PUNJAB CHEMICAL 2021-22 Annual Report Analysis

Fri, 5 Aug

PUNJAB CHEMICAL 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.

PUNJAB CHEMICAL Income Statement Analysis

• Operating income during the year rose 37.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 46.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.0% in FY22 as against 14.1% in FY21.
• Depreciation charges increased by 12.2% and finance costs decreased by 8.3% YoY, respectively.
• Other income declined by 49.2% YoY.
• Net profit for the year grew by 70.0% YoY.
• Net profit margins during the year grew from 7.2% in FY21 to 8.9% in FY22.

PUNJAB CHEMICAL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	6,782	9,335	37.6%
Other income	Rs m	18	9	-49.2%
Total Revenues	Rs m	6,800	9,344	37.4%
Gross profit	Rs m	955	1,397	46.3%
Depreciation	Rs m	149	167	12.2%
Interest	Rs m	135	123	-8.3%
Profit before tax	Rs m	690	1,116	61.7%
Tax	Rs m	199	282	41.2%
Profit after tax	Rs m	491	835	70.0%
Gross profit margin	%	14.1	15.0
Effective tax rate	%	28.9	25.2
Net profit margin	%	7.2	8.9

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PUNJAB CHEMICAL Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 3 billion as compared to Rs 2 billion in FY21, thereby witnessing an increase of 23.9%.
• Long-term debt down at Rs 584 million as compared to Rs 695 million during FY21, a fall of 15.9%.
• Current assets rose 44% and stood at Rs 4 billion, while fixed assets rose 7% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 6 billion as against Rs 5 billion during FY21, thereby witnessing a growth of 26%.

PUNJAB CHEMICAL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,445	2,256	56.1
Current Liabilities	Rs m	2,280	2,825	23.9
Long-term Debt	Rs m	695	584	-15.9
Total Liabilities	Rs m	4,802	6,047	25.9
Current assets	Rs m	2,474	3,554	43.7
Fixed Assets	Rs m	2,328	2,493	7.1
Total Assets	Rs m	4,802	6,047	25.9

PUNJAB CHEMICAL Cash Flow Statement Analysis

• PUNJAB CHEMICAL's cash flow from operating activities (CFO) during FY22 stood at Rs 343 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -274 million, an improvement of 237.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -106 million, an improvement of 55% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -31 million from the Rs 98 million net cash flows seen during FY21.

PUNJAB CHEMICAL 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	428	343	-19.8%
Cash Flow from Investing Activities	Rs m	-81	-274	-
Cash Flow from Financing Activities	Rs m	-238	-106	-
Net Cash Flow	Rs m	98	-31	-

Current Valuations for PUNJAB CHEMICAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 68.1, an improvement from the EPS of Rs 40.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,361.6, stands at 20.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.4 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 17.0 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	553.2	761.4
TTM Earnings per share	Rs	40.0	68.1
Diluted earnings per share	Rs	40.0	68.1
Price to Cash Flow	x	16.8	17.0
TTM P/E ratio	x	21.9	20.0
Price / Book Value ratio	x	5.7	7.5
Market Cap	Rs m	8,264	16,989
Dividends per share (Unadj.)	Rs	2.0	3.0

Ratio Analysis for PUNJAB CHEMICAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY22, from 1.1x 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 10.0x during FY22, from 6.1x 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 37.0% during FY22, from 34.0% 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 43.6% during FY22, from 38.5% 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 15.8% during FY22, from 13.0% 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	1.1	1.3
Debtors’ Days	Days	451	437
Interest coverage	x	6.1	10.0
Debt to equity ratio	x	0.5	0.3
Return on assets	%	13.0	15.8
Return on equity	%	34.0	37.0
Return on capital employed	%	38.5	43.6

To see how PUNJAB CHEMICAL has performed over the last 5 years, please visit here.

PUNJAB CHEMICAL Share Price Performance

Over the last one year, PUNJAB CHEMICAL share price has moved down from Rs 1,378.4 to Rs 1,361.6, registering a loss of Rs 16.9 or around 1.2%.

Overall, the S&P BSE SENSEX is up 8.7% over the year.

(To know more, check out historical annual results for PUNJAB CHEMICAL and quarterly results for PUNJAB CHEMICAL)

Read: Latest Annual Report Analysis of PUNJAB CHEMICAL