CHEMPLAST SANMAR 2023-24 Annual Report Analysis

Wed, 17 Jul

CHEMPLAST SANMAR 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.

CHEMPLAST SANMAR Income Statement Analysis

• Operating income during the year fell 20.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 93.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.7% in FY24 as against 7.8% in FY23.
• Depreciation charges increased by 6.6% and finance costs increased by 17.2% YoY, respectively.
• Other income grew by 0.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 3.1% in FY23 to 4.0% in FY24.

CHEMPLAST SANMAR Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	49,411	39,230	-20.6%
Other income	Rs m	799	805	0.7%
Total Revenues	Rs m	50,210	40,035	-20.3%
Gross profit	Rs m	3,876	258	-93.3%
Depreciation	Rs m	1,420	1,514	6.6%
Interest	Rs m	1,540	1,805	17.2%
Profit before tax	Rs m	1,715	-2,256	NA
Tax	Rs m	192	-671	NA
Profit after tax	Rs m	1,524	-1,584	NA
Gross profit margin	%	7.8	0.7
Effective tax rate	%	11.2	29.8
Net profit margin	%	3.1	-4.0

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

CHEMPLAST SANMAR Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 25 billion as compared to Rs 22 billion in FY23, thereby witnessing an increase of 11.2%.
• Long-term debt stood at Rs 11 billion as compared to Rs 10 billion during FY23, a growth of 17.9%.
• Current assets fell 14% and stood at Rs 18 billion, while fixed assets rose 13% and stood at Rs 42 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 60 billion as against Rs 58 billion during FY23, thereby witnessing a growth of 3%.

CHEMPLAST SANMAR Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	18,241	16,663	-8.7
Current Liabilities	Rs m	22,344	24,835	11.2
Long-term Debt	Rs m	9,637	11,365	17.9
Total Liabilities	Rs m	58,368	60,303	3.3
Current assets	Rs m	21,457	18,410	-14.2
Fixed Assets	Rs m	36,911	41,893	13.5
Total Assets	Rs m	58,368	60,303	3.3

CHEMPLAST SANMAR Cash Flow Statement Analysis

• CHEMPLAST SANMAR's cash flow from operating activities (CFO) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion, an improvement of 141.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 4 billion, an improvement of 1,517% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -4 billion from the Rs 1 billion net cash flows seen during FY23.

CHEMPLAST SANMAR 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	3,554	-2,449	-
Cash Flow from Investing Activities	Rs m	-2,172	-5,240	-
Cash Flow from Financing Activities	Rs m	-270	3,824	-
Net Cash Flow	Rs m	1,112	-3,865	-

Current Valuations for CHEMPLAST SANMAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -10.0, an decline from the EPS of Rs 9.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 530.9, stands at -53.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.0 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at -997.5 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	312.5	248.1
TTM Earnings per share	Rs	9.6	-10.0
Diluted earnings per share	Rs	9.6	-10.0
Price to Cash Flow	x	18.6	-997.5
TTM P/E ratio	x	36.0	-53.0
Price / Book Value ratio	x	4.4	4.2
Market Cap	Rs m	80,462	70,521
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CHEMPLAST SANMAR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY24, from 1.0x 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 -0.2x during FY24, from 2.1x 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 -9.5% during FY24, from 8.4% 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 -1.6% during FY24, from 11.7% 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 0.4% during FY24, from 5.2% 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	1.0	0.7
Debtors’ Days	Days	1	2
Interest coverage	x	2.1	-0.2
Debt to equity ratio	x	0.5	0.7
Return on assets	%	5.2	0.4
Return on equity	%	8.4	-9.5
Return on capital employed	%	11.7	-1.6

To see how CHEMPLAST SANMAR has performed over the last 5 years, please visit here.

CHEMPLAST SANMAR Share Price Performance

Over the last one year, CHEMPLAST SANMAR share price has moved up from Rs 444.5 to Rs 530.9, registering a gain of Rs 86.5 or around 19.5%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

(To know more, check out historical annual results for CHEMPLAST SANMAR and quarterly results for CHEMPLAST SANMAR)