PRIVI SPECIALITY CHEMICALS 2021-22 Annual Report Analysis

Thu, 8 Sep

PRIVI SPECIALITY 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.

PRIVI SPECIALITY CHEMICALS Income Statement Analysis

• Operating income during the year rose 10.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 14.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.3% in FY22 as against 18.2% in FY21.
• Depreciation charges increased by 5.2% and finance costs increased by 6.9% YoY, respectively.
• Other income grew by 62.3% YoY.
• Net profit for the year declined by 16.7% YoY.
• Net profit margins during the year declined from 9.2% in FY21 to 6.9% in FY22.

PRIVI SPECIALITY CHEMICALS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	12,766	14,037	10.0%
Other income	Rs m	200	324	62.3%
Total Revenues	Rs m	12,965	14,361	10.8%
Gross profit	Rs m	2,329	2,003	-14.0%
Depreciation	Rs m	710	747	5.2%
Interest	Rs m	237	253	6.9%
Profit before tax	Rs m	1,582	1,328	-16.1%
Tax	Rs m	413	354	-14.4%
Profit after tax	Rs m	1,169	974	-16.7%
Gross profit margin	%	18.2	14.3
Effective tax rate	%	26.1	26.6
Net profit margin	%	9.2	6.9

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PRIVI SPECIALITY CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 9 billion as compared to Rs 5 billion in FY21, thereby witnessing an increase of 104.8%.
• Long-term debt stood at Rs 4 billion as compared to Rs 3 billion during FY21, a growth of 14.7%.
• Current assets rose 50% and stood at Rs 11 billion, while fixed assets rose 34% and stood at Rs 11 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 22 billion as against Rs 15 billion during FY21, thereby witnessing a growth of 41%.

PRIVI SPECIALITY CHEMICALS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	7,225	8,123	12.4
Current Liabilities	Rs m	4,536	9,289	104.8
Long-term Debt	Rs m	3,318	3,806	14.7
Total Liabilities	Rs m	15,402	21,760	41.3
Current assets	Rs m	7,002	10,526	50.3
Fixed Assets	Rs m	8,401	11,229	33.7
Total Assets	Rs m	15,402	21,760	41.3

PRIVI SPECIALITY CHEMICALS Cash Flow Statement Analysis

• PRIVI SPECIALITY CHEMICALS's cash flow from operating activities (CFO) during FY22 stood at Rs 47 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -3 billion, an improvement of 32.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 3 billion, an improvement of 1,351% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 171 million from the Rs -693 million net cash flows seen during FY21.

PRIVI SPECIALITY 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	1,493	47	-96.8%
Cash Flow from Investing Activities	Rs m	-2,415	-3,205	-
Cash Flow from Financing Activities	Rs m	229	3,329	1,350.7%
Net Cash Flow	Rs m	-693	171	-

Current Valuations for PRIVI SPECIALITY CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.9, an decline from the EPS of Rs 29.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,377.8, stands at 59.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.6 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 35.1 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	326.8	359.4
TTM Earnings per share	Rs	29.9	24.9
Diluted earnings per share	Rs	29.9	24.9
Price to Cash Flow	x	17.6	35.1
TTM P/E ratio	x	28.3	59.4
Price / Book Value ratio	x	3.6	7.4
Market Cap	Rs m	25,806	60,449
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for PRIVI SPECIALITY CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY22, from 1.5x 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 6.2x during FY22, from 7.7x 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 12.0% during FY22, from 16.2% 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 13.3% during FY22, from 17.3% 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 5.6% during FY22, from 9.1% 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	1.5	1.1
Debtors’ Days	Days	683	689
Interest coverage	x	7.7	6.2
Debt to equity ratio	x	0.5	0.5
Return on assets	%	9.1	5.6
Return on equity	%	16.2	12.0
Return on capital employed	%	17.3	13.3

To see how PRIVI SPECIALITY CHEMICALS has performed over the last 5 years, please visit here.

PRIVI SPECIALITY CHEMICALS Share Price Performance

Over the last one year, PRIVI SPECIALITY CHEMICALS share price has moved down from Rs 1,668.3 to Rs 1,377.8, registering a loss of Rs 290.5 or around 17.4%.

Overall, the S&P BSE SENSEX is up 2.4% over the year.

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

Read: Latest Annual Report Analysis of PRIVI SPECIALITY CHEMICALS