BODAL CHEMICALS 2023-24 Annual Report Analysis

Fri, 13 Sep

BODAL CHEMICALS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

BODAL CHEMICALS Income Statement Analysis

• Operating income during the year fell 11.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 19.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.8% in FY24 as against 8.5% in FY23.
• Depreciation charges increased by 12.2% and finance costs increased by 26.5% YoY, respectively.
• Other income grew by 32.9% YoY.
• Net profit for the year declined by 79.7% YoY.
• Net profit margins during the year declined from 2.4% in FY23 to 0.6% in FY24.

BODAL CHEMICALS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	15,743	13,864	-11.9%
Other income	Rs m	116	154	32.9%
Total Revenues	Rs m	15,859	14,019	-11.6%
Gross profit	Rs m	1,333	1,079	-19.1%
Depreciation	Rs m	531	596	12.2%
Interest	Rs m	410	519	26.5%
Profit before tax	Rs m	508	118	-76.7%
Tax	Rs m	128	41	-67.9%
Profit after tax	Rs m	380	77	-79.7%
Gross profit margin	%	8.5	7.8
Effective tax rate	%	25.2	34.7
Net profit margin	%	2.4	0.6

Don't Miss: Key Information for Long-term Investors

BODAL CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 7 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 11.3%.
• Long-term debt stood at Rs 4 billion as compared to Rs 4 billion during FY23, a growth of 22.4%.
• Current assets fell 8% and stood at Rs 8 billion, while fixed assets rose 23% and stood at Rs 16 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 23 billion as against Rs 21 billion during FY23, thereby witnessing a growth of 10%.

BODAL CHEMICALS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	10,764	11,319	5.2
Current Liabilities	Rs m	6,210	6,915	11.3
Long-term Debt	Rs m	3,618	4,430	22.4
Total Liabilities	Rs m	21,204	23,356	10.1
Current assets	Rs m	8,509	7,796	-8.4
Fixed Assets	Rs m	12,696	15,560	22.6
Total Assets	Rs m	21,204	23,356	10.1

BODAL CHEMICALS Cash Flow Statement Analysis

• BODAL CHEMICALS's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 882 million, an improvement of 170% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 137 million from the Rs 75 million net cash flows seen during FY23.

BODAL CHEMICALS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	2,849	1,914	-32.8%
Cash Flow from Investing Activities	Rs m	-3,101	-2,658	-
Cash Flow from Financing Activities	Rs m	327	882	170.0%
Net Cash Flow	Rs m	75	137	83.0%

Current Valuations for BODAL CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.6, an decline from the EPS of Rs 3.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 80.0, stands at 326.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 14.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	125.3	110.2
TTM Earnings per share	Rs	3.0	0.6
Diluted earnings per share	Rs	3.0	0.6
Price to Cash Flow	x	8.0	14.9
TTM P/E ratio	x	19.1	326.8
Price / Book Value ratio	x	1.0	0.9
Market Cap	Rs m	10,973	10,035
Dividends per share (Unadj.)	Rs	0.1	0.0

Ratio Analysis for BODAL CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.4x during FY23. 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 1.2x during FY24, from 2.2x during FY23. 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 0.7% during FY24, from 3.5% during FY24. 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 4.0% during FY24, from 6.4% during FY23. 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 2.6% during FY24, from 3.7% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.4	1.1
Debtors’ Days	Days	97	99
Interest coverage	x	2.2	1.2
Debt to equity ratio	x	0.3	0.4
Return on assets	%	3.7	2.6
Return on equity	%	3.5	0.7
Return on capital employed	%	6.4	4.0

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

BODAL CHEMICALS Share Price Performance

Over the last one year, BODAL CHEMICALS share price has moved down from Rs 82.9 to Rs 80.0, registering a loss of Rs 2.8 or around 3.4%.

Overall, the S&P BSE SENSEX is up 23.6% over the year.

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