CLARIANT CHEMICALS 2020-21 Annual Report Analysis

Wed, 31 Mar

CLARIANT CHEMICALS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

CLARIANT CHEMICALS Income Statement Analysis

• Operating income during the year fell 29.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 253.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 43.8% in FY21 as against 8.7% in FY20.
• Depreciation charges decreased by 8.3% and finance costs decreased by 32.3% YoY, respectively.
• Other income declined by 18.1% YoY.
• Net profit for the year grew by 333.4% YoY.
• Net profit margins during the year grew from 4.6% in FY20 to 28.4% in FY21.

CLARIANT CHEMICALS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	10,934	7,733	-29.3%
Other income	Rs m	181	148	-18.1%
Total Revenues	Rs m	11,114	7,881	-29.1%
Gross profit	Rs m	957	3,384	253.7%
Depreciation	Rs m	392	360	-8.3%
Interest	Rs m	38	26	-32.3%
Profit before tax	Rs m	706	3,146	345.4%
Tax	Rs m	199	948	375.9%
Profit after tax	Rs m	507	2,198	333.4%
Gross profit margin	%	8.7	43.8
Effective tax rate	%	28.2	30.1
Net profit margin	%	4.6	28.4

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CLARIANT CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 2 billion as compared to Rs 3 billion in FY20, thereby witnessing an decrease of -9.4%.
• Current assets fell 33% and stood at Rs 4 billion, while fixed assets fell 28% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 6 billion as against Rs 9 billion during FY20, thereby witnessing a fall of 31%.

CLARIANT CHEMICALS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,514	4,072	-37.5
Current Liabilities	Rs m	2,522	2,284	-9.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,435	6,490	-31.2
Current assets	Rs m	6,324	4,252	-32.8
Fixed Assets	Rs m	3,111	2,238	-28.1
Total Assets	Rs m	9,435	6,490	-31.2

CLARIANT CHEMICALS Cash Flow Statement Analysis

• CLARIANT CHEMICALS's cash flow from operating activities (CFO) during FY21 stood at Rs 567 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -16 million from the Rs -23 million net cash flows seen during FY20.

CLARIANT CHEMICALS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	1,011	567	-43.9%
Cash Flow from Investing Activities	Rs m	-779	4,153	-
Cash Flow from Financing Activities	Rs m	-254	-4,736	-
Net Cash Flow	Rs m	-23	-16	-

Current Valuations for CLARIANT CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 95.2, an improvement from the EPS of Rs 22.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 371.7, stands at 3.9 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 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 3.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	473.7	335.1
TTM Earnings per share	Rs	22.0	95.2
Diluted earnings per share	Rs	22.0	95.2
Price to Cash Flow	x	5.9	3.7
TTM P/E ratio	x	18.6	3.9
Price / Book Value ratio	x	1.2	2.3
Market Cap	Rs m	7,734	9,548
Dividends per share (Unadj.)	Rs	11.0	205.0

Ratio Analysis for CLARIANT CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY21, from 2.5x during FY20. 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 122.1x during FY21, from 19.4x during FY20. 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 improved and stood at 54.0% during FY21, from 7.8% during FY21. 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 77.9% during FY21, from 11.4% during FY20. 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 34.3% during FY21, from 5.8% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	2.5	1.9
Debtors’ Days	Days	494	801
Interest coverage	x	19.4	122.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.8	34.3
Return on equity	%	7.8	54.0
Return on capital employed	%	11.4	77.9

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 228.3 to Rs 371.7, registering a gain of Rs 143.4 or around 62.8%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

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