FINEOTEX CHEMICAL 2022-23 Annual Report Analysis

Fri, 1 Sep

FINEOTEX CHEMICAL 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.

FINEOTEX CHEMICAL Income Statement Analysis

• Operating income during the year rose 40.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 58.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.8% in FY23 as against 19.3% in FY22.
• Depreciation charges increased by 70.3% and finance costs decreased by 11.1% YoY, respectively.
• Other income grew by 32.4% YoY.
• Net profit for the year grew by 57.4% YoY.
• Net profit margins during the year grew from 15.4% in FY22 to 17.3% in FY23.

FINEOTEX CHEMICAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,682	5,170	40.4%
Other income	Rs m	55	73	32.4%
Total Revenues	Rs m	3,737	5,243	40.3%
Gross profit	Rs m	712	1,126	58.1%
Depreciation	Rs m	25	43	70.3%
Interest	Rs m	9	8	-11.1%
Profit before tax	Rs m	733	1,148	56.6%
Tax	Rs m	164	252	53.9%
Profit after tax	Rs m	569	896	57.4%
Gross profit margin	%	19.3	21.8
Effective tax rate	%	22.4	22.0
Net profit margin	%	15.4	17.3

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FINEOTEX CHEMICAL Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 638 million as compared to Rs 681 million in FY22, thereby witnessing an decrease of -6.2%.
• Current assets fell 4% and stood at Rs 2 billion, while fixed assets rose 85% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 25%.

FINEOTEX CHEMICAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,621	3,484	32.9
Current Liabilities	Rs m	681	638	-6.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,395	4,227	24.5
Current assets	Rs m	2,246	2,167	-3.5
Fixed Assets	Rs m	1,077	1,988	84.6
Total Assets	Rs m	3,395	4,227	24.5

FINEOTEX CHEMICAL Cash Flow Statement Analysis

• FINEOTEX CHEMICAL's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 702.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 13,588.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -64 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 14 million from the Rs 84 million net cash flows seen during FY22.

FINEOTEX CHEMICAL 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	134	1,073	702.0%
Cash Flow from Investing Activities	Rs m	-7	-1,018	-
Cash Flow from Financing Activities	Rs m	-57	-64	-
Net Cash Flow	Rs m	84	14	-83.8%

Current Valuations for FINEOTEX CHEMICAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.1, an improvement from the EPS of Rs 5.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 312.9, stands at 36.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.9 times, while the price to sales ratio stands at 6.7 times.
• The company's price to cash flow (P/CF) ratio stood at 33.0 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	33.2	46.7
TTM Earnings per share	Rs	5.1	8.1
Diluted earnings per share	Rs	5.1	8.1
Price to Cash Flow	x	33.6	33.0
TTM P/E ratio	x	35.1	36.3
Price / Book Value ratio	x	5.2	8.9
Market Cap	Rs m	13,561	30,968
Dividends per share (Unadj.)	Rs	0.4	0.8

Ratio Analysis for FINEOTEX CHEMICAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.4x during FY23, from 3.3x 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 140.8x during FY23, from 80.4x 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 25.7% during FY23, from 21.7% 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 33.2% during FY23, from 28.3% 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 21.4% during FY23, from 17.0% 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	3.3	3.4
Debtors’ Days	Days	1,099	716
Interest coverage	x	80.4	140.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.0	21.4
Return on equity	%	21.7	25.7
Return on capital employed	%	28.3	33.2

To see how FINEOTEX CHEMICAL has performed over the last 5 years, please visit here.

FINEOTEX CHEMICAL Share Price Performance

Over the last one year, FINEOTEX CHEMICAL share price has moved up from Rs 310.3 to Rs 312.9, registering a gain of Rs 2.6 or around 0.8%.

Overall, the S&P BSE SENSEX is up 8.9% over the year.

(To know more, check out historical annual results for FINEOTEX CHEMICAL and quarterly results for FINEOTEX CHEMICAL)