DCM SHRIRAM 2018-19 Annual Report Analysis

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DCM SHRIRAM 2018-19 Annual Report Analysis
Fri, 18 Oct

DCM SHRIRAM has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

DCM SHRIRAM Income Statement Analysis

  • Operating income during the year rose 12.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 32.2% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 17.6% in FY19 as against 15.0% in FY18.
  • Depreciation charges increased by 11.7% and finance costs increased by 43.2% YoY, respectively.
  • Other income grew by 56.2% YoY.
  • Net profit for the year grew by 35.0% YoY.
  • Net profit margins during the year grew from 9.6% in FY18 to 11.5% in FY19.

DCM SHRIRAM Income Statement 2018-19

No. of Mths Year Ending12 Mar-18*12 Mar-19*% Change
Net SalesRs m69,00577,71112.6%
Other incomeRs m56187656.2%
Total RevenuesRs m69,56678,58813.0%
Gross profitRs m10,34913,68732.2%
DepreciationRs m1,4071,57211.7%
InterestRs m8301,18943.2%
Profit before taxRs m8,67311,80236.1%
TaxRs m1,9872,77639.7%
Profit after taxRs m6,6879,02635.0%
Gross profit margin%15.017.6
Effective tax rate%22.923.5
Net profit margin%9.611.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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DCM SHRIRAM Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 24 billion as compared to Rs 19 billion in FY18, thereby witnessing an increase of 30.0%.
  • Long-term debt stood at Rs 9 billion as compared to Rs 5 billion during FY18, a growth of 77.7%.
  • Current assets rose 25% and stood at Rs 38 billion, while fixed assets rose 30% and stood at Rs 30 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 71 billion as against Rs 57 billion during FY18, thereby witnessing a growth of 26%.

DCM SHRIRAM Balance Sheet as on March 2019

No. of Mths Year Ending12 Mar-18*12 Mar-19*% Change
NetworthRs m30,39535,25716.0
 
Current LiabilitiesRs m18,56924,13630.0
Long-term DebtRs m5,2729,36877.7
Total LiabilitiesRs m56,51771,36426.3
 
Current assetsRs m29,99037,57925.3
Fixed AssetsRs m 23,20530,22030.2
Total AssetsRs m56,51771,36426.3
* 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 FY19 stood at Rs 8 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -8 billion, an improvement of 150.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 3 billion, an improvement of 148% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 2 billion from the Rs -654 million net cash flows seen during FY18.

DCM SHRIRAM Cash Flow Statement 2018-19

ParticularsNo. of months1212% Change
Year EndingMar-18Mar-19
Cash Flow from Operating ActivitiesRs m8,2717,749-6.3%
Cash Flow from Investing ActivitiesRs m-3,211-8,034-
Cash Flow from Financing ActivitiesRs m-5,7142,769-
Net Cash FlowRs m-6542,483-
* 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 57.9, an improvement from the EPS of Rs 41.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 388.2, stands at 7.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending12 Mar-18*12 Mar-19*
Sales per share (Unadj.)Rs424.9498.3
TTM Earnings per shareRs41.257.9
Diluted earnings per shareRs40.354.4
Price to Cash Flow x7.86.1
TTM P/E ratiox7.07.1
Price / Book Value ratiox2.51.6
Market CapRs m63,05164,402
Dividends per share (Unadj.)Rs8.29.8
* 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 deteriorated and stood at 1.6x during FY19, from 1.6x during FY18. 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 10.9x during FY19, from 11.4x during FY18. 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 25.6% during FY19, from 22.0% during FY19. 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 29.1% during FY19, from 26.6% during FY18. 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 14.3% during FY19, from 13.3% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending12 Mar-18*12 Mar-19*
Current ratiox1.61.6
Debtors’ DaysDays4849
Interest coveragex11.410.9
Debt to equity ratiox0.20.3
Return on assets%13.314.3
Return on equity%22.025.6
Return on capital employed%26.629.1
* 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 383.8 to Rs 388.2, registering a gain of Rs 4.4 or around 1.1%.

Overall, the S&P BSE SENSEX is up 12.8% 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 (2QFY20); Net Profit Down 30.2% (Quarterly Result Update)

Nov 1, 2019 | Updated on Nov 1, 2019

For the quarter ended September 2019, DCM SHRIRAM has posted a net profit of Rs 1 bn (down 30.2% YoY). Sales on the other hand came in at Rs 18 bn (up 3.1% YoY). Read on for a complete analysis of DCM SHRIRAM's quarterly results.

DCM SHRIRAM Announces Quarterly Results (1QFY20); Net Profit Up 1.0% (Quarterly Result Update)

Jul 24, 2019 | Updated on Jul 24, 2019

For the quarter ended June 2019, DCM SHRIRAM has posted a net profit of Rs 2 bn (up 1.0% YoY). Sales on the other hand came in at Rs 19 bn (down 8.0% YoY). Read on for a complete analysis of DCM SHRIRAM's quarterly results.

DCM SHRIRAM 2017-18 Annual Report Analysis (Annual Result Update)

Dec 31, 2018 | Updated on Dec 31, 2018

Here's an analysis of the annual report of DCM SHRIRAM for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of DCM SHRIRAM. Also includes updates on the valuation of DCM SHRIRAM.

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