BODAL CHEMICALS 2021-22 Annual Report Analysis

Tue, 6 Sep

BODAL CHEMICALS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

BODAL CHEMICALS Income Statement Analysis

• Operating income during the year rose 67.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 131.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.8% in FY22 as against 7.1% in FY21.
• Depreciation charges increased by 52.9% and finance costs increased by 77.1% YoY, respectively.
• Other income grew by 8.8% YoY.
• Net profit for the year grew by 148.1% YoY.
• Net profit margins during the year grew from 3.2% in FY21 to 4.8% in FY22.

BODAL CHEMICALS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	12,264	20,506	67.2%
Other income	Rs m	159	173	8.8%
Total Revenues	Rs m	12,424	20,680	66.5%
Gross profit	Rs m	866	2,008	131.9%
Depreciation	Rs m	305	466	52.9%
Interest	Rs m	166	295	77.1%
Profit before tax	Rs m	554	1,420	156.5%
Tax	Rs m	156	434	177.8%
Profit after tax	Rs m	398	987	148.1%
Gross profit margin	%	7.1	9.8
Effective tax rate	%	28.2	30.5
Net profit margin	%	3.2	4.8

Download Now: Exclusive Guide About India's Potentially Decade-Long $10 Trillion Bull Run...

BODAL CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 8 billion as compared to Rs 6 billion in FY21, thereby witnessing an increase of 31.8%.
• Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY21, a growth of 100.9%.
• Current assets rose 30% and stood at Rs 11 billion, while fixed assets rose 12% and stood at Rs 10 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 21 billion as against Rs 17 billion during FY21, thereby witnessing a growth of 21%.

BODAL CHEMICALS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	9,792	10,547	7.7
Current Liabilities	Rs m	6,101	8,044	31.8
Long-term Debt	Rs m	1,064	2,137	100.9
Total Liabilities	Rs m	17,489	21,132	20.8
Current assets	Rs m	8,709	11,308	29.8
Fixed Assets	Rs m	8,780	9,825	11.9
Total Assets	Rs m	17,489	21,132	20.8

BODAL CHEMICALS Cash Flow Statement Analysis

• BODAL CHEMICALS's cash flow from operating activities (CFO) during FY22 stood at Rs -135 million, an improvement of 3.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion, an improvement of 1.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 2 billion, an improvement of 2% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -26 million from the Rs -26 million net cash flows seen during FY21.

BODAL CHEMICALS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	-130	-135	-
Cash Flow from Investing Activities	Rs m	-1,677	-1,703	-
Cash Flow from Financing Activities	Rs m	1,781	1,812	1.7%
Net Cash Flow	Rs m	-26	-26	-

Current Valuations for BODAL CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.1, an improvement from the EPS of Rs 3.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 97.8, stands at 12.6 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 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 9.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	100.3	167.4
TTM Earnings per share	Rs	3.3	8.1
Diluted earnings per share	Rs	3.2	8.1
Price to Cash Flow	x	15.7	9.9
TTM P/E ratio	x	27.7	12.6
Price / Book Value ratio	x	0.9	1.4
Market Cap	Rs m	8,841	14,434
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 FY22, from 1.4x during FY21. 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 5.8x during FY22, from 4.3x during FY21. 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 improved and stood at 9.4% during FY22, from 4.1% during FY22. 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 improved and stood at 13.5% during FY22, from 6.6% during FY21. 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 improved and stood at 6.1% during FY22, from 3.2% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.4	1.4
Debtors’ Days	Days	139	105
Interest coverage	x	4.3	5.8
Debt to equity ratio	x	0.1	0.2
Return on assets	%	3.2	6.1
Return on equity	%	4.1	9.4
Return on capital employed	%	6.6	13.5

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 108.1 to Rs 97.8, registering a loss of Rs 10.4 or around 9.6%.

Overall, the S&P BSE SENSEX is up 2.5% 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