KANORIA CHEMICALS 2018-19 Annual Report Analysis

Sun, 31 Mar

KANORIA CHEMICALS has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

KANORIA CHEMICALS Income Statement Analysis

• Operating income during the year rose 29.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 67.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.4% in FY19 as against 4.2% in FY18.
• Depreciation charges increased by 6.2% and finance costs increased by 51.3% YoY, respectively.
• Other income declined by 72.5% YoY.
• Net profit for the year declined by 268.5% YoY.
• Net profit margins during the year declined from 1.4% in FY18 to 1.8% in FY19.

KANORIA CHEMICALS Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	8,287	10,717	29.3%
Other income	Rs m	454	125	-72.5%
Total Revenues	Rs m	8,741	10,842	24.0%
Gross profit	Rs m	346	580	67.6%
Depreciation	Rs m	466	495	6.2%
Interest	Rs m	238	360	51.3%
Profit before tax	Rs m	96	-150	-255.4%
Tax	Rs m	-19	45	-334.0%
Profit after tax	Rs m	116	-195	-268.5%
Gross profit margin	%	4.2	5.4
Effective tax rate	%	-20.0	-30.2
Net profit margin	%	1.4	-1.8

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

KANORIA CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 5 billion as compared to Rs 4 billion in FY18, thereby witnessing an increase of 27.8%.
• Long-term debt down at Rs 3 billion as compared to Rs 3 billion during FY18, a fall of 0.7%.
• Current assets rose 15% and stood at Rs 5 billion, while fixed assets rose 7% and stood at Rs 9 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 14 billion as against Rs 13 billion during FY18, thereby witnessing a growth of 10%.

KANORIA CHEMICALS Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	5,879	5,985	1.8
Current Liabilities	Rs m	3,651	4,664	27.8
Long-term Debt	Rs m	2,595	2,576	-0.7
Total Liabilities	Rs m	12,778	14,008	9.6
Current assets	Rs m	3,951	4,556	15.3
Fixed Assets	Rs m	8,827	9,452	7.1
Total Assets	Rs m	12,778	14,008	9.6

KANORIA CHEMICALS Cash Flow Statement Analysis

• KANORIA CHEMICALS's cash flow from operating activities (CFO) during FY19 stood at Rs 215 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -859 million, an improvement of 315.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 728 million, an improvement of 762% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 85 million from the Rs -48 million net cash flows seen during FY18.

KANORIA CHEMICALS Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	269	215	-19.9%
Cash Flow from Investing Activities	Rs m	-207	-859	-
Cash Flow from Financing Activities	Rs m	-110	728	-
Net Cash Flow	Rs m	-48	85	-

Current Valuations for KANORIA CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.5, an decline from the EPS of Rs 2.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 62.4, stands at 35.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 10.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	189.7	245.3
TTM Earnings per share	Rs	2.6	-4.5
Diluted earnings per share	Rs	2.6	-4.5
Price to Cash Flow	x	4.9	10.1
TTM P/E ratio	x	50.2	35.6
Price / Book Value ratio	x	0.7	0.5
Market Cap	Rs m	3,845	3,035
Dividends per share (Unadj.)	Rs	1.5	0.8

Ratio Analysis for KANORIA CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY19, from 1.1x during FY18. 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 0.6x during FY19, from 1.4x during FY18. 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 -3.3% during FY19, from 2.0% during FY19. 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 2.5% during FY19, from 3.9% during FY18. 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 1.2% during FY19, from 2.8% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	1.1	1.0
Debtors’ Days	Days	61	50
Interest coverage	x	1.4	0.6
Debt to equity ratio	x	0.4	0.4
Return on assets	%	2.8	1.2
Return on equity	%	2.0	-3.3
Return on capital employed	%	3.9	2.5

To see how KANORIA CHEMICALS has performed over the last 5 years, please visit here.

KANORIA CHEMICALS Share Price Performance

Over the last one year, KANORIA CHEMICALS share price has moved down from Rs 65.7 to Rs 62.4, registering a loss of Rs 3.4 or around 5.1%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for KANORIA CHEMICALS and quarterly results for KANORIA CHEMICALS)

Read: Latest Annual Report Analysis of KANORIA CHEMICALS