We are currently facing an issue in receiving the NSE feed. Hence the stock prices are not updated. We are working on fixing this at the earliest. We regret the inconvenience caused.

VADIVARHE SPECIALITY CHEMICALS 2021-22 Annual Report Analysis

Mon, 7 Nov

VADIVARHE SPECIALITY 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.

VADIVARHE SPECIALITY CHEMICALS Income Statement Analysis

• Operating income during the year fell 19.0% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 31.1% in FY22 as against 0.5% in FY21.
• Depreciation charges decreased by 0.9% and finance costs increased by 28.6% YoY, respectively.
• Other income grew by 37.9% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 10.4% in FY21 to 44.8% in FY22.

VADIVARHE SPECIALITY CHEMICALS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	265	214	-19.0%
Other income	Rs m	4	5	37.9%
Total Revenues	Rs m	269	220	-18.1%
Gross profit	Rs m	1	-67	NA
Depreciation	Rs m	18	18	-0.9%
Interest	Rs m	13	17	28.6%
Profit before tax	Rs m	-26	-96	NA
Tax	Rs m	2	0	-100.0%
Profit after tax	Rs m	-28	-96	NA
Gross profit margin	%	0.5	-31.1
Effective tax rate	%	-6.6	0.0
Net profit margin	%	-10.4	-44.8

RESPONSE PENDING: Your Meeting with Tanushree Banerjee Tomorrow...

VADIVARHE SPECIALITY CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 198 million as compared to Rs 171 million in FY21, thereby witnessing an increase of 15.6%.
• Long-term debt stood at Rs 159 million as compared to Rs 146 million during FY21, a growth of 9.3%.
• Current assets fell 24% and stood at Rs 144 million, while fixed assets fell 3% and stood at Rs 273 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 417 million as against Rs 472 million during FY21, thereby witnessing a fall of 12%.

VADIVARHE SPECIALITY CHEMICALS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	149	53	-64.5
Current Liabilities	Rs m	171	198	15.6
Long-term Debt	Rs m	146	159	9.3
Total Liabilities	Rs m	472	417	-11.7
Current assets	Rs m	190	144	-24.1
Fixed Assets	Rs m	282	273	-3.3
Total Assets	Rs m	472	417	-11.7

VADIVARHE SPECIALITY CHEMICALS Cash Flow Statement Analysis

• VADIVARHE SPECIALITY CHEMICALS's cash flow from operating activities (CFO) during FY22 stood at Rs 17 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -8 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -10 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -2 million from the Rs 3 million net cash flows seen during FY21.

VADIVARHE SPECIALITY 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	-3	17	-
Cash Flow from Investing Activities	Rs m	0	-8	-
Cash Flow from Financing Activities	Rs m	6	-10	-
Net Cash Flow	Rs m	3	-2	-

Current Valuations for VADIVARHE SPECIALITY CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -7.5, an decline from the EPS of Rs -2.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 27.6, stands at -5.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.7 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at -3.9 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	20.7	16.8
TTM Earnings per share	Rs	-2.2	-7.5
Diluted earnings per share	Rs	-2.2	-7.5
Price to Cash Flow	x	0.0	-3.9
TTM P/E ratio	x	0.0	-5.5
Price / Book Value ratio	x	1.1	5.8
Market Cap	Rs m	162	308
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VADIVARHE SPECIALITY CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY22, from 1.1x 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 deteriorated and stood at -4.7x during FY22, from -1.0x 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 declined and down at -181.9% during FY22, from -18.5% 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 declined and down at -37.4% during FY22, from -4.3% 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 declined and down at -19.0% during FY22, from -3.1% 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	1.1	0.7
Debtors’ Days	Days	125,641,496	34,432,894
Interest coverage	x	-1.0	-4.7
Debt to equity ratio	x	1.0	3.0
Return on assets	%	-3.1	-19.0
Return on equity	%	-18.5	-181.9
Return on capital employed	%	-4.3	-37.4

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

VADIVARHE SPECIALITY CHEMICALS Share Price Performance

Over the last one year, VADIVARHE SPECIALITY CHEMICALS share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 24,020.7 (down 1.0%). Over the last one year it has moved down from 25,316.3 to 24,020.7, a loss of 1,296 points (down 5.1%).

Overall, the NIFTY 50 is up 0.5% over the year.

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