CHAMBAL FERTILISERS 2017-18 Annual Report Analysis

Sat, 31 Mar

CHAMBAL FERTILISERS has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

CHAMBAL FERTILISERS Income Statement Analysis

• Operating income during the year rose 0.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.7% in FY18 as against 8.9% in FY17.
• Depreciation charges decreased by 6.9% and finance costs decreased by 37.3% YoY, respectively.
• Other income declined by 1.5% YoY.
• Net profit for the year grew by 28.0% YoY.
• Net profit margins during the year grew from 4.7% in FY17 to 6.0% in FY18.

CHAMBAL FERTILISERS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	75,333	76,045	0.9%
Other income	Rs m	1,437	1,415	-1.5%
Total Revenues	Rs m	76,770	77,460	0.9%
Gross profit	Rs m	6,707	8,108	20.9%
Depreciation	Rs m	922	859	-6.9%
Interest	Rs m	2,553	1,601	-37.3%
Profit before tax	Rs m	4,669	7,063	51.3%
Tax	Rs m	1,106	2,501	126.1%
Profit after tax	Rs m	3,562	4,562	28.0%
Gross profit margin	%	8.9	10.7
Effective tax rate	%	23.7	35.4
Net profit margin	%	4.7	6.0

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CHAMBAL FERTILISERS Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 33 billion as compared to Rs 44 billion in FY17, thereby witnessing an decrease of -24.6%.
• Long-term debt stood at Rs 35 billion as compared to Rs 14 billion during FY17, a growth of 145.5%.
• Current assets fell 23% and stood at Rs 38 billion, while fixed assets rose 79% and stood at Rs 57 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 95 billion as against Rs 81 billion during FY17, thereby witnessing a growth of 17%.

CHAMBAL FERTILISERS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	20,980	24,800	18.2
Current Liabilities	Rs m	43,912	33,091	-24.6
Long-term Debt	Rs m	14,320	35,160	145.5
Total Liabilities	Rs m	80,568	94,620	17.4
Current assets	Rs m	48,699	37,730	-22.5
Fixed Assets	Rs m	31,869	56,889	78.5
Total Assets	Rs m	80,568	94,620	17.4

CHAMBAL FERTILISERS Cash Flow Statement Analysis

• CHAMBAL FERTILISERS's cash flow from operating activities (CFO) during FY18 stood at Rs 12 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -18 billion, an improvement of 157.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 6 billion, an improvement of 213% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -490 million from the Rs 763 million net cash flows seen during FY17.

CHAMBAL FERTILISERS Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	12,795	11,715	-8.4%
Cash Flow from Investing Activities	Rs m	-6,906	-17,781	-
Cash Flow from Financing Activities	Rs m	-4,999	5,639	-
Net Cash Flow	Rs m	763	-490	-

Current Valuations for CHAMBAL FERTILISERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.0, an improvement from the EPS of Rs 8.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 162.6, stands at 14.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 0.9 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-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	181.0	182.7
TTM Earnings per share	Rs	8.6	11.0
Diluted earnings per share	Rs	8.6	11.0
Price to Cash Flow	x	8.0	9.9
TTM P/E ratio	x	7.9	14.2
Price / Book Value ratio	x	1.4	2.2
Market Cap	Rs m	30,092	53,462
Dividends per share (Unadj.)	Rs	1.9	1.9

Ratio Analysis for CHAMBAL FERTILISERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY18, from 1.1x during FY17. 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 5.4x during FY18, from 2.8x during FY17. 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 18.4% during FY18, from 17.0% during FY18. 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 14.4% during FY18, from 20.5% during FY17. 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 6.5% during FY18, from 7.6% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	1.1	1.1
Debtors’ Days	Days	1,471	1,217
Interest coverage	x	2.8	5.4
Debt to equity ratio	x	0.7	1.4
Return on assets	%	7.6	6.5
Return on equity	%	17.0	18.4
Return on capital employed	%	20.5	14.4

To see how CHAMBAL FERTILISERS has performed over the last 5 years, please visit here.

CHAMBAL FERTILISERS Share Price Performance

Over the last one year, CHAMBAL FERTILISERS share price has moved up from Rs 86.6 to Rs 162.6, registering a gain of Rs 76.1 or around 87.9%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for CHAMBAL FERTILISERS and quarterly results for CHAMBAL FERTILISERS)

Read: Latest Annual Report Analysis of CHAMBAL FERTILISERS