PRIVI SPECIALITY CHEMICALS 2022-23 Annual Report Analysis

Wed, 19 Jul

PRIVI SPECIALITY CHEMICALS 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.

PRIVI SPECIALITY CHEMICALS Income Statement Analysis

• Operating income during the year rose 14.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 6.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.7% in FY23 as against 14.3% in FY22.
• Depreciation charges increased by 45.3% and finance costs increased by 174.9% YoY, respectively.
• Other income declined by 33.9% YoY.
• Net profit for the year declined by 78.1% YoY.
• Net profit margins during the year declined from 6.9% in FY22 to 1.3% in FY23.

PRIVI SPECIALITY CHEMICALS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,037	16,078	14.5%
Other income	Rs m	324	214	-33.9%
Total Revenues	Rs m	14,361	16,292	13.4%
Gross profit	Rs m	2,003	1,877	-6.3%
Depreciation	Rs m	747	1,085	45.3%
Interest	Rs m	253	696	174.9%
Profit before tax	Rs m	1,328	310	-76.6%
Tax	Rs m	354	98	-72.4%
Profit after tax	Rs m	974	213	-78.1%
Gross profit margin	%	14.3	11.7
Effective tax rate	%	26.6	31.5
Net profit margin	%	6.9	1.3

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PRIVI SPECIALITY CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 11 billion as compared to Rs 9 billion in FY22, thereby witnessing an increase of 18.6%.
• Long-term debt stood at Rs 4 billion as compared to Rs 4 billion during FY22, a growth of 6.1%.
• Current assets rose 14% and stood at Rs 12 billion, while fixed assets rose 6% and stood at Rs 12 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 24 billion as against Rs 22 billion during FY22, thereby witnessing a growth of 10%.

PRIVI SPECIALITY CHEMICALS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,123	8,291	2.1
Current Liabilities	Rs m	9,289	11,013	18.6
Long-term Debt	Rs m	3,806	4,037	6.1
Total Liabilities	Rs m	21,760	23,911	9.9
Current assets	Rs m	10,526	12,023	14.2
Fixed Assets	Rs m	11,229	11,888	5.9
Total Assets	Rs m	21,760	23,911	9.9

PRIVI SPECIALITY CHEMICALS Cash Flow Statement Analysis

• PRIVI SPECIALITY CHEMICALS's cash flow from operating activities (CFO) during FY23 stood at Rs 488 million, an improvement of 929.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 723 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -121 million from the Rs 171 million net cash flows seen during FY22.

PRIVI SPECIALITY CHEMICALS 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	47	488	929.5%
Cash Flow from Investing Activities	Rs m	-3,205	-1,332	-
Cash Flow from Financing Activities	Rs m	3,329	723	-78.3%
Net Cash Flow	Rs m	171	-121	-

Current Valuations for PRIVI SPECIALITY CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.4, an decline from the EPS of Rs 24.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,112.4, stands at 204.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 46.1 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	359.4	411.6
TTM Earnings per share	Rs	24.9	5.4
Diluted earnings per share	Rs	24.9	5.4
Price to Cash Flow	x	42.7	46.1
TTM P/E ratio	x	75.4	204.2
Price / Book Value ratio	x	7.4	7.2
Market Cap	Rs m	60,449	59,851
Dividends per share (Unadj.)	Rs	2.0	0.0

Ratio Analysis for PRIVI SPECIALITY CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY23, from 1.1x 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 1.4x during FY23, from 6.2x 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 2.6% during FY23, from 12.0% 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 8.2% during FY23, from 13.3% 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 declined and down at 3.8% during FY23, from 5.6% 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	1.1	1.1
Debtors’ Days	Days	689	671
Interest coverage	x	6.2	1.4
Debt to equity ratio	x	0.5	0.5
Return on assets	%	5.6	3.8
Return on equity	%	12.0	2.6
Return on capital employed	%	13.3	8.2

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 up from Rs 1,099.2 to Rs 1,112.4, registering a gain of Rs 13.2 or around 1.2%.

Overall, the S&P BSE SENSEX is up 22.6% over the year.

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