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HIMADRI SPECIALITY CHEMICAL 2022-23 Annual Report Analysis

Wed, 31 May

HIMADRI SPECIALITY 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.

HIMADRI SPECIALITY CHEMICAL Income Statement Analysis

• Operating income during the year rose 49.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 180.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.8% in FY23 as against 4.7% in FY22.
• Depreciation charges increased by 2.6% and finance costs increased by 85.5% YoY, respectively.
• Other income grew by 287.4% YoY.
• Net profit for the year grew by 452.7% YoY.
• Net profit margins during the year grew from 1.4% in FY22 to 5.2% in FY23.

HIMADRI SPECIALITY CHEMICAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	27,913	41,718	49.5%
Other income	Rs m	72	280	287.4%
Total Revenues	Rs m	27,985	41,998	50.1%
Gross profit	Rs m	1,314	3,692	180.9%
Depreciation	Rs m	495	508	2.6%
Interest	Rs m	356	661	85.5%
Profit before tax	Rs m	535	2,803	424.2%
Tax	Rs m	144	644	346.8%
Profit after tax	Rs m	391	2,159	452.7%
Gross profit margin	%	4.7	8.8
Effective tax rate	%	27.0	23.0
Net profit margin	%	1.4	5.2

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HIMADRI SPECIALITY CHEMICAL Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 13 billion as compared to Rs 14 billion in FY22, thereby witnessing an decrease of -8.3%.
• Long-term debt down at Rs 483 million as compared to Rs 932 million during FY22, a fall of 48.2%.
• Current assets rose 16% and stood at Rs 19 billion, while fixed assets rose 0% and stood at Rs 21 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 40 billion as against Rs 37 billion during FY22, thereby witnessing a growth of 7%.

HIMADRI SPECIALITY CHEMICAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	18,638	21,741	16.6
Current Liabilities	Rs m	14,124	12,950	-8.3
Long-term Debt	Rs m	932	483	-48.2
Total Liabilities	Rs m	37,138	39,855	7.3
Current assets	Rs m	16,681	19,325	15.8
Fixed Assets	Rs m	20,457	20,530	0.4
Total Assets	Rs m	37,138	39,855	7.3

HIMADRI SPECIALITY CHEMICAL Cash Flow Statement Analysis

• HIMADRI SPECIALITY CHEMICAL's cash flow from operating activities (CFO) during FY23 stood at Rs 540 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion, an improvement of 1,305.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 4 billion, an improvement of 307% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 344 million from the Rs 1 billion net cash flows seen during FY22.

HIMADRI SPECIALITY 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	3,309	540	-83.7%
Cash Flow from Investing Activities	Rs m	-282	-3,967	-
Cash Flow from Financing Activities	Rs m	-1,820	3,771	-
Net Cash Flow	Rs m	1,207	344	-71.5%

Current Valuations for HIMADRI SPECIALITY CHEMICAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.0, an improvement from the EPS of Rs 0.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 127.6, stands at 25.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 13.3 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	66.6	96.4
TTM Earnings per share	Rs	0.9	5.0
Diluted earnings per share	Rs	0.9	5.0
Price to Cash Flow	x	36.3	13.3
TTM P/E ratio	x	82.4	25.6
Price / Book Value ratio	x	1.3	1.6
Market Cap	Rs m	24,667	35,536
Dividends per share (Unadj.)	Rs	0.2	0.3

Ratio Analysis for HIMADRI SPECIALITY CHEMICAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 1.2x 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 5.2x during FY23, from 2.5x 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 9.9% during FY23, from 2.1% 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 15.6% during FY23, from 4.6% 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 7.1% during FY23, from 2.0% 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	1.2	1.5
Debtors’ Days	Days	660	442
Interest coverage	x	2.5	5.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.0	7.1
Return on equity	%	2.1	9.9
Return on capital employed	%	4.6	15.6

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 67.1 to Rs 127.6, registering a gain of Rs 60.5 or around 90.1%.

Overall, the S&P BSE SENSEX is up 15.6% over the year.

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