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DIAMINES & CHEM. 2022-23 Annual Report Analysis

Tue, 30 May

DIAMINES & CHEM. 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.

DIAMINES & CHEM. Income Statement Analysis

• Operating income during the year rose 67.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 152.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 50.2% in FY23 as against 33.3% in FY22.
• Depreciation charges increased by 6.9% and finance costs increased by 68.6% YoY, respectively.
• Other income grew by 50.8% YoY.
• Net profit for the year grew by 150.7% YoY.
• Net profit margins during the year grew from 25.3% in FY22 to 37.9% in FY23.

DIAMINES & CHEM. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	661	1,106	67.2%
Other income	Rs m	18	27	50.8%
Total Revenues	Rs m	679	1,133	66.8%
Gross profit	Rs m	220	555	152.1%
Depreciation	Rs m	17	18	6.9%
Interest	Rs m	1	1	68.6%
Profit before tax	Rs m	221	564	155.0%
Tax	Rs m	54	144	168.3%
Profit after tax	Rs m	167	419	150.7%
Gross profit margin	%	33.3	50.2
Effective tax rate	%	24.4	25.6
Net profit margin	%	25.3	37.9

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DIAMINES & CHEM. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 126 million as compared to Rs 64 million in FY22, thereby witnessing an increase of 97.2%.
• Current assets rose 27% and stood at Rs 688 million, while fixed assets rose 46% and stood at Rs 823 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 1 billion during FY22, thereby witnessing a growth of 37%.

DIAMINES & CHEM. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,002	1,345	34.2
Current Liabilities	Rs m	64	126	97.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,106	1,511	36.7
Current assets	Rs m	540	688	27.2
Fixed Assets	Rs m	565	823	45.7
Total Assets	Rs m	1,106	1,511	36.7

DIAMINES & CHEM. Cash Flow Statement Analysis

• DIAMINES & CHEM.'s cash flow from operating activities (CFO) during FY23 stood at Rs 163 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -87 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -60 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 16 million from the Rs 5 million net cash flows seen during FY22.

DIAMINES & CHEM. 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	273	163	-40.3%
Cash Flow from Investing Activities	Rs m	-215	-87	-
Cash Flow from Financing Activities	Rs m	-53	-60	-
Net Cash Flow	Rs m	5	16	218.8%

Current Valuations for DIAMINES & CHEM.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 42.8, an improvement from the EPS of Rs 17.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 663.0, stands at 15.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 5.9 times.
• The company's price to cash flow (P/CF) ratio stood at 9.5 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	67.6	113.0
TTM Earnings per share	Rs	17.1	42.8
Diluted earnings per share	Rs	17.1	42.8
Price to Cash Flow	x	14.5	9.5
TTM P/E ratio	x	15.9	15.5
Price / Book Value ratio	x	2.9	3.1
Market Cap	Rs m	2,954	4,158
Dividends per share (Unadj.)	Rs	3.0	6.0

Ratio Analysis for DIAMINES & CHEM.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 5.4x during FY23, from 8.4x 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 improved and stood at 389.6x during FY23, from 257.9x 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 improved and stood at 31.2% during FY23, from 16.7% 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 improved and stood at 42.0% during FY23, from 22.1% 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 improved and stood at 27.8% during FY23, from 15.2% 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	8.4	5.4
Debtors’ Days	Days	553	756
Interest coverage	x	257.9	389.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.2	27.8
Return on equity	%	16.7	31.2
Return on capital employed	%	22.1	42.0

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 up from Rs 296.3 to Rs 663.0, registering a gain of Rs 366.7 or around 123.8%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 18,263.2 (up 0.2%). Over the last one year it has moved down from 18,756.6 to 18,263.2, a loss of 493 points (down 2.6%).

Overall, the S&P BSE SENSEX is up 16.0% over the year.

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