DCM SHR.IND 2021-22 Annual Report Analysis

Sun, 17 Jul

DCM SHR.IND 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 SHR.IND Income Statement Analysis

• Operating income during the year rose 9.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 6.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.7% in FY22 as against 7.8% in FY21.
• Depreciation charges increased by 12.3% and finance costs increased by 1.2% YoY, respectively.
• Other income grew by 35.7% YoY.
• Net profit for the year declined by 1.6% YoY.
• Net profit margins during the year declined from 3.4% in FY21 to 3.1% in FY22.

DCM SHR.IND Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	19,430	21,231	9.3%
Other income	Rs m	172	233	35.7%
Total Revenues	Rs m	19,602	21,465	9.5%
Gross profit	Rs m	1,525	1,419	-6.9%
Depreciation	Rs m	292	328	12.3%
Interest	Rs m	397	402	1.2%
Profit before tax	Rs m	1,008	923	-8.4%
Tax	Rs m	339	265	-21.7%
Profit after tax	Rs m	669	658	-1.6%
Gross profit margin	%	7.8	6.7
Effective tax rate	%	33.6	28.7
Net profit margin	%	3.4	3.1

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DCM SHR.IND Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 9 billion as compared to Rs 9 billion in FY21, thereby witnessing an increase of 2.2%.
• Long-term debt stood at Rs 1 billion as compared to Rs 1 billion during FY21, a growth of 14.8%.
• Current assets rose 0% and stood at Rs 11 billion, while fixed assets rose 17% and stood at Rs 7 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 18 billion as against Rs 17 billion during FY21, thereby witnessing a growth of 6%.

DCM SHR.IND Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	6,169	6,719	8.9
Current Liabilities	Rs m	8,869	9,067	2.2
Long-term Debt	Rs m	1,151	1,321	14.8
Total Liabilities	Rs m	16,808	17,792	5.9
Current assets	Rs m	11,173	11,214	0.4
Fixed Assets	Rs m	5,635	6,578	16.7
Total Assets	Rs m	16,808	17,792	5.9

DCM SHR.IND Cash Flow Statement Analysis

• DCM SHR.IND's cash flow from operating activities (CFO) during FY22 stood at Rs 590 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -712 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 5 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -116 million from the Rs -236 million net cash flows seen during FY21.

DCM SHR.IND 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	2,252	590	-73.8%
Cash Flow from Investing Activities	Rs m	-984	-712	-
Cash Flow from Financing Activities	Rs m	-1,503	5	-
Net Cash Flow	Rs m	-236	-116	-

Current Valuations for DCM SHR.IND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.6, an decline from the EPS of Rs 38.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 79.5, stands at 10.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 28.3 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	1,116.7	244.1
TTM Earnings per share	Rs	38.5	7.6
Diluted earnings per share	Rs	7.7	7.6
Price to Cash Flow	x	17.0	28.3
TTM P/E ratio	x	24.4	10.5
Price / Book Value ratio	x	0.4	4.2
Market Cap	Rs m	2,688	27,922
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for DCM SHR.IND

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY22, from 1.3x 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 deteriorated and stood at 3.3x during FY22, from 3.5x 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 declined and down at 9.8% during FY22, from 10.8% 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 declined and down at 16.5% during FY22, from 19.2% 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 declined and down at 6.0% during FY22, from 6.3% 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	1.3	1.2
Debtors’ Days	Days	370	438
Interest coverage	x	3.5	3.3
Debt to equity ratio	x	0.2	0.2
Return on assets	%	6.3	6.0
Return on equity	%	10.8	9.8
Return on capital employed	%	19.2	16.5

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

DCM SHR.IND Share Price Performance

Over the last one year, DCM SHR.IND share price has moved down from Rs 451.9 to Rs 79.5, registering a loss of Rs 372.4 or around 82.4%.

Overall, the S&P BSE SENSEX is up 1.6% over the year.

(To know more, check out historical annual results for DCM SHR.IND and quarterly results for DCM SHR.IND)

Read: Latest Annual Report Analysis of DCM SHR.IND