D B CORP 2020-21 Annual Report Analysis

Wed, 31 Mar

D B CORP has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

D B CORP Income Statement Analysis

• Operating income during the year fell 32.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 34.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.1% in FY21 as against 20.6% in FY20.
• Depreciation charges decreased by 4.8% and finance costs decreased by 3.2% YoY, respectively.
• Other income declined by 15.6% YoY.
• Net profit for the year declined by 48.6% YoY.
• Net profit margins during the year declined from 12.4% in FY20 to 9.4% in FY21.

D B CORP Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	22,238	15,077	-32.2%
Other income	Rs m	351	296	-15.6%
Total Revenues	Rs m	22,589	15,373	-31.9%
Gross profit	Rs m	4,589	3,029	-34.0%
Depreciation	Rs m	1,207	1,149	-4.8%
Interest	Rs m	251	243	-3.2%
Profit before tax	Rs m	3,482	1,932	-44.5%
Tax	Rs m	732	518	-29.2%
Profit after tax	Rs m	2,750	1,414	-48.6%
Gross profit margin	%	20.6	20.1
Effective tax rate	%	21.0	26.8
Net profit margin	%	12.4	9.4

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D B CORP Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 17 billion as compared to Rs 19 billion in FY20, thereby witnessing an decrease of -8.7%.
• Current assets rose 1% and stood at Rs 24 billion, while fixed assets rose 2% and stood at Rs 17 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 41 billion as against Rs 40 billion during FY20, thereby witnessing a growth of 1%.

D B CORP Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	16,718	18,110	8.3
Current Liabilities	Rs m	18,757	17,125	-8.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	40,429	40,942	1.3
Current assets	Rs m	24,163	24,347	0.8
Fixed Assets	Rs m	16,266	16,595	2.0
Total Assets	Rs m	40,429	40,942	1.3

D B CORP Cash Flow Statement Analysis

• D B CORP's cash flow from operating activities (CFO) during FY21 stood at Rs 4 billion, an improvement of 3.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion, an improvement of 51% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 863 million from the Rs -979 million net cash flows seen during FY20.

D B CORP Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	3,631	3,741	3.0%
Cash Flow from Investing Activities	Rs m	-1,542	-1,365	-
Cash Flow from Financing Activities	Rs m	-3,068	-1,513	-
Net Cash Flow	Rs m	-979	863	-

Current Valuations for D B CORP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.1, an decline from the EPS of Rs 15.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 90.1, stands at 11.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 5.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	127.1	86.2
TTM Earnings per share	Rs	15.7	8.1
Diluted earnings per share	Rs	15.5	8.0
Price to Cash Flow	x	3.5	5.7
TTM P/E ratio	x	5.1	11.3
Price / Book Value ratio	x	1.4	0.8
Market Cap	Rs m	24,179	14,522
Dividends per share (Unadj.)	Rs	10.0	3.0

Ratio Analysis for D B CORP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY21, from 1.3x during FY20. 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 8.9x during FY21, from 14.9x during FY20. 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 7.8% during FY21, from 16.4% during FY21. 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 12.0% during FY21, from 22.3% during FY20. 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 4.0% during FY21, from 7.4% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.3	1.4
Debtors’ Days	Days	104	120
Interest coverage	x	14.9	8.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.4	4.0
Return on equity	%	16.4	7.8
Return on capital employed	%	22.3	12.0

To see how D B CORP has performed over the last 5 years, please visit here.

D B CORP Share Price Performance

Over the last one year, D B CORP share price has moved up from Rs 79.3 to Rs 90.1, registering a gain of Rs 10.8 or around 13.6%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 11,919.9 (down 0.9%). Over the last one year it has moved up from 6,403.4 to 11,919.9, a gain of 5,517 points (up 86.1%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of D B CORP