KHAITAN CHEM 2023-24 Annual Report Analysis

Thu, 22 Aug

KHAITAN CHEM 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.

KHAITAN CHEM Income Statement Analysis

• Operating income during the year fell 39.6% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 5.6% in FY24 as against 8.8% in FY23.
• Depreciation charges increased by 27.1% and finance costs increased by 61.6% YoY, respectively.
• Other income grew by 4.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 4.2% in FY23 to 13.2% in FY24.

KHAITAN CHEM Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	8,878	5,358	-39.6%
Other income	Rs m	15	15	4.7%
Total Revenues	Rs m	8,893	5,374	-39.6%
Gross profit	Rs m	783	-301	NA
Depreciation	Rs m	91	115	27.1%
Interest	Rs m	197	318	61.6%
Profit before tax	Rs m	510	-719	NA
Tax	Rs m	137	-14	NA
Profit after tax	Rs m	374	-705	NA
Gross profit margin	%	8.8	-5.6
Effective tax rate	%	26.8	1.9
Net profit margin	%	4.2	-13.2

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KHAITAN CHEM Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 0.4%.
• Long-term debt down at Rs 167 million as compared to Rs 243 million during FY23, a fall of 31.1%.
• Current assets fell 14% and stood at Rs 5 billion, while fixed assets fell 3% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 7 billion during FY23, thereby witnessing a fall of 12%.

KHAITAN CHEM Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,938	2,205	-24.9
Current Liabilities	Rs m	3,683	3,696	0.4
Long-term Debt	Rs m	243	167	-31.1
Total Liabilities	Rs m	7,070	6,231	-11.9
Current assets	Rs m	5,577	4,812	-13.7
Fixed Assets	Rs m	1,460	1,419	-2.8
Total Assets	Rs m	7,070	6,231	-11.9

KHAITAN CHEM Cash Flow Statement Analysis

• KHAITAN CHEM's cash flow from operating activities (CFO) during FY24 stood at Rs -554 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 18 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 535 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 million from the Rs -470 million net cash flows seen during FY23.

KHAITAN CHEM 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	-882	-554	-
Cash Flow from Investing Activities	Rs m	-222	18	-
Cash Flow from Financing Activities	Rs m	633	535	-15.5%
Net Cash Flow	Rs m	-470	-1	-

Current Valuations for KHAITAN CHEM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -7.3, an decline from the EPS of Rs 3.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 88.9, stands at -10.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at -12.8 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	91.5	55.2
TTM Earnings per share	Rs	3.9	-7.3
Diluted earnings per share	Rs	3.9	-7.3
Price to Cash Flow	x	14.0	-12.8
TTM P/E ratio	x	17.4	-10.6
Price / Book Value ratio	x	3.5	3.4
Market Cap	Rs m	10,278	7,575
Dividends per share (Unadj.)	Rs	0.3	0.0

Ratio Analysis for KHAITAN CHEM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY24, from 1.5x 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 -1.3x during FY24, from 3.6x 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 -32.0% during FY24, from 12.7% 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 declined and down at -16.9% during FY24, from 22.2% 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 declined and down at -6.2% during FY24, from 8.1% 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	1.5	1.3
Debtors’ Days	Days	268	333
Interest coverage	x	3.6	-1.3
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.1	-6.2
Return on equity	%	12.7	-32.0
Return on capital employed	%	22.2	-16.9

To see how KHAITAN CHEM has performed over the last 5 years, please visit here.

KHAITAN CHEM Share Price Performance

Over the last one year, KHAITAN CHEM share price has moved up from Rs 61.9 to Rs 88.9, registering a gain of Rs 27.0 or around 43.6%.

Overall, the S&P BSE SENSEX is up 24.2% over the year.

(To know more, check out historical annual results for KHAITAN CHEM and quarterly results for KHAITAN CHEM)