INDIA GLYCOLS 2022-23 Annual Report Analysis

Fri, 25 Aug

INDIA GLYCOLS 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.

INDIA GLYCOLS Income Statement Analysis

• Operating income during the year was NA on a year-on-year (YoY) basis.
• The company's operating profit decreased by 8.4% YoY during the fiscal. Operating profit margins witnessed a growth and down at 25.0% in FY23 as against 42.3% in FY22.
• Depreciation charges increased by 17.0% and finance costs increased by 40.7% YoY, respectively.
• Other income declined by 82.7% YoY.
• Net profit for the year declined by 57.2% YoY.
• Net profit margins during the year grew from 38.1% in FY22 to 10.5% in FY23.

INDIA GLYCOLS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	-8,648	-13,399	NA
Other income	Rs m	1,571	272	-82.7%
Total Revenues	Rs m	-7,077	-13,127	NA
Gross profit	Rs m	3,656	3,350	-8.4%
Depreciation	Rs m	803	940	17.0%
Interest	Rs m	734	1,033	40.7%
Profit before tax	Rs m	3,690	1,650	-55.3%
Tax	Rs m	394	240	-39.2%
Profit after tax	Rs m	3,296	1,410	-57.2%
Gross profit margin	%	-42.3	-25.0
Effective tax rate	%	10.7	14.5
Net profit margin	%	-38.1	-10.5

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INDIA GLYCOLS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 19 billion as compared to Rs 17 billion in FY22, thereby witnessing an increase of 6.6%.
• Long-term debt stood at Rs 6 billion as compared to Rs 5 billion during FY22, a growth of 2.0%.
• Current assets rose 2% and stood at Rs 16 billion, while fixed assets rose 6% and stood at Rs 32 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 49 billion as against Rs 46 billion during FY22, thereby witnessing a growth of 5%.

INDIA GLYCOLS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	17,919	19,014	6.1
Current Liabilities	Rs m	17,487	18,649	6.6
Long-term Debt	Rs m	5,400	5,508	2.0
Total Liabilities	Rs m	46,307	48,583	4.9
Current assets	Rs m	16,072	16,462	2.4
Fixed Assets	Rs m	30,224	32,114	6.3
Total Assets	Rs m	46,307	48,583	4.9

INDIA GLYCOLS Cash Flow Statement Analysis

• INDIA GLYCOLS's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 180.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -5 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -51 million from the Rs 37 million net cash flows seen during FY22.

INDIA GLYCOLS 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	1,160	3,257	180.7%
Cash Flow from Investing Activities	Rs m	764	-3,303	-
Cash Flow from Financing Activities	Rs m	-1,888	-5	-
Net Cash Flow	Rs m	37	-51	-

Current Valuations for INDIA GLYCOLS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 45.6, an decline from the EPS of Rs 106.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 758.7, stands at 15.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at -1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 11.3 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	-279.3	-432.8
TTM Earnings per share	Rs	106.5	45.6
Diluted earnings per share	Rs	106.4	45.6
Price to Cash Flow	x	7.6	11.3
TTM P/E ratio	x	10.2	15.0
Price / Book Value ratio	x	1.3	1.4
Market Cap	Rs m	22,556	26,598
Dividends per share (Unadj.)	Rs	7.5	7.5

Ratio Analysis for INDIA GLYCOLS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY23, from 0.9x 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 2.6x during FY23, from 6.0x 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 7.4% during FY23, from 18.4% 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 10.9% during FY23, from 19.0% 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 5.0% during FY23, from 8.7% 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	0.9	0.9
Debtors’ Days	Days	-1,683	-1,172
Interest coverage	x	6.0	2.6
Debt to equity ratio	x	0.3	0.3
Return on assets	%	8.7	5.0
Return on equity	%	18.4	7.4
Return on capital employed	%	19.0	10.9

To see how INDIA GLYCOLS has performed over the last 5 years, please visit here.

INDIA GLYCOLS Share Price Performance

Over the last one year, INDIA GLYCOLS share price has moved down from Rs 861.4 to Rs 758.7, registering a loss of Rs 102.8 or around 11.9%.

Overall, the S&P BSE SENSEX is up 9.9% over the year.

(To know more, check out historical annual results for INDIA GLYCOLS and quarterly results for INDIA GLYCOLS)