CHEMCON SPECIALITY CHEMICALS 2020-21 Annual Report Analysis

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CHEMCON SPECIALITY CHEMICALS 2020-21 Annual Report Analysis
Thu, 28 Oct

CHEMCON SPECIALITY 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.

CHEMCON SPECIALITY CHEMICALS Income Statement Analysis

  • Operating income during the year fell 7.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 15.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 33.3% in FY21 as against 26.8% in FY20.
  • Depreciation charges increased by 31.5% and finance costs decreased by 22.4% YoY, respectively.
  • Other income grew by 16.9% YoY.
  • Net profit for the year grew by 15.4% YoY.
  • Net profit margins during the year grew from 18.4% in FY20 to 22.7% in FY21.

CHEMCON SPECIALITY CHEMICALS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 2,621 2,435 -7.1%
Other income Rs m 40 46 16.9%
Total Revenues Rs m 2,660 2,481 -6.7%
Gross profit Rs m 703 811 15.5%
Depreciation Rs m 46 61 31.5%
Interest Rs m 47 36 -22.4%
Profit before tax Rs m 649 761 17.1%
Tax Rs m 161 197 22.3%
Profit after tax Rs m 489 564 15.4%
Gross profit margin % 26.8 33.3
Effective tax rate % 24.8 25.8
Net profit margin % 18.4 22.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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CHEMCON SPECIALITY CHEMICALS Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 452 million as compared to Rs 617 million in FY20, thereby witnessing an decrease of -26.8%.
  • Long-term debt down at Rs 18 million as compared to Rs 146 million during FY20, a fall of 87.5%.
  • Current assets rose 65% and stood at Rs 3 billion, while fixed assets rose 124% and stood at Rs 1 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 4 billion as against Rs 2 billion during FY20, thereby witnessing a growth of 79%.

CHEMCON SPECIALITY CHEMICALS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 1,464 3,537 141.6
 
Current Liabilities Rs m 617 452 -26.8
Long-term Debt Rs m 146 18 -87.5
Total Liabilities Rs m 2,258 4,036 78.7
 
Current assets Rs m 1,726 2,845 64.9
Fixed Assets Rs m 532 1,191 123.7
Total Assets Rs m 2,258 4,036 78.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



CHEMCON SPECIALITY CHEMICALS Cash Flow Statement Analysis

  • CHEMCON SPECIALITY CHEMICALS's cash flow from operating activities (CFO) during FY21 stood at Rs 650 million, an improvement of 443.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 873.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 1 billion, an improvement of 2,600% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 233 million from the Rs 4 million net cash flows seen during FY20.

CHEMCON SPECIALITY 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 120 650 443.9%
Cash Flow from Investing Activities Rs m -157 -1,525 -
Cash Flow from Financing Activities Rs m 41 1,107 2,600.4%
Net Cash Flow Rs m 4 233 5,870.8%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for CHEMCON SPECIALITY CHEMICALS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.4, an improvement from the EPS of Rs 15.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 413.8, stands at 24.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.9 times, while the price to sales ratio stands at 8.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 24.3 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 82.5 66.5
TTM Earnings per share Rs 15.4 15.4
Diluted earnings per share Rs 13.3 15.4
Price to Cash Flow x 24.6 24.3
TTM P/E ratio x 21.6 24.9
Price / Book Value ratio x 0.0 5.9
Market Cap Rs m 13,149 15,156
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for CHEMCON SPECIALITY CHEMICALS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 6.3x during FY21, from 2.8x 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 improved and stood at 21.9x during FY21, from 14.9x 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 15.9% during FY21, from 33.4% 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 22.4% during FY21, from 43.2% 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 14.9% during FY21, from 23.7% 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 2.8 6.3
Debtors’ Days Days 1,239 1,421
Interest coverage x 14.9 21.9
Debt to equity ratio x 0.1 0.0
Return on assets % 23.7 14.9
Return on equity % 33.4 15.9
Return on capital employed % 43.2 22.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

CHEMCON SPECIALITY CHEMICALS Share Price Performance

Over the last one year, CHEMCON SPECIALITY CHEMICALS share price has moved down from Rs 418.9 to Rs 413.8, registering a loss of Rs 5.2 or around 1.2%.

Overall, the S&P BSE SENSEX is up 51.2% over the year.

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

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