BODAL CHEMICALS 2020-21 Annual Report Analysis

Wed, 31 Mar

BODAL CHEMICALS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

BODAL CHEMICALS Income Statement Analysis

• Operating income during the year fell 10.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 37.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.1% in FY21 as against 10.0% in FY20.
• Depreciation charges increased by 7.3% and finance costs decreased by 12.5% YoY, respectively.
• Other income grew by 53.2% YoY.
• Net profit for the year declined by 53.8% YoY.
• Net profit margins during the year declined from 6.3% in FY20 to 3.2% in FY21.

BODAL CHEMICALS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	13,748	12,264	-10.8%
Other income	Rs m	104	159	53.2%
Total Revenues	Rs m	13,852	12,424	-10.3%
Gross profit	Rs m	1,377	866	-37.1%
Depreciation	Rs m	284	305	7.3%
Interest	Rs m	190	166	-12.5%
Profit before tax	Rs m	1,006	554	-45.0%
Tax	Rs m	146	156	7.0%
Profit after tax	Rs m	860	398	-53.8%
Gross profit margin	%	10.0	7.1
Effective tax rate	%	14.5	28.2
Net profit margin	%	6.3	3.2

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BODAL CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 6 billion as compared to Rs 5 billion in FY20, thereby witnessing an increase of 23.4%.
• Long-term debt stood at Rs 1 billion as compared to Rs 0 million during FY20, a growth of 559900.0%.
• Current assets rose 15% and stood at Rs 9 billion, while fixed assets rose 25% and stood at Rs 9 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 17 billion as against Rs 15 billion during FY20, thereby witnessing a growth of 20%.

BODAL CHEMICALS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	8,871	9,731	9.7
Current Liabilities	Rs m	4,945	6,101	23.4
Long-term Debt	Rs m	0	1,064	559,900.0
Total Liabilities	Rs m	14,554	17,413	19.6
Current assets	Rs m	7,580	8,709	14.9
Fixed Assets	Rs m	6,974	8,704	24.8
Total Assets	Rs m	14,554	17,413	19.6

BODAL CHEMICALS Cash Flow Statement Analysis

• BODAL CHEMICALS's cash flow from operating activities (CFO) during FY21 stood at Rs -130 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 108.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 2 billion, an improvement of 135% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -26 million from the Rs 67 million net cash flows seen during FY20.

BODAL CHEMICALS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	96	-130	-
Cash Flow from Investing Activities	Rs m	-805	-1,677	-
Cash Flow from Financing Activities	Rs m	759	1,781	134.7%
Net Cash Flow	Rs m	67	-26	-

Current Valuations for BODAL CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.3, an decline from the EPS of Rs 7.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 90.1, stands at 27.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 12.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	112.4	100.3
TTM Earnings per share	Rs	7.0	3.3
Diluted earnings per share	Rs	7.0	3.2
Price to Cash Flow	x	4.5	12.6
TTM P/E ratio	x	6.0	27.7
Price / Book Value ratio	x	1.2	0.9
Market Cap	Rs m	10,212	8,841
Dividends per share (Unadj.)	Rs	0.8	0.8

Ratio Analysis for BODAL CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY21, from 1.5x during FY20. 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 4.3x during FY21, from 6.3x during FY20. 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 4.1% during FY21, from 9.7% during FY21. 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 6.7% during FY21, from 13.5% during FY20. 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 3.2% during FY21, from 7.2% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.5	1.4
Debtors’ Days	Days	121	139
Interest coverage	x	6.3	4.3
Debt to equity ratio	x	0.0	0.1
Return on assets	%	7.2	3.2
Return on equity	%	9.7	4.1
Return on capital employed	%	13.5	6.7

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 up from Rs 42.3 to Rs 90.1, registering a gain of Rs 47.8 or around 112.9%.

Overall, the S&P BSE SENSEX is up 74.1% 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