RELIANCE CHEMOTEX 2021-22 Annual Report Analysis

Mon, 19 Sep

RELIANCE CHEMOTEX has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

RELIANCE CHEMOTEX Income Statement Analysis

• Operating income during the year rose 41.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 79.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.5% in FY22 as against 9.0% in FY21.
• Depreciation charges increased by 12.3% and finance costs increased by 25.9% YoY, respectively.
• Other income grew by 46.6% YoY.
• Net profit for the year grew by 161.6% YoY.
• Net profit margins during the year grew from 2.7% in FY21 to 5.0% in FY22.

RELIANCE CHEMOTEX Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,556	3,618	41.5%
Other income	Rs m	45	66	46.6%
Total Revenues	Rs m	2,601	3,684	41.6%
Gross profit	Rs m	231	414	79.3%
Depreciation	Rs m	76	85	12.3%
Interest	Rs m	96	121	25.9%
Profit before tax	Rs m	104	274	164.0%
Tax	Rs m	34	92	168.7%
Profit after tax	Rs m	69	181	161.6%
Gross profit margin	%	9.0	11.5
Effective tax rate	%	33.1	33.7
Net profit margin	%	2.7	5.0

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RELIANCE CHEMOTEX Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 1 billion as compared to Rs 1 billion in FY21, thereby witnessing an increase of 35.8%.
• Long-term debt stood at Rs 471 million as compared to Rs 339 million during FY21, a growth of 39.0%.
• Current assets rose 26% and stood at Rs 1 billion, while fixed assets rose 29% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 3 billion as against Rs 3 billion during FY21, thereby witnessing a growth of 28%.

RELIANCE CHEMOTEX Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,044	1,214	16.3
Current Liabilities	Rs m	1,042	1,415	35.8
Long-term Debt	Rs m	339	471	39.0
Total Liabilities	Rs m	2,644	3,380	27.9
Current assets	Rs m	1,075	1,357	26.3
Fixed Assets	Rs m	1,569	2,023	28.9
Total Assets	Rs m	2,644	3,380	27.9

RELIANCE CHEMOTEX Cash Flow Statement Analysis

• RELIANCE CHEMOTEX's cash flow from operating activities (CFO) during FY22 stood at Rs 594 million, an improvement of 118.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -736 million, an improvement of 71.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 139 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -3 million from the Rs -5 million net cash flows seen during FY21.

RELIANCE CHEMOTEX Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	272	594	118.6%
Cash Flow from Investing Activities	Rs m	-429	-736	-
Cash Flow from Financing Activities	Rs m	153	139	-8.7%
Net Cash Flow	Rs m	-5	-3	-

Current Valuations for RELIANCE CHEMOTEX

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.0, an improvement from the EPS of Rs 9.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 190.3, stands at 7.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 6.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	339.0	479.8
TTM Earnings per share	Rs	9.2	24.0
Diluted earnings per share	Rs	9.2	24.0
Price to Cash Flow	x	4.0	6.1
TTM P/E ratio	x	8.4	7.9
Price / Book Value ratio	x	0.5	1.3
Market Cap	Rs m	536	1,629
Dividends per share (Unadj.)	Rs	2.0	2.5

Ratio Analysis for RELIANCE CHEMOTEX

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY22, from 1.0x during FY21. 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 3.3x during FY22, from 2.1x during FY21. 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 14.9% during FY22, from 6.6% during FY22. 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 23.4% during FY22, from 14.5% during FY21. 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 9.0% during FY22, from 6.3% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.0	1.0
Debtors’ Days	Days	152	55
Interest coverage	x	2.1	3.3
Debt to equity ratio	x	0.3	0.4
Return on assets	%	6.3	9.0
Return on equity	%	6.6	14.9
Return on capital employed	%	14.5	23.4

To see how RELIANCE CHEMOTEX has performed over the last 5 years, please visit here.

RELIANCE CHEMOTEX Share Price Performance

Over the last one year, RELIANCE CHEMOTEX share price has moved up from Rs 165.0 to Rs 190.3, registering a gain of Rs 25.3 or around 15.3%.

Overall, the S&P BSE SENSEX is up 0.6% over the year.

(To know more, check out historical annual results for RELIANCE CHEMOTEX and quarterly results for RELIANCE CHEMOTEX)