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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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)

Annual Report FAQs

What is the current share price of CHEMCON SPECIALITY CHEMICALS?

CHEMCON SPECIALITY CHEMICALS currently trades at Rs 228.5 per share. You can check out the latest share price performance of CHEMCON SPECIALITY CHEMICALS here...

What was the revenue of CHEMCON SPECIALITY CHEMICALS in FY24? How does it compare to earlier years?

The revenues of CHEMCON SPECIALITY CHEMICALS stood at Rs 2,803 m in FY24, which was down -11.4% compared to Rs 3,162 m reported in FY23.

CHEMCON SPECIALITY CHEMICALS' revenue has grown from Rs 2,660 m in FY20 to Rs 2,803 m in FY24.

Over the past 5 years, the revenue of CHEMCON SPECIALITY CHEMICALS has grown at a CAGR of 1.3%.

What was the net profit of CHEMCON SPECIALITY CHEMICALS in FY24? How does it compare to earlier years?

The net profit of CHEMCON SPECIALITY CHEMICALS stood at Rs 192 m in FY24, which was down -65.2% compared to Rs 551 m reported in FY23.

This compares to a net profit of Rs 628 m in FY22 and a net profit of Rs 564 m in FY21.

Over the past 5 years, CHEMCON SPECIALITY CHEMICALS net profit has grown at a CAGR of -20.8%.

What does the cash flow statement of CHEMCON SPECIALITY CHEMICALS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of CHEMCON SPECIALITY CHEMICALS reveals:

  • Cash flow from operations decreased in FY24 and stood at Rs 120 m as compared to Rs 127 m in FY23.
  • Cash flow from investments decreased in FY24 and stood at Rs -246 m as compared to Rs -163 m in FY23.
  • Cash flow from financial activity decreased in FY24 and stood at Rs -248 m as compared to Rs 120 m in FY23.

Here's the cash flow statement of CHEMCON SPECIALITY CHEMICALS for the past 5 years.

(Rs m)FY20FY21FY22FY23FY24
From Operations120650741127120
From Investments-157-1,525-925-163-246
From Financial Activity411,107298120-248
Net Cashflow423311586-374

What does the Key Ratio analysis of CHEMCON SPECIALITY CHEMICALS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of CHEMCON SPECIALITY CHEMICALS reveals:

  • Operating profit margins witnessed a fall and stood at 10.1% in FY24 as against 23.3% in FY23.
  • Net profit margins declined from 18.2% in FY23 to 7.2% in FY24.
  • Debt to Equity ratio for FY24 stood at 0.0 as compared to 0.0 in FY23.

Here's the ratio/financial analysis of CHEMCON SPECIALITY CHEMICALS for the past 5 years.

 FY20FY21FY22FY23FY24
Operating Profit Margin (%)26.833.331.723.310.1
Net Profit Margin (%)18.623.224.418.27.2
Debt to Equity Ratio (x)0.10.00.00.00.0

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