CHEMCON SPECIALITY CHEMICALS 2023-24 Annual Report Analysis

Wed, 25 Sep

CHEMCON SPECIALITY 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.

CHEMCON SPECIALITY CHEMICALS Income Statement Analysis

• Operating income during the year fell 11.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 62.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.1% in FY24 as against 23.3% in FY23.
• Depreciation charges increased by 23.2% and finance costs increased by 134.9% YoY, respectively.
• Other income declined by 1.0% YoY.
• Net profit for the year declined by 65.2% YoY.
• Net profit margins during the year declined from 18.2% in FY23 to 7.2% in FY24.

CHEMCON SPECIALITY CHEMICALS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,029	2,671	-11.8%
Other income	Rs m	133	132	-1.0%
Total Revenues	Rs m	3,162	2,803	-11.4%
Gross profit	Rs m	707	269	-62.0%
Depreciation	Rs m	84	103	23.2%
Interest	Rs m	15	35	134.9%
Profit before tax	Rs m	742	263	-64.6%
Tax	Rs m	190	71	-62.9%
Profit after tax	Rs m	551	192	-65.2%
Gross profit margin	%	23.3	10.1
Effective tax rate	%	25.7	26.9
Net profit margin	%	18.2	7.2

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

CHEMCON SPECIALITY CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 637 million as compared to Rs 929 million in FY23, thereby witnessing an decrease of -31.4%.
• Long-term debt down at Rs 4 million as compared to Rs 7 million during FY23, a fall of 43.9%.
• Current assets rose 13% and stood at Rs 4 billion, while fixed assets fell 21% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 6 billion during FY23, thereby witnessing a fall of 2%.

CHEMCON SPECIALITY CHEMICALS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,574	4,764	4.2
Current Liabilities	Rs m	929	637	-31.4
Long-term Debt	Rs m	7	4	-43.9
Total Liabilities	Rs m	5,550	5,452	-1.8
Current assets	Rs m	3,130	3,532	12.8
Fixed Assets	Rs m	2,420	1,921	-20.6
Total Assets	Rs m	5,550	5,452	-1.8

CHEMCON SPECIALITY CHEMICALS Cash Flow Statement Analysis

• CHEMCON SPECIALITY CHEMICALS's cash flow from operating activities (CFO) during FY24 stood at Rs 120 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -246 million, an improvement of 50.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -248 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -374 million from the Rs 86 million net cash flows seen during FY23.

CHEMCON SPECIALITY 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	127	120	-6.1%
Cash Flow from Investing Activities	Rs m	-163	-246	-
Cash Flow from Financing Activities	Rs m	120	-248	-
Net Cash Flow	Rs m	86	-374	-

Current Valuations for CHEMCON SPECIALITY CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.2, an decline from the EPS of Rs 15.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 281.0, stands at 55.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 34.1 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	82.7	72.9
TTM Earnings per share	Rs	15.0	5.2
Diluted earnings per share	Rs	15.0	5.2
Price to Cash Flow	x	13.2	34.1
TTM P/E ratio	x	15.2	55.2
Price / Book Value ratio	x	2.8	2.1
Market Cap	Rs m	12,797	10,056
Dividends per share (Unadj.)	Rs	4.0	0.0

Ratio Analysis for CHEMCON SPECIALITY CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.5x during FY24, from 3.4x 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 8.5x during FY24, from 50.8x 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 4.0% during FY24, from 12.0% 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 6.2% during FY24, from 16.5% 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 4.2% during FY24, from 10.2% 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	3.4	5.5
Debtors’ Days	Days	815	1,119
Interest coverage	x	50.8	8.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.2	4.2
Return on equity	%	12.0	4.0
Return on capital employed	%	16.5	6.2

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

CHEMCON SPECIALITY CHEMICALS Share Price Performance

Over the last one year, CHEMCON SPECIALITY CHEMICALS share price has moved down from Rs 283.0 to Rs 281.0, registering a loss of Rs 2.0 or around 0.7%.

Overall, the S&P BSE SENSEX is up 28.5% over the year.

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