CAMLIN FINE CHEM. 2022-23 Annual Report Analysis

Mon, 10 Jul

CAMLIN FINE CHEM. 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.

CAMLIN FINE CHEM. Income Statement Analysis

• Operating income during the year fell 44.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 15.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.5% in FY23 as against 10.9% in FY22.
• Depreciation charges decreased by 41.4% and finance costs increased by 47.9% YoY, respectively.
• Other income declined by 19.6% YoY.
• Net profit for the year declined by 21.4% YoY.
• Net profit margins during the year grew from 4.3% in FY22 to 6.0% in FY23.

CAMLIN FINE CHEM. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,121	7,894	-44.1%
Other income	Rs m	367	295	-19.6%
Total Revenues	Rs m	14,488	8,189	-43.5%
Gross profit	Rs m	1,542	1,303	-15.5%
Depreciation	Rs m	560	328	-41.4%
Interest	Rs m	408	603	47.9%
Profit before tax	Rs m	941	666	-29.2%
Tax	Rs m	336	191	-43.3%
Profit after tax	Rs m	605	476	-21.4%
Gross profit margin	%	10.9	16.5
Effective tax rate	%	35.7	28.6
Net profit margin	%	4.3	6.0

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CAMLIN FINE CHEM. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 6 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 5.8%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY22, a fall of 24.6%.
• Current assets fell 2% and stood at Rs 9 billion, while fixed assets fell 17% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 16 billion as against Rs 18 billion during FY22, thereby witnessing a fall of 10%.

CAMLIN FINE CHEM. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,357	6,278	-14.7
Current Liabilities	Rs m	5,953	6,296	5.8
Long-term Debt	Rs m	3,876	2,923	-24.6
Total Liabilities	Rs m	17,637	15,938	-9.6
Current assets	Rs m	8,935	8,737	-2.2
Fixed Assets	Rs m	8,702	7,181	-17.5
Total Assets	Rs m	17,637	15,938	-9.6

CAMLIN FINE CHEM. Cash Flow Statement Analysis

• CAMLIN FINE CHEM.'s cash flow from operating activities (CFO) during FY23 stood at Rs 185 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 784 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -178 million from the Rs 323 million net cash flows seen during FY22.

CAMLIN FINE CHEM. 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	1,454	185	-87.3%
Cash Flow from Investing Activities	Rs m	-2,491	-1,147	-
Cash Flow from Financing Activities	Rs m	1,360	784	-42.3%
Net Cash Flow	Rs m	323	-178	-

Current Valuations for CAMLIN FINE CHEM.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.0, an decline from the EPS of Rs 3.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 162.3, stands at 68.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 3.2 times.
• The company's price to cash flow (P/CF) ratio stood at 26.6 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	90.0	50.3
TTM Earnings per share	Rs	3.9	3.0
Diluted earnings per share	Rs	3.6	2.8
Price to Cash Flow	x	20.0	26.6
TTM P/E ratio	x	38.6	68.2
Price / Book Value ratio	x	3.7	3.4
Market Cap	Rs m	27,245	21,349
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CAMLIN FINE CHEM.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY23, from 1.5x 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 2.1x during FY23, from 3.3x 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 7.6% during FY23, from 8.2% 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 improved and stood at 13.8% during FY23, from 12.0% 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 improved and stood at 6.8% during FY23, from 5.7% 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	1.5	1.4
Debtors’ Days	Days	775	2,433
Interest coverage	x	3.3	2.1
Debt to equity ratio	x	0.5	0.5
Return on assets	%	5.7	6.8
Return on equity	%	8.2	7.6
Return on capital employed	%	12.0	13.8

To see how CAMLIN FINE CHEM. has performed over the last 5 years, please visit here.

CAMLIN FINE CHEM. Share Price Performance

Over the last one year, CAMLIN FINE CHEM. share price has moved up from Rs 109.2 to Rs 162.3, registering a gain of Rs 53.1 or around 48.6%.

Overall, the S&P BSE SENSEX is up 22.9% over the year.

(To know more, check out historical annual results for CAMLIN FINE CHEM. and quarterly results for CAMLIN FINE CHEM.)