HIMADRI SPECIALITY CHEMICAL 2020-21 Annual Report Analysis

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HIMADRI SPECIALITY CHEMICAL 2020-21 Annual Report Analysis
Thu, 21 Oct

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 11.3% 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 % 11.3 2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 54.3, stands at 30.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 24.1 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 9.3 24.1
TTM P/E ratio x 30.6 30.6
Price / Book Value ratio x 1.8 1.1
Market Cap Rs m 22,720 22,729
Dividends per share (Unadj.) Rs 0.2 0.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 49.8 to Rs 54.3, registering a gain of Rs 4.5 or around 8.9%.

Overall, the S&P BSE SENSEX is up 50.3% over the year.

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

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Related Views on News

HIMADRI SPECIALITY CHEMICAL LTD Announces Quarterly Results (3QFY20); Net Profit Down 80.2% (Quarterly Result Update)

Feb 14, 2020 | Updated on Feb 14, 2020

For the quarter ended December 2019, HIMADRI SPECIALITY CHEMICAL LTD has posted a net profit of Rs 167 m (down 80.2% YoY). Sales on the other hand came in at Rs 4 bn (down 27.0% YoY). Read on for a complete analysis of HIMADRI SPECIALITY CHEMICAL LTD's quarterly results.

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