THIRUMALAI CHEMICALS 2020-21 Annual Report Analysis

Wed, 31 Mar

THIRUMALAI CHEMICALS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

THIRUMALAI CHEMICALS Income Statement Analysis

• Operating income during the year rose 0.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 182.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.3% in FY21 as against 7.2% in FY20.
• Depreciation charges increased by 12.4% and finance costs increased by 24.4% YoY, respectively.
• Other income declined by 67.2% YoY.
• Net profit for the year grew by 407.9% YoY.
• Net profit margins during the year grew from 2.1% in FY20 to 10.8% in FY21.

THIRUMALAI CHEMICALS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	10,848	10,857	0.1%
Other income	Rs m	210	69	-67.2%
Total Revenues	Rs m	11,058	10,926	-1.2%
Gross profit	Rs m	781	2,207	182.6%
Depreciation	Rs m	441	495	12.4%
Interest	Rs m	168	209	24.4%
Profit before tax	Rs m	382	1,571	311.8%
Tax	Rs m	150	394	163.1%
Profit after tax	Rs m	232	1,177	407.9%
Gross profit margin	%	7.2	20.3
Effective tax rate	%	39.3	25.1
Net profit margin	%	2.1	10.8

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THIRUMALAI CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 3 billion as compared to Rs 3 billion in FY20, thereby witnessing an decrease of 0.0%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY20, a fall of 14.0%.
• Current assets rose 15% and stood at Rs 6 billion, while fixed assets rose 10% and stood at Rs 8 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 13 billion as against Rs 12 billion during FY20, thereby witnessing a growth of 12%.

THIRUMALAI CHEMICALS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,381	8,029	25.8
Current Liabilities	Rs m	3,010	3,009	0.0
Long-term Debt	Rs m	1,840	1,582	-14.0
Total Liabilities	Rs m	12,000	13,432	11.9
Current assets	Rs m	4,991	5,730	14.8
Fixed Assets	Rs m	7,009	7,702	9.9
Total Assets	Rs m	12,000	13,432	11.9

THIRUMALAI CHEMICALS Cash Flow Statement Analysis

• THIRUMALAI CHEMICALS's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 58.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 316.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -380 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 243 million from the Rs 1 billion net cash flows seen during FY20.

THIRUMALAI CHEMICALS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	1,397	2,208	58.1%
Cash Flow from Investing Activities	Rs m	-378	-1,573	-
Cash Flow from Financing Activities	Rs m	457	-380	-
Net Cash Flow	Rs m	1,497	243	-83.8%

Current Valuations for THIRUMALAI CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.5, an improvement from the EPS of Rs 2.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 85.5, stands at 7.4 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 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 4.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	105.9	106.0
TTM Earnings per share	Rs	2.3	11.5
Diluted earnings per share	Rs	2.3	11.5
Price to Cash Flow	x	5.4	4.8
TTM P/E ratio	x	15.6	7.4
Price / Book Value ratio	x	1.1	1.0
Market Cap	Rs m	6,896	7,945
Dividends per share (Unadj.)	Rs	0.0	2.2

Ratio Analysis for THIRUMALAI CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY21, from 1.7x during FY20. 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 8.5x during FY21, from 3.3x during FY20. 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 14.7% during FY21, from 3.6% during FY21. 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 18.5% during FY21, from 6.7% during FY20. 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 10.3% during FY21, from 3.3% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.7	1.9
Debtors’ Days	Days	304	293
Interest coverage	x	3.3	8.5
Debt to equity ratio	x	0.3	0.2
Return on assets	%	3.3	10.3
Return on equity	%	3.6	14.7
Return on capital employed	%	6.7	18.5

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 up from Rs 35.3 to Rs 85.5, registering a gain of Rs 50.2 or around 142.2%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of THIRUMALAI CHEMICALS