INSECTICIDES IND 2022-23 Annual Report Analysis

Tue, 26 Sep

INSECTICIDES IND 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.

INSECTICIDES IND Income Statement Analysis

• Operating income during the year rose 19.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 28.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.8% in FY23 as against 11.3% in FY22.
• Depreciation charges decreased by 0.9% and finance costs increased by 102.8% YoY, respectively.
• Other income declined by 70.4% YoY.
• Net profit for the year declined by 41.2% YoY.
• Net profit margins during the year declined from 7.1% in FY22 to 3.5% in FY23.

INSECTICIDES IND Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	15,040	18,013	19.8%
Other income	Rs m	43	13	-70.4%
Total Revenues	Rs m	15,082	18,026	19.5%
Gross profit	Rs m	1,701	1,221	-28.2%
Depreciation	Rs m	263	261	-0.9%
Interest	Rs m	66	135	102.8%
Profit before tax	Rs m	1,414	838	-40.7%
Tax	Rs m	339	206	-39.3%
Profit after tax	Rs m	1,074	632	-41.2%
Gross profit margin	%	11.3	6.8
Effective tax rate	%	24.0	24.6
Net profit margin	%	7.1	3.5

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INSECTICIDES IND Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 49.6%.
• Long-term debt stood at Rs 19 million as compared to Rs 19 million during FY22, a growth of 0.5%.
• Current assets rose 23% and stood at Rs 12 billion, while fixed assets rose 13% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 17 billion as against Rs 14 billion during FY22, thereby witnessing a growth of 20%.

INSECTICIDES IND Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,696	9,183	5.6
Current Liabilities	Rs m	5,078	7,595	49.6
Long-term Debt	Rs m	19	19	0.5
Total Liabilities	Rs m	14,322	17,175	19.9
Current assets	Rs m	10,027	12,322	22.9
Fixed Assets	Rs m	4,295	4,853	13.0
Total Assets	Rs m	14,322	17,175	19.9

INSECTICIDES IND Cash Flow Statement Analysis

• INSECTICIDES IND's cash flow from operating activities (CFO) during FY23 stood at Rs -106 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -864 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 797 million, an improvement of 170% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -174 million from the Rs 295 million net cash flows seen during FY22.

INSECTICIDES IND 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	1,348	-106	-
Cash Flow from Investing Activities	Rs m	93	-864	-
Cash Flow from Financing Activities	Rs m	-1,146	797	-
Net Cash Flow	Rs m	295	-174	-

Current Valuations for INSECTICIDES IND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.4, an decline from the EPS of Rs 54.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 458.5, stands at 25.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 19.9 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	762.3	608.6
TTM Earnings per share	Rs	54.4	21.4
Diluted earnings per share	Rs	36.3	21.4
Price to Cash Flow	x	9.1	19.9
TTM P/E ratio	x	11.3	25.1
Price / Book Value ratio	x	1.5	1.9
Market Cap	Rs m	12,731	17,783
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for INSECTICIDES IND

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 2.0x 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 7.2x during FY23, from 22.3x 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 6.9% during FY23, from 12.4% 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 10.6% during FY23, from 17.0% 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 4.5% during FY23, from 8.0% 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	2.0	1.6
Debtors’ Days	Days	701	600
Interest coverage	x	22.3	7.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.0	4.5
Return on equity	%	12.4	6.9
Return on capital employed	%	17.0	10.6

To see how INSECTICIDES IND has performed over the last 5 years, please visit here.

INSECTICIDES IND Share Price Performance

Over the last one year, INSECTICIDES IND share price has moved down from Rs 638.7 to Rs 458.5, registering a loss of Rs 180.3 or around 28.2%.

Overall, the S&P BSE SENSEX is up 11.5% over the year.

(To know more, check out historical annual results for INSECTICIDES IND and quarterly results for INSECTICIDES IND)