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CHEMTECH INDUST. 2021-22 Annual Report Analysis

Sun, 21 Aug

CHEMTECH INDUST. 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.

CHEMTECH INDUST. Income Statement Analysis

• Operating income during the year fell 17.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 42.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.8% in FY22 as against 19.7% in FY21.
• Depreciation charges increased by 2.4% and finance costs increased by 0.4% YoY, respectively.
• Other income declined by 29.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 4.9% in FY21 to 4.9% in FY22.

CHEMTECH INDUST. Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	139	115	-17.4%
Other income	Rs m	3	2	-29.0%
Total Revenues	Rs m	142	117	-17.6%
Gross profit	Rs m	27	16	-42.1%
Depreciation	Rs m	10	10	2.4%
Interest	Rs m	14	14	0.4%
Profit before tax	Rs m	7	-6	NA
Tax	Rs m	0	0	NA
Profit after tax	Rs m	7	-6	NA
Gross profit margin	%	19.7	13.8
Effective tax rate	%	-4.1	7.1
Net profit margin	%	4.9	-4.9

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CHEMTECH INDUST. Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 66 million as compared to Rs 56 million in FY21, thereby witnessing an increase of 18.7%.
• Long-term debt down at Rs 103 million as compared to Rs 107 million during FY21, a fall of 4.3%.
• Current assets rose 4% and stood at Rs 123 million, while fixed assets fell 3% and stood at Rs 145 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 268 million as against Rs 268 million during FY21, thereby witnessing a fall of 0%.

CHEMTECH INDUST. Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	97	92	-5.2
Current Liabilities	Rs m	56	66	18.7
Long-term Debt	Rs m	107	103	-4.3
Total Liabilities	Rs m	268	268	0.0
Current assets	Rs m	119	123	3.7
Fixed Assets	Rs m	150	145	-3.0
Total Assets	Rs m	268	268	0.0

CHEMTECH INDUST. Cash Flow Statement Analysis

• CHEMTECH INDUST.'s cash flow from operating activities (CFO) during FY22 stood at Rs 20 million, an improvement of 58.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -4 million, an improvement of 21.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 million, an improvement of 67% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 14 million from the Rs 4 million net cash flows seen during FY21.

CHEMTECH INDUST. 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	13	20	58.7%
Cash Flow from Investing Activities	Rs m	-3	-4	-
Cash Flow from Financing Activities	Rs m	-6	-2	-
Net Cash Flow	Rs m	4	14	277.0%

Current Valuations for CHEMTECH INDUST.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.5, an decline from the EPS of Rs 0.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 17.4, stands at 68.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 34.2 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	12.1	10.0
TTM Earnings per share	Rs	0.6	-0.5
Diluted earnings per share	Rs	0.6	-0.5
Price to Cash Flow	x	4.9	34.2
TTM P/E ratio	x	12.0	68.6
Price / Book Value ratio	x	1.3	1.7
Market Cap	Rs m	130	154
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CHEMTECH INDUST.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY22, from 2.1x 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 deteriorated and stood at 0.6x during FY22, from 1.5x 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 declined and down at -6.1% during FY22, from 7.0% 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 declined and down at 3.9% during FY22, from 9.9% 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 declined and down at 3.0% during FY22, from 7.6% 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	2.1	1.9
Debtors’ Days	Days	135,268,129	79,958,850
Interest coverage	x	1.5	0.6
Debt to equity ratio	x	1.1	1.1
Return on assets	%	7.6	3.0
Return on equity	%	7.0	-6.1
Return on capital employed	%	9.9	3.9

To see how CHEMTECH INDUST. has performed over the last 5 years, please visit here.

CHEMTECH INDUST. Share Price Performance

Over the last one year, CHEMTECH INDUST. share price has moved up from Rs 12.7 to Rs 17.4, registering a gain of Rs 4.7 or around 37.1%.

Overall, the S&P BSE SENSEX is up 7.2% over the year.

(To know more, check out historical annual results for CHEMTECH INDUST. and quarterly results for CHEMTECH INDUST.)