THIRUMALAI CHEMICALS 2023-24 Annual Report Analysis

Tue, 2 Jul

THIRUMALAI 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.

THIRUMALAI CHEMICALS Income Statement Analysis

• Operating income during the year fell 2.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 72.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.4% in FY24 as against 8.7% in FY23.
• Depreciation charges increased by 13.5% and finance costs increased by 33.5% YoY, respectively.
• Other income declined by 35.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 4.2% in FY23 to 1.9% in FY24.

THIRUMALAI CHEMICALS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	21,322	20,831	-2.3%
Other income	Rs m	302	193	-35.9%
Total Revenues	Rs m	21,624	21,025	-2.8%
Gross profit	Rs m	1,862	510	-72.6%
Depreciation	Rs m	557	632	13.5%
Interest	Rs m	313	417	33.5%
Profit before tax	Rs m	1,294	-346	NA
Tax	Rs m	396	42	-89.3%
Profit after tax	Rs m	898	-388	NA
Gross profit margin	%	8.7	2.4
Effective tax rate	%	30.6	-12.3
Net profit margin	%	4.2	-1.9

Don't Miss: Key Information for Long-term Investors

THIRUMALAI CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 10 billion as compared to Rs 9 billion in FY23, thereby witnessing an increase of 18.9%.
• Long-term debt stood at Rs 8 billion as compared to Rs 1 billion during FY23, a growth of 450.7%.
• Current assets rose 8% and stood at Rs 11 billion, while fixed assets rose 67% and stood at Rs 22 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 33 billion as against Rs 24 billion during FY23, thereby witnessing a growth of 41%.

THIRUMALAI CHEMICALS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	11,919	11,462	-3.8
Current Liabilities	Rs m	8,655	10,289	18.9
Long-term Debt	Rs m	1,476	8,125	450.7
Total Liabilities	Rs m	23,602	33,203	40.7
Current assets	Rs m	10,525	11,338	7.7
Fixed Assets	Rs m	13,077	21,864	67.2
Total Assets	Rs m	23,602	33,203	40.7

THIRUMALAI CHEMICALS Cash Flow Statement Analysis

• THIRUMALAI CHEMICALS's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 337.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -8 billion, an improvement of 131.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 6 billion, an improvement of 212% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 560 million from the Rs -753 million net cash flows seen during FY23.

THIRUMALAI 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	541	2,371	337.9%
Cash Flow from Investing Activities	Rs m	-3,590	-8,309	-
Cash Flow from Financing Activities	Rs m	2,058	6,427	212.3%
Net Cash Flow	Rs m	-753	560	-

Current Valuations for THIRUMALAI CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.8, an decline from the EPS of Rs 8.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 312.6, stands at -82.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 92.5 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	208.2	203.5
TTM Earnings per share	Rs	8.8	-3.8
Diluted earnings per share	Rs	8.8	-3.8
Price to Cash Flow	x	12.1	92.5
TTM P/E ratio	x	19.6	-82.5
Price / Book Value ratio	x	2.1	2.0
Market Cap	Rs m	24,944	22,582
Dividends per share (Unadj.)	Rs	1.5	1.0

Ratio Analysis for THIRUMALAI CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.2x 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 0.2x during FY24, from 5.1x 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 -3.4% during FY24, from 7.5% 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 0.4% during FY24, from 12.0% 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 0.1% during FY24, from 5.1% 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	1.2	1.1
Debtors’ Days	Days	174	321
Interest coverage	x	5.1	0.2
Debt to equity ratio	x	0.1	0.7
Return on assets	%	5.1	0.1
Return on equity	%	7.5	-3.4
Return on capital employed	%	12.0	0.4

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

THIRUMALAI CHEMICALS Share Price Performance

Over the last one year, THIRUMALAI CHEMICALS share price has moved up from Rs 200.3 to Rs 312.6, registering a gain of Rs 112.3 or around 56.0%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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