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DCM SHRIRAM 2020-21 Annual Report Analysis
Wed, 31 Mar

DCM SHRIRAM 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.

DCM SHRIRAM Income Statement Analysis

  • Operating income during the year rose 7.0% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 1.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.7% in FY21 as against 14.9% in FY20.
  • Depreciation charges increased by 6.4% and finance costs decreased by 25.5% YoY, respectively.
  • Other income declined by 14.8% YoY.
  • Net profit for the year declined by 6.6% YoY.
  • Net profit margins during the year declined from 9.3% in FY20 to 8.1% in FY21.

DCM SHRIRAM Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 77,671 83,082 7.0%
Other income Rs m 1,199 1,022 -14.8%
Total Revenues Rs m 78,870 84,103 6.6%
Gross profit Rs m 11,602 11,421 -1.6%
Depreciation Rs m 2,190 2,331 6.4%
Interest Rs m 1,638 1,220 -25.5%
Profit before tax Rs m 8,973 8,892 -0.9%
Tax Rs m 1,778 2,169 22.0%
Profit after tax Rs m 7,194 6,723 -6.6%
Gross profit margin % 14.9 13.7
Effective tax rate % 19.8 24.4
Net profit margin % 9.3 8.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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DCM SHRIRAM Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 26 billion as compared to Rs 34 billion in FY20, thereby witnessing an decrease of -22.8%.
  • Long-term debt stood at Rs 10 billion as compared to Rs 10 billion during FY20, a growth of 3.9%.
  • Current assets fell 2% and stood at Rs 49 billion, while fixed assets fell 1% and stood at Rs 36 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 86 billion as against Rs 87 billion during FY20, thereby witnessing a fall of 2%.

DCM SHRIRAM Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 40,497 46,481 14.8
 
Current Liabilities Rs m 33,750 26,039 -22.8
Long-term Debt Rs m 9,749 10,125 3.9
Total Liabilities Rs m 87,085 85,742 -1.5
 
Current assets Rs m 50,414 49,494 -1.8
Fixed Assets Rs m 36,672 36,248 -1.2
Total Assets Rs m 87,085 85,742 -1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



DCM SHRIRAM Cash Flow Statement Analysis

  • DCM SHRIRAM's cash flow from operating activities (CFO) during FY21 stood at Rs 19 billion, an improvement of 280.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -6 billion, an improvement of 23.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -9 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 3 billion from the Rs 2 billion net cash flows seen during FY20.

DCM SHRIRAM 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 4,963 18,868 280.2%
Cash Flow from Investing Activities Rs m -5,182 -6,422 -
Cash Flow from Financing Activities Rs m 1,829 -9,175 -
Net Cash Flow Rs m 1,610 3,271 103.1%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for DCM SHRIRAM

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 43.1, an decline from the EPS of Rs 46.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 500.6, stands at 11.6 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 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.7 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 498.1 532.8
TTM Earnings per share Rs 46.1 43.1
Diluted earnings per share Rs 46.1 43.1
Price to Cash Flow x 3.6 6.7
TTM P/E ratio x 4.7 11.6
Price / Book Value ratio x 1.6 1.3
Market Cap Rs m 63,375 60,958
Dividends per share (Unadj.) Rs 8.2 9.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for DCM SHRIRAM

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.9x during FY21, from 1.5x 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 8.3x during FY21, from 6.5x 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 declined and down at 14.5% during FY21, from 17.8% 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 declined and down at 17.9% during FY21, from 21.1% 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 declined and down at 9.3% during FY21, from 10.1% 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 1.5 1.9
Debtors’ Days Days 5 2
Interest coverage x 6.5 8.3
Debt to equity ratio x 0.2 0.2
Return on assets % 10.1 9.3
Return on equity % 17.8 14.5
Return on capital employed % 21.1 17.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 215.1 to Rs 500.6, registering a gain of Rs 285.5 or around 132.8%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Annual Report FAQs

What is the current share price of DCM SHRIRAM?

DCM SHRIRAM currently trades at Rs 890.6 per share. You can check out the latest share price performance of DCM SHRIRAM here...

What was the revenue of DCM SHRIRAM in FY21? How does it compare to earlier years?

The revenues of DCM SHRIRAM stood at Rs 84,103 m in FY21, which was up 6.6% compared to Rs 78,870 m reported in FY20.

DCM SHRIRAM's revenue has grown from Rs 55,086 m in FY17 to Rs 84,103 m in FY21.

Over the past 5 years, the revenue of DCM SHRIRAM has grown at a CAGR of 11.2%.

What was the net profit of DCM SHRIRAM in FY21? How does it compare to earlier years?

The net profit of DCM SHRIRAM stood at Rs 6,723 m in FY21, which was down -6.6% compared to Rs 7,194 m reported in FY20.

This compares to a net profit of Rs 9,026 m in FY19 and a net profit of Rs 6,687 m in FY18.

Over the past 5 years, DCM SHRIRAM net profit has grown at a CAGR of 5.0%.

What does the cash flow statement of DCM SHRIRAM reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of DCM SHRIRAM reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 18,868 m as compared to Rs 4,963 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -6,422 m as compared to Rs -5,182 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -9,175 m as compared to Rs 1,829 m in FY20.

Here's the cash flow statement of DCM SHRIRAM for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations7,7258,2717,7494,96318,868
From Investments-4,115-3,211-8,034-5,182-6,422
From Financial Activity-1,850-5,7142,7691,829-9,175
Net Cashflow1,761-6542,4831,6103,271

What does the Key Ratio analysis of DCM SHRIRAM reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of DCM SHRIRAM reveals:

  • Operating profit margins witnessed a fall and stood at 13.7% in FY21 as against 14.9% in FY20.
  • Net profit margins declined from 9.3% in FY20 to 8.1% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.2 as compared to 0.2 in FY20.

Here's the ratio/financial analysis of DCM SHRIRAM for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)14.115.117.514.913.7
Net Profit Margin (%)10.19.811.69.38.1
Debt to Equity Ratio (x)0.20.20.30.20.2

Read: Latest Annual Report Analysis of DCM SHRIRAM

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