CHAMANLAL SE 2023-24 Annual Report Analysis

Mon, 14 Oct

CHAMANLAL SE 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.

CHAMANLAL SE Income Statement Analysis

• Operating income during the year fell 2.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.9% in FY24 as against 11.5% in FY23.
• Depreciation charges increased by 20.3% and finance costs increased by 35.5% YoY, respectively.
• Other income declined by 16.6% YoY.
• Net profit for the year declined by 1.7% YoY.
• Net profit margins during the year grew from 8.5% in FY23 to 8.5% in FY24.

CHAMANLAL SE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,873	13,556	-2.3%
Other income	Rs m	115	96	-16.6%
Total Revenues	Rs m	13,988	13,652	-2.4%
Gross profit	Rs m	1,589	1,619	1.9%
Depreciation	Rs m	59	71	20.3%
Interest	Rs m	73	99	35.5%
Profit before tax	Rs m	1,572	1,545	-1.7%
Tax	Rs m	395	389	-1.6%
Profit after tax	Rs m	1,177	1,156	-1.7%
Gross profit margin	%	11.5	11.9
Effective tax rate	%	25.1	25.2
Net profit margin	%	8.5	8.5

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CHAMANLAL SE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 40.5%.
• Long-term debt stood at Rs 562 million as compared to Rs 495 million during FY23, a growth of 13.5%.
• Current assets rose 25% and stood at Rs 8 billion, while fixed assets rose 5% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 22%.

CHAMANLAL SE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,085	7,140	17.3
Current Liabilities	Rs m	1,585	2,226	40.5
Long-term Debt	Rs m	495	562	13.5
Total Liabilities	Rs m	8,180	9,944	21.6
Current assets	Rs m	6,760	8,458	25.1
Fixed Assets	Rs m	1,419	1,486	4.7
Total Assets	Rs m	8,180	9,944	21.6

CHAMANLAL SE Cash Flow Statement Analysis

• CHAMANLAL SE's cash flow from operating activities (CFO) during FY24 stood at Rs -382 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -62 million, an improvement of 61.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 446 million, an improvement of 1,114% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 million from the Rs -10 million net cash flows seen during FY23.

CHAMANLAL SE 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	72	-382	-
Cash Flow from Investing Activities	Rs m	-38	-62	-
Cash Flow from Financing Activities	Rs m	-44	446	-
Net Cash Flow	Rs m	-10	2	-

Current Valuations for CHAMANLAL SE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.4, an decline from the EPS of Rs 22.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 330.3, stands at 14.8 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 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 9.2 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	268.2	262.1
TTM Earnings per share	Rs	22.7	22.4
Diluted earnings per share	Rs	23.7	23.3
Price to Cash Flow	x	6.9	9.2
TTM P/E ratio	x	7.3	14.8
Price / Book Value ratio	x	1.2	1.6
Market Cap	Rs m	7,285	11,290
Dividends per share (Unadj.)	Rs	1.0	2.3

Ratio Analysis for CHAMANLAL SE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.8x during FY24, from 4.3x 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 16.7x during FY24, from 22.6x 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 declined and down at 16.2% during FY24, from 19.3% 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 21.3% 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 12.6% during FY24, from 15.3% 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	4.3	3.8
Debtors’ Days	Days	405	538
Interest coverage	x	22.6	16.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	15.3	12.6
Return on equity	%	19.3	16.2
Return on capital employed	%	25.0	21.3

To see how CHAMANLAL SE has performed over the last 5 years, please visit here.

CHAMANLAL SE Share Price Performance

Over the last one year, CHAMANLAL SE share price has moved up from Rs 227.3 to Rs 330.3, registering a gain of Rs 103.0 or around 45.3%.

Overall, the S&P BSE SENSEX is up 24.1% over the year.

(To know more, check out historical annual results for CHAMANLAL SE and quarterly results for CHAMANLAL SE)