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DELTA CORP 2022-23 Annual Report Analysis

Mon, 17 Jul

DELTA CORP 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.

DELTA CORP Income Statement Analysis

• Operating income during the year rose 65.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 178.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 45.8% in FY23 as against 27.2% in FY22.
• Depreciation charges increased by 4.6% and finance costs increased by 56.0% YoY, respectively.
• Other income grew by 21.8% YoY.
• Net profit for the year grew by 286.7% YoY.
• Net profit margins during the year grew from 14.0% in FY22 to 32.8% in FY23.

DELTA CORP Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,829	7,987	65.4%
Other income	Rs m	381	464	21.8%
Total Revenues	Rs m	5,209	8,451	62.2%
Gross profit	Rs m	1,312	3,659	178.9%
Depreciation	Rs m	561	587	4.6%
Interest	Rs m	156	244	56.0%
Profit before tax	Rs m	976	3,293	237.4%
Tax	Rs m	298	670	125.1%
Profit after tax	Rs m	678	2,623	286.7%
Gross profit margin	%	27.2	45.8
Effective tax rate	%	30.5	20.3
Net profit margin	%	14.0	32.8

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DELTA CORP Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -2.8%.
• Current assets rose 12% and stood at Rs 11 billion, while fixed assets rose 10% and stood at Rs 15 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 25 billion as against Rs 23 billion during FY22, thereby witnessing a growth of 11%.

DELTA CORP Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	19,801	21,779	10.0
Current Liabilities	Rs m	2,432	2,365	-2.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	23,006	25,496	10.8
Current assets	Rs m	9,473	10,646	12.4
Fixed Assets	Rs m	13,533	14,851	9.7
Total Assets	Rs m	23,006	25,496	10.8

DELTA CORP Cash Flow Statement Analysis

• DELTA CORP's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 21.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -730 million, an improvement of 101.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -521 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 284 million from the Rs 367 million net cash flows seen during FY22.

DELTA CORP 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	1,265	1,540	21.7%
Cash Flow from Investing Activities	Rs m	-363	-730	-
Cash Flow from Financing Activities	Rs m	-444	-521	-
Net Cash Flow	Rs m	367	284	-22.7%

Current Valuations for DELTA CORP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.8, an improvement from the EPS of Rs 2.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 183.1, stands at 18.7 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 6.1 times.
• The company's price to cash flow (P/CF) ratio stood at 20.9 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	18.1	29.8
TTM Earnings per share	Rs	2.5	9.8
Diluted earnings per share	Rs	2.5	9.8
Price to Cash Flow	x	71.4	20.9
TTM P/E ratio	x	129.6	18.7
Price / Book Value ratio	x	3.2	3.1
Market Cap	Rs m	63,868	67,113
Dividends per share (Unadj.)	Rs	1.3	1.3

Ratio Analysis for DELTA CORP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.5x during FY23, from 3.9x 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 improved and stood at 14.5x during FY23, from 7.2x 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 12.0% during FY23, from 3.4% 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 improved and stood at 16.2% during FY23, from 5.7% 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 11.2% during FY23, from 3.6% 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	3.9	4.5
Debtors’ Days	Days	0	0
Interest coverage	x	7.2	14.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.6	11.2
Return on equity	%	3.4	12.0
Return on capital employed	%	5.7	16.2

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 176.3 to Rs 183.1, registering a gain of Rs 6.8 or around 3.9%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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