CLARIANT CHEMICALS 2020-21 Annual Report Analysis

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CLARIANT CHEMICALS 2020-21 Annual Report Analysis
Thu, 28 Oct

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 27.9% 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 27.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 559.4, stands at 5.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.0 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 14.4 5.0
TTM P/E ratio x 5.6 5.6
Price / Book Value ratio x 1.2 1.8
Market Cap Rs m 12,911 12,911
Dividends per share (Unadj.) Rs 11.0 205.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 301.7 to Rs 559.4, registering a gain of Rs 257.7 or around 85.4%.

Overall, the S&P BSE SENSEX is up 51.2% 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.

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