PRIVI SPECIALITY CHEMICALS 2023-24 Annual Report Analysis

Tue, 9 Jul

PRIVI SPECIALITY 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.

PRIVI SPECIALITY CHEMICALS Income Statement Analysis

• Operating income during the year rose 6.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 75.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.2% in FY24 as against 11.7% in FY23.
• Depreciation charges increased by 12.4% and finance costs increased by 38.9% YoY, respectively.
• Other income grew by 0.9% YoY.
• Net profit for the year grew by 360.0% YoY.
• Net profit margins during the year grew from 1.3% in FY23 to 5.7% in FY24.

PRIVI SPECIALITY CHEMICALS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	16,078	17,121	6.5%
Other income	Rs m	214	216	0.9%
Total Revenues	Rs m	16,292	17,337	6.4%
Gross profit	Rs m	1,877	3,289	75.3%
Depreciation	Rs m	1,085	1,220	12.4%
Interest	Rs m	696	966	38.9%
Profit before tax	Rs m	310	1,320	325.1%
Tax	Rs m	98	341	249.1%
Profit after tax	Rs m	213	979	360.0%
Gross profit margin	%	11.7	19.2
Effective tax rate	%	31.5	25.8
Net profit margin	%	1.3	5.7

Dear Reader: If You Invest in Midcap Stocks, this is for You

PRIVI SPECIALITY CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 8 billion as compared to Rs 11 billion in FY23, thereby witnessing an decrease of -24.2%.
• Long-term debt down at Rs 4 billion as compared to Rs 4 billion during FY23, a fall of 5.0%.
• Current assets fell 13% and stood at Rs 10 billion, while fixed assets fell 4% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 22 billion as against Rs 24 billion during FY23, thereby witnessing a fall of 8%.

PRIVI SPECIALITY CHEMICALS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,291	9,205	11.0
Current Liabilities	Rs m	11,013	8,352	-24.2
Long-term Debt	Rs m	4,037	3,835	-5.0
Total Liabilities	Rs m	23,911	21,887	-8.5
Current assets	Rs m	12,023	10,474	-12.9
Fixed Assets	Rs m	11,888	11,413	-4.0
Total Assets	Rs m	23,911	21,887	-8.5

PRIVI SPECIALITY CHEMICALS Cash Flow Statement Analysis

• PRIVI SPECIALITY CHEMICALS's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion, an improvement of 642.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 55 million from the Rs -121 million net cash flows seen during FY23.

PRIVI SPECIALITY 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	488	3,618	642.0%
Cash Flow from Investing Activities	Rs m	-1,332	-1,177	-
Cash Flow from Financing Activities	Rs m	723	-2,385	-
Net Cash Flow	Rs m	-121	55	-

Current Valuations for PRIVI SPECIALITY CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.1, an improvement from the EPS of Rs 5.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,627.9, stands at 66.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.9 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 20.7 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	411.6	438.3
TTM Earnings per share	Rs	5.4	25.1
Diluted earnings per share	Rs	5.4	25.1
Price to Cash Flow	x	31.6	20.7
TTM P/E ratio	x	192.9	66.6
Price / Book Value ratio	x	7.2	5.0
Market Cap	Rs m	59,851	45,606
Dividends per share (Unadj.)	Rs	0.0	2.0

Ratio Analysis for PRIVI SPECIALITY CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.1x 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 2.4x during FY24, from 1.4x 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 10.6% during FY24, from 2.6% 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 17.5% during FY24, from 8.2% 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 8.9% during FY24, from 3.8% 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	1.1	1.3
Debtors’ Days	Days	671	770
Interest coverage	x	1.4	2.4
Debt to equity ratio	x	0.5	0.4
Return on assets	%	3.8	8.9
Return on equity	%	2.6	10.6
Return on capital employed	%	8.2	17.5

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

PRIVI SPECIALITY CHEMICALS Share Price Performance

Over the last one year, PRIVI SPECIALITY CHEMICALS share price has moved up from Rs 1,104.5 to Rs 1,627.9, registering a gain of Rs 523.4 or around 47.4%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for PRIVI SPECIALITY CHEMICALS and quarterly results for PRIVI SPECIALITY CHEMICALS)