HIMADRI SPECIALITY CHEMICAL 2017-18 Annual Report Analysis

Sat, 31 Mar

HIMADRI SPECIALITY CHEMICAL has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

HIMADRI SPECIALITY CHEMICAL Income Statement Analysis

• Operating income during the year rose 64.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 94.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.0% in FY18 as against 19.5% in FY17.
• Depreciation charges increased by 1.4% and finance costs decreased by 13.6% YoY, respectively.
• Other income grew by 110.0% YoY.
• Net profit for the year grew by 200.3% YoY.
• Net profit margins during the year grew from 6.9% in FY17 to 12.6% in FY18.

HIMADRI SPECIALITY CHEMICAL Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	11,959	19,712	64.8%
Other income	Rs m	58	123	110.0%
Total Revenues	Rs m	12,018	19,834	65.0%
Gross profit	Rs m	2,332	4,524	94.0%
Depreciation	Rs m	328	332	1.4%
Interest	Rs m	816	704	-13.6%
Profit before tax	Rs m	1,247	3,610	189.5%
Tax	Rs m	422	1,134	168.5%
Profit after tax	Rs m	824	2,476	200.3%
Gross profit margin	%	19.5	23.0
Effective tax rate	%	33.9	31.4
Net profit margin	%	6.9	12.6

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HIMADRI SPECIALITY CHEMICAL Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 7 billion as compared to Rs 7 billion in FY17, thereby witnessing an increase of 6.3%.
• Long-term debt down at Rs 2 billion as compared to Rs 4 billion during FY17, a fall of 40.3%.
• Current assets rose 16% and stood at Rs 9 billion, while fixed assets rose 18% and stood at Rs 16 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 26 billion as against Rs 22 billion during FY17, thereby witnessing a growth of 18%.

HIMADRI SPECIALITY CHEMICAL Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	10,299	14,134	37.2
Current Liabilities	Rs m	6,963	7,402	6.3
Long-term Debt	Rs m	3,870	2,312	-40.3
Total Liabilities	Rs m	21,824	25,653	17.5
Current assets	Rs m	8,037	9,354	16.4
Fixed Assets	Rs m	13,787	16,299	18.2
Total Assets	Rs m	21,824	25,653	17.5

HIMADRI SPECIALITY CHEMICAL Cash Flow Statement Analysis

• HIMADRI SPECIALITY CHEMICAL's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion, an improvement of 25.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -503 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -2 billion, an improvement of 14% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 78 million from the Rs -176 million net cash flows seen during FY17.

HIMADRI SPECIALITY CHEMICAL Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	2,054	2,581	25.6%
Cash Flow from Investing Activities	Rs m	175	-503	-
Cash Flow from Financing Activities	Rs m	-2,332	-1,999	-
Net Cash Flow	Rs m	-176	78	-

Current Valuations for HIMADRI SPECIALITY CHEMICAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.9, an improvement from the EPS of Rs 2.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 146.6, stands at 25.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 18.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	28.6	47.1
TTM Earnings per share	Rs	2.0	5.9
Diluted earnings per share	Rs	2.0	5.9
Price to Cash Flow	x	15.9	18.0
TTM P/E ratio	x	22.5	25.3
Price / Book Value ratio	x	1.3	3.6
Market Cap	Rs m	13,515	50,491
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for HIMADRI SPECIALITY CHEMICAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY18, from 1.2x during FY17. 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 6.1x during FY18, from 2.5x during FY17. 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 17.5% during FY18, from 8.0% during FY18. 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 26.2% during FY18, from 14.6% during FY17. 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 12.4% during FY18, from 7.5% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	1.2	1.3
Debtors’ Days	Days	675	503
Interest coverage	x	2.5	6.1
Debt to equity ratio	x	0.4	0.2
Return on assets	%	7.5	12.4
Return on equity	%	8.0	17.5
Return on capital employed	%	14.6	26.2

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 43.7 to Rs 146.6, registering a gain of Rs 103.0 or around 235.9%.

Overall, the S&P BSE SENSEX is up 12.1% 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