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DCM SHRIRAM 2021-22 Annual Report Analysis
Wed, 29 Jun

DCM SHRIRAM has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

DCM SHRIRAM Income Statement Analysis

  • Operating income during the year rose 13.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 56.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.0% in FY22 as against 13.7% in FY21.
  • Depreciation charges increased by 2.1% and finance costs decreased by 30.0% YoY, respectively.
  • Other income declined by 0.7% YoY.
  • Net profit for the year grew by 58.6% YoY.
  • Net profit margins during the year grew from 8.1% in FY21 to 11.3% in FY22.

DCM SHRIRAM Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 83,082 94,055 13.2%
Other income Rs m 1,022 1,014 -0.7%
Total Revenues Rs m 84,103 95,069 13.0%
Gross profit Rs m 11,421 17,869 56.5%
Depreciation Rs m 2,331 2,380 2.1%
Interest Rs m 1,220 854 -30.0%
Profit before tax Rs m 8,892 15,650 76.0%
Tax Rs m 2,169 4,989 130.0%
Profit after tax Rs m 6,723 10,661 58.6%
Gross profit margin % 13.7 19.0
Effective tax rate % 24.4 31.9
Net profit margin % 8.1 11.3
* 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 FY22 stood at Rs 36 billion as compared to Rs 26 billion in FY21, thereby witnessing an increase of 39.8%.
  • Long-term debt down at Rs 10 billion as compared to Rs 10 billion during FY21, a fall of 6.0%.
  • Current assets rose 30% and stood at Rs 64 billion, while fixed assets rose 16% and stood at Rs 42 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 106 billion as against Rs 86 billion during FY21, thereby witnessing a growth of 24%.

DCM SHRIRAM Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 46,481 55,018 18.4
 
Current Liabilities Rs m 26,039 36,414 39.8
Long-term Debt Rs m 10,122 9,513 -6.0
Total Liabilities Rs m 85,742 106,317 24.0
 
Current assets Rs m 49,494 64,399 30.1
Fixed Assets Rs m 36,248 41,919 15.6
Total Assets Rs m 85,742 106,317 24.0
* 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 FY22 stood at Rs 12 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -9 billion, an improvement of 40.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -3 billion, an improvement of 72% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 616 million from the Rs 3 billion net cash flows seen during FY21.

DCM SHRIRAM Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 18,868 12,244 -35.1%
Cash Flow from Investing Activities Rs m -6,422 -9,043 -
Cash Flow from Financing Activities Rs m -9,175 -2,585 -
Net Cash Flow Rs m 3,271 616 -81.2%
* 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 68.4, an improvement from the EPS of Rs 43.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 942.0, stands at 13.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 10.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 532.8 603.1
TTM Earnings per share Rs 43.1 68.4
Diluted earnings per share Rs 43.1 68.4
Price to Cash Flow x 8.6 10.4
TTM P/E ratio x 11.6 13.8
Price / Book Value ratio x 1.3 2.5
Market Cap Rs m 60,958 135,950
Dividends per share (Unadj.) Rs 9.3 14.7
* 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 deteriorated and stood at 1.8x during FY22, from 1.9x during FY21. 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 19.3x during FY22, from 8.3x during FY21. 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 19.4% during FY22, from 14.5% during FY22. 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 25.6% during FY22, from 17.9% during FY21. 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 10.8% during FY22, from 9.3% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 1.9 1.8
Debtors’ Days Days 2 4
Interest coverage x 8.3 19.3
Debt to equity ratio x 0.2 0.2
Return on assets % 9.3 10.8
Return on equity % 14.5 19.4
Return on capital employed % 17.9 25.6
* 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 881.1 to Rs 942.0, registering a gain of Rs 60.9 or around 6.9%.

Overall, the S&P BSE SENSEX is up 0.6% 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 1,043.9 per share. You can check out the latest share price performance of DCM SHRIRAM here...

What was the revenue of DCM SHRIRAM in FY22? How does it compare to earlier years?

The revenues of DCM SHRIRAM stood at Rs 95,069 m in FY22, which was up 13.0% compared to Rs 84,103 m reported in FY21.

DCM SHRIRAM's revenue has grown from Rs 68,576 m in FY18 to Rs 95,069 m in FY22.

Over the past 5 years, the revenue of DCM SHRIRAM has grown at a CAGR of 8.5%.

What was the net profit of DCM SHRIRAM in FY22? How does it compare to earlier years?

The net profit of DCM SHRIRAM stood at Rs 10,661 m in FY22, which was up 58.6% compared to Rs 6,723 m reported in FY21.

This compares to a net profit of Rs 7,194 m in FY20 and a net profit of Rs 9,026 m in FY19.

Over the past 5 years, DCM SHRIRAM net profit has grown at a CAGR of 12.4%.

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 decreased in FY22 and stood at Rs 12,244 m as compared to Rs 18,868 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -9,043 m as compared to Rs -6,422 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs -2,585 m as compared to Rs -9,175 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations8,2717,7494,96318,86812,244
From Investments-3,211-8,034-5,182-6,422-9,043
From Financial Activity-5,7142,7691,829-9,175-2,585
Net Cashflow-6542,4831,6103,271616

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 down at 19.0% in FY22 as against 13.7% in FY21.
  • Net profit margins grew from 8.1% in FY21 to 11.3% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.2 as compared to 0.2 in FY21.

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

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)15.117.514.913.719.0
Net Profit Margin (%)9.811.69.38.111.3
Debt to Equity Ratio (x)0.20.30.20.20.2

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