DB REALTY 2022-23 Annual Report Analysis

Mon, 25 Sep

DB REALTY 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.

DB REALTY Income Statement Analysis

• Operating income during the year rose 218.2% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 16.4% in FY23 as against 174.0% in FY22.
• Depreciation charges decreased by 39.0% and finance costs decreased by 81.9% YoY, respectively.
• Other income grew by 77.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 9.9% in FY22 to 12.9% in FY23.

DB REALTY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,194	6,982	218.2%
Other income	Rs m	614	1,090	77.5%
Total Revenues	Rs m	2,809	8,073	187.4%
Gross profit	Rs m	3,818	-1,147	NA
Depreciation	Rs m	7	4	-39.0%
Interest	Rs m	3,001	544	-81.9%
Profit before tax	Rs m	1,425	-605	NA
Tax	Rs m	1,207	295	-75.6%
Profit after tax	Rs m	218	-900	NA
Gross profit margin	%	174.0	-16.4
Effective tax rate	%	84.7	-48.7
Net profit margin	%	9.9	-12.9

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DB REALTY Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 28 billion as compared to Rs 31 billion in FY22, thereby witnessing an decrease of -9.1%.
• Long-term debt down at Rs 13 billion as compared to Rs 20 billion during FY22, a fall of 36.7%.
• Current assets fell 17% and stood at Rs 38 billion, while fixed assets rose 7% and stood at Rs 26 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 83 billion as against Rs 86 billion during FY22, thereby witnessing a fall of 3%.

DB REALTY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	15,197	18,789	23.6
Current Liabilities	Rs m	30,850	28,042	-9.1
Long-term Debt	Rs m	19,934	12,622	-36.7
Total Liabilities	Rs m	85,874	82,953	-3.4
Current assets	Rs m	46,192	38,284	-17.1
Fixed Assets	Rs m	24,418	26,164	7.1
Total Assets	Rs m	85,874	82,953	-3.4

DB REALTY Cash Flow Statement Analysis

• DB REALTY's cash flow from operating activities (CFO) during FY23 stood at Rs 963 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 517 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -515 million from the Rs 941 million net cash flows seen during FY22.

DB REALTY 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	-2,666	963	-
Cash Flow from Investing Activities	Rs m	2,745	-1,996	-
Cash Flow from Financing Activities	Rs m	862	517	-40.0%
Net Cash Flow	Rs m	941	-515	-

Current Valuations for DB REALTY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.6, an decline from the EPS of Rs 0.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 165.9, stands at -61.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 8.4 times.
• The company's price to cash flow (P/CF) ratio stood at -37.6 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	8.5	19.8
TTM Earnings per share	Rs	0.8	-2.6
Diluted earnings per share	Rs	0.4	-1.8
Price to Cash Flow	x	233.7	-37.6
TTM P/E ratio	x	71.8	-61.6
Price / Book Value ratio	x	1.3	1.8
Market Cap	Rs m	19,520	33,728
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 1.4x 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 deteriorated and stood at -0.1x during FY23, from 1.5x 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 declined and down at -4.8% during FY23, from 1.4% 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 declined and down at -0.2% during FY23, from 12.6% 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 declined and down at -0.4% during FY23, from 3.7% 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	1.4
Debtors’ Days	Days	3,716	358
Interest coverage	x	1.5	-0.1
Debt to equity ratio	x	1.3	0.7
Return on assets	%	3.7	-0.4
Return on equity	%	1.4	-4.8
Return on capital employed	%	12.6	-0.2

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 126.4 to Rs 165.9, registering a gain of Rs 39.5 or around 31.3%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 4,539.1 (up 1.0%). Over the last one year it has moved up from 3,479.1 to 4,539.1, a gain of 1,060 points (up 30.5%).

Overall, the S&P BSE SENSEX is up 11.1% over the year.

(To know more, check out historical annual results for DB REALTY and quarterly results for DB REALTY)