KANORIA CHEMICALS 2022-23 Annual Report Analysis

Mon, 12 Feb

KANORIA CHEMICALS 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.

KANORIA CHEMICALS Income Statement Analysis

• Operating income during the year rose 15.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 0.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.3% in FY23 as against 5.0% in FY22.
• Depreciation charges increased by 3.0% and finance costs increased by 34.8% YoY, respectively.
• Other income declined by 48.6% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 0.2% in FY22 to 0.8% in FY23.

KANORIA CHEMICALS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	13,691	15,784	15.3%
Other income	Rs m	289	149	-48.6%
Total Revenues	Rs m	13,980	15,933	14.0%
Gross profit	Rs m	682	678	-0.5%
Depreciation	Rs m	572	589	3.0%
Interest	Rs m	267	360	34.8%
Profit before tax	Rs m	131	-122	NA
Tax	Rs m	109	7	-93.9%
Profit after tax	Rs m	22	-129	NA
Gross profit margin	%	5.0	4.3
Effective tax rate	%	83.0	-5.5
Net profit margin	%	0.2	-0.8

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KANORIA CHEMICALS 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 24.4%.
• Long-term debt down at Rs 3 billion as compared to Rs 3 billion during FY22, a fall of 6.7%.
• Current assets rose 13% and stood at Rs 6 billion, while fixed assets rose 1% and stood at Rs 9 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 15 billion as against Rs 14 billion during FY22, thereby witnessing a growth of 6%.

KANORIA CHEMICALS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,990	6,054	1.1
Current Liabilities	Rs m	4,090	5,088	24.4
Long-term Debt	Rs m	3,430	3,200	-6.7
Total Liabilities	Rs m	14,029	14,814	5.6
Current assets	Rs m	5,040	5,686	12.8
Fixed Assets	Rs m	8,968	9,092	1.4
Total Assets	Rs m	14,029	14,814	5.6

KANORIA CHEMICALS Cash Flow Statement Analysis

• KANORIA CHEMICALS's cash flow from operating activities (CFO) during FY23 stood at Rs 257 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -250 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -8 million, an improvement of 99% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 0 million from the Rs -131 million net cash flows seen during FY22.

KANORIA CHEMICALS 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	831	257	-69.0%
Cash Flow from Investing Activities	Rs m	-431	-250	-
Cash Flow from Financing Activities	Rs m	-530	-8	-
Net Cash Flow	Rs m	-131	0	-

Current Valuations for KANORIA CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.9, an decline from the EPS of Rs 0.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 106.2, stands at -36.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 13.1 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	313.4	361.3
TTM Earnings per share	Rs	0.5	-2.9
Diluted earnings per share	Rs	0.5	-2.9
Price to Cash Flow	x	10.0	13.1
TTM P/E ratio	x	266.7	-36.0
Price / Book Value ratio	x	1.1	1.0
Market Cap	Rs m	6,710	6,034
Dividends per share (Unadj.)	Rs	1.0	0.0

Ratio Analysis for KANORIA CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY23, from 1.2x 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 0.7x during FY23, from 1.5x 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 -2.1% during FY23, from 0.4% 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 2.6% during FY23, from 4.2% 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 1.6% during FY23, from 2.1% 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	1.2	1.1
Debtors’ Days	Days	46	45
Interest coverage	x	1.5	0.7
Debt to equity ratio	x	0.6	0.5
Return on assets	%	2.1	1.6
Return on equity	%	0.4	-2.1
Return on capital employed	%	4.2	2.6

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 136.1 to Rs 106.2, registering a loss of Rs 30.0 or around 22.0%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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