DAI-ICHI KAR 2021-22 Annual Report Analysis

Wed, 22 Jun

DAI-ICHI KAR has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

DAI-ICHI KAR Income Statement Analysis

• Operating income during the year rose 25.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 120.9% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 11.8% in FY22 as against 70.4% in FY21.
• Depreciation charges decreased by 20.1% and finance costs decreased by 83.8% YoY, respectively.
• Other income declined by 11.1% YoY.
• Net profit for the year declined by 137.7% YoY.
• Net profit margins during the year declined from 49.7% in FY21 to 15.0% in FY22.

DAI-ICHI KAR Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	974	1,218	25.1%
Other income	Rs m	49	44	-11.1%
Total Revenues	Rs m	1,024	1,262	23.3%
Gross profit	Rs m	686	-144	-120.9%
Depreciation	Rs m	85	68	-20.1%
Interest	Rs m	92	15	-83.8%
Profit before tax	Rs m	558	-183	-132.7%
Tax	Rs m	74	0	-100.0%
Profit after tax	Rs m	484	-183	-137.7%
Gross profit margin	%	70.4	-11.8
Effective tax rate	%	13.2	0.0
Net profit margin	%	49.7	-15.0

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DAI-ICHI KAR Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 576 million as compared to Rs 662 million in FY21, thereby witnessing an decrease of -13.0%.
• Long-term debt stood at Rs 41 million as compared to Rs 0 million during FY21, a growth of 20250.0%.
• Current assets fell 27% and stood at Rs 680 million, while fixed assets fell 24% and stood at Rs 1 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 2 billion as against Rs 3 billion during FY21, thereby witnessing a fall of 25%.

DAI-ICHI KAR Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,705	1,499	-12.1
Current Liabilities	Rs m	662	576	-13.0
Long-term Debt	Rs m	0	41	20,250.0
Total Liabilities	Rs m	2,721	2,037	-25.1
Current assets	Rs m	930	680	-26.9
Fixed Assets	Rs m	1,791	1,358	-24.2
Total Assets	Rs m	2,721	2,037	-25.1

DAI-ICHI KAR Cash Flow Statement Analysis

• DAI-ICHI KAR's cash flow from operating activities (CFO) during FY22 stood at Rs -31 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -43 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -22 million, an improvement of 98% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -98 million from the Rs 108 million net cash flows seen during FY21.

DAI-ICHI KAR Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	-215	-31	-
Cash Flow from Investing Activities	Rs m	1,296	-43	-
Cash Flow from Financing Activities	Rs m	-973	-22	-
Net Cash Flow	Rs m	108	-98	-

Current Valuations for DAI-ICHI KAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -24.5, an decline from the EPS of Rs 65.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 279.0, stands at -11.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at -27.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	130.8	163.5
TTM Earnings per share	Rs	65.0	-24.5
Diluted earnings per share	Rs	65.0	-24.5
Price to Cash Flow	x	3.9	-27.1
TTM P/E ratio	x	4.6	-11.4
Price / Book Value ratio	x	1.1	2.1
Market Cap	Rs m	1,860	3,107
Dividends per share (Unadj.)	Rs	3.0	0.0

Ratio Analysis for DAI-ICHI KAR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY22, from 1.4x during FY21. 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 -11.3x during FY22, from 7.1x during FY21. 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 -12.2% during FY22, from 28.4% during FY22. 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 -10.9% during FY22, from 38.1% during FY21. 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 -8.2% during FY22, from 21.2% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.4	1.2
Debtors’ Days	Days	891	528
Interest coverage	x	7.1	-11.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	21.2	-8.2
Return on equity	%	28.4	-12.2
Return on capital employed	%	38.1	-10.9

To see how DAI-ICHI KAR has performed over the last 5 years, please visit here.

DAI-ICHI KAR Share Price Performance

Over the last one year, DAI-ICHI KAR share price has moved down from Rs 409.8 to Rs 279.0, registering a loss of Rs 130.9 or around 31.9%.

Overall, the S&P BSE SENSEX is down 1.4% over the year.

(To know more, check out historical annual results for DAI-ICHI KAR and quarterly results for DAI-ICHI KAR)

Read: Latest Annual Report Analysis of DAI-ICHI KAR