KANORIA CHEMICALS 2018-19 Annual Report Analysis

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KANORIA CHEMICALS 2018-19 Annual Report Analysis
Tue, 24 Sep

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 28.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 83.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.9% in FY19 as against 4.1% in FY18.
  • Depreciation charges increased by 6.2% and finance costs increased by 51.4% YoY, respectively.
  • Other income declined by 73.0% YoY.
  • Net profit for the year declined by 268.5% YoY.
  • Net profit margins during the year declined from 1.3% 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 8,368 10,735 28.3%
Other income Rs m 454 123 -73.0%
Total Revenues Rs m 8,822 10,858 23.1%
Gross profit Rs m 346 637 83.9%
Depreciation Rs m 466 495 6.2%
Interest Rs m 238 360 51.4%
Profit before tax Rs m 96 -96 -199.5%
Tax Rs m -19 45 -334.0%
Profit after tax Rs m 116 -195 -268.5%
Gross profit margin % 4.1 5.9
Effective tax rate % -20.0 -47.1
Net profit margin % 1.3 -1.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



KANORIA CHEMICALS Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 4 billion as compared to Rs 4 billion in FY18, thereby witnessing an increase of 12.8%.
  • Long-term debt stood at Rs 3 billion as compared to Rs 3 billion during FY18, a growth of 20.3%.
  • Current assets rose 15% and stood at Rs 5 billion, while fixed assets rose 10% 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 4,119 12.8
Long-term Debt Rs m 2,595 3,121 20.3
Total Liabilities Rs m 12,778 14,008 9.6
 
Current assets Rs m 3,951 4,556 15.3
Fixed Assets Rs m 8,123 8,924 9.9
Total Assets Rs m 12,778 14,008 9.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 729 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 -110 729 -
Net Cash Flow Rs m -48 85 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 48.0, stands at 28.8 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 7.0 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 191.5 245.7
TTM Earnings per share Rs 2.6 -4.5
Diluted earnings per share Rs 2.6 -4.5
Price to Cash Flow x 3.6 7.0
TTM P/E ratio x 28.8 28.8
Price / Book Value ratio x 0.7 0.5
Market Cap Rs m 2,097 2,097
Dividends per share (Unadj.) Rs 1.5 0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for KANORIA CHEMICALS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x 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 0.7x 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 2.3% 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 1.1
Debtors’ Days Days 60 50
Interest coverage x 1.4 0.7
Debt to equity ratio x 0.4 0.5
Return on assets % 2.8 1.2
Return on equity % 2.0 -3.3
Return on capital employed % 3.9 2.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 65.8 to Rs 48.0, registering a loss of Rs 17.8 or around 27.1%.

Overall, the S&P BSE SENSEX is up 8.0% over the year.

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

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