PUNJAB CHEMICAL 2023-24 Annual Report Analysis

Wed, 17 Jul

PUNJAB 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.

PUNJAB CHEMICAL Income Statement Analysis

• Operating income during the year fell 7.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 7.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.1% in FY24 as against 12.2% in FY23.
• Depreciation charges increased by 16.6% and finance costs increased by 15.6% YoY, respectively.
• Other income declined by 19.4% YoY.
• Net profit for the year declined by 12.3% YoY.
• Net profit margins during the year declined from 6.1% in FY23 to 5.7% in FY24.

PUNJAB CHEMICAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,062	9,342	-7.2%
Other income	Rs m	34	27	-19.4%
Total Revenues	Rs m	10,096	9,369	-7.2%
Gross profit	Rs m	1,226	1,134	-7.5%
Depreciation	Rs m	190	222	16.6%
Interest	Rs m	180	208	15.6%
Profit before tax	Rs m	889	731	-17.8%
Tax	Rs m	278	195	-29.8%
Profit after tax	Rs m	611	536	-12.3%
Gross profit margin	%	12.2	12.1
Effective tax rate	%	31.3	26.7
Net profit margin	%	6.1	5.7

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PUNJAB CHEMICAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 5.4%.
• Long-term debt down at Rs 527 million as compared to Rs 639 million during FY23, a fall of 17.5%.
• Current assets rose 9% and stood at Rs 5 billion, while fixed assets rose 3% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 7 billion during FY23, thereby witnessing a growth of 7%.

PUNJAB CHEMICAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,806	3,302	17.7
Current Liabilities	Rs m	3,130	3,300	5.4
Long-term Debt	Rs m	639	527	-17.5
Total Liabilities	Rs m	6,987	7,477	7.0
Current assets	Rs m	4,300	4,705	9.4
Fixed Assets	Rs m	2,684	2,769	3.2
Total Assets	Rs m	6,987	7,477	7.0

PUNJAB CHEMICAL Cash Flow Statement Analysis

• PUNJAB CHEMICAL's cash flow from operating activities (CFO) during FY24 stood at Rs 299 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -359 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 37 million, an improvement of 119% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -23 million from the Rs 3 million net cash flows seen during FY23.

PUNJAB 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	582	299	-48.7%
Cash Flow from Investing Activities	Rs m	-365	-359	-
Cash Flow from Financing Activities	Rs m	-199	37	-
Net Cash Flow	Rs m	3	-23	-

Current Valuations for PUNJAB CHEMICAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 43.7, an decline from the EPS of Rs 49.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,432.6, stands at 32.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.3 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 17.1 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	820.7	762.0
TTM Earnings per share	Rs	49.8	43.7
Diluted earnings per share	Rs	49.8	43.7
Price to Cash Flow	x	12.7	17.1
TTM P/E ratio	x	16.6	32.8
Price / Book Value ratio	x	5.2	3.9
Market Cap	Rs m	14,635	12,961
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for PUNJAB CHEMICAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY24, from 1.4x 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 4.5x during FY24, from 5.9x 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 16.2% during FY24, from 21.8% 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 24.5% during FY24, from 31.0% 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 declined and down at 10.0% during FY24, from 11.3% 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	1.4	1.4
Debtors’ Days	Days	520	771
Interest coverage	x	5.9	4.5
Debt to equity ratio	x	0.2	0.2
Return on assets	%	11.3	10.0
Return on equity	%	21.8	16.2
Return on capital employed	%	31.0	24.5

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

PUNJAB CHEMICAL Share Price Performance

Over the last one year, PUNJAB CHEMICAL share price has moved up from Rs 890.5 to Rs 1,432.6, registering a gain of Rs 542.2 or around 60.9%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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