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DCM SHRIRAM 2017-18 Annual Report Analysis

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DCM SHRIRAM 2017-18 Annual Report Analysis
Mon, 31 Dec

DCM SHRIRAM has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

DCM SHRIRAM Income Statement Analysis

  • Operating income during the year rose 19.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 34.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.0% in FY18 as against 13.3% in FY17.
  • Depreciation charges increased by 23.7% and finance costs increased by 16.3% YoY, respectively.
  • Other income grew by 20.0% YoY.
  • Net profit for the year grew by 21.1% YoY.
  • Net profit margins during the year grew from 9.5% in FY17 to 9.6% in FY18.

DCM SHRIRAM Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 57,885 69,005 19.2%
Other income Rs m 468 561 20.0%
Total Revenues Rs m 58,352 69,566 19.2%
Gross profit Rs m 7,711 10,349 34.2%
Depreciation Rs m 1,137 1,407 23.7%
Interest Rs m 714 830 16.3%
Profit before tax Rs m 6,327 8,673 37.1%
Tax Rs m 804 1,987 147.2%
Profit after tax Rs m 5,523 6,687 21.1%
Gross profit margin % 13.3 15.0
Effective tax rate % 12.7 22.9
Net profit margin % 9.5 9.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



DCM SHRIRAM Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 19 billion as compared to Rs 24 billion in FY17, thereby witnessing an decrease of -21.8%.
  • Long-term debt stood at Rs 5 billion as compared to Rs 5 billion during FY17, a growth of 11.7%.
  • Current assets fell 4% and stood at Rs 30 billion, while fixed assets rose 15% and stood at Rs 23 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 57 billion as against Rs 56 billion during FY17, thereby witnessing a growth of 1%.

DCM SHRIRAM Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 25,277 30,395 20.2
 
Current Liabilities Rs m 23,750 18,569 -21.8
Long-term Debt Rs m 4,722 5,272 11.7
Total Liabilities Rs m 55,739 56,517 1.4
 
Current assets Rs m 31,345 29,990 -4.3
Fixed Assets Rs m 20,158 23,205 15.1
Total Assets Rs m 55,739 56,517 1.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



DCM SHRIRAM Cash Flow Statement Analysis

  • DCM SHRIRAM's cash flow from operating activities (CFO) during FY18 stood at Rs 8 billion, an improvement of 7.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -3 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -6 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -654 million from the Rs 2 billion net cash flows seen during FY17.

DCM SHRIRAM Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 7,725 8,267 7.0%
Cash Flow from Investing Activities Rs m -4,115 -3,207 -
Cash Flow from Financing Activities Rs m -1,850 -5,714 -
Net Cash Flow Rs m 1,761 -654 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for DCM SHRIRAM

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 39.4, an improvement from the EPS of Rs 32.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 344.0, stands at 9.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 1.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 340.9 406.4
TTM Earnings per share Rs 32.5 39.4
Diluted earnings per share Rs 33.3 40.3
Price to Cash Flow x 8.8 7.1
TTM P/E ratio x 9.3 9.1
Price / Book Value ratio x 1.5 2.6
Market Cap Rs m 58,411 57,070
Dividends per share (Unadj.) Rs 5.8 8.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for DCM SHRIRAM

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.6x during FY18, from 1.3x during FY17. 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 11.4x during FY18, from 9.9x during FY17. 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 22.0% during FY18, from 21.9% during FY18. 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 26.6% during FY18, from 23.5% during FY17. 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 13.3% during FY18, from 11.2% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.3 1.6
Debtors’ Days Days 63 48
Interest coverage x 9.9 11.4
Debt to equity ratio x 0.2 0.2
Return on assets % 11.2 13.3
Return on equity % 21.9 22.0
Return on capital employed % 23.5 26.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how DCM SHRIRAM has performed over the last 5 years, please visit here.

DCM SHRIRAM Share Price Performance

Over the last one year, DCM SHRIRAM share price has moved up from Rs 557.9 to Rs 344.0, registering a loss of Rs 213.9 or around 38.3%.

Overall, the S&P BSE SENSEX is up 6.5% over the year.

(To know more, check out historical annual results for DCM SHRIRAM and quarterly results for DCM SHRIRAM)

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Related Views on News

DCM SHRIRAM Announces Quarterly Results (3QFY19); Net Profit Up 5.7% (Quarterly Result Update)

Jan 30, 2019 | Updated on Jan 30, 2019

For the quarter ended December 2018, DCM SHRIRAM has posted a net profit of Rs 2 bn (up 5.7% YoY). Sales on the other hand came in at Rs 21 bn (up 18.6% YoY). Read on for a complete analysis of DCM SHRIRAM's quarterly results.

DCM SHRIRAM Announces Quarterly Results (2QFY19); Net Profit Down 2.0% (Quarterly Result Update)

Nov 9, 2018 | Updated on Nov 9, 2018

For the quarter ended September 2018, DCM SHRIRAM has posted a net profit of Rs 2 bn (down 2.0% YoY). Sales on the other hand came in at Rs 17 bn (up 5.9% YoY). Read on for a complete analysis of DCM SHRIRAM's quarterly results.

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