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DAI-ICHI KAR 2022-23 Annual Report Analysis

Wed, 4 Oct

DAI-ICHI KAR 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.

DAI-ICHI KAR Income Statement Analysis

• Operating income during the year rose 51.0% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.2% in FY23 as against 11.8% in FY22.
• Depreciation charges increased by 9.6% and finance costs increased by 104.0% YoY, respectively.
• Other income grew by 46.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 15.0% in FY22 to 10.0% in FY23.

DAI-ICHI KAR Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,218	1,839	51.0%
Other income	Rs m	44	64	46.7%
Total Revenues	Rs m	1,262	1,904	50.8%
Gross profit	Rs m	-144	262	NA
Depreciation	Rs m	68	75	9.6%
Interest	Rs m	15	30	104.0%
Profit before tax	Rs m	-183	221	NA
Tax	Rs m	0	36	0.0
Profit after tax	Rs m	-183	185	NA
Gross profit margin	%	-11.8	14.2
Effective tax rate	%	0.0	16.5
Net profit margin	%	-15.0	10.0

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DAI-ICHI KAR Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 577 million as compared to Rs 576 million in FY22, thereby witnessing an increase of 0.2%.
• Long-term debt stood at Rs 173 million as compared to Rs 41 million during FY22, a growth of 323.8%.
• Current assets rose 2% and stood at Rs 685 million, while fixed assets rose 11% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 8%.

DAI-ICHI KAR Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,499	1,699	13.3
Current Liabilities	Rs m	576	577	0.2
Long-term Debt	Rs m	41	173	323.8
Total Liabilities	Rs m	2,467	2,668	8.1
Current assets	Rs m	674	685	1.5
Fixed Assets	Rs m	1,788	1,984	11.0
Total Assets	Rs m	2,467	2,668	8.1

DAI-ICHI KAR Cash Flow Statement Analysis

• DAI-ICHI KAR's cash flow from operating activities (CFO) during FY23 stood at Rs 232 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -326 million, an improvement of 666.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 135 million, an improvement of 714% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 39 million from the Rs -98 million net cash flows seen during FY22.

DAI-ICHI KAR 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	-34	232	-
Cash Flow from Investing Activities	Rs m	-43	-326	-
Cash Flow from Financing Activities	Rs m	-22	135	-
Net Cash Flow	Rs m	-98	39	-

Current Valuations for DAI-ICHI KAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.8, an improvement from the EPS of Rs -24.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 438.0, stands at 18.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 10.1 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	163.5	246.9
TTM Earnings per share	Rs	-24.5	24.8
Diluted earnings per share	Rs	-24.5	24.8
Price to Cash Flow	x	-23.7	10.1
TTM P/E ratio	x	-14.9	18.3
Price / Book Value ratio	x	2.1	1.5
Market Cap	Rs m	3,107	2,619
Dividends per share (Unadj.)	Rs	0.0	4.0

Ratio Analysis for DAI-ICHI KAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY23, from 1.2x 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 8.3x during FY23, from -11.3x 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 10.9% during FY23, from -12.2% 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 13.4% during FY23, from -10.9% 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 8.1% during FY23, from -6.8% 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	1.2	1.2
Debtors’ Days	Days	528	530
Interest coverage	x	-11.3	8.3
Debt to equity ratio	x	0.0	0.1
Return on assets	%	-6.8	8.1
Return on equity	%	-12.2	10.9
Return on capital employed	%	-10.9	13.4

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 up from Rs 306.6 to Rs 438.0, registering a gain of Rs 131.4 or around 42.9%.

Overall, the S&P BSE SENSEX is up 15.6% over the year.

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