DILIP BUILDCON 2020-21 Annual Report Analysis

Wed, 31 Mar

DILIP BUILDCON 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.

DILIP BUILDCON Income Statement Analysis

• Operating income during the year rose 4.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.2% in FY21 as against 22.0% in FY20.
• Depreciation charges decreased by 5.9% and finance costs increased by 3.3% YoY, respectively.
• Other income grew by 12.1% YoY.
• Net profit for the year grew by 3.4% YoY.
• Net profit margins during the year declined from 4.2% in FY20 to 4.1% in FY21.

DILIP BUILDCON Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	97,249	101,683	4.6%
Other income	Rs m	377	422	12.1%
Total Revenues	Rs m	97,626	102,105	4.6%
Gross profit	Rs m	21,374	21,608	1.1%
Depreciation	Rs m	4,705	4,429	-5.9%
Interest	Rs m	11,356	11,736	3.3%
Profit before tax	Rs m	5,690	5,865	3.1%
Tax	Rs m	1,642	1,681	2.4%
Profit after tax	Rs m	4,047	4,183	3.4%
Gross profit margin	%	22.0	21.2
Effective tax rate	%	28.9	28.7
Net profit margin	%	4.2	4.1

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DILIP BUILDCON Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 69 billion as compared to Rs 65 billion in FY20, thereby witnessing an increase of 6.1%.
• Long-term debt stood at Rs 70 billion as compared to Rs 60 billion during FY20, a growth of 17.1%.
• Current assets rose 9% and stood at Rs 83 billion, while fixed assets rose 10% and stood at Rs 100 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 183 billion as against Rs 167 billion during FY20, thereby witnessing a growth of 10%.

DILIP BUILDCON Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	31,413	33,998	8.2
Current Liabilities	Rs m	64,955	68,912	6.1
Long-term Debt	Rs m	59,855	70,087	17.1
Total Liabilities	Rs m	167,172	183,307	9.7
Current assets	Rs m	76,346	83,476	9.3
Fixed Assets	Rs m	90,826	99,831	9.9
Total Assets	Rs m	167,172	183,307	9.7

DILIP BUILDCON Cash Flow Statement Analysis

• DILIP BUILDCON's cash flow from operating activities (CFO) during FY21 stood at Rs 11 billion, an improvement of 2,358.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -13 billion, an improvement of 375.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 3 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 202 million from the Rs 3 billion net cash flows seen during FY20.

DILIP BUILDCON 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	440	10,820	2,358.4%
Cash Flow from Investing Activities	Rs m	-2,784	-13,225	-
Cash Flow from Financing Activities	Rs m	5,019	2,607	-48.1%
Net Cash Flow	Rs m	2,675	202	-92.5%

Current Valuations for DILIP BUILDCON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 30.6, an improvement from the EPS of Rs 29.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 580.2, stands at 20.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 0.8 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-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	711.0	743.5
TTM Earnings per share	Rs	29.6	30.6
Diluted earnings per share	Rs	27.7	28.6
Price to Cash Flow	x	3.5	7.3
TTM P/E ratio	x	7.6	20.3
Price / Book Value ratio	x	1.9	1.8
Market Cap	Rs m	58,907	62,887
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for DILIP BUILDCON

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY21, from 1.2x 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 1.5x during FY21, from 1.5x 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 12.3% during FY21, from 12.9% 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 16.9% during FY21, from 18.7% 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 8.7% during FY21, from 9.2% 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	1.2	1.2
Debtors’ Days	Days	435	416
Interest coverage	x	1.5	1.5
Debt to equity ratio	x	1.9	2.1
Return on assets	%	9.2	8.7
Return on equity	%	12.9	12.3
Return on capital employed	%	18.7	16.9

To see how DILIP BUILDCON has performed over the last 5 years, please visit here.

DILIP BUILDCON Share Price Performance

Over the last one year, DILIP BUILDCON share price has moved up from Rs 211.0 to Rs 580.2, registering a gain of Rs 369.2 or around 175.0%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,670.3 (up 1.9%). Over the last one year it has moved up from 1,353.7 to 2,670.3, a gain of 1,317 points (up 97.3%).

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

(To know more, check out historical annual results for DILIP BUILDCON and quarterly results for DILIP BUILDCON)

Read: Latest Annual Report Analysis of DILIP BUILDCON