SRI DIGVIJAY CEMENT 2022-23 Annual Report Analysis

Sat, 3 Jun

SRI DIGVIJAY CEMENT has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

SRI DIGVIJAY CEMENT Income Statement Analysis

• Operating income during the year rose 15.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 13.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.9% in FY23 as against 18.6% in FY22.
• Depreciation charges increased by 12.3% and finance costs decreased by 8.2% YoY, respectively.
• Other income grew by 76.6% YoY.
• Net profit for the year grew by 5.1% YoY.
• Net profit margins during the year declined from 8.8% in FY22 to 8.0% in FY23.

SRI DIGVIJAY CEMENT Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,293	7,267	15.5%
Other income	Rs m	40	70	76.6%
Total Revenues	Rs m	6,333	7,338	15.9%
Gross profit	Rs m	1,171	1,010	-13.7%
Depreciation	Rs m	314	353	12.3%
Interest	Rs m	15	13	-8.2%
Profit before tax	Rs m	882	715	-19.0%
Tax	Rs m	329	134	-59.3%
Profit after tax	Rs m	553	581	5.1%
Gross profit margin	%	18.6	13.9
Effective tax rate	%	37.3	18.7
Net profit margin	%	8.8	8.0

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SRI DIGVIJAY CEMENT Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 2.9%.
• Current assets rose 11% and stood at Rs 3 billion, while fixed assets fell 9% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 1%.

SRI DIGVIJAY CEMENT Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,112	3,243	4.2
Current Liabilities	Rs m	1,213	1,248	2.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,624	4,683	1.3
Current assets	Rs m	2,321	2,576	11.0
Fixed Assets	Rs m	2,303	2,107	-8.5
Total Assets	Rs m	4,624	4,683	1.3

SRI DIGVIJAY CEMENT Cash Flow Statement Analysis

• SRI DIGVIJAY CEMENT's cash flow from operating activities (CFO) during FY23 stood at Rs 863 million, an improvement of 50.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -367 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -498 million, an improvement of 11% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 million from the Rs -385 million net cash flows seen during FY22.

SRI DIGVIJAY CEMENT Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	573	863	50.7%
Cash Flow from Investing Activities	Rs m	-398	-367	-
Cash Flow from Financing Activities	Rs m	-560	-498	-
Net Cash Flow	Rs m	-385	-1	-

Current Valuations for SRI DIGVIJAY CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.0, an improvement from the EPS of Rs 3.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 82.0, stands at 20.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 10.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	43.7	50.1
TTM Earnings per share	Rs	3.8	4.0
Diluted earnings per share	Rs	3.8	4.0
Price to Cash Flow	x	11.6	10.3
TTM P/E ratio	x	18.2	20.5
Price / Book Value ratio	x	3.5	3.0
Market Cap	Rs m	10,788	9,649
Dividends per share (Unadj.)	Rs	3.5	4.0

Ratio Analysis for SRI DIGVIJAY CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY23, from 1.9x during FY22. 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 54.5x during FY23, from 61.6x during FY22. 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 improved and stood at 17.9% during FY23, from 17.8% during FY23. 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 22.5% during FY23, from 28.8% during FY22. 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 improved and stood at 12.7% during FY23, from 12.3% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.9	2.1
Debtors’ Days	Days	77	109
Interest coverage	x	61.6	54.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.3	12.7
Return on equity	%	17.8	17.9
Return on capital employed	%	28.8	22.5

To see how SRI DIGVIJAY CEMENT has performed over the last 5 years, please visit here.

SRI DIGVIJAY CEMENT Share Price Performance

Over the last one year, SRI DIGVIJAY CEMENT share price has moved up from Rs 63.4 to Rs 82.0, registering a gain of Rs 18.6 or around 29.3%.

Overall, the S&P BSE SENSEX is up 12.9% over the year.

(To know more, check out historical annual results for SRI DIGVIJAY CEMENT and quarterly results for SRI DIGVIJAY CEMENT)