BODAL CHEMICALS 2022-23 Annual Report Analysis

Thu, 21 Sep

BODAL CHEMICALS 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.

BODAL CHEMICALS Income Statement Analysis

• Operating income during the year fell 23.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 33.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.5% in FY23 as against 9.8% in FY22.
• Depreciation charges increased by 13.9% and finance costs increased by 39.2% YoY, respectively.
• Other income declined by 32.2% YoY.
• Net profit for the year declined by 61.5% YoY.
• Net profit margins during the year declined from 4.8% in FY22 to 2.4% in FY23.

BODAL CHEMICALS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	20,553	15,743	-23.4%
Other income	Rs m	171	116	-32.2%
Total Revenues	Rs m	20,724	15,859	-23.5%
Gross profit	Rs m	2,010	1,333	-33.7%
Depreciation	Rs m	466	531	13.9%
Interest	Rs m	295	410	39.2%
Profit before tax	Rs m	1,420	508	-64.2%
Tax	Rs m	434	128	-70.5%
Profit after tax	Rs m	987	380	-61.5%
Gross profit margin	%	9.8	8.5
Effective tax rate	%	30.5	25.2
Net profit margin	%	4.8	2.4

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BODAL CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 6 billion as compared to Rs 8 billion in FY22, thereby witnessing an decrease of -21.8%.
• Long-term debt stood at Rs 4 billion as compared to Rs 2 billion during FY22, a growth of 69.3%.
• Current assets fell 24% and stood at Rs 9 billion, while fixed assets rose 29% and stood at Rs 13 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 21 billion as against Rs 21 billion during FY22, thereby witnessing a growth of 0%.

BODAL CHEMICALS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	10,512	10,764	2.4
Current Liabilities	Rs m	7,938	6,210	-21.8
Long-term Debt	Rs m	2,137	3,618	69.3
Total Liabilities	Rs m	21,132	21,204	0.3
Current assets	Rs m	11,216	8,509	-24.1
Fixed Assets	Rs m	9,825	12,696	29.2
Total Assets	Rs m	21,132	21,204	0.3

BODAL CHEMICALS Cash Flow Statement Analysis

• BODAL CHEMICALS's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion, an improvement of 82.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 327 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 75 million from the Rs -26 million net cash flows seen during FY22.

BODAL CHEMICALS 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	-135	2,849	-
Cash Flow from Investing Activities	Rs m	-1,703	-3,101	-
Cash Flow from Financing Activities	Rs m	1,812	327	-82.0%
Net Cash Flow	Rs m	-26	75	-

Current Valuations for BODAL CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.0, an decline from the EPS of Rs 8.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 78.0, stands at 55.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 12.0 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	167.8	125.3
TTM Earnings per share	Rs	8.1	3.0
Diluted earnings per share	Rs	7.8	3.0
Price to Cash Flow	x	8.7	12.0
TTM P/E ratio	x	12.9	55.4
Price / Book Value ratio	x	1.4	1.0
Market Cap	Rs m	14,434	10,973
Dividends per share (Unadj.)	Rs	0.8	0.1

Ratio Analysis for BODAL CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY23, from 1.4x 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 deteriorated and stood at 2.2x during FY23, from 5.8x 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 3.5% during FY23, from 9.4% 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 6.4% during FY23, from 13.6% 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 3.7% during FY23, from 6.1% 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	1.4	1.4
Debtors’ Days	Days	105	97
Interest coverage	x	5.8	2.2
Debt to equity ratio	x	0.2	0.3
Return on assets	%	6.1	3.7
Return on equity	%	9.4	3.5
Return on capital employed	%	13.6	6.4

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 90.9 to Rs 78.0, registering a loss of Rs 12.9 or around 14.1%.

Overall, the S&P BSE SENSEX is up 11.0% over the year.

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