HIMADRI SPECIALITY CHEMICAL LTD 2017-18 Annual Report Analysis

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HIMADRI SPECIALITY CHEMICAL LTD 2017-18 Annual Report Analysis
Thu, 20 Dec

HIMADRI SPECIALITY CHEMICAL LTD 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 LTD Income Statement Analysis

  • Operating income during the year rose 50.5% 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 22.4% in FY18 as against 17.4% in FY17.
  • Depreciation charges increased by 1.4% and finance costs decreased by 13.6% YoY, respectively.
  • Other income grew by 109.9% YoY.
  • Net profit for the year grew by 200.3% YoY.
  • Net profit margins during the year grew from 6.1% in FY17 to 12.2% in FY18.

HIMADRI SPECIALITY CHEMICAL LTD Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 13,430 20,215 50.5%
Other income Rs m 58 123 109.9%
Total Revenues Rs m 13,489 20,338 50.8%
Gross profit Rs m 2,332 4,524 94.0%
Depreciation Rs m 328 332 1.4%
Interest Rs m 816 705 -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 % 17.4 22.4
Effective tax rate % 33.9 31.4
Net profit margin % 6.1 12.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HIMADRI SPECIALITY CHEMICAL LTD Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 7 billion as compared to Rs 7 billion in FY17, thereby witnessing an decrease of -1.2%.
  • Long-term debt down at Rs 2 billion as compared to Rs 4 billion during FY17, a fall of 40.3%.
  • Current assets rose 10% and stood at Rs 9 billion, while fixed assets rose 1% and stood at Rs 12 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 17%.

HIMADRI SPECIALITY CHEMICAL LTD Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 10,301 14,147 37.3
 
Current Liabilities Rs m 6,730 6,649 -1.2
Long-term Debt Rs m 3,870 2,312 -40.3
Total Liabilities Rs m 21,904 25,709 17.4
 
Current assets Rs m 7,804 8,600 10.2
Fixed Assets Rs m 11,868 12,002 1.1
Total Assets Rs m 21,904 25,709 17.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HIMADRI SPECIALITY CHEMICAL LTD Cash Flow Statement Analysis

  • HIMADRI SPECIALITY CHEMICAL LTD's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion, an improvement of 25.0% 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 79 million from the Rs -176 million net cash flows seen during FY17.

HIMADRI SPECIALITY CHEMICAL LTD 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 2,567 25.0%
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 79 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for HIMADRI SPECIALITY CHEMICAL LTD

  • 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 137.5, stands at 19.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 2.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 20.5 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 32.1 48.3
TTM Earnings per share Rs 2.0 5.9
Diluted earnings per share Rs 2.0 5.9
Price to Cash Flow x 49.9 20.5
TTM P/E ratio x 19.7 19.7
Price / Book Value ratio x 1.3 3.6
Market Cap Rs m 57,531 57,531
Dividends per share (Unadj.) Rs 0.1 0.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for HIMADRI SPECIALITY CHEMICAL LTD

  • 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 deteriorated 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 60 49
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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

HIMADRI SPECIALITY CHEMICAL LTD Share Price Performance

Over the last one year, HIMADRI SPECIALITY CHEMICAL LTD share price has moved up from Rs 157.1 to Rs 137.5, registering a loss of Rs 19.6 or around 12.4%.

Overall, the S&P BSE SENSEX is up 7.5% over the year.

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

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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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