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DELTA CORP 2020-21 Annual Report Analysis
Wed, 31 Mar

DELTA CORP has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

DELTA CORP Income Statement Analysis

  • Operating income during the year fell 45.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 95.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.9% in FY21 as against 47.9% in FY20.
  • Depreciation charges increased by 8.5% and finance costs decreased by 11.1% YoY, respectively.
  • Other income grew by 6.4% YoY.
  • Net profit for the year declined by 114.1% YoY.
  • Net profit margins during the year declined from 30.8% in FY20 to 7.9% in FY21.

DELTA CORP Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 6,002 3,290 -45.2%
Other income Rs m 333 355 6.4%
Total Revenues Rs m 6,335 3,645 -42.5%
Gross profit Rs m 2,875 129 -95.5%
Depreciation Rs m 485 527 8.5%
Interest Rs m 161 143 -11.1%
Profit before tax Rs m 2,562 -186 -107.3%
Tax Rs m 715 75 -89.5%
Profit after tax Rs m 1,848 -261 -114.1%
Gross profit margin % 47.9 3.9
Effective tax rate % 27.9 -40.4
Net profit margin % 30.8 -7.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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DELTA CORP Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 2 billion as compared to Rs 2 billion in FY20, thereby witnessing an decrease of -30.3%.
  • Current assets fell 9% and stood at Rs 8 billion, while fixed assets fell 2% and stood at Rs 14 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 21 billion as against Rs 22 billion during FY20, thereby witnessing a fall of 4%.

DELTA CORP Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 19,284 19,025 -1.3
 
Current Liabilities Rs m 2,489 1,734 -30.3
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 22,442 21,435 -4.5
 
Current assets Rs m 8,684 7,916 -8.8
Fixed Assets Rs m 13,758 13,519 -1.7
Total Assets Rs m 22,442 21,435 -4.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



DELTA CORP Cash Flow Statement Analysis

  • DELTA CORP's cash flow from operating activities (CFO) during FY21 stood at Rs 566 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -105 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -803 million, an improvement of 4% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -342 million from the Rs 206 million net cash flows seen during FY20.

DELTA CORP Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 3,188 566 -82.3%
Cash Flow from Investing Activities Rs m -2,148 -105 -
Cash Flow from Financing Activities Rs m -834 -803 -
Net Cash Flow Rs m 206 -342 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for DELTA CORP

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.0, an decline from the EPS of Rs 6.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 162.0, stands at -166.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 13.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 134.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 22.2 12.3
TTM Earnings per share Rs 6.8 -1.0
Diluted earnings per share Rs 6.9 -1.0
Price to Cash Flow x 7.5 134.2
TTM P/E ratio x 9.5 -166.1
Price / Book Value ratio x 2.3 1.9
Market Cap Rs m 44,942 35,667
Dividends per share (Unadj.) Rs 1.5 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for DELTA CORP

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 4.6x during FY21, from 3.5x during FY20. 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 -0.3x during FY21, from 16.9x during FY20. 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 -1.4% during FY21, from 9.6% during FY21. 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 -0.2% during FY21, from 14.1% during FY20. 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 -0.6% during FY21, from 8.9% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 3.5 4.6
Debtors’ Days Days 0 0
Interest coverage x 16.9 -0.3
Debt to equity ratio x 0.0 0.0
Return on assets % 8.9 -0.6
Return on equity % 9.6 -1.4
Return on capital employed % 14.1 -0.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how DELTA CORP has performed over the last 5 years, please visit here.

DELTA CORP Share Price Performance

Over the last one year, DELTA CORP share price has moved up from Rs 65.5 to Rs 162.0, registering a gain of Rs 96.5 or around 147.3%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for DELTA CORP and quarterly results for DELTA CORP)

Annual Report FAQs

What is the current share price of DELTA CORP?

DELTA CORP currently trades at Rs 195.9 per share. You can check out the latest share price performance of DELTA CORP here...

What was the revenue of DELTA CORP in FY21? How does it compare to earlier years?

The revenues of DELTA CORP stood at Rs 3,645 m in FY21, which was down -42.5% compared to Rs 6,335 m reported in FY20.

DELTA CORP's revenue has fallen from Rs 4,596 m in FY17 to Rs 3,645 m in FY21.

Over the past 5 years, the revenue of DELTA CORP has grown at a CAGR of -5.6%.

What was the net profit of DELTA CORP in FY21? How does it compare to earlier years?

The net loss of DELTA CORP stood at Rs -261 m in FY21, which was down -114.1% compared to Rs 1,848 m reported in FY20.

This compares to a net profit of Rs 1,964 m in FY19 and a net profit of Rs 1,555 m in FY18.

Over the past 5 years, DELTA CORP net profit has grown at a CAGR of NaN%.

What does the cash flow statement of DELTA CORP reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of DELTA CORP reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 566 m as compared to Rs 3,188 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -105 m as compared to Rs -2,148 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -803 m as compared to Rs -834 m in FY20.

Here's the cash flow statement of DELTA CORP for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations1,3092,2851,0143,188566
From Investments-650-4,605-785-2,148-105
From Financial Activity-5893,011-727-834-803
Net Cashflow70935-497206-342

What does the Key Ratio analysis of DELTA CORP reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of DELTA CORP reveals:

  • Operating profit margins witnessed a fall and stood at 3.9% in FY21 as against 47.9% in FY20.
  • Net profit margins declined from 30.8% in FY20 to 7.9% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of DELTA CORP for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)37.050.053.347.93.9
Net Profit Margin (%)16.331.431.930.8-7.9
Debt to Equity Ratio (x)0.00.00.00.00.0

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