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Highlights
- The presented financial data is Standalone to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company experienced a substantial growth of 17.21 % in the past year, substantial increase in net sales/revenue by 8.64 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -48.8 %, Marginal decrease of -32% in other income during this quarter.
- Profit over the Year and quarter: Significant improvement in profitability for Atul Limited. Notable increase of 13.05 % in net profit Year to Year, Atul Limited’s profitability increased by 45.77 % in this quarter.
- EPS over the Year and quarter: EPS increased by 13.33 % Year to Year. EPS increased by 45.98 % in previous quarter. Positive impact on shareholders.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 1030.24 Cr | Rs. 1111.52 Cr | Rs. 1207.51 Cr | + 8.64 % | + 17.21 % |
| Expenses | Rs. 883.33 Cr | Rs. 985.47 Cr | Rs. 1022.32 Cr | + 3.74 % | + 15.73 % |
| Operating Profit | Rs. 146.91 Cr | Rs. 126.05 Cr | Rs. 185.19 Cr | + 46.92 % | + 26.06 % |
| OPM % | 14.26 % | 11.34 % | 15.34 % | + 4 % | + 1.08 % |
| Other Income | Rs. 27.48 Cr | Rs. 20.69 Cr | Rs. 14.07 Cr | -32 % | -48.8 % |
| Interest | Rs. 0.52 Cr | Rs. 0.66 Cr | Rs. 0.63 Cr | -4.55 % | + 21.15 % |
| Depreciation | Rs. 42.74 Cr | Rs. 50.23 Cr | Rs. 50.91 Cr | + 1.35 % | + 19.12 % |
| Profit before tax | Rs. 131.13 Cr | Rs. 95.85 Cr | Rs. 147.72 Cr | + 54.12 % | + 12.65 % |
| Tax % | 26.35 % | 21.86 % | 26.09 % | + 4.23 % | -0.26 % |
| Net Profit | Rs. 96.58 Cr | Rs. 74.9 Cr | Rs. 109.18 Cr | + 45.77 % | + 13.05 % |
| EPS in Rs | Rs. 32.72 | Rs. 25.4 | Rs. 37.08 | + 45.98 % | + 13.33 % |
Today, we’re looking at Atul Limited’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 17.21 %. However, it did see a marginal increase of 8.64 % from the previous quarter. Expenses ticked up slightly by 3.74 % quarter-on-quarter, aligning with the annual rise of 15.73 %. Operating profit, while up 26.06 % compared to last year, faced a quarter-on-quarter increase of 46.92 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 1.08 %, but an expansion of 4 % sequentially. Other income fell by -32 % compared to the last quarter, despite an annual decline of -48.8 %. Interest expenses dropped significantly by -4.55 % from the previous quarter, yet the year-over-year increase remains at a moderate 21.15 %. Depreciation costs climbed by 1.35 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 19.12 %. Profit before tax grew annually by 12.65 % but saw an increase from the preceding quarter by 54.12 %.
Tax expenses as a percentage of profits decreased slightly by -0.26 % compared to last year, with a more notable quarter-on-quarter increase of 4.23 %. Net profit rose by 13.05 % year-on-year but experienced a 45.77 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 13.33 % but a quarterly rise of 45.98 %. In summary, Atul 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. 1030.24 Cr | Rs. 1111.52 Cr | Rs. 1207.51 Cr | + 8.64 % | + 17.21 % |
| Expenses | Rs. 883.33 Cr | Rs. 985.47 Cr | Rs. 1022.32 Cr | + 3.74 % | + 15.73 % |
| Operating Profit | Rs. 146.91 Cr | Rs. 126.05 Cr | Rs. 185.19 Cr | + 46.92 % | + 26.06 % |
| Net Profit | Rs. 96.58 Cr | Rs. 74.9 Cr | Rs. 109.18 Cr | + 45.77 % | + 13.05 % |
| EPS in Rs | Rs. 32.72 | Rs. 25.4 | Rs. 37.08 | + 45.98 % | + 13.33 % |
In reviewing Atul Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 17.21 % year-on-year growth, however, there was a minor increase of 8.64 % from the previous quarter. Expenses rose by 15.73 % compared to the previous year, with a 3.74 % increase quarter-on-quarter. Operating Profit surged by 26.06 % annually, and saw a 46.92 % increase from the last quarter.
Net Profit showed yearly increase of 13.05 %, and experienced a 45.77 % increase from the previous quarter. Earnings Per Share (EPS) rose by 13.33 % annually, however rose by 45.98 % compared to the last quarter. In essence, while Atul Limited exhibits strong annual growth indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.
-15
3-Year Profit
-3
5-Year Profit
6
10-Year Profit
7,666
Current Price
22,586
Market Cap
The financial outlook for the company under BSE code 500027 reveals a significant five-year profit of -3 units. This marks a notable increase to -15 units over the last three years, indicating a strong upward trend in the company's financial health during this period. However, it's important to note that recent challenges have impacted the company's performance, leading to a trailing twelve-month loss of -19 units. This sharp decline in profitability is particularly concerning, as the company has also reported no sales across any analyzed timeframe, suggesting a highly unconventional and perhaps risky operational approach. The company's stock prices mirror this financial volatility, with the stock trading at 14 units over the past five years but experiencing a dramatic drop to 9 units within the last year. Over a decade, the stock price was at 19 units, reflecting long-term concerns regarding the company's stability and future outlook. Such performance poses questions about the sustainability of the business and whether it can rebound from these recent setbacks.
With a market capitalization of ₹22,586 crore, the company’s stock is currently trading at ₹7,666, having fluctuated within a range of ₹8,135 / 5,175 over the years. The stock's P/E ratio of 68.1 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 ₹1,737, representing the total value of its assets on a per-share basis, while the dividend yield of 0.26% offers a modest return to shareholders. ROCE, at 8.74%, highlights the company's efficient use of capital in generating profits, while ROE at 6.35% underscores its ability to generate returns for shareholders. The debt-to-equity ratio of 0.05 is very low, indicating conservative financial management and minimal reliance on borrowed funds. Despite this, the company shows a negative net cash flow of ₹22.2 crore, which could point to cash management challenges or recent heavy investments. The Piotroski score of 5.00 suggests moderate financial strength, while the Graham Number, pegged at ₹2,097, offers a rough estimate of the stock's intrinsic value. The Price-to-Book (P/B) ratio of 4.41 signals that the stock is trading at a premium, which might reflect investor confidence in the company's growth trajectory.
