing Activities	Rs m	-1,473	-1,863	-
Cash Flow from Financing Activities	Rs m	-565	-812	-
Net Cash Flow	Rs m	158	1,146	625.4%

Current Valuations for BALAJI AMINES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 125.2, an decline from the EPS of Rs 129.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,432.5, stands at 19.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.1 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 20.7 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	716.9	727.0
TTM Earnings per share	Rs	129.0	125.2
Diluted earnings per share	Rs	129.0	125.2
Price to Cash Flow	x	20.4	20.7
TTM P/E ratio	x	22.5	19.4
Price / Book Value ratio	x	9.0	6.0
Market Cap	Rs m	112,495	93,427
Dividends per share (Unadj.)	Rs	6.0	10.0

Ratio Analysis for BALAJI AMINES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.9x during FY23, from 3.0x 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 48.3x during FY23, from 34.8x 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 declined and down at 26.1% during FY23, from 33.4% 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 declined and down at 36.5% during FY23, from 45.5% 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 21.3% during FY23, from 24.9% 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	3.0	6.9
Debtors’ Days	Days	924	585
Interest coverage	x	34.8	48.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	24.9	21.3
Return on equity	%	33.4	26.1
Return on capital employed	%	45.5	36.5

To see how BALAJI AMINES has performed over the last 5 years, please visit here.

BALAJI AMINES Share Price Performance

Over the last one year, BALAJI AMINES share price has moved down from Rs 2,735.8 to Rs 2,432.5, registering a loss of Rs 303.3 or around 11.1%.

Overall, the S&P BSE SENSEX is up 22.4% over the year.

(To know more, check out historical annual results for BALAJI AMINES and quarterly results for BALAJI AMINES)