VADIVARHE SPECIALITY CHEMICALS 2021-22 Annual Report Analysis

Mon, 7 Nov

VADIVARHE SPECIALITY CHEMICALS 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.

VADIVARHE SPECIALITY CHEMICALS Income Statement Analysis

• Operating income during the year fell 19.0% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 31.1% in FY22 as against 0.5% in FY21.
• Depreciation charges decreased by 0.9% and finance costs increased by 28.6% YoY, respectively.
• Other income grew by 37.9% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 10.4% in FY21 to 44.8% in FY22.

VADIVARHE SPECIALITY CHEMICALS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	265	214	-19.0%
Other income	Rs m	4	5	37.9%
Total Revenues	Rs m	269	220	-18.1%
Gross profit	Rs m	1	-67	NA
Depreciation	Rs m	18	18	-0.9%
Interest	Rs m	13	17	28.6%
Profit before tax	Rs m	-26	-96	NA
Tax	Rs m	2	0	-100.0%
Profit after tax	Rs m	-28	-96	NA
Gross profit margin	%	0.5	-31.1
Effective tax rate	%	-6.6	0.0
Net profit margin	%	-10.4	-44.8

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VADIVARHE SPECIALITY CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 198 million as compared to Rs 171 million in FY21, thereby witnessing an increase of 15.6%.
• Long-term debt stood at Rs 159 million as compared to Rs 146 million during FY21, a growth of 9.3%.
• Current assets fell 24% and stood at Rs 144 million, while fixed assets fell 3% and stood at Rs 273 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 417 million as against Rs 472 million during FY21, thereby witnessing a fall of 12%.

VADIVARHE SPECIALITY CHEMICALS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	149	53	-64.5
Current Liabilities	Rs m	171	198	15.6
Long-term Debt	Rs m	146	159	9.3
Total Liabilities	Rs m	472	417	-11.7
Current assets	Rs m	190	144	-24.1
Fixed Assets	Rs m	282	273	-3.3
Total Assets	Rs m	472	417	-11.7

VADIVARHE SPECIALITY CHEMICALS Cash Flow Statement Analysis

• VADIVARHE SPECIALITY CHEMICALS's cash flow from operating activities (CFO) during FY22 stood at Rs 17 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -8 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -10 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -2 million from the Rs 3 million net cash flows seen during FY21.

VADIVARHE SPECIALITY CHEMICALS 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	-3	17	-
Cash Flow from Investing Activities	Rs m	0	-8	-
Cash Flow from Financing Activities	Rs m	6	-10	-
Net Cash Flow	Rs m	3	-2	-

Current Valuations for VADIVARHE SPECIALITY CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -7.5, an decline from the EPS of Rs -2.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 27.6, stands at -5.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.7 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at -3.9 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	20.7	16.8
TTM Earnings per share	Rs	-2.2	-7.5
Diluted earnings per share	Rs	-2.2	-7.5
Price to Cash Flow	x	0.0	-3.9
TTM P/E ratio	x	0.0	-5.5
Price / Book Value ratio	x	1.1	5.8
Market Cap	Rs m	162	308
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VADIVARHE SPECIALITY CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY22, from 1.1x 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 deteriorated and stood at -4.7x during FY22, from -1.0x 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 declined and down at -181.9% during FY22, from -18.5% 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 declined and down at -37.4% during FY22, from -4.3% 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 declined and down at -19.0% during FY22, from -3.1% 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	1.1	0.7
Debtors’ Days	Days	125,641,496	34,432,894
Interest coverage	x	-1.0	-4.7
Debt to equity ratio	x	1.0	3.0
Return on assets	%	-3.1	-19.0
Return on equity	%	-18.5	-181.9
Return on capital employed	%	-4.3	-37.4

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

VADIVARHE SPECIALITY CHEMICALS Share Price Performance

Over the last one year, VADIVARHE SPECIALITY CHEMICALS share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 24,020.7 (down 1.0%). Over the last one year it has moved down from 25,316.3 to 24,020.7, a loss of 1,296 points (down 5.1%).

Overall, the NIFTY 50 is up 0.5% over the year.

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