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CLARIANT CHEMICALS 2017-18 Annual Report Analysis

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CLARIANT CHEMICALS 2017-18 Annual Report Analysis
Thu, 20 Dec

CLARIANT CHEMICALS 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.

CLARIANT CHEMICALS Income Statement Analysis

  • Operating income during the year rose 3.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 34.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.3% in FY18 as against 6.8% in FY17.
  • Depreciation charges decreased by 4.5% and finance costs increased by 30.4% YoY, respectively.
  • Other income grew by 204.9% YoY.
  • Net profit for the year declined by 11.8% YoY.
  • Net profit margins during the year declined from 2.5% in FY17 to 2.1% in FY18.

CLARIANT CHEMICALS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 9,810 10,136 3.3%
Other income Rs m 91 278 204.9%
Total Revenues Rs m 9,901 10,413 5.2%
Gross profit Rs m 671 440 -34.5%
Depreciation Rs m 395 377 -4.5%
Interest Rs m 5 6 30.4%
Profit before tax Rs m 363 334 -7.9%
Tax Rs m 118 118 0.0%
Profit after tax Rs m 245 216 -11.8%
Gross profit margin % 6.8 4.3
Effective tax rate % 32.5 35.3
Net profit margin % 2.5 2.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



CLARIANT CHEMICALS Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 2 billion as compared to Rs 2 billion in FY17, thereby witnessing an increase of 0.7%.
  • Current assets fell 8% and stood at Rs 5 billion, while fixed assets fell 5% and stood at Rs 3 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 9 billion as against Rs 9 billion during FY17, thereby witnessing a fall of 4%.

CLARIANT CHEMICALS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 6,729 6,246 -7.2
 
Current Liabilities Rs m 2,333 2,349 0.7
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 9,332 8,926 -4.4
 
Current assets Rs m 5,097 4,704 -7.7
Fixed Assets Rs m 3,530 3,336 -5.5
Total Assets Rs m 9,332 8,926 -4.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



CLARIANT CHEMICALS Cash Flow Statement Analysis

  • CLARIANT CHEMICALS's cash flow from operating activities (CFO) during FY18 stood at Rs -10 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 670 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -701 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -41 million from the Rs 30 million net cash flows seen during FY17.

CLARIANT CHEMICALS 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 816 -10 -
Cash Flow from Investing Activities Rs m -500 670 -
Cash Flow from Financing Activities Rs m -286 -701 -
Net Cash Flow Rs m 30 -41 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for CLARIANT CHEMICALS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.4, an decline from the EPS of Rs 10.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 419.6, stands at 35.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 1.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 18.9 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 425.0 439.2
TTM Earnings per share Rs 10.6 9.4
Diluted earnings per share Rs 9.2 8.1
Price to Cash Flow x 15.1 18.9
TTM P/E ratio x 30.3 35.0
Price / Book Value ratio x 2.5 2.3
Market Cap Rs m 9,684 11,187
Dividends per share (Unadj.) Rs 25.0 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for CLARIANT CHEMICALS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.0x during FY18, from 2.2x 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 deteriorated and stood at 56.7x during FY18, from 79.9x 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 declined and down at 3.5% during FY18, from 3.6% 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 5.4% during FY18, from 5.5% 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 2.5% during FY18, from 2.7% 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 2.2 2.0
Debtors’ Days Days 64 64
Interest coverage x 79.9 56.7
Debt to equity ratio x 0.0 0.0
Return on assets % 2.7 2.5
Return on equity % 3.6 3.5
Return on capital employed % 5.5 5.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how CLARIANT CHEMICALS has performed over the last 5 years, please visit here.

CLARIANT CHEMICALS Share Price Performance

Over the last one year, CLARIANT CHEMICALS share price has moved up from Rs 571.2 to Rs 419.6, registering a loss of Rs 151.6 or around 26.5%.

Overall, the S&P BSE SENSEX is up 7.5% over the year.

(To know more, check out historical annual results for CLARIANT CHEMICALS and quarterly results for CLARIANT CHEMICALS)

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