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CHAMBAL FERTILISERS 2022-23 Annual Report Analysis

Tue, 22 Aug

CHAMBAL FERTILISERS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

CHAMBAL FERTILISERS Income Statement Analysis

• Operating income during the year rose 72.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 27.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.8% in FY23 as against 16.0% in FY22.
• Depreciation charges increased by 2.9% and finance costs increased by 154.9% YoY, respectively.
• Other income grew by 98.2% YoY.
• Net profit for the year declined by 34.0% YoY.
• Net profit margins during the year declined from 9.7% in FY22 to 3.7% in FY23.

CHAMBAL FERTILISERS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	160,688	277,728	72.8%
Other income	Rs m	847	1,678	98.2%
Total Revenues	Rs m	161,535	279,406	73.0%
Gross profit	Rs m	25,715	18,769	-27.0%
Depreciation	Rs m	2,997	3,083	2.9%
Interest	Rs m	1,255	3,200	154.9%
Profit before tax	Rs m	22,309	14,163	-36.5%
Tax	Rs m	6,648	3,825	-42.5%
Profit after tax	Rs m	15,661	10,338	-34.0%
Gross profit margin	%	16.0	6.8
Effective tax rate	%	29.8	27.0
Net profit margin	%	9.7	3.7

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CHAMBAL FERTILISERS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 32 billion as compared to Rs 38 billion in FY22, thereby witnessing an decrease of -17.1%.
• Long-term debt down at Rs 18 billion as compared to Rs 25 billion during FY22, a fall of 26.3%.
• Current assets fell 7% and stood at Rs 56 billion, while fixed assets fell 1% and stood at Rs 71 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 128 billion as against Rs 133 billion during FY22, thereby witnessing a fall of 4%.

CHAMBAL FERTILISERS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	63,969	70,655	10.5
Current Liabilities	Rs m	38,018	31,521	-17.1
Long-term Debt	Rs m	24,712	18,204	-26.3
Total Liabilities	Rs m	132,890	127,701	-3.9
Current assets	Rs m	60,750	56,375	-7.2
Fixed Assets	Rs m	72,136	71,313	-1.1
Total Assets	Rs m	132,890	127,701	-3.9

CHAMBAL FERTILISERS Cash Flow Statement Analysis

• CHAMBAL FERTILISERS's cash flow from operating activities (CFO) during FY23 stood at Rs 32 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -19 billion, an improvement of 1,472.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -19 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -5 billion from the Rs -4 billion net cash flows seen during FY22.

CHAMBAL FERTILISERS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-242	32,393	-
Cash Flow from Investing Activities	Rs m	-1,191	-18,732	-
Cash Flow from Financing Activities	Rs m	-2,128	-18,620	-
Net Cash Flow	Rs m	-3,559	-4,951	-

Current Valuations for CHAMBAL FERTILISERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.8, an decline from the EPS of Rs 37.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 264.0, stands at 11.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 11.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	386.1	667.3
TTM Earnings per share	Rs	37.6	24.8
Diluted earnings per share	Rs	37.6	24.8
Price to Cash Flow	x	9.4	11.9
TTM P/E ratio	x	13.9	11.0
Price / Book Value ratio	x	2.3	2.3
Market Cap	Rs m	144,559	159,095
Dividends per share (Unadj.)	Rs	7.5	7.5

Ratio Analysis for CHAMBAL FERTILISERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY23, from 1.6x during FY22. 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 5.4x during FY23, from 18.8x during FY22. 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 14.6% during FY23, from 24.5% during FY23. 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 19.5% during FY23, from 26.6% during FY22. 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 10.6% during FY23, from 12.7% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.6	1.8
Debtors’ Days	Days	5	2
Interest coverage	x	18.8	5.4
Debt to equity ratio	x	0.4	0.3
Return on assets	%	12.7	10.6
Return on equity	%	24.5	14.6
Return on capital employed	%	26.6	19.5

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 322.2 to Rs 264.0, registering a loss of Rs 58.2 or around 18.1%.

Overall, the S&P BSE SENSEX is up 8.2% over the year.

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