BODAL CHEMICALS 2017-18 Annual Report Analysis

Sat, 31 Mar

BODAL CHEMICALS 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.

BODAL CHEMICALS Income Statement Analysis

• Operating income during the year fell 1.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 15.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.4% in FY18 as against 20.4% in FY17.
• Depreciation charges decreased by 58.2% and finance costs decreased by 39.0% YoY, respectively.
• Other income declined by 9.7% YoY.
• Net profit for the year declined by 6.3% YoY.
• Net profit margins during the year declined from 11.8% in FY17 to 11.1% in FY18.

BODAL CHEMICALS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	11,295	11,183	-1.0%
Other income	Rs m	105	95	-9.7%
Total Revenues	Rs m	11,400	11,278	-1.1%
Gross profit	Rs m	2,309	1,944	-15.8%
Depreciation	Rs m	289	121	-58.2%
Interest	Rs m	87	53	-39.0%
Profit before tax	Rs m	2,038	1,865	-8.5%
Tax	Rs m	709	619	-12.7%
Profit after tax	Rs m	1,329	1,246	-6.3%
Gross profit margin	%	20.4	17.4
Effective tax rate	%	34.8	33.2
Net profit margin	%	11.8	11.1

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BODAL CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 3 billion as compared to Rs 3 billion in FY17, thereby witnessing an increase of 10.1%.
• Long-term debt down at Rs 10 million as compared to Rs 79 million during FY17, a fall of 87.1%.
• Current assets rose 33% and stood at Rs 5 billion, while fixed assets rose 77% and stood at Rs 5 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 11 billion as against Rs 7 billion during FY17, thereby witnessing a growth of 52%.

BODAL CHEMICALS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	3,627	6,966	92.1
Current Liabilities	Rs m	3,162	3,481	10.1
Long-term Debt	Rs m	79	10	-87.1
Total Liabilities	Rs m	7,067	10,717	51.6
Current assets	Rs m	4,052	5,374	32.6
Fixed Assets	Rs m	3,015	5,342	77.2
Total Assets	Rs m	7,067	10,717	51.6

BODAL CHEMICALS Cash Flow Statement Analysis

• BODAL CHEMICALS's cash flow from operating activities (CFO) during FY18 stood at Rs 71 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -3 billion, an improvement of 277.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 2 billion, an improvement of 1,140% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -130 million from the Rs 137 million net cash flows seen during FY17.

BODAL CHEMICALS 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	1,036	71	-93.2%
Cash Flow from Investing Activities	Rs m	-679	-2,563	-
Cash Flow from Financing Activities	Rs m	-227	2,362	-
Net Cash Flow	Rs m	137	-130	-

Current Valuations for BODAL CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.2, an decline from the EPS of Rs 12.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 121.6, stands at 110.6 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 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 13.6 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	103.5	91.5
TTM Earnings per share	Rs	12.2	10.2
Diluted earnings per share	Rs	10.9	10.2
Price to Cash Flow	x	12.1	13.6
TTM P/E ratio	x	145.8	110.6
Price / Book Value ratio	x	3.5	2.7
Market Cap	Rs m	12,708	18,640
Dividends per share (Unadj.)	Rs	0.8	0.8

Ratio Analysis for BODAL CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x 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 improved and stood at 36.1x 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.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 17.9% during FY18, from 36.7% 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 27.5% during FY18, from 57.4% 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 12.1% during FY18, from 20.0% 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	1.5
Debtors’ Days	Days	74	113
Interest coverage	x	24.4	36.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	20.0	12.1
Return on equity	%	36.7	17.9
Return on capital employed	%	57.4	27.5

To see how BODAL CHEMICALS has performed over the last 5 years, please visit here.

BODAL CHEMICALS Share Price Performance

Over the last one year, BODAL CHEMICALS share price has moved down from Rs 160.3 to Rs 121.6, registering a loss of Rs 38.7 or around 24.1%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for BODAL CHEMICALS and quarterly results for BODAL CHEMICALS)

Read: Latest Annual Report Analysis of BODAL CHEMICALS