CHAMBAL FERTILISERS 2023-24 Annual Report Analysis

Mon, 5 Aug

CHAMBAL FERTILISERS 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.

CHAMBAL FERTILISERS Income Statement Analysis

• Operating income during the year fell 35.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.8% in FY24 as against 6.8% in FY23.
• Depreciation charges increased by 1.5% and finance costs decreased by 43.3% YoY, respectively.
• Other income grew by 53.6% YoY.
• Net profit for the year grew by 23.4% YoY.
• Net profit margins during the year grew from 3.7% in FY23 to 7.1% in FY24.

CHAMBAL FERTILISERS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	277,728	179,664	-35.3%
Other income	Rs m	1,678	2,577	53.6%
Total Revenues	Rs m	279,406	182,241	-34.8%
Gross profit	Rs m	18,769	21,236	13.1%
Depreciation	Rs m	3,083	3,128	1.5%
Interest	Rs m	3,200	1,815	-43.3%
Profit before tax	Rs m	14,163	18,870	33.2%
Tax	Rs m	3,825	6,112	59.8%
Profit after tax	Rs m	10,338	12,758	23.4%
Gross profit margin	%	6.8	11.8
Effective tax rate	%	27.0	32.4
Net profit margin	%	3.7	7.1

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

CHAMBAL FERTILISERS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 20 billion as compared to Rs 32 billion in FY23, thereby witnessing an decrease of -35.4%.
• Long-term debt down at Rs 11 billion as compared to Rs 18 billion during FY23, a fall of 37.1%.
• Current assets fell 28% and stood at Rs 41 billion, while fixed assets rose 4% and stood at Rs 80 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 121 billion as against Rs 134 billion during FY23, thereby witnessing a fall of 9%.

CHAMBAL FERTILISERS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	70,655	72,736	2.9
Current Liabilities	Rs m	31,521	20,366	-35.4
Long-term Debt	Rs m	18,204	11,442	-37.1
Total Liabilities	Rs m	133,578	120,947	-9.5
Current assets	Rs m	56,375	40,861	-27.5
Fixed Assets	Rs m	77,190	80,056	3.7
Total Assets	Rs m	133,578	120,947	-9.5

CHAMBAL FERTILISERS Cash Flow Statement Analysis

• CHAMBAL FERTILISERS's cash flow from operating activities (CFO) during FY24 stood at Rs 33 billion, an improvement of 2.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -29 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 729 million from the Rs -5 billion net cash flows seen during FY23.

CHAMBAL FERTILISERS 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	32,393	33,268	2.7%
Cash Flow from Investing Activities	Rs m	-18,732	-3,825	-
Cash Flow from Financing Activities	Rs m	-18,620	-28,714	-
Net Cash Flow	Rs m	-4,951	729	-

Current Valuations for CHAMBAL FERTILISERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.8, an improvement from the EPS of Rs 24.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 497.8, stands at 16.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 8.2 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	667.3	448.4
TTM Earnings per share	Rs	24.8	31.8
Diluted earnings per share	Rs	25.8	31.8
Price to Cash Flow	x	7.9	8.2
TTM P/E ratio	x	10.8	16.7
Price / Book Value ratio	x	2.3	1.8
Market Cap	Rs m	159,095	130,653
Dividends per share (Unadj.)	Rs	7.5	7.5

Ratio Analysis for CHAMBAL FERTILISERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY24, from 1.8x 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 11.4x during FY24, from 5.4x 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 17.5% during FY24, from 14.6% 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 24.6% during FY24, from 19.5% 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 improved and stood at 12.0% during FY24, from 10.1% 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	1.8	2.0
Debtors’ Days	Days	2	0
Interest coverage	x	5.4	11.4
Debt to equity ratio	x	0.3	0.2
Return on assets	%	10.1	12.0
Return on equity	%	14.6	17.5
Return on capital employed	%	19.5	24.6

To see how CHAMBAL FERTILISERS has performed over the last 5 years, please visit here.

CHAMBAL FERTILISERS Share Price Performance

Over the last one year, CHAMBAL FERTILISERS share price has moved up from Rs 271.6 to Rs 497.8, registering a gain of Rs 226.2 or around 83.3%.

Overall, the S&P BSE SENSEX is up 18.6% over the year.

(To know more, check out historical annual results for CHAMBAL FERTILISERS and quarterly results for CHAMBAL FERTILISERS)