CHEMFAB ALKALIS 2023-24 Annual Report Analysis

Thu, 12 Sep

CHEMFAB ALKALIS 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.

CHEMFAB ALKALIS Income Statement Analysis

• Operating income during the year fell 1.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 49.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.6% in FY24 as against 32.4% in FY23.
• Depreciation charges decreased by 2.5% and finance costs increased by 239.0% YoY, respectively.
• Other income grew by 58.8% YoY.
• Net profit for the year declined by 59.2% YoY.
• Net profit margins during the year declined from 19.5% in FY23 to 8.0% in FY24.

CHEMFAB ALKALIS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,314	3,273	-1.2%
Other income	Rs m	56	89	58.8%
Total Revenues	Rs m	3,370	3,362	-0.2%
Gross profit	Rs m	1,073	544	-49.3%
Depreciation	Rs m	229	224	-2.5%
Interest	Rs m	5	18	239.0%
Profit before tax	Rs m	894	391	-56.2%
Tax	Rs m	249	128	-48.4%
Profit after tax	Rs m	646	263	-59.2%
Gross profit margin	%	32.4	16.6
Effective tax rate	%	27.8	32.8
Net profit margin	%	19.5	8.0

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CHEMFAB ALKALIS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 677 million in FY23, thereby witnessing an increase of 80.5%.
• Long-term debt stood at Rs 164 million as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets fell 11% and stood at Rs 1 billion, while fixed assets rose 41% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 24%.

CHEMFAB ALKALIS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,600	3,856	7.1
Current Liabilities	Rs m	677	1,222	80.5
Long-term Debt	Rs m	0	164	0.0
Total Liabilities	Rs m	4,325	5,345	23.6
Current assets	Rs m	1,411	1,258	-10.8
Fixed Assets	Rs m	2,863	4,036	41.0
Total Assets	Rs m	4,325	5,345	23.6

CHEMFAB ALKALIS Cash Flow Statement Analysis

• CHEMFAB ALKALIS's cash flow from operating activities (CFO) during FY24 stood at Rs 314 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 130.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 161 million, an improvement of 281% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -621 million from the Rs 362 million net cash flows seen during FY23.

CHEMFAB ALKALIS 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	926	314	-66.1%
Cash Flow from Investing Activities	Rs m	-475	-1,095	-
Cash Flow from Financing Activities	Rs m	-89	161	-
Net Cash Flow	Rs m	362	-621	-

Current Valuations for CHEMFAB ALKALIS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.5, an decline from the EPS of Rs 45.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 930.0, stands at 75.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 4.0 times.
• The company's price to cash flow (P/CF) ratio stood at 14.1 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	233.7	230.0
TTM Earnings per share	Rs	45.5	18.5
Diluted earnings per share	Rs	45.2	18.4
Price to Cash Flow	x	3.7	14.1
TTM P/E ratio	x	5.0	75.0
Price / Book Value ratio	x	1.2	1.8
Market Cap	Rs m	4,464	6,859
Dividends per share (Unadj.)	Rs	1.3	1.3

Ratio Analysis for CHEMFAB ALKALIS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 2.1x 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 23.3x during FY24, from 173.7x 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 6.8% during FY24, from 17.9% 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 10.2% during FY24, from 25.0% 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 5.3% during FY24, from 15.1% 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	2.1	1.0
Debtors’ Days	Days	239	237
Interest coverage	x	173.7	23.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.1	5.3
Return on equity	%	17.9	6.8
Return on capital employed	%	25.0	10.2

To see how CHEMFAB ALKALIS has performed over the last 5 years, please visit here.

CHEMFAB ALKALIS Share Price Performance

Over the last one year, CHEMFAB ALKALIS share price has moved up from Rs 365.6 to Rs 930.0, registering a gain of Rs 564.4 or around 154.4%.

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

(To know more, check out historical annual results for CHEMFAB ALKALIS and quarterly results for CHEMFAB ALKALIS)