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Highlights
- The presented financial data is Consolidated to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company’s sales declined by -3.22 % over the year, decrease in net sales/revenue by -7.02 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -29.52 %, Marginal increase in other income during this quarter, up by 36.12%.
- Profit over the Year and quarter: Challenges in sustaining profitability for Chemfab Alkalis Limited. Profit dropped by -90.58 % Year to Year, Chemfab Alkalis Limited’s profitability dropped by -83.43 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -90.60 % Year to Year. EPS decreased by -83.42 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 79.077 Cr | Rs. 82.308 Cr | Rs. 76.531 Cr | -7.02 % | -3.22 % |
| Expenses | Rs. 63.59 Cr | Rs. 69.98 Cr | Rs. 68.2 Cr | -2.54 % | + 7.25 % |
| Operating Profit | Rs. 15.49 Cr | Rs. 12.33 Cr | Rs. 8.33 Cr | -32.44 % | -46.22 % |
| OPM % | 19.59 % | 14.98 % | 10.88 % | -4.1 % | -8.71 % |
| Other Income | Rs. 3.679 Cr | Rs. 1.905 Cr | Rs. 2.593 Cr | + 36.12 % | -29.52 % |
| Interest | Rs. 0.05 Cr | Rs. 0.41 Cr | Rs. 0.94 Cr | + 129.27 % | + 1780 % |
| Depreciation | Rs. 5.42 Cr | Rs. 5.86 Cr | Rs. 7.31 Cr | + 24.74 % | + 34.87 % |
| Profit before tax | Rs. 13.7 Cr | Rs. 7.97 Cr | Rs. 2.67 Cr | -66.5 % | -80.51 % |
| Tax % | 30.6 % | 32.06 % | 66.49 % | + 34.43 % | + 35.89 % |
| Net Profit | Rs. 9.51 Cr | Rs. 5.41 Cr | Rs. 0.9 Cr | -83.36 % | -90.54 % |
| EPS in Rs | Rs. 6.63 | Rs. 3.76 | Rs. 0.62 | -83.51 % | -90.65 % |
Today, we’re looking at Chemfab Alkalis Limited’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -3.22 %. However, it did see a marginal slip of -7.02 % from the previous quarter. Expenses decreased slightly by -2.54 % quarter-on-quarter, aligning with the annual rise of 7.25 %. Operating profit, while down -46.22 % compared to last year, faced a quarter-on-quarter dip of -32.44 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -8.71 %, but a shrinkage of -4.1 % sequentially. Other income rose by 36.12 % compared to the last quarter, despite an annual decline of -29.52 %. Interest expenses surged remarkably by 129.27 % from the previous quarter, yet the year-over-year increase remains at a moderate 1780 %. Depreciation costs climbed by 24.74 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 34.87 %. Profit before tax declined annually by -80.51 % but saw a reduction from the preceding quarter by -66.5 %.
Tax expenses as a percentage of profits increased slightly by 35.89 % compared to last year, with a more notable quarter-on-quarter increase of 34.43 %. Net profit fell by -90.54 % year-on-year but witnessed a -83.36 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -90.65 % but a quarterly fall of -83.51 %. In summary, Chemfab Alkalis Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 79.077 Cr | Rs. 82.308 Cr | Rs. 76.531 Cr | -7.02 % | -3.22 % |
| Expenses | Rs. 63.59 Cr | Rs. 69.98 Cr | Rs. 68.2 Cr | -2.54 % | + 7.25 % |
| Operating Profit | Rs. 15.49 Cr | Rs. 12.33 Cr | Rs. 8.33 Cr | -32.44 % | -46.22 % |
| Net Profit | Rs. 9.51 Cr | Rs. 5.41 Cr | Rs. 0.9 Cr | -83.36 % | -90.54 % |
| EPS in Rs | Rs. 6.63 | Rs. 3.76 | Rs. 0.62 | -83.51 % | -90.65 % |
In reviewing Chemfab Alkalis Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -3.22 % year-on-year, although there was a slight dip of -7.02 % from the previous quarter. Expenses rose by 7.25 % compared to the previous year, with a decrease of -2.54 % quarter-on-quarter. Operating Profit dropped by -46.22 % annually, and saw a -32.44 % decrease from the last quarter.
Net Profit showed yearly decrease of -90.54 %, and experienced a -83.36 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -90.65 % annually, however dipped by -83.51 % compared to the last quarter. In essence, while Chemfab Alkalis Limited faces strong annual decline indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.
79
3-Year Profit
1
5-Year Profit
17
10-Year Profit
990
Current Price
1,414
Market Cap
Upon examining the financial data for BSE code 541269, it becomes clear that the company achieved a notable five-year profit of 1 percents, which impressively increased to 79 percents in the three-year window. This upward trajectory, however, has been overshadowed by the latest trailing twelve-month (TTM) figures, which indicate a concerning loss of -53 percents. This financial loss is further compounded by the fact that the company has not recorded any sales across any of the timeframes under consideration. Such an unusual situation might suggest that the company operates under an unconventional business model, which could potentially carry higher risks. In terms of stock performance, the company’s stock price has seen a decline, falling from 43 percents over the five-year period to just 171 percents in the last year. The ten-year average stock price, which sits at 0 percents, highlights long-term volatility, casting doubt on the company's ability to sustain its market position over time. This warrants further investigation into the factors driving these fluctuations.
With a market capitalization of ₹1,414 crore, the company’s stock is currently trading at ₹990, having fluctuated within a range of ₹1,230 / 351 over the years. The stock's P/E ratio of 110 reflects a relatively high valuation compared to its earnings, which could suggest strong future growth expectations or heightened investor demand. The company’s book value is ₹270, representing the total value of its assets on a per-share basis, while the dividend yield of 0.13% offers a modest return to shareholders. ROCE, at 10.2%, highlights the company's efficient use of capital in generating profits, while ROE at 6.75% underscores its ability to generate returns for shareholders. The debt-to-equity ratio of 0.21 is very low, indicating conservative financial management and minimal reliance on borrowed funds. Despite this, the company shows a negative net cash flow of ₹-62.1 crore, which could point to cash management challenges or recent heavy investments. The Piotroski score of 4.00 suggests moderate financial strength, while the Graham Number, pegged at ₹235, offers a rough estimate of the stock's intrinsic value. The Price-to-Book (P/B) ratio of 3.66 signals that the stock is trading at a premium, which might reflect investor confidence in the company's growth trajectory.
