DCW. 2020-21 Annual Report Analysis

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DCW. 2020-21 Annual Report Analysis
Fri, 29 Oct

DCW. 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.

DCW. Income Statement Analysis

  • Operating income during the year rose 14.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 43.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.3% in FY21 as against 11.5% in FY20.
  • Depreciation charges increased by 0.2% and finance costs increased by 11.4% YoY, respectively.
  • Other income grew by 32.7% YoY.
  • Net profit for the year declined by 114.2% YoY.
  • Net profit margins during the year grew from 2.1% in FY20 to 0.3% in FY21.

DCW. Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 12,773 14,643 14.6%
Other income Rs m 85 113 32.7%
Total Revenues Rs m 12,858 14,756 14.8%
Gross profit Rs m 1,465 2,094 43.0%
Depreciation Rs m 872 874 0.2%
Interest Rs m 1,075 1,197 11.4%
Profit before tax Rs m -397 137 -134.5%
Tax Rs m -129 99 -176.6%
Profit after tax Rs m -268 38 -114.2%
Gross profit margin % 11.5 14.3
Effective tax rate % 32.5 72.3
Net profit margin % -2.1 0.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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DCW. Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 5 billion as compared to Rs 6 billion in FY20, thereby witnessing an decrease of -9.8%.
  • Long-term debt stood at Rs 5 billion as compared to Rs 5 billion during FY20, a growth of 11.9%.
  • Current assets rose 22% and stood at Rs 4 billion, while fixed assets fell 2% and stood at Rs 15 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 19 billion as against Rs 18 billion during FY20, thereby witnessing a growth of 2%.

DCW. Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 6,778 6,872 1.4
 
Current Liabilities Rs m 6,003 5,413 -9.8
Long-term Debt Rs m 4,673 5,227 11.9
Total Liabilities Rs m 18,337 18,752 2.3
 
Current assets Rs m 3,379 4,112 21.7
Fixed Assets Rs m 14,958 14,641 -2.1
Total Assets Rs m 18,337 18,752 2.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



DCW. Cash Flow Statement Analysis

  • DCW.'s cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 28.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -779 million, an improvement of 81.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -985 million, an improvement of 17% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 413 million from the Rs 75 million net cash flows seen during FY20.

DCW. 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 1,695 2,177 28.4%
Cash Flow from Investing Activities Rs m -430 -779 -
Cash Flow from Financing Activities Rs m -1,190 -985 -
Net Cash Flow Rs m 75 413 447.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for DCW.

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an improvement from the EPS of Rs -1.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 47.3, stands at 45.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.5 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 48.9 56.1
TTM Earnings per share Rs -1.0 0.1
Diluted earnings per share Rs -1.0 0.1
Price to Cash Flow x 20.4 13.5
TTM P/E ratio x 45.7 45.7
Price / Book Value ratio x 0.6 0.8
Market Cap Rs m 12,347 12,347
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for DCW.

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.8x during FY21, from 0.6x 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 1.1x during FY21, from 0.6x 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 improved and stood at 0.6% during FY21, from -3.9% 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 improved and stood at 11.0% during FY21, from 5.9% 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 improved and stood at 6.6% during FY21, from 4.4% 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 0.6 0.8
Debtors’ Days Days 208 237
Interest coverage x 0.6 1.1
Debt to equity ratio x 0.7 0.8
Return on assets % 4.4 6.6
Return on equity % -3.9 0.6
Return on capital employed % 5.9 11.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how DCW. has performed over the last 5 years, please visit here.

DCW. Share Price Performance

Over the last one year, DCW. share price has moved up from Rs 13.9 to Rs 47.3, registering a gain of Rs 33.5 or around 241.5%.

Overall, the S&P BSE SENSEX is up 48.6% over the year.

(To know more, check out historical annual results for DCW. and quarterly results for DCW.)

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