DAVANGERE SUGAR 2024-25 Annual Report Analysis

Wed, 4 Mar

DAVANGERE SUGAR has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the company during FY24-25.

DAVANGERE SUGAR Income Statement Analysis

• Operating income during the year fell 0.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.2% in FY25 as against 20.9% in FY24.
• Depreciation charges increased by 6.2% and finance costs increased by 11.2% YoY, respectively.
• Other income declined by 72.5% YoY.
• Net profit for the year declined by 10.6% YoY.
• Net profit margins during the year declined from 5.7% in FY24 to 5.1% in FY25.

DAVANGERE SUGAR Income Statement 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Net Sales	Rs m	2,165	2,150	-0.7%
Other income	Rs m	64	18	-72.5%
Total Revenues	Rs m	2,230	2,168	-2.8%
Gross profit	Rs m	453	520	14.7%
Depreciation	Rs m	120	127	6.2%
Interest	Rs m	254	282	11.2%
Profit before tax	Rs m	145	129	-11.0%
Tax	Rs m	22	19	-13.0%
Profit after tax	Rs m	122	109	-10.6%
Gross profit margin	%	20.9	24.2
Effective tax rate	%	15.3	14.9
Net profit margin	%	5.7	5.1

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DAVANGERE SUGAR Balance Sheet Analysis

• The company's current liabilities during FY25 stood at Rs 3 billion as compared to Rs 2 billion in FY24, thereby witnessing an increase of 15.0%.
• Long-term debt down at Rs 474 million as compared to Rs 685 million during FY24, a fall of 30.8%.
• Current assets rose 24% and stood at Rs 4 billion, while fixed assets fell 2% and stood at Rs 4 billion in FY25.
• Overall, the total assets and liabilities for FY25 stood at Rs 7 billion as against Rs 7 billion during FY24, thereby witnessing a growth of 9%.

DAVANGERE SUGAR Balance Sheet as on March 2025

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Networth	Rs m	3,400	3,498	2.9
Current Liabilities	Rs m	2,246	2,582	15.0
Long-term Debt	Rs m	685	474	-30.8
Total Liabilities	Rs m	6,817	7,426	8.9
Current assets	Rs m	2,983	3,687	23.6
Fixed Assets	Rs m	3,834	3,739	-2.5
Total Assets	Rs m	6,817	7,426	8.9

DAVANGERE SUGAR Cash Flow Statement Analysis

• DAVANGERE SUGAR's cash flow from operating activities (CFO) during FY25 stood at Rs -46 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY25 stood at Rs -32 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY25 stood at Rs 77 million on a YoY basis.
• Overall, net cash flows for the company during FY25 stood at Rs 0 million from the Rs -13 million net cash flows seen during FY24.

DAVANGERE SUGAR Cash Flow Statement 2024-25

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-24	Mar-25
Cash Flow from Operating Activities	Rs m	25	-46	-
Cash Flow from Investing Activities	Rs m	-229	-32	-
Cash Flow from Financing Activities	Rs m	192	77	-59.9%
Net Cash Flow	Rs m	-13	0	-

Current Valuations for DAVANGERE SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an decline from the EPS of Rs 1.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3.8, stands at 49.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 29.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Sales per share (Unadj.)	Rs	23.0	2.3
TTM Earnings per share	Rs	1.3	0.1
Diluted earnings per share	Rs	0.1	0.1
Price to Cash Flow	x	44.6	29.0
TTM P/E ratio	x	88.2	49.7
Price / Book Value ratio	x	0.2	2.0
Market Cap	Rs m	796	6,859
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DAVANGERE SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY25, from 1.3x during FY24. 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 1.5x during FY25, from 1.6x during FY24. 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 3.1% during FY25, from 3.6% during FY25. 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 10.3% during FY25, from 9.7% during FY24. 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 5.3% during FY25, from 5.5% during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Current ratio	x	1.3	1.4
Debtors’ Days	Days	311	487
Interest coverage	x	1.6	1.5
Debt to equity ratio	x	0.2	0.1
Return on assets	%	5.5	5.3
Return on equity	%	3.6	3.1
Return on capital employed	%	9.7	10.3

To see how DAVANGERE SUGAR has performed over the last 5 years, please visit here.

DAVANGERE SUGAR Share Price Performance

Over the last one year, DAVANGERE SUGAR share price has moved down from Rs 7.5 to Rs 3.8, registering a loss of Rs 3.7 or around 49.6%.

Overall, the S&P BSE SENSEX is up 6.1% over the year.

(To know more, check out historical annual results for DAVANGERE SUGAR and quarterly results for DAVANGERE SUGAR)