KHAITAN CHEM 2022-23 Annual Report Analysis

Mon, 10 Jul

KHAITAN CHEM 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.

KHAITAN CHEM Income Statement Analysis

• Operating income during the year rose 7.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 35.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.8% in FY23 as against 14.8% in FY22.
• Depreciation charges increased by 23.5% and finance costs increased by 55.0% YoY, respectively.
• Other income grew by 17.3% YoY.
• Net profit for the year declined by 53.4% YoY.
• Net profit margins during the year declined from 9.7% in FY22 to 4.2% in FY23.

KHAITAN CHEM Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	8,238	8,878	7.8%
Other income	Rs m	13	15	17.3%
Total Revenues	Rs m	8,250	8,893	7.8%
Gross profit	Rs m	1,217	783	-35.6%
Depreciation	Rs m	73	91	23.5%
Interest	Rs m	127	197	55.0%
Profit before tax	Rs m	1,029	510	-50.4%
Tax	Rs m	227	137	-39.8%
Profit after tax	Rs m	802	374	-53.4%
Gross profit margin	%	14.8	8.8
Effective tax rate	%	22.1	26.8
Net profit margin	%	9.7	4.2

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KHAITAN CHEM Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 25.6%.
• Long-term debt stood at Rs 243 million as compared to Rs 71 million during FY22, a growth of 241.8%.
• Current assets rose 27% and stood at Rs 6 billion, while fixed assets rose 17% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 7 billion as against Rs 6 billion during FY22, thereby witnessing a growth of 24%.

KHAITAN CHEM Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,523	2,938	16.5
Current Liabilities	Rs m	2,932	3,683	25.6
Long-term Debt	Rs m	71	243	241.8
Total Liabilities	Rs m	5,708	7,070	23.9
Current assets	Rs m	4,401	5,577	26.7
Fixed Assets	Rs m	1,246	1,460	17.2
Total Assets	Rs m	5,708	7,070	23.9

KHAITAN CHEM Cash Flow Statement Analysis

• KHAITAN CHEM's cash flow from operating activities (CFO) during FY23 stood at Rs -882 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -222 million, an improvement of 11.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 633 million, an improvement of 59% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -470 million from the Rs 468 million net cash flows seen during FY22.

KHAITAN CHEM 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	270	-882	-
Cash Flow from Investing Activities	Rs m	-198	-222	-
Cash Flow from Financing Activities	Rs m	397	633	59.4%
Net Cash Flow	Rs m	468	-470	-

Current Valuations for KHAITAN CHEM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.9, an decline from the EPS of Rs 8.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 65.1, stands at 16.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 22.1 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	84.9	91.5
TTM Earnings per share	Rs	8.3	3.9
Diluted earnings per share	Rs	8.3	3.9
Price to Cash Flow	x	14.0	22.1
TTM P/E ratio	x	15.2	16.9
Price / Book Value ratio	x	3.1	3.5
Market Cap	Rs m	7,711	10,278
Dividends per share (Unadj.)	Rs	0.3	0.3

Ratio Analysis for KHAITAN CHEM

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 1.5x 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 3.6x during FY23, from 9.1x 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 12.7% during FY23, from 31.8% 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 22.2% during FY23, from 44.6% 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 8.1% during FY23, from 16.3% 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	1.5	1.5
Debtors’ Days	Days	168	268
Interest coverage	x	9.1	3.6
Debt to equity ratio	x	0.0	0.1
Return on assets	%	16.3	8.1
Return on equity	%	31.8	12.7
Return on capital employed	%	44.6	22.2

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 down from Rs 95.1 to Rs 65.1, registering a loss of Rs 30.0 or around 31.5%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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