DB REALTY 2020-21 Annual Report Analysis

Wed, 31 Mar

DB REALTY 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.

DB REALTY Income Statement Analysis

• Operating income during the year fell 85.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 133.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 345.1% in FY21 as against 148.5% in FY20.
• Depreciation charges increased by 11.7% and finance costs increased by 27.9% YoY, respectively.
• Other income declined by 6.8% YoY.
• Net profit for the year declined by 66.4% YoY.
• Net profit margins during the year declined from 257.1% in FY20 to 595.0% in FY21.

DB REALTY Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	1,692	246	-85.5%
Other income	Rs m	1,172	1,093	-6.8%
Total Revenues	Rs m	2,864	1,338	-53.3%
Gross profit	Rs m	-2,513	847	-133.7%
Depreciation	Rs m	12	13	11.7%
Interest	Rs m	2,609	3,338	27.9%
Profit before tax	Rs m	-3,962	-1,411	-64.4%
Tax	Rs m	388	50	-87.1%
Profit after tax	Rs m	-4,350	-1,461	-66.4%
Gross profit margin	%	-148.5	345.1
Effective tax rate	%	-9.8	-3.6
Net profit margin	%	-257.1	-595.0

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DB REALTY Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 45 billion as compared to Rs 38 billion in FY20, thereby witnessing an increase of 18.3%.
• Long-term debt stood at Rs 15 billion as compared to Rs 13 billion during FY20, a growth of 14.0%.
• Current assets rose 17% and stood at Rs 54 billion, while fixed assets fell 9% and stood at Rs 16 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 70 billion as against Rs 64 billion during FY20, thereby witnessing a growth of 10%.

DB REALTY Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	15,574	13,358	-14.2
Current Liabilities	Rs m	38,290	45,285	18.3
Long-term Debt	Rs m	12,831	14,631	14.0
Total Liabilities	Rs m	63,992	70,371	10.0
Current assets	Rs m	45,862	53,886	17.5
Fixed Assets	Rs m	18,130	16,485	-9.1
Total Assets	Rs m	63,992	70,371	10.0

DB REALTY Cash Flow Statement Analysis

• DB REALTY's cash flow from operating activities (CFO) during FY21 stood at Rs 952 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 3.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 755 million, an improvement of 221% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 52 million from the Rs 48 million net cash flows seen during FY20.

DB REALTY 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	2,270	952	-58.1%
Cash Flow from Investing Activities	Rs m	-1,596	-1,654	-
Cash Flow from Financing Activities	Rs m	-626	755	-
Net Cash Flow	Rs m	48	52	8.8%

Current Valuations for DB REALTY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.0, an improvement from the EPS of Rs -17.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 24.3, stands at -4.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 24.1 times.
• The company's price to cash flow (P/CF) ratio stood at -3.0 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	7.0	1.0
TTM Earnings per share	Rs	-17.9	-6.0
Diluted earnings per share	Rs	-16.8	-5.6
Price to Cash Flow	x	-0.3	-3.0
TTM P/E ratio	x	-0.3	-4.3
Price / Book Value ratio	x	0.2	0.3
Market Cap	Rs m	3,128	4,386
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DB REALTY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated 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 improved and stood at 0.6x during FY21, from -0.5x 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 improved and stood at -10.9% during FY21, from -27.9% 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 improved and stood at 6.9% during FY21, from -4.8% 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 improved and stood at 2.7% during FY21, from -2.7% 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	1,812	11,090
Interest coverage	x	-0.5	0.6
Debt to equity ratio	x	0.8	1.1
Return on assets	%	-2.7	2.7
Return on equity	%	-27.9	-10.9
Return on capital employed	%	-4.8	6.9

To see how DB REALTY has performed over the last 5 years, please visit here.

DB REALTY Share Price Performance

Over the last one year, DB REALTY share price has moved up from Rs 5.1 to Rs 24.3, registering a gain of Rs 19.2 or around 372.8%.

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 DB REALTY and quarterly results for DB REALTY)

Read: Latest Annual Report Analysis of DB REALTY