CHAMBAL FERTILISERS 2020-21 Annual Report Analysis

Wed, 31 Mar

CHAMBAL FERTILISERS 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.

CHAMBAL FERTILISERS Income Statement Analysis

• Operating income during the year rose 3.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 36.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.9% in FY21 as against 16.5% in FY20.
• Depreciation charges decreased by 4.3% and finance costs decreased by 45.0% YoY, respectively.
• Other income declined by 44.4% YoY.
• Net profit for the year grew by 35.6% YoY.
• Net profit margins during the year grew from 10.0% in FY20 to 13.0% in FY21.

CHAMBAL FERTILISERS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	122,866	127,190	3.5%
Other income	Rs m	1,076	598	-44.4%
Total Revenues	Rs m	123,941	127,788	3.1%
Gross profit	Rs m	20,320	27,804	36.8%
Depreciation	Rs m	3,022	2,892	-4.3%
Interest	Rs m	5,110	2,809	-45.0%
Profit before tax	Rs m	13,263	22,701	71.2%
Tax	Rs m	1,038	6,119	489.7%
Profit after tax	Rs m	12,226	16,581	35.6%
Gross profit margin	%	16.5	21.9
Effective tax rate	%	7.8	27.0
Net profit margin	%	10.0	13.0

CHAMBAL FERTILISERS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 15 billion as compared to Rs 67 billion in FY20, thereby witnessing an decrease of -77.2%.
• Long-term debt down at Rs 31 billion as compared to Rs 44 billion during FY20, a fall of 28.4%.
• Current assets fell 57% and stood at Rs 31 billion, while fixed assets fell 1% and stood at Rs 71 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 102 billion as against Rs 145 billion during FY20, thereby witnessing a fall of 29%.

CHAMBAL FERTILISERS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	35,367	52,462	48.3
Current Liabilities	Rs m	66,782	15,255	-77.2
Long-term Debt	Rs m	43,920	31,468	-28.4
Total Liabilities	Rs m	144,951	102,467	-29.3
Current assets	Rs m	73,250	31,473	-57.0
Fixed Assets	Rs m	71,701	70,994	-1.0
Total Assets	Rs m	144,951	102,467	-29.3

CHAMBAL FERTILISERS Cash Flow Statement Analysis

• CHAMBAL FERTILISERS's cash flow from operating activities (CFO) during FY21 stood at Rs 69 billion, an improvement of 739.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -60 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 7 billion from the Rs 816 million net cash flows seen during FY20.

CHAMBAL FERTILISERS 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	8,271	69,436	739.5%
Cash Flow from Investing Activities	Rs m	-4,553	-1,963	-
Cash Flow from Financing Activities	Rs m	-2,832	-60,069	-
Net Cash Flow	Rs m	816	7,418	809.2%

Current Valuations for CHAMBAL FERTILISERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 39.8, an improvement from the EPS of Rs 29.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 228.8, stands at 5.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 4.0 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	295.2	305.6
TTM Earnings per share	Rs	29.4	39.8
Diluted earnings per share	Rs	29.4	39.8
Price to Cash Flow	x	3.0	4.0
TTM P/E ratio	x	3.7	5.7
Price / Book Value ratio	x	1.7	1.5
Market Cap	Rs m	60,662	77,071
Dividends per share (Unadj.)	Rs	4.0	7.5

Ratio Analysis for CHAMBAL FERTILISERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY21, from 1.1x 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 9.1x during FY21, from 3.6x 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 31.6% during FY21, from 34.6% 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 improved and stood at 30.4% during FY21, from 23.2% 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 improved and stood at 18.9% during FY21, from 12.0% 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	1.1	2.1
Debtors’ Days	Days	17	3
Interest coverage	x	3.6	9.1
Debt to equity ratio	x	1.2	0.6
Return on assets	%	12.0	18.9
Return on equity	%	34.6	31.6
Return on capital employed	%	23.2	30.4

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 108.1 to Rs 228.8, registering a gain of Rs 120.7 or around 111.7%.

Overall, the S&P BSE SENSEX is up 74.1% 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