KANORIA CHEMICALS 2023-24 Annual Report Analysis

Wed, 28 Aug

KANORIA 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.

KANORIA CHEMICALS Income Statement Analysis

• Operating income during the year fell 6.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 25.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.4% in FY24 as against 4.3% in FY23.
• Depreciation charges increased by 6.1% and finance costs increased by 19.6% YoY, respectively.
• Other income grew by 30.1% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 0.8% in FY23 to 3.7% in FY24.

KANORIA CHEMICALS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	15,784	14,767	-6.4%
Other income	Rs m	149	193	30.1%
Total Revenues	Rs m	15,933	14,960	-6.1%
Gross profit	Rs m	678	502	-25.9%
Depreciation	Rs m	589	625	6.1%
Interest	Rs m	360	430	19.6%
Profit before tax	Rs m	-122	-360	NA
Tax	Rs m	7	193	2,782.7%
Profit after tax	Rs m	-129	-553	NA
Gross profit margin	%	4.3	3.4
Effective tax rate	%	-5.5	-53.7
Net profit margin	%	-0.8	-3.7

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KANORIA CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 0.0%.
• Long-term debt down at Rs 3 billion as compared to Rs 3 billion during FY23, a fall of 7.2%.
• Current assets fell 2% and stood at Rs 6 billion, while fixed assets rose 2% and stood at Rs 9 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 15 billion as against Rs 15 billion during FY23, thereby witnessing a growth of 1%.

KANORIA CHEMICALS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,054	6,013	-0.7
Current Liabilities	Rs m	5,088	5,090	0.0
Long-term Debt	Rs m	3,200	2,971	-7.2
Total Liabilities	Rs m	14,814	14,904	0.6
Current assets	Rs m	5,686	5,559	-2.2
Fixed Assets	Rs m	9,092	9,275	2.0
Total Assets	Rs m	14,814	14,904	0.6

KANORIA CHEMICALS Cash Flow Statement Analysis

• KANORIA CHEMICALS's cash flow from operating activities (CFO) during FY24 stood at Rs 376 million, an improvement of 46.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -504 million, an improvement of 72.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 51 million, an improvement of 49% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -76 million from the Rs 0 million net cash flows seen during FY23.

KANORIA 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	257	376	46.1%
Cash Flow from Investing Activities	Rs m	-292	-504	-
Cash Flow from Financing Activities	Rs m	34	51	49.1%
Net Cash Flow	Rs m	0	-76	-

Current Valuations for KANORIA CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -12.7, an decline from the EPS of Rs -2.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 130.9, stands at -7.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 77.6 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	361.3	338.0
TTM Earnings per share	Rs	-2.9	-12.7
Diluted earnings per share	Rs	-2.9	-12.7
Price to Cash Flow	x	10.1	77.6
TTM P/E ratio	x	-36.0	-7.6
Price / Book Value ratio	x	1.0	0.9
Market Cap	Rs m	6,034	5,605
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KANORIA CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x 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 deteriorated and stood at 0.2x during FY24, from 0.7x 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 -9.2% during FY24, from -2.1% 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 0.8% during FY24, from 2.6% 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 -0.8% during FY24, from 1.6% 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	1.1	1.1
Debtors’ Days	Days	45	46
Interest coverage	x	0.7	0.2
Debt to equity ratio	x	0.5	0.5
Return on assets	%	1.6	-0.8
Return on equity	%	-2.1	-9.2
Return on capital employed	%	2.6	0.8

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

KANORIA CHEMICALS Share Price Performance

Over the last one year, KANORIA CHEMICALS share price has moved up from Rs 115.1 to Rs 130.9, registering a gain of Rs 15.9 or around 13.8%.

Overall, the S&P BSE SENSEX is up 26.1% over the year.

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