THIRUMALAI CHEMICALS 2022-23 Annual Report Analysis

Fri, 30 Jun

THIRUMALAI CHEMICALS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

THIRUMALAI CHEMICALS Income Statement Analysis

• Operating income during the year rose 6.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 57.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.7% in FY23 as against 22.1% in FY22.
• Depreciation charges decreased by 1.7% and finance costs increased by 53.4% YoY, respectively.
• Other income grew by 160.1% YoY.
• Net profit for the year declined by 68.1% YoY.
• Net profit margins during the year declined from 14.1% in FY22 to 4.2% in FY23.

THIRUMALAI CHEMICALS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	19,982	21,322	6.7%
Other income	Rs m	116	302	160.1%
Total Revenues	Rs m	20,098	21,624	7.6%
Gross profit	Rs m	4,408	1,862	-57.8%
Depreciation	Rs m	566	557	-1.7%
Interest	Rs m	204	313	53.4%
Profit before tax	Rs m	3,754	1,294	-65.5%
Tax	Rs m	941	396	-58.0%
Profit after tax	Rs m	2,812	898	-68.1%
Gross profit margin	%	22.1	8.7
Effective tax rate	%	25.1	30.6
Net profit margin	%	14.1	4.2

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THIRUMALAI CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 9 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 55.9%.
• Long-term debt stood at Rs 1 billion as compared to Rs 1 billion during FY22, a growth of 9.0%.
• Current assets rose 2% and stood at Rs 11 billion, while fixed assets rose 57% and stood at Rs 13 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 24 billion as against Rs 19 billion during FY22, thereby witnessing a growth of 27%.

THIRUMALAI CHEMICALS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	10,850	11,919	9.9
Current Liabilities	Rs m	5,553	8,655	55.9
Long-term Debt	Rs m	1,354	1,476	9.0
Total Liabilities	Rs m	18,616	23,602	26.8
Current assets	Rs m	10,310	10,525	2.1
Fixed Assets	Rs m	8,306	13,077	57.4
Total Assets	Rs m	18,616	23,602	26.8

THIRUMALAI CHEMICALS Cash Flow Statement Analysis

• THIRUMALAI CHEMICALS's cash flow from operating activities (CFO) during FY23 stood at Rs 541 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion, an improvement of 158.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 394% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -753 million from the Rs 2 billion net cash flows seen during FY22.

THIRUMALAI CHEMICALS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	4,023	541	-86.5%
Cash Flow from Investing Activities	Rs m	-1,389	-3,590	-
Cash Flow from Financing Activities	Rs m	-700	2,058	-
Net Cash Flow	Rs m	1,983	-753	-

Current Valuations for THIRUMALAI CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.8, an decline from the EPS of Rs 27.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 204.7, stands at 23.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 17.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	195.1	208.2
TTM Earnings per share	Rs	27.5	8.8
Diluted earnings per share	Rs	27.5	8.8
Price to Cash Flow	x	8.1	17.1
TTM P/E ratio	x	9.7	23.3
Price / Book Value ratio	x	2.1	2.1
Market Cap	Rs m	22,680	24,954
Dividends per share (Unadj.)	Rs	2.5	1.5

Ratio Analysis for THIRUMALAI CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY23, from 1.9x during FY22. 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 5.1x during FY23, from 19.4x during FY22. 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 7.5% during FY23, from 25.9% during FY23. 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 12.0% during FY23, from 32.4% during FY22. 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 5.1% during FY23, from 16.2% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.9	1.2
Debtors’ Days	Days	285	174
Interest coverage	x	19.4	5.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	16.2	5.1
Return on equity	%	25.9	7.5
Return on capital employed	%	32.4	12.0

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 246.2 to Rs 204.7, registering a loss of Rs 41.5 or around 16.9%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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