VINYL CHEMICALS 2023-24 Annual Report Analysis

Tue, 16 Jul

VINYL 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.

VINYL CHEMICALS Income Statement Analysis

• Operating income during the year fell 41.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 45.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.2% in FY24 as against 4.6% in FY23.
• Depreciation charges increased by 1.0% and finance costs decreased by 96.4% YoY, respectively.
• Other income grew by 97.1% YoY.
• Net profit for the year declined by 38.7% YoY.
• Net profit margins during the year grew from 3.5% in FY23 to 3.7% in FY24.

VINYL CHEMICALS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,125	5,970	-41.0%
Other income	Rs m	23	44	97.1%
Total Revenues	Rs m	10,148	6,015	-40.7%
Gross profit	Rs m	467	254	-45.7%
Depreciation	Rs m	1	1	1.0%
Interest	Rs m	14	0	-96.4%
Profit before tax	Rs m	475	297	-37.6%
Tax	Rs m	119	78	-34.1%
Profit after tax	Rs m	356	218	-38.7%
Gross profit margin	%	4.6	4.2
Effective tax rate	%	25.0	26.4
Net profit margin	%	3.5	3.7

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VINYL CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 734 million in FY23, thereby witnessing an increase of 164.0%.
• Long-term debt down at Rs 5 million as compared to Rs 5 million during FY23, a fall of 0.0%.
• Current assets rose 66% and stood at Rs 3 billion, while fixed assets rose 11% and stood at Rs 15 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 66%.

VINYL CHEMICALS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,133	1,168	3.1
Current Liabilities	Rs m	734	1,938	164.0
Long-term Debt	Rs m	5	5	0.0
Total Liabilities	Rs m	1,874	3,112	66.0
Current assets	Rs m	1,861	3,098	66.4
Fixed Assets	Rs m	13	15	10.9
Total Assets	Rs m	1,874	3,112	66.0

VINYL CHEMICALS Cash Flow Statement Analysis

• VINYL CHEMICALS's cash flow from operating activities (CFO) during FY24 stood at Rs 362 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -138 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -183 million, an improvement of 2% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 40 million from the Rs 6 million net cash flows seen during FY23.

VINYL 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	-205	362	-
Cash Flow from Investing Activities	Rs m	398	-138	-
Cash Flow from Financing Activities	Rs m	-186	-183	-
Net Cash Flow	Rs m	6	40	527.8%

Current Valuations for VINYL CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.9, an decline from the EPS of Rs 19.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 414.7, stands at 34.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.5 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 37.3 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	552.1	325.5
TTM Earnings per share	Rs	19.4	11.9
Diluted earnings per share	Rs	19.4	11.9
Price to Cash Flow	x	17.2	37.3
TTM P/E ratio	x	17.2	34.8
Price / Book Value ratio	x	9.6	7.0
Market Cap	Rs m	10,885	8,196
Dividends per share (Unadj.)	Rs	10.0	6.8

Ratio Analysis for VINYL CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY24, from 2.5x 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 606.4x during FY24, from 36.1x 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 18.7% during FY24, from 31.5% 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 25.3% during FY24, from 42.9% 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 7.0% during FY24, from 19.7% 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	2.5	1.6
Debtors’ Days	Days	113	650
Interest coverage	x	36.1	606.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	19.7	7.0
Return on equity	%	31.5	18.7
Return on capital employed	%	42.9	25.3

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

VINYL CHEMICALS Share Price Performance

Over the last one year, VINYL CHEMICALS share price has moved down from Rs 502.8 to Rs 414.7, registering a loss of Rs 88.1 or around 17.5%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 31,797.8 (up 0.2%). Over the last one year it has moved up from 19,064.6 to 31,797.8, a gain of 12,733 points (up 66.8%).

Overall, the S&P BSE SENSEX is up 23.6% over the year.

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