CHEMFAB ALKALIS 2021-22 Annual Report Analysis

Mon, 19 Sep

CHEMFAB ALKALIS 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.

CHEMFAB ALKALIS Income Statement Analysis

• Operating income during the year rose 50.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 140.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.9% in FY22 as against 13.1% in FY21.
• Depreciation charges increased by 9.9% and finance costs decreased by 59.5% YoY, respectively.
• Other income grew by 306.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 4.5% in FY21 to 10.6% in FY22.

CHEMFAB ALKALIS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,808	2,716	50.2%
Other income	Rs m	14	57	306.0%
Total Revenues	Rs m	1,822	2,773	52.2%
Gross profit	Rs m	236	567	140.3%
Depreciation	Rs m	202	222	9.9%
Interest	Rs m	28	11	-59.5%
Profit before tax	Rs m	20	391	1,830.0%
Tax	Rs m	102	104	1.9%
Profit after tax	Rs m	-81	287	NA
Gross profit margin	%	13.1	20.9
Effective tax rate	%	501.3	26.5
Net profit margin	%	-4.5	10.6

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CHEMFAB ALKALIS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 578 million as compared to Rs 416 million in FY21, thereby witnessing an increase of 39.1%.
• Current assets rose 31% and stood at Rs 994 million, while fixed assets rose 1% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 3 billion as against Rs 3 billion during FY21, thereby witnessing a growth of 8%.

CHEMFAB ALKALIS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	2,668	2,971	11.4
Current Liabilities	Rs m	416	578	39.1
Long-term Debt	Rs m	234	0	-100.0
Total Liabilities	Rs m	3,221	3,494	8.5
Current assets	Rs m	758	994	31.1
Fixed Assets	Rs m	2,463	2,500	1.5
Total Assets	Rs m	3,221	3,494	8.5

CHEMFAB ALKALIS Cash Flow Statement Analysis

• CHEMFAB ALKALIS's cash flow from operating activities (CFO) during FY22 stood at Rs 549 million, an improvement of 20.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -210 million, an improvement of 226.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -246 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 93 million from the Rs 234 million net cash flows seen during FY21.

CHEMFAB ALKALIS 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	454	549	20.9%
Cash Flow from Investing Activities	Rs m	-64	-210	-
Cash Flow from Financing Activities	Rs m	-156	-246	-
Net Cash Flow	Rs m	234	93	-60.2%

Current Valuations for CHEMFAB ALKALIS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.3, an improvement from the EPS of Rs -5.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 445.6, stands at 13.4 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 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 5.4 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	128.6	192.2
TTM Earnings per share	Rs	-5.8	20.3
Diluted earnings per share	Rs	-5.8	20.3
Price to Cash Flow	x	14.7	5.4
TTM P/E ratio	x	-21.8	13.4
Price / Book Value ratio	x	0.7	0.9
Market Cap	Rs m	1,854	2,733
Dividends per share (Unadj.)	Rs	0.0	1.3

Ratio Analysis for CHEMFAB ALKALIS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY22, from 1.8x 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 35.9x during FY22, from 1.7x 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 9.7% during FY22, from -3.0% 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 1.7% 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 8.5% during FY22, from -1.7% 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	1.8	1.7
Debtors’ Days	Days	306	288
Interest coverage	x	1.7	35.9
Debt to equity ratio	x	0.1	0.0
Return on assets	%	-1.7	8.5
Return on equity	%	-3.0	9.7
Return on capital employed	%	1.7	13.5

To see how CHEMFAB ALKALIS has performed over the last 5 years, please visit here.

CHEMFAB ALKALIS Share Price Performance

Over the last one year, CHEMFAB ALKALIS share price has moved up from Rs 154.2 to Rs 445.6, registering a gain of Rs 291.4 or around 189.0%.

Overall, the S&P BSE SENSEX is up 0.8% over the year.

(To know more, check out historical annual results for CHEMFAB ALKALIS and quarterly results for CHEMFAB ALKALIS)