TATA CHEMICALS 2023-24 Annual Report Analysis

Wed, 5 Jun

TATA 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.

TATA CHEMICALS Income Statement Analysis

• Operating income during the year fell 73.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 74.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 22.1% in FY24 as against 22.8% in FY23.
• Depreciation charges decreased by 66.9% and finance costs decreased by 87.9% YoY, respectively.
• Other income grew by 78.9% YoY.
• Net profit for the year declined by 63.5% YoY.
• Net profit margins during the year grew from 14.6% in FY23 to 20.4% in FY24.

TATA CHEMICALS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	167,890	43,840	-73.9%
Other income	Rs m	2,180	3,900	78.9%
Total Revenues	Rs m	170,070	47,740	-71.9%
Gross profit	Rs m	38,200	9,700	-74.6%
Depreciation	Rs m	8,920	2,950	-66.9%
Interest	Rs m	4,060	490	-87.9%
Profit before tax	Rs m	27,400	10,160	-62.9%
Tax	Rs m	2,880	1,200	-58.3%
Profit after tax	Rs m	24,520	8,960	-63.5%
Gross profit margin	%	22.8	22.1
Effective tax rate	%	10.5	11.8
Net profit margin	%	14.6	20.4

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TATA CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 11 billion as compared to Rs 49 billion in FY23, thereby witnessing an decrease of -78.1%.
• Current assets fell 79% and stood at Rs 17 billion, while fixed assets fell 29% and stood at Rs 190 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 208 billion as against Rs 349 billion during FY23, thereby witnessing a fall of 41%.

TATA CHEMICALS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	197,210	187,250	-5.1
Current Liabilities	Rs m	49,040	10,720	-78.1
Long-term Debt	Rs m	55,400	0	-100.0
Total Liabilities	Rs m	349,400	207,870	-40.5
Current assets	Rs m	81,600	17,340	-78.8
Fixed Assets	Rs m	267,760	190,470	-28.9
Total Assets	Rs m	349,400	207,870	-40.5

TATA CHEMICALS Cash Flow Statement Analysis

• TATA CHEMICALS's cash flow from operating activities (CFO) during FY24 stood at Rs 8 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -5 billion, an improvement of 78% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -30 million from the Rs -3 billion net cash flows seen during FY23.

TATA 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	29,710	8,060	-72.9%
Cash Flow from Investing Activities	Rs m	-11,860	-3,510	-
Cash Flow from Financing Activities	Rs m	-20,760	-4,580	-
Net Cash Flow	Rs m	-2,540	-30	-

Current Valuations for TATA CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.2, an decline from the EPS of Rs 96.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,032.0, stands at 69.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 6.0 times.
• The company's price to cash flow (P/CF) ratio stood at 24.3 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	659.0	172.1
TTM Earnings per share	Rs	96.2	35.2
Diluted earnings per share	Rs	96.2	35.2
Price to Cash Flow	x	7.4	24.3
TTM P/E ratio	x	10.1	69.0
Price / Book Value ratio	x	1.3	1.5
Market Cap	Rs m	253,298	289,390
Dividends per share (Unadj.)	Rs	17.5	15.0

Ratio Analysis for TATA CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY24, from 1.7x 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 improved and stood at 21.7x during FY24, from 7.7x 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 4.8% during FY24, from 12.4% 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 5.7% during FY24, from 12.5% 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 4.5% during FY24, from 8.2% 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	1.7	1.6
Debtors’ Days	Days	6	2
Interest coverage	x	7.7	21.7
Debt to equity ratio	x	0.3	0.0
Return on assets	%	8.2	4.5
Return on equity	%	12.4	4.8
Return on capital employed	%	12.5	5.7

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

TATA CHEMICALS Share Price Performance

Over the last one year, TATA CHEMICALS share price has moved up from Rs 995.7 to Rs 1,032.0, registering a gain of Rs 36.3 or around 3.6%.

Overall, the S&P BSE SENSEX is up 16.6% over the year.

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