TATA CHEMICALS 2019-20 Annual Report Analysis

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TATA CHEMICALS 2019-20 Annual Report Analysis
Fri, 11 Dec

TATA CHEMICALS has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

TATA CHEMICALS Income Statement Analysis

  • Operating income during the year rose 0.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 9.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.8% in FY20 as against 17.2% in FY19.
  • Depreciation charges increased by 17.2% and finance costs decreased by 3.3% YoY, respectively.
  • Other income declined by 24.0% YoY.
  • Net profit for the year declined by 11.6% YoY.
  • Net profit margins during the year declined from 10.8% in FY19 to 9.6% in FY20.

TATA CHEMICALS Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 103,367 103,568 0.2%
Other income Rs m 4,095 3,111 -24.0%
Total Revenues Rs m 107,462 106,679 -0.7%
Gross profit Rs m 17,805 19,492 9.5%
Depreciation Rs m 5,685 6,665 17.2%
Interest Rs m 3,537 3,419 -3.3%
Profit before tax Rs m 12,677 12,519 -1.2%
Tax Rs m 2,744 2,197 -20.0%
Profit after tax Rs m 11,628 10,284 -11.6%
Gross profit margin % 17.2 18.8
Effective tax rate % 21.6 17.5
Net profit margin % 10.8 9.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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TATA CHEMICALS Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 71 billion as compared to Rs 39 billion in FY19, thereby witnessing an increase of 79.5%.
  • Long-term debt down at Rs 35 billion as compared to Rs 48 billion during FY19, a fall of 27.2%.
  • Current assets fell 3% and stood at Rs 79 billion, while fixed assets rose 18% and stood at Rs 71 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 278 billion as against Rs 269 billion during FY19, thereby witnessing a growth of 3%.

TATA CHEMICALS Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 123,413 128,977 4.5
 
Current Liabilities Rs m 39,486 70,884 79.5
Long-term Debt Rs m 47,693 34,734 -27.2
Total Liabilities Rs m 269,049 277,522 3.1
 
Current assets Rs m 80,983 78,623 -2.9
Fixed Assets Rs m 59,650 70,542 18.3
Total Assets Rs m 269,049 277,522 3.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



TATA CHEMICALS Cash Flow Statement Analysis

  • TATA CHEMICALS's cash flow from operating activities (CFO) during FY20 stood at Rs 18 billion, an improvement of 12.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -24 billion, an improvement of 20.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -1 billion, an improvement of 92% on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -6 billion from the Rs -21 billion net cash flows seen during FY19.

TATA CHEMICALS Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 15,813 17,801 12.6%
Cash Flow from Investing Activities Rs m -19,582 -23,682 -
Cash Flow from Financing Activities Rs m -17,118 -1,293 -
Net Cash Flow Rs m -20,576 -6,341 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for TATA CHEMICALS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 40.4, an decline from the EPS of Rs 45.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 508.5, stands at 13.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 405.7 406.5
TTM Earnings per share Rs 45.6 40.4
Diluted earnings per share Rs 45.6 40.4
Price to Cash Flow x 7.9 7.6
TTM P/E ratio x 13.8 13.8
Price / Book Value ratio x 1.4 1.0
Market Cap Rs m 129,533 129,533
Dividends per share (Unadj.) Rs 12.5 11.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for TATA CHEMICALS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY20, from 2.1x during FY19. 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 4.7x during FY20, from 4.6x during FY19. 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 8.0% during FY20, from 9.4% during FY20. 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 9.7% during FY20, from 10.5% during FY19. 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 4.9% during FY20, from 5.6% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 2.1 1.1
Debtors’ Days Days 51 56
Interest coverage x 4.6 4.7
Debt to equity ratio x 0.4 0.3
Return on assets % 5.6 4.9
Return on equity % 9.4 8.0
Return on capital employed % 10.5 9.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how TATA CHEMICALS has performed over the last 5 years, please visit here.

TATA CHEMICALS Share Price Performance

Over the last one year, TATA CHEMICALS share price has moved up from Rs 282.4 to Rs 508.5, registering a gain of Rs 226.0 or around 80.0%.

Overall, the S&P BSE SENSEX is up 13.9% over the year.

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

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TATA CHEMICALS Announces Quarterly Results (1QFY21); Net Profit Down 73.7% (Quarterly Result Update)

Aug 24, 2020 | Updated on Aug 24, 2020

For the quarter ended June 2020, TATA CHEMICALS has posted a net profit of Rs 749 m (down 73.7% YoY). Sales on the other hand came in at Rs 23 bn (down 18.9% YoY). Read on for a complete analysis of TATA CHEMICALS's quarterly results.

TATA CHEMICALS Announces Quarterly Results (4QFY20); Net Profit Down 56.2% (Quarterly Result Update)

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For the quarter ended March 2020, TATA CHEMICALS has posted a net profit of Rs 2 bn (down 56.2% YoY). Sales on the other hand came in at Rs 24 bn (down 13.8% YoY). Read on for a complete analysis of TATA CHEMICALS's quarterly results.

TATA CHEMICALS 2018-19 Annual Report Analysis (Annual Result Update)

Jun 17, 2019 | Updated on Jun 17, 2019

Here's an analysis of the annual report of TATA CHEMICALS for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of TATA CHEMICALS. Also includes updates on the valuation of TATA CHEMICALS.

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