CHAMBAL FERTILISERS 2021-22 Annual Report Analysis

Mon, 22 Aug

CHAMBAL FERTILISERS 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.

CHAMBAL FERTILISERS Income Statement Analysis

• Operating income during the year rose 26.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 19.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.1% in FY22 as against 22.0% in FY21.
• Depreciation charges increased by 3.6% and finance costs decreased by 58.6% YoY, respectively.
• Other income grew by 41.7% YoY.
• Net profit for the year declined by 24.0% YoY.
• Net profit margins during the year declined from 13.0% in FY21 to 7.8% in FY22.

CHAMBAL FERTILISERS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	127,190	160,688	26.3%
Other income	Rs m	598	847	41.7%
Total Revenues	Rs m	127,788	161,535	26.4%
Gross profit	Rs m	28,028	22,651	-19.2%
Depreciation	Rs m	2,892	2,997	3.6%
Interest	Rs m	3,033	1,255	-58.6%
Profit before tax	Rs m	22,701	19,245	-15.2%
Tax	Rs m	6,119	6,648	8.6%
Profit after tax	Rs m	16,581	12,597	-24.0%
Gross profit margin	%	22.0	14.1
Effective tax rate	%	27.0	34.5
Net profit margin	%	13.0	7.8

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CHAMBAL FERTILISERS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 38 billion as compared to Rs 15 billion in FY21, thereby witnessing an increase of 149.2%.
• Long-term debt down at Rs 25 billion as compared to Rs 31 billion during FY21, a fall of 21.5%.
• Current assets rose 93% and stood at Rs 61 billion, while fixed assets rose 2% and stood at Rs 72 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 133 billion as against Rs 102 billion during FY21, thereby witnessing a growth of 30%.

CHAMBAL FERTILISERS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	52,462	63,969	21.9
Current Liabilities	Rs m	15,255	38,018	149.2
Long-term Debt	Rs m	31,468	24,712	-21.5
Total Liabilities	Rs m	102,467	132,890	29.7
Current assets	Rs m	31,473	60,750	93.0
Fixed Assets	Rs m	70,994	72,140	1.6
Total Assets	Rs m	102,467	132,890	29.7

CHAMBAL FERTILISERS Cash Flow Statement Analysis

• CHAMBAL FERTILISERS's cash flow from operating activities (CFO) during FY22 stood at Rs -242 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion, an improvement of 96% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -4 billion from the Rs 7 billion net cash flows seen during FY21.

CHAMBAL FERTILISERS 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	69,436	-242	-
Cash Flow from Investing Activities	Rs m	-1,963	-1,191	-
Cash Flow from Financing Activities	Rs m	-60,069	-2,128	-
Net Cash Flow	Rs m	7,418	-3,559	-

Current Valuations for CHAMBAL FERTILISERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 30.3, an decline from the EPS of Rs 39.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 325.5, stands at 10.7 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 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 9.3 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	305.6	386.1
TTM Earnings per share	Rs	39.8	30.3
Diluted earnings per share	Rs	39.8	30.3
Price to Cash Flow	x	4.9	9.3
TTM P/E ratio	x	5.7	10.7
Price / Book Value ratio	x	1.5	2.3
Market Cap	Rs m	77,071	144,559
Dividends per share (Unadj.)	Rs	7.5	7.5

Ratio Analysis for CHAMBAL FERTILISERS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x 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 improved and stood at 16.3x during FY22, from 8.5x 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 19.7% during FY22, from 31.6% 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 23.1% during FY22, from 30.7% 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 declined and down at 10.4% during FY22, from 19.1% 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	1.6
Debtors’ Days	Days	3	5
Interest coverage	x	8.5	16.3
Debt to equity ratio	x	0.6	0.4
Return on assets	%	19.1	10.4
Return on equity	%	31.6	19.7
Return on capital employed	%	30.7	23.1

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 down from Rs 337.6 to Rs 325.8, registering a loss of Rs 11.8 or around 3.5%.

Overall, the S&P BSE SENSEX is up 5.9% 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