CHEMPLAST SANMAR 2022-23 Annual Report Analysis

Fri, 21 Jul

CHEMPLAST SANMAR has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

CHEMPLAST SANMAR Income Statement Analysis

• Operating income during the year fell 16.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 67.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.8% in FY23 as against 20.3% in FY22.
• Depreciation charges increased by 3.6% and finance costs decreased by 52.1% YoY, respectively.
• Other income grew by 39.0% YoY.
• Net profit for the year declined by 76.5% YoY.
• Net profit margins during the year declined from 11.0% in FY22 to 3.1% in FY23.

CHEMPLAST SANMAR Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	58,920	49,411	-16.1%
Other income	Rs m	575	799	39.0%
Total Revenues	Rs m	59,495	50,210	-15.6%
Gross profit	Rs m	11,968	3,876	-67.6%
Depreciation	Rs m	1,371	1,420	3.6%
Interest	Rs m	3,216	1,540	-52.1%
Profit before tax	Rs m	7,956	1,715	-78.4%
Tax	Rs m	1,469	192	-87.0%
Profit after tax	Rs m	6,487	1,524	-76.5%
Gross profit margin	%	20.3	7.8
Effective tax rate	%	18.5	11.2
Net profit margin	%	11.0	3.1

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CHEMPLAST SANMAR Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 22 billion as compared to Rs 23 billion in FY22, thereby witnessing an decrease of -0.9%.
• Long-term debt stood at Rs 10 billion as compared to Rs 8 billion during FY22, a growth of 15.6%.
• Current assets fell 5% and stood at Rs 21 billion, while fixed assets rose 10% and stood at Rs 37 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 58 billion as against Rs 56 billion during FY22, thereby witnessing a growth of 4%.

CHEMPLAST SANMAR Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	16,707	18,241	9.2
Current Liabilities	Rs m	22,555	22,344	-0.9
Long-term Debt	Rs m	8,334	9,637	15.6
Total Liabilities	Rs m	56,021	58,368	4.2
Current assets	Rs m	22,610	21,457	-5.1
Fixed Assets	Rs m	33,410	36,911	10.5
Total Assets	Rs m	56,021	58,368	4.2

CHEMPLAST SANMAR Cash Flow Statement Analysis

• CHEMPLAST SANMAR's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -270 million, an improvement of 91% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 billion from the Rs 7 billion net cash flows seen during FY22.

CHEMPLAST SANMAR Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	9,010	3,554	-60.5%
Cash Flow from Investing Activities	Rs m	1,082	-2,172	-
Cash Flow from Financing Activities	Rs m	-3,129	-270	-
Net Cash Flow	Rs m	6,963	1,112	-84.0%

Current Valuations for CHEMPLAST SANMAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.6, an decline from the EPS of Rs 41.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 432.0, stands at 44.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 27.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	372.7	312.5
TTM Earnings per share	Rs	41.0	9.6
Diluted earnings per share	Rs	41.0	9.6
Price to Cash Flow	x	13.4	27.3
TTM P/E ratio	x	17.7	44.8
Price / Book Value ratio	x	6.0	4.4
Market Cap	Rs m	100,411	80,462
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CHEMPLAST SANMAR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY23, from 1.0x during FY22. 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 2.1x during FY23, from 3.5x during FY22. 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 8.4% during FY23, from 38.8% during FY23. 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 11.7% during FY23, from 44.6% during FY22. 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 5.2% during FY23, from 17.3% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.0	1.0
Debtors’ Days	Days	1	1
Interest coverage	x	3.5	2.1
Debt to equity ratio	x	0.5	0.5
Return on assets	%	17.3	5.2
Return on equity	%	38.8	8.4
Return on capital employed	%	44.6	11.7

To see how CHEMPLAST SANMAR has performed over the last 5 years, please visit here.

CHEMPLAST SANMAR Share Price Performance

Over the last one year, CHEMPLAST SANMAR share price has moved down from Rs 479.7 to Rs 432.0, registering a loss of Rs 47.7 or around 9.9%.

Overall, the S&P BSE SENSEX is up 20.4% over the year.

(To know more, check out historical annual results for CHEMPLAST SANMAR and quarterly results for CHEMPLAST SANMAR)