Capitaline

Results 23-Jul-21

Analysis

Atul

PBT up 35%

Atul consolidated net sales increased 63.53% to Rs 1080.2 crore in Q1FY22 compared to Q1FY21. Sales of Life Science Chemicals segment has gone up 30.14% to Rs 352.49 crore (accounting for 31.45% of total sales). Sales of Performance & Other Chemicals segment has gone up 79.20% to Rs 753.51 crore (accounting for 67.24% of total sales). Sales of Others segment rose 68.77% to Rs 14.70 crore (accounting for 1.31% of total sales). Inter-segment sales rose Rs 39.50 crore to Rs 40.50 crore.

Operating profit margin has slumped from 24.02% to 21.86%, leading to 48.82% rise in operating profit to Rs 236.11 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 38.15% to 47.19%. Purchase of finished goods cost fell from 4.75% to 3.66%. Employee cost decreased from 11.23% to 6.97%. Other expenses fell from 21.79% to 21.54%. Power and Oil fuel cost rose from 8.10% to 8.68%.

Other income fell 27.12% to Rs 29.62 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 53.70% to Rs 209.14 crore. PBIT of Life Science Chemicals segment fell 3.43% to Rs 49.29 crore (accounting for 23.57% of total PBIT). PBIT of Performance & Other Chemicals segment rose 82.74% to Rs 156.33 crore (accounting for 74.75% of total PBIT). PBIT of Others reported profit of Rs 3.52 crore compared to loss of Rs 0.52 crore.

PBIT margin of Life Science Chemicals segment fell from 18.84% to 13.98%. PBIT margin of Performance & Other Chemicals segment rose from 20.35% to 20.75%. PBIT margin of Others segment rose from negative 5.97% to 23.95%. Overall PBIT margin fell from 19.44% to 18.66%.

Provision for interest fell 22.85% to Rs 2.06 crore. Provision for depreciation rose 30.62% to Rs 43.26 crore. Profit before tax grew 34.80% to Rs 220.41 crore. Share of profit/loss was 592.86% higher at Rs 1.94 crore. Provision for tax was expense of Rs 57.2 crore, compared to Rs 45.85 crore. Effective tax rate was 25.73% compared to 27.99%.

Net profit attributable to owners of the company increased 40.89% to Rs 165.94 crore.

Full year results analysis

Net sales (including other operating income) of Atul has declined 8.83% to Rs 3731.47 crore. Sales of Life Science Chemicals segment has gone down 2.84% to Rs 1,216.37 crore (accounting for 31.30% of total sales). Sales of Performance & Other Chemicals segment has gone down 12.15% to Rs 2,621.88 crore (accounting for 67.46% of total sales). Sales of Others segment rose 31.63% to Rs 48.48 crore (accounting for 1.25% of total sales). Inter-segment sales came down from Rs 180.22 crore to Rs 155.26 crore.

Operating profit margin has jumped from 22.04% to 24.58%, leading to 1.68% rise in operating profit to Rs 917.12 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 44.39% to 42.25%. Purchase of finished goods cost rose from 3.68% to 4.05%. Employee cost increased from 7.36% to 8.18%. Other expenses fell from 22.51% to 21.33%. Power and Oil fuel cost fell from 9.12% to 8.16%.

Other income rose 31.96% to Rs 102.98 crore. Profit before interest, tax and other unallocable items (PBIT) has slumped 1.58% to Rs 825.03 crore. PBIT of Life Science Chemicals segment fell 1.61% to Rs 219.57 crore (accounting for 26.61% of total PBIT). PBIT of Performance & Other Chemicals segment fell 1.62% to Rs 594.16 crore (accounting for 72.02% of total PBIT). PBIT of Others segment rose 1.53% to Rs 11.30 crore (accounting for 1.37% of total PBIT).

PBIT margin of Life Science Chemicals segment rose from 17.82% to 18.05%. PBIT margin of Performance & Other Chemicals segment rose from 20.24% to 22.66%. PBIT margin of Others segment fell from 30.22% to 23.31%. Overall PBIT margin rose from 19.62% to 21.23%.

Provision for interest fell 0.53% to Rs 9.35 crore. Loan funds rose to Rs 101.72 crore as of 31 March 2021 from Rs 96.97 crore as of 31 March 2020. Inventories rose to Rs 594.14 crore as of 31 March 2021 from Rs 503.37 crore as of 31 March 2020. Sundry debtors were higher at Rs 733.23 crore as of 31 March 2021 compared to Rs 719.73 crore as of 31 March 2020. Cash and bank balance rose to Rs 348.18 crore as of 31 March 2021 from Rs 35.37 crore as of 31 March 2020. Investments rose to Rs 1,361.05 crore as of 31 March 2021 from Rs 1,137.31 crore as of 31 March 2020 .

Provision for depreciation rose 4.69% to Rs 136.32 crore. Fixed assets increased to Rs 1,626.10 crore as of 31 March 2021 from Rs 1,463.88 crore as of 31 March 2020. Intangible assets increased from Rs 29.14 crore to Rs 41.98 crore.

Profit before tax grew 4.04% to Rs 874.43 crore. Share of profit/loss was 45.58% higher at Rs 7.25 crore. Provision for tax was expense of Rs 221.66 crore, compared to Rs 174.51 crore. Effective tax rate was 25.14% compared to 20.64%.

Minority interest decreased 4.27% to Rs 4.26 crore. Net profit attributable to owners of the company decreased 1.61% to Rs 655.76 crore.

Promoters’ stake was 44.93% as of 31 March 2021 compared to 44.80% as of 31 March 2020. Promoters pledged stake was 1.50% as of 31 March 2021 compared to 3.76% as of 31 March 2020.

Cash flow from operating activities decreased to Rs 717.95 crore for year ended March 2021 from Rs 881.38 crore for year ended March 2020. Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 322.54 crore, compared to Rs 373.99 crore during the year ended March 2020.

The scrip is currently trading at Rs 9254

Atul : Consolidated Results
Particulars	2106 (03)	2006 (03)	Var.(%)	2103 (12)	2003 (12)	Var.(%)
Net Sales	1,080.20	660.56	64	3,731.47	4,093.06	-9
OPM (%)	21.9	24.0		24.58	22.0
OP	236.11	158.66	49	917.12	902.01	2
Other Inc.	29.62	40.64	-27	102.98	78.04	32
PBIDT	265.73	199.3	33	1,020.10	980.05	4
Interest	2.06	2.67	-23	9.35	9.4	-1
PBDT	263.67	196.63	34	1,010.75	970.65	4
Depreciation	43.26	33.12	31	136.32	130.21	5
PBT	220.41	163.51	35	874.43	840.44	4
Share of Profit/(Loss) from Associates	1.94	0.28	593	7.25	4.98	46
PBT before EO	222.35	163.79	36	881.68	845.42	4
EO Income	0	0	-	0	0	-
PBT after EO	222.35	163.79	36	881.68	845.42	4
Taxation	57.2	45.85	25	221.66	174.51	27
PAT	165.15	117.94	40	660.02	670.91	-2
Minority Interest (MI)	-0.79	0.16	LP	4.26	4.45	-4
Net profit	165.94	117.78	41	655.76	666.46	-2
EPS (Rs)*	#	#		221.6	225.3
Notes
* EPS is on current equity of Rs 29.59 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Atul : Consolidated Segment Results
	% of (Total)	2106 (03)	2006 (03)	Var.(%)	% of (Total)	2103 (12)	2003 (12)	Var.(%)
Sales
Life Science Chemicals	31	352.49	270.86	30	31	1,216.37	1,251.95	-3
Performance & Other Chemicals	67	753.51	420.49	79	67	2,621.88	2,984.50	-12
Others	1	14.7	8.71	69	1	48.48	36.83	32
Total Reported Sales	100	1,120.70	700.06	60	100	3,886.73	4,273.28	-9
Less: Inter segment revenues		40.5	39.5	3		155.26	180.22	-14
Net Sales		1,080.20	660.56	64		3,731.47	4,093.06	-9
PBIT
Life Science Chemicals	24	49.29	51.04	-3	27	219.57	223.16	-2
Performance & Other Chemicals	75	156.33	85.55	83	72	594.16	603.97	-2
Others	2	3.52	-0.52	LP	1	11.3	11.13	2
Total PBIT	100	209.14	136.07	54	100	825.03	838.26	-2
Less : Interest		2.06	2.67	-23		9.35	9.4	-1
Add: Other un-allcoable		15.27	30.39	-50		66	16.56	299
PBT		222.35	163.79	36		881.68	845.42	4

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