HIMADRI SPECIALITY CHEMICAL 2020-21 Annual Report Analysis

Wed, 31 Mar

HIMADRI SPECIALITY CHEMICAL has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

HIMADRI SPECIALITY CHEMICAL Income Statement Analysis

• Operating income during the year fell 7.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 53.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.8% in FY21 as against 15.5% in FY20.
• Depreciation charges increased by 19.7% and finance costs decreased by 39.1% YoY, respectively.
• Other income grew by 75.9% YoY.
• Net profit for the year declined by 77.0% YoY.
• Net profit margins during the year declined from 11.4% in FY20 to 2.8% in FY21.

HIMADRI SPECIALITY CHEMICAL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	18,058	16,795	-7.0%
Other income	Rs m	80	140	75.9%
Total Revenues	Rs m	18,138	16,935	-6.6%
Gross profit	Rs m	2,803	1,309	-53.3%
Depreciation	Rs m	392	470	19.7%
Interest	Rs m	549	334	-39.1%
Profit before tax	Rs m	1,941	646	-66.7%
Tax	Rs m	-112	173	-254.2%
Profit after tax	Rs m	2,054	473	-77.0%
Gross profit margin	%	15.5	7.8
Effective tax rate	%	-5.8	26.8
Net profit margin	%	11.4	2.8

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HIMADRI SPECIALITY CHEMICAL Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 8 billion as compared to Rs 7 billion in FY20, thereby witnessing an increase of 13.2%.
• Long-term debt stood at Rs 844 million as compared to Rs 224 million during FY20, a growth of 276.0%.
• Current assets rose 25% and stood at Rs 10 billion, while fixed assets rose 2% and stood at Rs 20 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 30 billion as against Rs 28 billion during FY20, thereby witnessing a growth of 9%.

HIMADRI SPECIALITY CHEMICAL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	17,308	17,894	3.4
Current Liabilities	Rs m	7,429	8,413	13.2
Long-term Debt	Rs m	224	844	276.0
Total Liabilities	Rs m	27,965	30,371	8.6
Current assets	Rs m	8,364	10,474	25.2
Fixed Assets	Rs m	19,601	19,897	1.5
Total Assets	Rs m	27,965	30,371	8.6

HIMADRI SPECIALITY CHEMICAL Cash Flow Statement Analysis

• HIMADRI SPECIALITY CHEMICAL's cash flow from operating activities (CFO) during FY21 stood at Rs -404 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 2 billion, an improvement of 504% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 107 million from the Rs 280 million net cash flows seen during FY20.

HIMADRI SPECIALITY CHEMICAL Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	2,826	-404	-
Cash Flow from Investing Activities	Rs m	-2,138	-1,136	-
Cash Flow from Financing Activities	Rs m	-408	1,647	-
Net Cash Flow	Rs m	280	107	-61.8%

Current Valuations for HIMADRI SPECIALITY CHEMICAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.1, an decline from the EPS of Rs 4.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 41.7, stands at 37.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 21.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	43.1	40.1
TTM Earnings per share	Rs	4.9	1.1
Diluted earnings per share	Rs	4.9	1.1
Price to Cash Flow	x	5.1	21.3
TTM P/E ratio	x	6.0	37.0
Price / Book Value ratio	x	1.8	1.1
Market Cap	Rs m	31,254	20,068
Dividends per share (Unadj.)	Rs	0.2	0.2

Ratio Analysis for HIMADRI SPECIALITY CHEMICAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY21, from 1.1x during FY20. 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 2.9x during FY21, from 4.5x during FY20. 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 FY21, from 11.9% during FY21. 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 5.2% during FY21, from 14.2% during FY20. 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 2.7% during FY21, from 9.3% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.1	1.2
Debtors’ Days	Days	606	1,003
Interest coverage	x	4.5	2.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.3	2.7
Return on equity	%	11.9	2.6
Return on capital employed	%	14.2	5.2

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

HIMADRI SPECIALITY CHEMICAL Share Price Performance

Over the last one year, HIMADRI SPECIALITY CHEMICAL share price has moved up from Rs 29.6 to Rs 41.7, registering a gain of Rs 12.2 or around 41.1%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of HIMADRI SPECIALITY CHEMICAL