D B CORP 2022-23 Annual Report Analysis

Mon, 21 Aug

D B CORP 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.

D B CORP Income Statement Analysis

• Operating income during the year rose 20.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.0% in FY23 as against 17.1% in FY22.
• Depreciation charges increased by 1.9% and finance costs increased by 17.0% YoY, respectively.
• Other income grew by 106.3% YoY.
• Net profit for the year grew by 18.6% YoY.
• Net profit margins during the year declined from 8.1% in FY22 to 7.9% in FY23.

D B CORP Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	17,685	21,292	20.4%
Other income	Rs m	203	419	106.3%
Total Revenues	Rs m	17,889	21,712	21.4%
Gross profit	Rs m	3,025	3,192	5.5%
Depreciation	Rs m	1,100	1,120	1.9%
Interest	Rs m	182	213	17.0%
Profit before tax	Rs m	1,947	2,279	17.1%
Tax	Rs m	521	588	12.8%
Profit after tax	Rs m	1,426	1,691	18.6%
Gross profit margin	%	17.1	15.0
Effective tax rate	%	26.8	25.8
Net profit margin	%	8.1	7.9

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D B CORP Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 9 billion as compared to Rs 17 billion in FY22, thereby witnessing an decrease of -49.9%.
• Current assets fell 45% and stood at Rs 14 billion, while fixed assets rose 18% and stood at Rs 19 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 33 billion as against Rs 42 billion during FY22, thereby witnessing a fall of 21%.

D B CORP Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	18,755	19,447	3.7
Current Liabilities	Rs m	17,175	8,612	-49.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	42,167	33,412	-20.8
Current assets	Rs m	26,017	14,406	-44.6
Fixed Assets	Rs m	16,150	19,005	17.7
Total Assets	Rs m	42,167	33,412	-20.8

D B CORP Cash Flow Statement Analysis

• D B CORP's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion, an improvement of 14% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -320 million from the Rs -74 million net cash flows seen during FY22.

D B CORP 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	3,706	2,442	-34.1%
Cash Flow from Investing Activities	Rs m	-2,235	-1,440	-
Cash Flow from Financing Activities	Rs m	-1,546	-1,322	-
Net Cash Flow	Rs m	-74	-320	-

Current Valuations for D B CORP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.5, an improvement from the EPS of Rs 8.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 240.0, stands at 19.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 7.3 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	99.9	119.6
TTM Earnings per share	Rs	8.1	9.5
Diluted earnings per share	Rs	8.0	9.5
Price to Cash Flow	x	6.0	7.3
TTM P/E ratio	x	10.6	19.7
Price / Book Value ratio	x	0.9	1.1
Market Cap	Rs m	17,763	20,449
Dividends per share (Unadj.)	Rs	5.0	6.0

Ratio Analysis for D B CORP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY23, from 1.5x 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 11.7x during FY23, from 11.7x 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 8.7% during FY23, from 7.6% 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 12.8% during FY23, from 11.3% 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 5.7% during FY23, from 3.8% 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	1.5	1.7
Debtors’ Days	Days	99	80
Interest coverage	x	11.7	11.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.8	5.7
Return on equity	%	7.6	8.7
Return on capital employed	%	11.3	12.8

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 95.5 to Rs 240.0, registering a gain of Rs 144.5 or around 151.4%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 13,958.3 (up 1.1%). Over the last one year it has moved up from 13,903.0 to 13,958.3, a gain of 55 points (up 0.4%).

Overall, the S&P BSE SENSEX is up 8.4% over the year.

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