SUMITOMO CHEMICAL INDIA 2023-24 Annual Report Analysis

Tue, 2 Jul

SUMITOMO CHEMICAL INDIA 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.

SUMITOMO CHEMICAL INDIA Income Statement Analysis

• Operating income during the year fell 19.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 28.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.7% in FY24 as against 18.8% in FY23.
• Depreciation charges increased by 19.9% and finance costs decreased by 8.3% YoY, respectively.
• Other income grew by 86.1% YoY.
• Net profit for the year declined by 26.4% YoY.
• Net profit margins during the year declined from 14.3% in FY23 to 13.0% in FY24.

SUMITOMO CHEMICAL INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	35,110	28,439	-19.0%
Other income	Rs m	514	957	86.1%
Total Revenues	Rs m	35,624	29,396	-17.5%
Gross profit	Rs m	6,608	4,752	-28.1%
Depreciation	Rs m	519	622	19.9%
Interest	Rs m	62	57	-8.3%
Profit before tax	Rs m	6,542	5,029	-23.1%
Tax	Rs m	1,520	1,332	-12.3%
Profit after tax	Rs m	5,022	3,697	-26.4%
Gross profit margin	%	18.8	16.7
Effective tax rate	%	23.2	26.5
Net profit margin	%	14.3	13.0

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

SUMITOMO CHEMICAL INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 8 billion as compared to Rs 9 billion in FY23, thereby witnessing an decrease of -14.2%.
• Current assets fell 4% and stood at Rs 27 billion, while fixed assets rose 10% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 33 billion as against Rs 34 billion during FY23, thereby witnessing a fall of 2%.

SUMITOMO CHEMICAL INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	23,818	24,415	2.5
Current Liabilities	Rs m	9,330	8,007	-14.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	33,687	33,125	-1.7
Current assets	Rs m	27,875	26,729	-4.1
Fixed Assets	Rs m	5,812	6,397	10.1
Total Assets	Rs m	33,687	33,125	-1.7

SUMITOMO CHEMICAL INDIA Cash Flow Statement Analysis

• SUMITOMO CHEMICAL INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 8 billion, an improvement of 94.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 28.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -3 million from the Rs -104 million net cash flows seen during FY23.

SUMITOMO CHEMICAL INDIA 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	3,894	7,572	94.5%
Cash Flow from Investing Activities	Rs m	-3,272	-4,204	-
Cash Flow from Financing Activities	Rs m	-725	-3,370	-
Net Cash Flow	Rs m	-104	-3	-

Current Valuations for SUMITOMO CHEMICAL INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.4, an decline from the EPS of Rs 10.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 500.1, stands at 67.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.2 times, while the price to sales ratio stands at 8.8 times.
• The company's price to cash flow (P/CF) ratio stood at 45.7 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	70.3	57.0
TTM Earnings per share	Rs	10.1	7.4
Diluted earnings per share	Rs	10.1	7.4
Price to Cash Flow	x	38.3	45.7
TTM P/E ratio	x	42.3	67.5
Price / Book Value ratio	x	9.8	8.1
Market Cap	Rs m	233,675	197,400
Dividends per share (Unadj.)	Rs	1.2	5.9

Ratio Analysis for SUMITOMO CHEMICAL INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.3x during FY24, from 3.0x 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 89.3x during FY24, from 106.4x 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 declined and down at 15.1% during FY24, from 21.1% 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 20.8% during FY24, from 27.7% 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 11.3% during FY24, from 15.1% 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	3.0	3.3
Debtors’ Days	Days	98	92
Interest coverage	x	106.4	89.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.1	11.3
Return on equity	%	21.1	15.1
Return on capital employed	%	27.7	20.8

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

SUMITOMO CHEMICAL INDIA Share Price Performance

Over the last one year, SUMITOMO CHEMICAL INDIA share price has moved up from Rs 436.6 to Rs 500.1, registering a gain of Rs 63.6 or around 14.6%.

Overall, the S&P BSE SENSEX is up 24.5% over the year.

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