THIRUMALAI CHEMICALS 2018-19 Annual Report Analysis

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THIRUMALAI CHEMICALS 2018-19 Annual Report Analysis
Tue, 24 Sep

THIRUMALAI CHEMICALS has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

THIRUMALAI CHEMICALS Income Statement Analysis

  • Operating income during the year fell 3.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 28.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.3% in FY19 as against 22.1% in FY18.
  • Depreciation charges increased by 19.0% and finance costs decreased by 5.1% YoY, respectively.
  • Other income grew by 70.0% YoY.
  • Net profit for the year declined by 33.4% YoY.
  • Net profit margins during the year declined from 12.9% in FY18 to 8.9% in FY19.

THIRUMALAI CHEMICALS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 13,120 12,610 -3.9%
Other income Rs m 68 115 70.0%
Total Revenues Rs m 13,187 12,726 -3.5%
Gross profit Rs m 2,896 2,059 -28.9%
Depreciation Rs m 306 364 19.0%
Interest Rs m 128 122 -5.1%
Profit before tax Rs m 2,530 1,689 -33.3%
Tax Rs m 826 553 -33.0%
Profit after tax Rs m 1,704 1,136 -33.4%
Gross profit margin % 22.1 16.3
Effective tax rate % 32.6 32.7
Net profit margin % 12.9 8.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



THIRUMALAI CHEMICALS Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 3 billion as compared to Rs 1 billion in FY18, thereby witnessing an increase of 127.6%.
  • Long-term debt stood at Rs 784 million as compared to Rs 500 million during FY18, a growth of 56.9%.
  • Current assets rose 36% and stood at Rs 5 billion, while fixed assets rose 53% and stood at Rs 5 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 11 billion as against Rs 8 billion during FY18, thereby witnessing a growth of 38%.

THIRUMALAI CHEMICALS Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 5,730 6,679 16.6
 
Current Liabilities Rs m 1,441 3,281 127.6
Long-term Debt Rs m 500 784 56.9
Total Liabilities Rs m 8,252 11,408 38.3
 
Current assets Rs m 3,378 4,595 36.0
Fixed Assets Rs m 3,543 5,420 53.0
Total Assets Rs m 8,252 11,408 38.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



THIRUMALAI CHEMICALS Cash Flow Statement Analysis

  • THIRUMALAI CHEMICALS's cash flow from operating activities (CFO) during FY19 stood at Rs 2 billion, an improvement of 189.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -2 billion, an improvement of 308.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 158 million, an improvement of 196% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 291 million from the Rs 104 million net cash flows seen during FY18.

THIRUMALAI CHEMICALS Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 808 2,339 189.4%
Cash Flow from Investing Activities Rs m -540 -2,204 -
Cash Flow from Financing Activities Rs m -164 158 -
Net Cash Flow Rs m 104 291 179.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for THIRUMALAI CHEMICALS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 110.9, an decline from the EPS of Rs 166.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 76.9, stands at 8.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 1.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 1,281.2 1,231.5
TTM Earnings per share Rs 166.4 110.9
Diluted earnings per share Rs 16.6 11.1
Price to Cash Flow x 0.4 5.3
TTM P/E ratio x 0.8 8.3
Price / Book Value ratio x 2.9 1.9
Market Cap Rs m 787 7,874
Dividends per share (Unadj.) Rs 20.0 20.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for THIRUMALAI CHEMICALS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY19, from 2.3x during FY18. 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 14.9x during FY19, from 20.7x during FY18. 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 17.0% during FY19, from 29.7% during FY19. 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 24.3% during FY19, from 42.7% during FY18. 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 11.0% during FY19, from 22.2% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 2.3 1.4
Debtors’ Days Days 33 33
Interest coverage x 20.7 14.9
Debt to equity ratio x 0.1 0.1
Return on assets % 22.2 11.0
Return on equity % 29.7 17.0
Return on capital employed % 42.7 24.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

THIRUMALAI CHEMICALS Share Price Performance

Over the last one year, THIRUMALAI CHEMICALS share price has moved down from Rs 128.3 to Rs 76.9, registering a loss of Rs 51.4 or around 40.0%.

Overall, the S&P BSE SENSEX is up 8.0% over the year.

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

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Related Views on News

THIRUMALAI CHEMICALS Announces Quarterly Results (2QFY20); Net Profit Down 81.3% (Quarterly Result Update)

Nov 4, 2019 | Updated on Nov 4, 2019

For the quarter ended September 2019, THIRUMALAI CHEMICALS has posted a net profit of Rs 99 m (down 81.3% YoY). Sales on the other hand came in at Rs 3 bn (down 26.1% YoY). Read on for a complete analysis of THIRUMALAI CHEMICALS's quarterly results.

THIRUMALAI CHEMICALS Announces Quarterly Results (1QFY20); Net Profit Down 61.4% (Quarterly Result Update)

Jul 29, 2019 | Updated on Jul 29, 2019

For the quarter ended June 2019, THIRUMALAI CHEMICALS has posted a net profit of Rs 121 m (down 61.4% YoY). Sales on the other hand came in at Rs 3 bn (up 12.2% YoY). Read on for a complete analysis of THIRUMALAI CHEMICALS's quarterly results.

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