CHEMBOND CHEMICALS 2023-24 Annual Report Analysis

Tue, 16 Jul

CHEMBOND 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.

CHEMBOND CHEMICALS Income Statement Analysis

• Operating income during the year rose 4.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 41.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.7% in FY24 as against 7.9% in FY23.
• Depreciation charges increased by 23.1% and finance costs increased by 13.1% YoY, respectively.
• Other income grew by 272.3% YoY.
• Net profit for the year grew by 76.1% YoY.
• Net profit margins during the year grew from 5.7% in FY23 to 9.6% in FY24.

CHEMBOND CHEMICALS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,397	4,613	4.9%
Other income	Rs m	46	173	272.3%
Total Revenues	Rs m	4,443	4,785	7.7%
Gross profit	Rs m	348	493	41.5%
Depreciation	Rs m	45	55	23.1%
Interest	Rs m	10	12	13.1%
Profit before tax	Rs m	339	599	76.4%
Tax	Rs m	88	155	77.2%
Profit after tax	Rs m	252	443	76.1%
Gross profit margin	%	7.9	10.7
Effective tax rate	%	25.9	26.0
Net profit margin	%	5.7	9.6

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CHEMBOND CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 819 million as compared to Rs 769 million in FY23, thereby witnessing an increase of 6.5%.
• Current assets rose 15% and stood at Rs 3 billion, while fixed assets rose 7% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 11%.

CHEMBOND CHEMICALS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,217	3,615	12.4
Current Liabilities	Rs m	769	819	6.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,983	4,424	11.1
Current assets	Rs m	2,193	2,517	14.8
Fixed Assets	Rs m	1,783	1,907	6.9
Total Assets	Rs m	3,983	4,424	11.1

CHEMBOND CHEMICALS Cash Flow Statement Analysis

• CHEMBOND CHEMICALS's cash flow from operating activities (CFO) during FY24 stood at Rs 276 million, an improvement of 2,810.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -217 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -51 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 9 million from the Rs 2 million net cash flows seen during FY23.

CHEMBOND 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	10	276	2,810.3%
Cash Flow from Investing Activities	Rs m	14	-217	-
Cash Flow from Financing Activities	Rs m	-21	-51	-
Net Cash Flow	Rs m	2	9	254.2%

Current Valuations for CHEMBOND CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.0, an improvement from the EPS of Rs 18.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 630.6, stands at 19.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 12.0 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	326.9	343.0
TTM Earnings per share	Rs	18.7	33.0
Diluted earnings per share	Rs	18.7	33.0
Price to Cash Flow	x	11.5	12.0
TTM P/E ratio	x	13.7	19.2
Price / Book Value ratio	x	1.0	1.7
Market Cap	Rs m	3,097	5,981
Dividends per share (Unadj.)	Rs	3.0	3.5

Ratio Analysis for CHEMBOND CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.1x during FY24, from 2.9x 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 improved and stood at 51.9x during FY24, from 33.6x 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 improved and stood at 12.3% during FY24, from 7.8% 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 improved and stood at 16.9% during FY24, from 10.9% 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 improved and stood at 10.3% during FY24, from 6.6% 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	2.9	3.1
Debtors’ Days	Days	956	952
Interest coverage	x	33.6	51.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.6	10.3
Return on equity	%	7.8	12.3
Return on capital employed	%	10.9	16.9

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

CHEMBOND CHEMICALS Share Price Performance

Over the last one year, CHEMBOND CHEMICALS share price has moved up from Rs 420.8 to Rs 630.6, registering a gain of Rs 209.8 or around 49.9%.

Overall, the S&P BSE SENSEX is up 23.5% over the year.

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