DIC INDIA LIMITED 2022-23 Annual Report Analysis

Mon, 4 Mar

DIC INDIA LIMITED has announced its results for the year ended December 2023. Let us have a look at the detailed performance review of the company during FY22-23.

DIC INDIA LIMITED Income Statement Analysis

• Operating income during the year fell 4.9% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 1.7% in CY23 as against 6.1% in CY22.
• Depreciation charges increased by 35.6% and finance costs increased by 12.4% YoY, respectively.
• Other income grew by 2.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 4.7% in CY22 to 2.7% in CY23.

DIC INDIA LIMITED Income Statement 2022-23

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*	% Change
Net Sales	Rs m	8,720	8,289	-4.9%
Other income	Rs m	80	82	2.8%
Total Revenues	Rs m	8,800	8,370	-4.9%
Gross profit	Rs m	535	-141	NA
Depreciation	Rs m	134	182	35.6%
Interest	Rs m	37	42	12.4%
Profit before tax	Rs m	443	-282	NA
Tax	Rs m	33	-56	NA
Profit after tax	Rs m	410	-227	NA
Gross profit margin	%	6.1	-1.7
Effective tax rate	%	7.5	19.7
Net profit margin	%	4.7	-2.7

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DIC INDIA LIMITED Balance Sheet Analysis

• The company's current liabilities during CY23 down at Rs 2 billion as compared to Rs 2 billion in CY22, thereby witnessing an decrease of -12.2%.
• Current assets fell 15% and stood at Rs 4 billion, while fixed assets fell 3% and stood at Rs 2 billion in CY23.
• Overall, the total assets and liabilities for CY23 stood at Rs 6 billion as against Rs 7 billion during CY22, thereby witnessing a fall of 11%.

DIC INDIA LIMITED Balance Sheet as on December 2023

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*	% Change
Networth	Rs m	4,222	3,963	-6.1
Current Liabilities	Rs m	2,033	1,784	-12.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,896	6,138	-11.0
Current assets	Rs m	4,652	3,965	-14.8
Fixed Assets	Rs m	2,243	2,173	-3.1
Total Assets	Rs m	6,896	6,138	-11.0

DIC INDIA LIMITED Cash Flow Statement Analysis

• DIC INDIA LIMITED's cash flow from operating activities (CFO) during CY23 stood at Rs 53 million on a YoY basis.
• Cash flow from investing activities (CFI) during CY23 stood at Rs -300 million on a YoY basis.
• Cash flow from financial activities (CFF) during CY23 stood at Rs 46 million, an improvement of 155% on a YoY basis.
• Overall, net cash flows for the company during CY23 stood at Rs -201 million from the Rs -57 million net cash flows seen during CY22.

DIC INDIA LIMITED Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-22	Dec-23
Cash Flow from Operating Activities	Rs m	370	53	-85.8%
Cash Flow from Investing Activities	Rs m	-342	-300	-
Cash Flow from Financing Activities	Rs m	-85	46	-
Net Cash Flow	Rs m	-57	-201	-

Current Valuations for DIC INDIA LIMITED

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -24.7, an decline from the EPS of Rs 44.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 494.3, stands at -20.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at -93.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*
Sales per share (Unadj.)	Rs	949.9	902.9
TTM Earnings per share	Rs	44.6	-24.7
Diluted earnings per share	Rs	44.6	-24.7
Price to Cash Flow	x	6.5	-93.6
TTM P/E ratio	x	8.6	-20.0
Price / Book Value ratio	x	0.9	1.1
Market Cap	Rs m	3,740	4,176
Dividends per share (Unadj.)	Rs	2.0	0.0

Ratio Analysis for DIC INDIA LIMITED

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during CY23, from 2.3x during CY22. 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 -5.8x during CY23, from 13.0x during CY22. 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 -5.7% during CY23, from 9.7% during CY23. 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 -6.1% during CY23, from 11.4% during CY22. 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 -3.0% during CY23, from 6.5% during CY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*
Current ratio	x	2.3	2.2
Debtors’ Days	Days	1,049	969
Interest coverage	x	13.0	-5.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.5	-3.0
Return on equity	%	9.7	-5.7
Return on capital employed	%	11.4	-6.1

To see how DIC INDIA LIMITED has performed over the last 5 years, please visit here.

DIC INDIA LIMITED Share Price Performance

Over the last one year, DIC INDIA LIMITED share price has moved up from Rs 344.3 to Rs 375.0, registering a gain of Rs 30.7 or around 8.9%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for DIC INDIA LIMITED and quarterly results for DIC INDIA LIMITED)