DB INTERNATIONAL 2022-23 Annual Report Analysis

Tue, 26 Sep

DB INTERNATIONAL 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 INTERNATIONAL Income Statement Analysis

• Operating income during the year rose 0.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 14.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 35.2% in FY23 as against 41.4% in FY22.
• Depreciation charges increased by 48.2% and finance costs increased by 17.7% YoY, respectively.
• Other income grew by 82.8% YoY.
• Net profit for the year declined by 26.2% YoY.
• Net profit margins during the year declined from 29.5% in FY22 to 21.8% in FY23.

DB INTERNATIONAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	293	293	0.1%
Other income	Rs m	1	3	82.8%
Total Revenues	Rs m	294	296	0.5%
Gross profit	Rs m	121	103	-14.9%
Depreciation	Rs m	8	11	48.2%
Interest	Rs m	6	8	17.7%
Profit before tax	Rs m	109	87	-19.9%
Tax	Rs m	22	23	4.5%
Profit after tax	Rs m	86	64	-26.2%
Gross profit margin	%	41.4	35.2
Effective tax rate	%	20.5	26.7
Net profit margin	%	29.5	21.8

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DB INTERNATIONAL Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 440 million as compared to Rs 468 million in FY22, thereby witnessing an decrease of -6.0%.
• Long-term debt down at Rs 10 million as compared to Rs 15 million during FY22, a fall of 34.9%.
• Current assets rose 19% and stood at Rs 857 million, while fixed assets fell 39% and stood at Rs 165 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 990 million during FY22, thereby witnessing a growth of 3%.

DB INTERNATIONAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	507	572	12.7
Current Liabilities	Rs m	468	440	-6.0
Long-term Debt	Rs m	15	10	-34.9
Total Liabilities	Rs m	990	1,022	3.2
Current assets	Rs m	718	857	19.4
Fixed Assets	Rs m	272	165	-39.4
Total Assets	Rs m	990	1,022	3.2

DB INTERNATIONAL Cash Flow Statement Analysis

• DB INTERNATIONAL's cash flow from operating activities (CFO) during FY23 stood at Rs 138 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -121 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -7 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 9 million from the Rs 81 million net cash flows seen during FY22.

DB INTERNATIONAL 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	224	138	-38.5%
Cash Flow from Investing Activities	Rs m	-141	-121	-
Cash Flow from Financing Activities	Rs m	-2	-7	-
Net Cash Flow	Rs m	81	9	-88.5%

Current Valuations for DB INTERNATIONAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.8, an decline from the EPS of Rs 2.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 27.4, stands at 15.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 12.9 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	8.4	8.4
TTM Earnings per share	Rs	2.5	1.8
Diluted earnings per share	Rs	2.5	1.8
Price to Cash Flow	x	9.8	12.9
TTM P/E ratio	x	10.5	15.3
Price / Book Value ratio	x	1.9	1.7
Market Cap	Rs m	978	969
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DB INTERNATIONAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x 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 12.5x during FY23, from 17.8x 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 11.1% during FY23, from 17.0% 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 16.3% during FY23, from 22.0% 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 7.0% during FY23, from 9.4% 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	1.9
Debtors’ Days	Days	204,602	211,365
Interest coverage	x	17.8	12.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.4	7.0
Return on equity	%	17.0	11.1
Return on capital employed	%	22.0	16.3

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

DB INTERNATIONAL Share Price Performance

Over the last one year, DB INTERNATIONAL share price has moved down from Rs 30.8 to Rs 27.4, registering a loss of Rs 3.4 or around 10.9%.

Overall, the S&P BSE SENSEX is up 11.5% over the year.

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