DMCC SPECIALTY CHEMICALS 2023-24 Annual Report Analysis

Mon, 12 Aug

DMCC SPECIALTY 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.

DMCC SPECIALTY CHEMICALS Income Statement Analysis

• Operating income during the year fell 14.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.1% in FY24 as against 8.8% in FY23.
• Depreciation charges decreased by 10.9% and finance costs increased by 30.0% YoY, respectively.
• Other income grew by 112.2% YoY.
• Net profit for the year grew by 66.9% YoY.
• Net profit margins during the year grew from 1.8% in FY23 to 3.5% in FY24.

DMCC SPECIALTY CHEMICALS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,847	3,279	-14.8%
Other income	Rs m	49	103	112.2%
Total Revenues	Rs m	3,896	3,382	-13.2%
Gross profit	Rs m	339	364	7.2%
Depreciation	Rs m	176	157	-10.9%
Interest	Rs m	106	138	30.0%
Profit before tax	Rs m	106	172	62.5%
Tax	Rs m	37	57	54.2%
Profit after tax	Rs m	69	116	66.9%
Gross profit margin	%	8.8	11.1
Effective tax rate	%	34.6	32.8
Net profit margin	%	1.8	3.5

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

DMCC SPECIALTY CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -18.3%.
• Long-term debt down at Rs 578 million as compared to Rs 676 million during FY23, a fall of 14.6%.
• Current assets fell 15% and stood at Rs 1 billion, while fixed assets rose 0% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 4 billion during FY23, thereby witnessing a fall of 5%.

DMCC SPECIALTY CHEMICALS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,983	2,092	5.5
Current Liabilities	Rs m	1,311	1,070	-18.3
Long-term Debt	Rs m	676	578	-14.6
Total Liabilities	Rs m	3,844	3,643	-5.2
Current assets	Rs m	1,359	1,150	-15.4
Fixed Assets	Rs m	2,485	2,493	0.3
Total Assets	Rs m	3,844	3,643	-5.2

DMCC SPECIALTY CHEMICALS Cash Flow Statement Analysis

• DMCC SPECIALTY CHEMICALS's cash flow from operating activities (CFO) during FY24 stood at Rs 383 million, an improvement of 28.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -100 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -271 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 11 million from the Rs -7 million net cash flows seen during FY23.

DMCC SPECIALTY 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	299	383	28.1%
Cash Flow from Investing Activities	Rs m	-206	-100	-
Cash Flow from Financing Activities	Rs m	-100	-271	-
Net Cash Flow	Rs m	-7	11	-

Current Valuations for DMCC SPECIALTY CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.6, an improvement from the EPS of Rs 2.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 303.4, stands at 65.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 27.8 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	154.3	131.5
TTM Earnings per share	Rs	2.8	4.6
Diluted earnings per share	Rs	2.8	4.6
Price to Cash Flow	x	24.4	27.8
TTM P/E ratio	x	86.3	65.3
Price / Book Value ratio	x	4.4	3.6
Market Cap	Rs m	8,814	7,571
Dividends per share (Unadj.)	Rs	0.0	1.0

Ratio Analysis for DMCC SPECIALTY CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x 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 improved and stood at 2.3x during FY24, from 2.0x 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 5.5% during FY24, from 3.5% 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 11.6% during FY24, from 8.0% 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 improved and stood at 7.0% during FY24, from 4.6% 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	1.1
Debtors’ Days	Days	495	507
Interest coverage	x	2.0	2.3
Debt to equity ratio	x	0.3	0.3
Return on assets	%	4.6	7.0
Return on equity	%	3.5	5.5
Return on capital employed	%	8.0	11.6

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

DMCC SPECIALTY CHEMICALS Share Price Performance

Over the last one year, DMCC SPECIALTY CHEMICALS share price has moved down from Rs 306.0 to Rs 303.4, registering a loss of Rs 2.6 or around 0.8%.

Overall, the S&P BSE SENSEX is up 21.4% over the year.

(To know more, check out historical annual results for DMCC SPECIALTY CHEMICALS and quarterly results for DMCC SPECIALTY CHEMICALS)