DCM SHR.IND 2022-23 Annual Report Analysis

Mon, 17 Jul

DCM SHR.IND has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

DCM SHR.IND Income Statement Analysis

• Operating income during the year rose 10.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.1% in FY23 as against 6.7% in FY22.
• Depreciation charges increased by 9.6% and finance costs decreased by 16.6% YoY, respectively.
• Other income declined by 25.0% YoY.
• Net profit for the year declined by 9.2% YoY.
• Net profit margins during the year declined from 3.1% in FY22 to 2.6% in FY23.

DCM SHR.IND Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	21,231	23,509	10.7%
Other income	Rs m	233	175	-25.0%
Total Revenues	Rs m	21,465	23,684	10.3%
Gross profit	Rs m	1,424	1,429	0.4%
Depreciation	Rs m	328	359	9.6%
Interest	Rs m	402	335	-16.6%
Profit before tax	Rs m	928	910	-1.9%
Tax	Rs m	265	308	16.2%
Profit after tax	Rs m	662	602	-9.2%
Gross profit margin	%	6.7	6.1
Effective tax rate	%	28.6	33.9
Net profit margin	%	3.1	2.6

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DCM SHR.IND Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 10 billion as compared to Rs 9 billion in FY22, thereby witnessing an increase of 13.5%.
• Long-term debt down at Rs 733 million as compared to Rs 1 billion during FY22, a fall of 44.5%.
• Current assets rose 9% and stood at Rs 12 billion, while fixed assets rose 11% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 20 billion as against Rs 18 billion during FY22, thereby witnessing a growth of 10%.

DCM SHR.IND Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,719	7,167	6.7
Current Liabilities	Rs m	9,067	10,296	13.5
Long-term Debt	Rs m	1,321	733	-44.5
Total Liabilities	Rs m	17,792	19,511	9.7
Current assets	Rs m	11,214	12,207	8.9
Fixed Assets	Rs m	6,578	7,300	11.0
Total Assets	Rs m	17,792	19,511	9.7

DCM SHR.IND Cash Flow Statement Analysis

• DCM SHR.IND's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 185.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -679 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -6 million from the Rs -116 million net cash flows seen during FY22.

DCM SHR.IND Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	590	1,686	185.7%
Cash Flow from Investing Activities	Rs m	-712	-679	-
Cash Flow from Financing Activities	Rs m	5	-1,013	-
Net Cash Flow	Rs m	-116	-6	-

Current Valuations for DCM SHR.IND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.9, an decline from the EPS of Rs 7.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 99.5, stands at 14.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 8.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	244.1	270.3
TTM Earnings per share	Rs	7.6	6.9
Diluted earnings per share	Rs	7.6	6.9
Price to Cash Flow	x	8.1	8.4
TTM P/E ratio	x	12.1	14.5
Price / Book Value ratio	x	4.2	1.1
Market Cap	Rs m	27,922	8,034
Dividends per share (Unadj.)	Rs	1.5	1.0

Ratio Analysis for DCM SHR.IND

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY23, from 1.2x during FY22. 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 3.7x during FY23, from 3.3x during FY22. 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 8.4% during FY23, from 9.9% during FY23. 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 15.8% during FY23, from 16.5% during FY22. 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 4.8% during FY23, from 6.0% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.2	1.2
Debtors’ Days	Days	438	376
Interest coverage	x	3.3	3.7
Debt to equity ratio	x	0.2	0.1
Return on assets	%	6.0	4.8
Return on equity	%	9.9	8.4
Return on capital employed	%	16.5	15.8

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 up from Rs 79.5 to Rs 99.5, registering a gain of Rs 20.0 or around 25.1%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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