CLARIANT CHEMICALS 2021-22 Annual Report Analysis

Tue, 2 Aug

CLARIANT CHEMICALS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

CLARIANT CHEMICALS Income Statement Analysis

• Operating income during the year rose 14.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 81.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.3% in FY22 as against 46.1% in FY21.
• Depreciation charges decreased by 43.4% and finance costs decreased by 81.7% YoY, respectively.
• Other income declined by 41.4% YoY.
• Net profit for the year declined by 80.2% YoY.
• Net profit margins during the year declined from 29.9% in FY21 to 5.2% in FY22.

CLARIANT CHEMICALS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	7,308	8,395	14.9%
Other income	Rs m	148	87	-41.4%
Total Revenues	Rs m	7,456	8,482	13.8%
Gross profit	Rs m	3,367	616	-81.7%
Depreciation	Rs m	360	203	-43.4%
Interest	Rs m	26	5	-81.7%
Profit before tax	Rs m	3,129	495	-84.2%
Tax	Rs m	942	62	-93.4%
Profit after tax	Rs m	2,187	433	-80.2%
Gross profit margin	%	46.1	7.3
Effective tax rate	%	30.1	12.5
Net profit margin	%	29.9	5.2

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CLARIANT CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 2 billion as compared to Rs 2 billion in FY21, thereby witnessing an decrease of -8.5%.
• Current assets fell 4% and stood at Rs 4 billion, while fixed assets rose 2% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 6 billion as against Rs 6 billion during FY21, thereby witnessing a fall of 2%.

CLARIANT CHEMICALS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	4,072	4,139	1.6
Current Liabilities	Rs m	2,284	2,089	-8.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,490	6,360	-2.0
Current assets	Rs m	4,252	4,070	-4.3
Fixed Assets	Rs m	2,238	2,290	2.3
Total Assets	Rs m	6,490	6,360	-2.0

CLARIANT CHEMICALS Cash Flow Statement Analysis

• CLARIANT CHEMICALS's cash flow from operating activities (CFO) during FY22 stood at Rs 131 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 48 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -353 million, an improvement of 93% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -173 million from the Rs -16 million net cash flows seen during FY21.

CLARIANT CHEMICALS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	567	131	-76.8%
Cash Flow from Investing Activities	Rs m	4,153	48	-98.8%
Cash Flow from Financing Activities	Rs m	-4,736	-353	-
Net Cash Flow	Rs m	-16	-173	-

Current Valuations for CLARIANT CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.8, an decline from the EPS of Rs 94.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 437.7, stands at 23.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 18.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	316.6	363.7
TTM Earnings per share	Rs	94.7	18.8
Diluted earnings per share	Rs	94.7	18.8
Price to Cash Flow	x	3.4	18.3
TTM P/E ratio	x	3.9	23.3
Price / Book Value ratio	x	2.3	2.8
Market Cap	Rs m	9,548	11,671
Dividends per share (Unadj.)	Rs	205.0	0.0

Ratio Analysis for CLARIANT CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY22, from 1.9x during FY21. 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 105.4x during FY22, from 121.5x during FY21. 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 10.5% during FY22, from 53.7% during FY22. 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 12.1% during FY22, from 77.5% during FY21. 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 6.9% during FY22, from 34.1% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.9	1.9
Debtors’ Days	Days	848	732
Interest coverage	x	121.5	105.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	34.1	6.9
Return on equity	%	53.7	10.5
Return on capital employed	%	77.5	12.1

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 617.7 to Rs 437.7, registering a loss of Rs 180.0 or around 29.1%.

Overall, the S&P BSE SENSEX is up 10.4% over the year.

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