DIAMINES & CHEM. 2021-22 Annual Report Analysis

Fri, 10 Jun

DIAMINES & CHEM. 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.

DIAMINES & CHEM. Income Statement Analysis

• Operating income during the year rose 5.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 12.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 33.3% in FY22 as against 40.0% in FY21.
• Depreciation charges decreased by 6.6% and finance costs increased by 14.7% YoY, respectively.
• Other income declined by 28.6% YoY.
• Net profit for the year declined by 20.4% YoY.
• Net profit margins during the year grew from 0.0% in FY21 to 25.3% in FY22.

DIAMINES & CHEM. Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	628	661	5.2%
Other income	Rs m	26	18	-28.6%
Total Revenues	Rs m	654	679	3.9%
Gross profit	Rs m	251	220	-12.3%
Depreciation	Rs m	18	17	-6.6%
Interest	Rs m	1	1	14.7%
Profit before tax	Rs m	258	221	-14.4%
Tax	Rs m	48	54	11.9%
Profit after tax	Rs m	210	167	-20.4%
Gross profit margin	%	40.0	33.3
Effective tax rate	%	18.6	24.4
Net profit margin	%	0.0	25.3

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DIAMINES & CHEM. Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 64 million as compared to Rs 58 million in FY21, thereby witnessing an increase of 9.7%.
• Current assets fell 4% and stood at Rs 540 million, while fixed assets rose 46% and stood at Rs 565 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1 billion as against Rs 948 million during FY21, thereby witnessing a growth of 17%.

DIAMINES & CHEM. Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	850	1,002	17.9
Current Liabilities	Rs m	58	64	9.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	948	1,106	16.6
Current assets	Rs m	561	540	-3.7
Fixed Assets	Rs m	387	565	46.2
Total Assets	Rs m	948	1,106	16.6

DIAMINES & CHEM. Cash Flow Statement Analysis

• DIAMINES & CHEM.'s cash flow from operating activities (CFO) during FY22 stood at Rs 273 million, an improvement of 77.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -215 million, an improvement of 44.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -53 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 5 million from the Rs -32 million net cash flows seen during FY21.

DIAMINES & CHEM. 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	154	273	77.5%
Cash Flow from Investing Activities	Rs m	-149	-215	-
Cash Flow from Financing Activities	Rs m	-37	-53	-
Net Cash Flow	Rs m	-32	5	-

Current Valuations for DIAMINES & CHEM.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.1, an decline from the EPS of Rs 21.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 288.1, stands at 16.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 4.3 times.
• The company's price to cash flow (P/CF) ratio stood at 16.1 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	64.2	67.6
TTM Earnings per share	Rs	21.5	17.1
Diluted earnings per share	Rs	21.5	17.1
Price to Cash Flow	x	11.3	16.1
TTM P/E ratio	x	12.3	16.9
Price / Book Value ratio	x	4.1	2.9
Market Cap	Rs m	3,451	2,954
Dividends per share (Unadj.)	Rs	5.0	3.0

Ratio Analysis for DIAMINES & CHEM.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 8.4x during FY22, from 9.6x 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 257.9x during FY22, from 345.1x 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 16.7% during FY22, from 24.7% 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 22.1% during FY22, from 30.5% 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 15.2% during FY22, from 22.2% 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	9.6	8.4
Debtors’ Days	Days	548	553
Interest coverage	x	345.1	257.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	22.2	15.2
Return on equity	%	24.7	16.7
Return on capital employed	%	30.5	22.1

To see how DIAMINES & CHEM. has performed over the last 5 years, please visit here.

DIAMINES & CHEM. Share Price Performance

Over the last one year, DIAMINES & CHEM. share price has moved down from Rs 290.0 to Rs 288.1, registering a loss of Rs 2.0 or around 0.7%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 19,005.7 (down 1.9%). Over the last one year it has moved up from 17,116.3 to 19,005.7, a gain of 1,889 points (up 11.0%).

Overall, the S&P BSE SENSEX is up 4.0% over the year.

(To know more, check out historical annual results for DIAMINES & CHEM. and quarterly results for DIAMINES & CHEM.)

Read: Latest Annual Report Analysis of DIAMINES & CHEM.