Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

War Profits
Revealing a Potential 33x
Opportunity in Defence




**Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
**By submitting your email address, you also sign up for Profit Hunter, a Free-for-life newsletter from Equitymaster,
which offers the most profitable investing ideas in India.


AD

TATA CHEMICALS 2021-22 Annual Report Analysis
Mon, 20 Jun

TATA CHEMICALS 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.

TATA CHEMICALS Income Statement Analysis

  • Operating income during the year rose 23.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 52.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.1% in FY22 as against 14.7% in FY21.
  • Depreciation charges increased by 6.2% and finance costs decreased by 17.7% YoY, respectively.
  • Other income grew by 10.7% YoY.
  • Net profit for the year grew by 186.0% YoY.
  • Net profit margins during the year grew from 4.0% in FY21 to 9.3% in FY22.

TATA CHEMICALS Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 101,998 126,221 23.7%
Other income Rs m 2,348 2,599 10.7%
Total Revenues Rs m 104,346 128,821 23.5%
Gross profit Rs m 15,006 22,896 52.6%
Depreciation Rs m 7,593 8,061 6.2%
Interest Rs m 3,678 3,028 -17.7%
Profit before tax Rs m 6,084 14,406 136.8%
Tax Rs m 1,978 2,665 34.7%
Profit after tax Rs m 4,106 11,741 186.0%
Gross profit margin % 14.7 18.1
Effective tax rate % 32.5 18.5
Net profit margin % 4.0 9.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Potential 33x Opportunity: 3 Next-Generation Defence Stocks

TATA CHEMICALS Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 71 billion as compared to Rs 45 billion in FY21, thereby witnessing an increase of 59.0%.
  • Long-term debt down at Rs 37 billion as compared to Rs 52 billion during FY21, a fall of 28.3%.
  • Current assets rose 32% and stood at Rs 87 billion, while fixed assets rose 16% and stood at Rs 251 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 338 billion as against Rs 283 billion during FY21, thereby witnessing a growth of 19%.

TATA CHEMICALS Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 142,900 182,529 27.7
 
Current Liabilities Rs m 44,634 70,960 59.0
Long-term Debt Rs m 51,995 37,255 -28.3
Total Liabilities Rs m 283,372 338,432 19.4
 
Current assets Rs m 66,457 87,450 31.6
Fixed Assets Rs m 216,915 250,981 15.7
Total Assets Rs m 283,372 338,432 19.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



TATA CHEMICALS Cash Flow Statement Analysis

  • TATA CHEMICALS's cash flow from operating activities (CFO) during FY22 stood at Rs 16 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -8 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -8 billion, an improvement of 48% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 722 million from the Rs -6 billion net cash flows seen during FY21.

TATA CHEMICALS 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 20,373 16,443 -19.3%
Cash Flow from Investing Activities Rs m -11,303 -8,361 -
Cash Flow from Financing Activities Rs m -14,557 -7,553 -
Net Cash Flow Rs m -5,649 722 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for TATA CHEMICALS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 46.1, an improvement from the EPS of Rs 16.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 792.5, stands at 17.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 11.8 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 400.4 495.5
TTM Earnings per share Rs 16.1 46.1
Diluted earnings per share Rs 16.1 46.1
Price to Cash Flow x 16.4 11.8
TTM P/E ratio x 46.6 17.2
Price / Book Value ratio x 0.9 1.3
Market Cap Rs m 128,805 232,917
Dividends per share (Unadj.) Rs 10.0 12.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for TATA CHEMICALS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY22, from 1.5x 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 5.8x during FY22, from 2.7x 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 6.4% during FY22, from 2.9% 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 7.9% during FY22, from 5.0% 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 4.4% during FY22, from 2.7% 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 1.5 1.2
Debtors’ Days Days 5 6
Interest coverage x 2.7 5.8
Debt to equity ratio x 0.4 0.2
Return on assets % 2.7 4.4
Return on equity % 2.9 6.4
Return on capital employed % 5.0 7.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 714.8 to Rs 792.5, registering a gain of Rs 77.7 or around 10.9%.

Overall, the S&P BSE SENSEX is down 1.4% over the year.

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

Annual Report FAQs

What is the current share price of TATA CHEMICALS?

TATA CHEMICALS currently trades at Rs 1,124.9 per share. You can check out the latest share price performance of TATA CHEMICALS here...

What was the revenue of TATA CHEMICALS in FY22? How does it compare to earlier years?

The revenues of TATA CHEMICALS stood at Rs 128,821 m in FY22, which was up 23.5% compared to Rs 104,346 m reported in FY21.

TATA CHEMICALS' revenue has fallen from Rs 144,590 m in FY18 to Rs 128,821 m in FY22.

Over the past 5 years, the revenue of TATA CHEMICALS has grown at a CAGR of -2.8%.

What was the net profit of TATA CHEMICALS in FY22? How does it compare to earlier years?

The net profit of TATA CHEMICALS stood at Rs 11,741 m in FY22, which was up 186.0% compared to Rs 4,106 m reported in FY21.

This compares to a net profit of Rs 72,007 m in FY20 and a net profit of Rs 12,876 m in FY19.

Over the past 5 years, TATA CHEMICALS net profit has grown at a CAGR of -18.4%.

What does the cash flow statement of TATA CHEMICALS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of TATA CHEMICALS reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 16,443 m as compared to Rs 20,373 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs -8,361 m as compared to Rs -11,303 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs -7,553 m as compared to Rs -14,557 m in FY21.

Here's the cash flow statement of TATA CHEMICALS for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations18,70115,81317,80120,37316,443
From Investments27,070-19,582-23,682-11,303-8,361
From Financial Activity-20,895-17,118-1,293-14,557-7,553
Net Cashflow24,945-20,576-6,341-5,649722

What does the Key Ratio analysis of TATA CHEMICALS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of TATA CHEMICALS reveals:

  • Operating profit margins witnessed a fall and down at 18.1% in FY22 as against 14.7% in FY21.
  • Net profit margins grew from 4.0% in FY21 to 9.3% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.2 as compared to 0.4 in FY21.

Here's the ratio/financial analysis of TATA CHEMICALS for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)27.416.878.014.718.1
Net Profit Margin (%)18.610.169.54.09.3
Debt to Equity Ratio (x)0.50.40.30.40.2

Equitymaster requests your view! Post a comment on "TATA CHEMICALS 2021-22 Annual Report Analysis". Click here!