DCX SYSTEMS 2021-22 Annual Report Analysis

Mon, 21 Nov

DCX SYSTEMS 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.

DCX SYSTEMS Income Statement Analysis

• Operating income during the year rose 71.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 564.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.1% in FY22 as against 1.6% in FY21.
• Depreciation charges decreased by 10.5% and finance costs increased by 14.1% YoY, respectively.
• Other income declined by 47.6% YoY.
• Net profit for the year grew by 122.0% YoY.
• Net profit margins during the year grew from 4.6% in FY21 to 6.0% in FY22.

DCX SYSTEMS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	6,412	11,023	71.9%
Other income	Rs m	421	221	-47.6%
Total Revenues	Rs m	6,832	11,243	64.6%
Gross profit	Rs m	101	670	564.6%
Depreciation	Rs m	24	22	-10.5%
Interest	Rs m	99	113	14.1%
Profit before tax	Rs m	398	756	89.8%
Tax	Rs m	102	99	-2.9%
Profit after tax	Rs m	296	656	122.0%
Gross profit margin	%	1.6	6.1
Effective tax rate	%	25.7	13.2
Net profit margin	%	4.6	6.0

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DCX SYSTEMS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 8 billion as compared to Rs 7 billion in FY21, thereby witnessing an increase of 5.8%.
• Long-term debt stood at Rs 354 million as compared to Rs 0 million during FY21, a fall of 0.0%.
• Current assets rose 19% and stood at Rs 9 billion, while fixed assets fell 6% and stood at Rs 150 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 9 billion as against Rs 8 billion during FY21, thereby witnessing a growth of 18%.

DCX SYSTEMS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	468	1,176	151.3
Current Liabilities	Rs m	7,456	7,885	5.8
Long-term Debt	Rs m	0	354	0.0
Total Liabilities	Rs m	7,926	9,388	18.4
Current assets	Rs m	7,767	9,238	18.9
Fixed Assets	Rs m	160	150	-5.9
Total Assets	Rs m	7,926	9,388	18.4

DCX SYSTEMS Cash Flow Statement Analysis

• DCX SYSTEMS's cash flow from operating activities (CFO) during FY22 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 208 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 4 billion, an improvement of 15,685% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 3 billion from the Rs 1 billion net cash flows seen during FY21.

DCX SYSTEMS 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	1,140	-1,340	-
Cash Flow from Investing Activities	Rs m	211	208	-1.3%
Cash Flow from Financing Activities	Rs m	-23	3,642	-
Net Cash Flow	Rs m	1,327	2,510	89.1%

Current Valuations for DCX SYSTEMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.5, an decline from the EPS of Rs 84.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 261.9, stands at 38.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 21.5 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 37.4 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	1,831.9	142.4
TTM Earnings per share	Rs	84.5	8.5
Diluted earnings per share	Rs	3.1	6.8
Price to Cash Flow	x	0.0	37.4
TTM P/E ratio	x	0.0	38.6
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	25,332
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DCX SYSTEMS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY22, from 1.0x 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 7.7x during FY22, from 5.0x 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 55.8% during FY22, from 63.2% 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 56.8% during FY22, from 106.3% 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 8.2% during FY22, from 5.0% 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	1.0	1.2
Debtors’ Days	Days	7	23
Interest coverage	x	5.0	7.7
Debt to equity ratio	x	0.0	0.3
Return on assets	%	5.0	8.2
Return on equity	%	63.2	55.8
Return on capital employed	%	106.3	56.8

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

DCX SYSTEMS Share Price Performance

Over the last one year, DCX SYSTEMS share price has moved up from Rs 0.0 to Rs 261.9, registering a gain of Rs 261.9 or around 0.0%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for DCX SYSTEMS and quarterly results for DCX SYSTEMS)

Read: Latest Annual Report Analysis of DCX SYSTEMS