FINEOTEX CHEMICAL 2023-24 Annual Report Analysis

Mon, 19 Aug

FINEOTEX CHEMICAL 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.

FINEOTEX CHEMICAL Income Statement Analysis

• Operating income during the year rose 10.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.1% in FY24 as against 21.8% in FY23.
• Depreciation charges increased by 40.7% and finance costs increased by 62.1% YoY, respectively.
• Other income grew by 126.4% YoY.
• Net profit for the year grew by 35.1% YoY.
• Net profit margins during the year grew from 17.3% in FY23 to 21.3% in FY24.

FINEOTEX CHEMICAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,170	5,690	10.1%
Other income	Rs m	73	165	126.4%
Total Revenues	Rs m	5,243	5,855	11.7%
Gross profit	Rs m	1,126	1,484	31.8%
Depreciation	Rs m	43	60	40.7%
Interest	Rs m	8	13	62.1%
Profit before tax	Rs m	1,148	1,576	37.3%
Tax	Rs m	252	365	44.8%
Profit after tax	Rs m	896	1,210	35.1%
Gross profit margin	%	21.8	26.1
Effective tax rate	%	22.0	23.2
Net profit margin	%	17.3	21.3

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FINEOTEX CHEMICAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 894 million as compared to Rs 638 million in FY23, thereby witnessing an increase of 40.1%.
• Current assets rose 29% and stood at Rs 3 billion, while fixed assets rose 32% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 30%.

FINEOTEX CHEMICAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,484	4,466	28.2
Current Liabilities	Rs m	638	894	40.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,227	5,482	29.7
Current assets	Rs m	2,167	2,786	28.6
Fixed Assets	Rs m	1,988	2,623	32.0
Total Assets	Rs m	4,227	5,482	29.7

FINEOTEX CHEMICAL Cash Flow Statement Analysis

• FINEOTEX CHEMICAL's cash flow from operating activities (CFO) during FY24 stood at Rs 974 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -469 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -239 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 260 million from the Rs 14 million net cash flows seen during FY23.

FINEOTEX CHEMICAL 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	1,073	974	-9.2%
Cash Flow from Investing Activities	Rs m	-1,018	-469	-
Cash Flow from Financing Activities	Rs m	-64	-239	-
Net Cash Flow	Rs m	14	260	1,815.5%

Current Valuations for FINEOTEX CHEMICAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.9, an improvement from the EPS of Rs 8.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 359.9, stands at 33.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.2 times, while the price to sales ratio stands at 7.0 times.
• The company's price to cash flow (P/CF) ratio stood at 30.1 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	46.7	51.4
TTM Earnings per share	Rs	8.1	10.9
Diluted earnings per share	Rs	7.8	10.6
Price to Cash Flow	x	28.4	30.1
TTM P/E ratio	x	29.8	33.2
Price / Book Value ratio	x	8.9	8.6
Market Cap	Rs m	30,968	38,267
Dividends per share (Unadj.)	Rs	0.8	1.6

Ratio Analysis for FINEOTEX CHEMICAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.1x 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 119.4x during FY24, from 140.8x 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 improved and stood at 27.1% during FY24, from 25.7% 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 35.6% during FY24, from 33.2% 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 22.3% during FY24, from 21.4% 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	3.1
Debtors’ Days	Days	716	891
Interest coverage	x	140.8	119.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	21.4	22.3
Return on equity	%	25.7	27.1
Return on capital employed	%	33.2	35.6

To see how FINEOTEX CHEMICAL has performed over the last 5 years, please visit here.

FINEOTEX CHEMICAL Share Price Performance

Over the last one year, FINEOTEX CHEMICAL share price has moved up from Rs 277.8 to Rs 359.9, registering a gain of Rs 82.1 or around 29.6%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

(To know more, check out historical annual results for FINEOTEX CHEMICAL and quarterly results for FINEOTEX CHEMICAL)