CLARIANT CHEMICALS 2018-19 Annual Report Analysis

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CLARIANT CHEMICALS 2018-19 Annual Report Analysis
Mon, 23 Sep

CLARIANT CHEMICALS has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

CLARIANT CHEMICALS Income Statement Analysis

  • Operating income during the year rose 1.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 30.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.6% in FY19 as against 4.3% in FY18.
  • Depreciation charges decreased by 0.8% and finance costs increased by 3.3% YoY, respectively.
  • Other income declined by 61.0% YoY.
  • Net profit for the year declined by 14.1% YoY.
  • Net profit margins during the year declined from 2.1% in FY18 to 1.8% in FY19.

CLARIANT CHEMICALS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 10,136 10,281 1.4%
Other income Rs m 278 108 -61.0%
Total Revenues Rs m 10,413 10,389 -0.2%
Gross profit Rs m 440 574 30.4%
Depreciation Rs m 377 374 -0.8%
Interest Rs m 6 6 3.3%
Profit before tax Rs m 334 301 -9.8%
Tax Rs m 118 116 -1.9%
Profit after tax Rs m 216 186 -14.1%
Gross profit margin % 4.3 5.6
Effective tax rate % 35.3 38.4
Net profit margin % 2.1 1.8
* 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 FY19 stood at Rs 2 billion as compared to Rs 2 billion in FY18, thereby witnessing an increase of 6.4%.
  • Current assets rose 1% and stood at Rs 5 billion, while fixed assets fell 1% and stood at Rs 3 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 9 billion as against Rs 9 billion during FY18, thereby witnessing a growth of 0%.

CLARIANT CHEMICALS Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 6,246 6,164 -1.3
 
Current Liabilities Rs m 2,349 2,498 6.4
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 8,926 8,945 0.2
 
Current assets Rs m 4,704 4,758 1.2
Fixed Assets Rs m 3,336 3,306 -0.9
Total Assets Rs m 8,926 8,945 0.2
* 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 FY19 stood at Rs 298 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 65 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -283 million, an improvement of 60% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 80 million from the Rs -42 million net cash flows seen during FY18.

CLARIANT CHEMICALS Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m -11 298 -
Cash Flow from Investing Activities Rs m 670 65 -90.2%
Cash Flow from Financing Activities Rs m -701 -283 -
Net Cash Flow Rs m -42 80 -
* 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 8.0, an decline from the EPS of Rs 9.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 319.0, stands at 42.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 1.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 439.2 445.4
TTM Earnings per share Rs 9.4 8.0
Diluted earnings per share Rs 8.1 7.0
Price to Cash Flow x 12.4 15.2
TTM P/E ratio x 36.5 42.2
Price / Book Value ratio x 2.3 1.7
Market Cap Rs m 7,363 8,505
Dividends per share (Unadj.) Rs 5.0 10.0
* 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 deteriorated and stood at 1.9x during FY19, from 2.0x during FY18. 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 49.6x during FY19, from 56.7x during FY18. 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 3.0% during FY19, from 3.5% during FY19. 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 5.0% during FY19, from 5.4% during FY18. 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 2.1% during FY19, from 2.5% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 2.0 1.9
Debtors’ Days Days 64 64
Interest coverage x 56.7 49.6
Debt to equity ratio x 0.0 0.0
Return on assets % 2.5 2.1
Return on equity % 3.5 3.0
Return on capital employed % 5.4 5.0
* 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 down from Rs 502.1 to Rs 319.0, registering a loss of Rs 183.1 or around 36.5%.

Overall, the S&P BSE SENSEX is up 5.2% over the year.

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

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Related Views on News

CLARIANT CHEMICALS Announces Quarterly Results (1QFY21); Net Profit Down 76.2% (Quarterly Result Update)

Sep 1, 2020 | Updated on Sep 1, 2020

For the quarter ended June 2020, CLARIANT CHEMICALS has posted a net profit of Rs 27 m (down 76.2% YoY). Sales on the other hand came in at Rs 1 bn (down 56.4% YoY). Read on for a complete analysis of CLARIANT CHEMICALS's quarterly results.

CLARIANT CHEMICALS Announces Quarterly Results (2QFY20); Net Profit Up 263.5% (Quarterly Result Update)

Nov 12, 2019 | Updated on Nov 12, 2019

For the quarter ended September 2019, CLARIANT CHEMICALS has posted a net profit of Rs 133 m (up 263.5% YoY). Sales on the other hand came in at Rs 3 bn (up 6.1% YoY). Read on for a complete analysis of CLARIANT CHEMICALS's quarterly results.

CLARIANT CHEMICALS 2017-18 Annual Report Analysis (Annual Result Update)

Dec 20, 2018 | Updated on Dec 20, 2018

Here's an analysis of the annual report of CLARIANT CHEMICALS for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of CLARIANT CHEMICALS. Also includes updates on the valuation of CLARIANT CHEMICALS.

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