KHAITAN CHEM 2021-22 Annual Report Analysis

Tue, 31 May

KHAITAN CHEM has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

KHAITAN CHEM Income Statement Analysis

• Operating income during the year rose 71.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 98.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.8% in FY22 as against 12.8% in FY21.
• Depreciation charges increased by 11.6% and finance costs decreased by 6.5% YoY, respectively.
• Other income grew by 134.0% YoY.
• Net profit for the year grew by 197.5% YoY.
• Net profit margins during the year grew from 5.6% in FY21 to 9.7% in FY22.

KHAITAN CHEM Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	4,808	8,238	71.3%
Other income	Rs m	5	13	134.0%
Total Revenues	Rs m	4,814	8,250	71.4%
Gross profit	Rs m	614	1,217	98.2%
Depreciation	Rs m	66	73	11.6%
Interest	Rs m	136	127	-6.5%
Profit before tax	Rs m	418	1,029	146.3%
Tax	Rs m	148	227	53.3%
Profit after tax	Rs m	269	802	197.5%
Gross profit margin	%	12.8	14.8
Effective tax rate	%	35.5	22.1
Net profit margin	%	5.6	9.7

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KHAITAN CHEM Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 3 billion as compared to Rs 1 billion in FY21, thereby witnessing an increase of 103.8%.
• Long-term debt down at Rs 71 million as compared to Rs 190 million during FY21, a fall of 62.7%.
• Current assets rose 79% and stood at Rs 4 billion, while fixed assets rose 18% and stood at Rs 1 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 6 billion as against Rs 4 billion during FY21, thereby witnessing a growth of 61%.

KHAITAN CHEM Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,742	2,523	44.8
Current Liabilities	Rs m	1,439	2,932	103.8
Long-term Debt	Rs m	190	71	-62.7
Total Liabilities	Rs m	3,543	5,708	61.1
Current assets	Rs m	2,486	4,462	79.5
Fixed Assets	Rs m	1,057	1,246	17.9
Total Assets	Rs m	3,543	5,708	61.1

KHAITAN CHEM Cash Flow Statement Analysis

• KHAITAN CHEM's cash flow from operating activities (CFO) during FY22 stood at Rs 270 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -198 million, an improvement of 256.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 397 million, an improvement of 150% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 468 million from the Rs 0 million net cash flows seen during FY21.

KHAITAN CHEM Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	843	270	-68.0%
Cash Flow from Investing Activities	Rs m	-56	-198	-
Cash Flow from Financing Activities	Rs m	-788	397	-
Net Cash Flow	Rs m	0	468	-

Current Valuations for KHAITAN CHEM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.3, an improvement from the EPS of Rs 2.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 112.3, stands at 13.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 8.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	49.6	84.9
TTM Earnings per share	Rs	2.8	8.3
Diluted earnings per share	Rs	2.8	8.3
Price to Cash Flow	x	6.4	8.8
TTM P/E ratio	x	8.1	13.7
Price / Book Value ratio	x	1.0	3.1
Market Cap	Rs m	1,745	7,711
Dividends per share (Unadj.)	Rs	0.3	0.3

Ratio Analysis for KHAITAN CHEM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY22, from 1.7x during FY21. 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 improved and stood at 9.1x during FY22, from 4.1x during FY21. 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 improved and stood at 31.8% during FY22, from 15.5% during FY22. 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 improved and stood at 44.6% during FY22, from 28.6% during FY21. 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 improved and stood at 16.3% during FY22, from 11.4% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.7	1.5
Debtors’ Days	Days	331	168
Interest coverage	x	4.1	9.1
Debt to equity ratio	x	0.1	0.0
Return on assets	%	11.4	16.3
Return on equity	%	15.5	31.8
Return on capital employed	%	28.6	44.6

To see how KHAITAN CHEM has performed over the last 5 years, please visit here.

KHAITAN CHEM Share Price Performance

Over the last one year, KHAITAN CHEM share price has moved up from Rs 34.0 to Rs 112.3, registering a gain of Rs 78.3 or around 230.1%.

Overall, the S&P BSE SENSEX is up 9.3% over the year.

(To know more, check out historical annual results for KHAITAN CHEM and quarterly results for KHAITAN CHEM)

Read: Latest Annual Report Analysis of KHAITAN CHEM