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IG PETROCHEMICALS 2022-23 Annual Report Analysis
Tue, 15 Aug

IG PETROCHEMICALS 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.

IG PETROCHEMICALS Income Statement Analysis

  • Operating income during the year rose 24.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 21.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.5% in FY23 as against 21.4% in FY22.
  • Depreciation charges increased by 6.9% and finance costs increased by 85.7% YoY, respectively.
  • Other income grew by 95.0% YoY.
  • Net profit for the year declined by 24.4% YoY.
  • Net profit margins during the year declined from 14.0% in FY22 to 8.5% in FY23.

IG PETROCHEMICALS Income Statement 2022-23

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Net Sales Rs m 18,828 23,523 24.9%
Other income Rs m 113 219 95.0%
Total Revenues Rs m 18,940 23,743 25.4%
Gross profit Rs m 4,023 3,177 -21.0%
Depreciation Rs m 443 474 6.9%
Interest Rs m 129 239 85.7%
Profit before tax Rs m 3,563 2,683 -24.7%
Tax Rs m 918 683 -25.6%
Profit after tax Rs m 2,645 2,000 -24.4%
Gross profit margin % 21.4 13.5
Effective tax rate % 25.8 25.5
Net profit margin % 14.0 8.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



RESPONSE PENDING: Your Meeting with Tanushree Banerjee Tomorrow...

IG PETROCHEMICALS Balance Sheet Analysis

  • The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 4 billion in FY22, thereby witnessing an increase of 25.9%.
  • Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY22, a growth of 48.0%.
  • Current assets rose 14% and stood at Rs 8 billion, while fixed assets rose 26% and stood at Rs 12 billion in FY23.
  • Overall, the total assets and liabilities for FY23 stood at Rs 20 billion as against Rs 17 billion during FY22, thereby witnessing a growth of 21%.

IG PETROCHEMICALS Balance Sheet as on March 2023

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Networth Rs m 10,621 12,349 16.3
 
Current Liabilities Rs m 3,924 4,940 25.9
Long-term Debt Rs m 1,143 1,692 48.0
Total Liabilities Rs m 16,512 19,919 20.6
 
Current assets Rs m 7,117 8,111 14.0
Fixed Assets Rs m 9,395 11,809 25.7
Total Assets Rs m 16,512 19,919 20.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



IG PETROCHEMICALS Cash Flow Statement Analysis

  • IG PETROCHEMICALS's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 112.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion, an improvement of 141.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY23 stood at Rs 206 million, an improvement of 210% on a YoY basis.
  • Overall, net cash flows for the company during FY23 stood at Rs -23 million from the Rs -152 million net cash flows seen during FY22.

IG PETROCHEMICALS 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 1,093 2,325 112.8%
Cash Flow from Investing Activities Rs m -1,056 -2,554 -
Cash Flow from Financing Activities Rs m -188 206 -
Net Cash Flow Rs m -152 -23 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for IG PETROCHEMICALS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 65.0, an decline from the EPS of Rs 85.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 457.2, stands at 9.1 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 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.6 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 611.5 764.0
TTM Earnings per share Rs 85.9 65.0
Diluted earnings per share Rs 85.9 65.0
Price to Cash Flow x 7.0 7.6
TTM P/E ratio x 8.2 9.1
Price / Book Value ratio x 2.1 1.5
Market Cap Rs m 22,033 18,793
Dividends per share (Unadj.) Rs 10.0 10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for IG PETROCHEMICALS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 1.8x 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 deteriorated and stood at 12.2x during FY23, from 28.7x 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 declined and down at 16.2% during FY23, from 24.9% 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 declined and down at 20.8% during FY23, from 31.4% 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 declined and down at 11.2% during FY23, from 16.8% 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 1.8 1.6
Debtors’ Days Days 672 504
Interest coverage x 28.7 12.2
Debt to equity ratio x 0.1 0.1
Return on assets % 16.8 11.2
Return on equity % 24.9 16.2
Return on capital employed % 31.4 20.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how IG PETROCHEMICALS has performed over the last 5 years, please visit here.

IG PETROCHEMICALS Share Price Performance

Over the last one year, IG PETROCHEMICALS share price has moved down from Rs 623.9 to Rs 457.2, registering a loss of Rs 166.7 or around 26.7%.

Overall, the S&P BSE SENSEX is up 10.2% over the year.

(To know more, check out historical annual results for IG PETROCHEMICALS and quarterly results for IG PETROCHEMICALS)

Annual Report FAQs

What is the current share price of IG PETROCHEMICALS?

IG PETROCHEMICALS currently trades at Rs 510.4 per share. You can check out the latest share price performance of IG PETROCHEMICALS here...

What was the revenue of IG PETROCHEMICALS in FY23? How does it compare to earlier years?

The revenues of IG PETROCHEMICALS stood at Rs 23,743 m in FY23, which was up 25.4% compared to Rs 18,940 m reported in FY22.

IG PETROCHEMICALS' revenue has grown from Rs 13,150 m in FY19 to Rs 23,743 m in FY23.

Over the past 5 years, the revenue of IG PETROCHEMICALS has grown at a CAGR of 15.9%.

What was the net profit of IG PETROCHEMICALS in FY23? How does it compare to earlier years?

The net profit of IG PETROCHEMICALS stood at Rs 2,000 m in FY23, which was down -24.4% compared to Rs 2,645 m reported in FY22.

This compares to a net profit of Rs 1,881 m in FY21 and a net profit of Rs 209 m in FY20.

Over the past 5 years, IG PETROCHEMICALS net profit has grown at a CAGR of 14.4%.

What does the cash flow statement of IG PETROCHEMICALS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of IG PETROCHEMICALS reveals:

  • Cash flow from operations increased in FY23 and stood at Rs 2,325 m as compared to Rs 1,093 m in FY22.
  • Cash flow from investments decreased in FY23 and stood at Rs -2,554 m as compared to Rs -1,056 m in FY22.
  • Cash flow from financial activity increased in FY23 and stood at Rs 206 m as compared to Rs -188 m in FY22.

Here's the cash flow statement of IG PETROCHEMICALS for the past 5 years.

(Rs m)FY19FY20FY21FY22FY23
From Operations1,3868371,8331,0932,325
From Investments-2,158-1,040-725-1,056-2,554
From Financial Activity583353-803-188206
Net Cashflow-189150304-152-23

What does the Key Ratio analysis of IG PETROCHEMICALS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of IG PETROCHEMICALS reveals:

  • Operating profit margins witnessed a fall and stood at 13.5% in FY23 as against 21.4% in FY22.
  • Net profit margins declined from 14.0% in FY22 to 8.5% in FY23.
  • Debt to Equity ratio for FY23 stood at 0.1 as compared to 0.1 in FY22.

Here's the ratio/financial analysis of IG PETROCHEMICALS for the past 5 years.

 FY19FY20FY21FY22FY23
Operating Profit Margin (%)16.46.726.321.413.5
Net Profit Margin (%)9.02.016.714.08.5
Debt to Equity Ratio (x)0.20.20.10.10.1

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