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DEEP INDUSTRIES 2021-22 Annual Report Analysis
Fri, 7 Oct

DEEP INDUSTRIES 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.

DEEP INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 66.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 42.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 35.7% in FY22 as against 41.5% in FY21.
  • Depreciation charges decreased by 72.7% and finance costs decreased by 49.1% YoY, respectively.
  • Other income declined by 29.2% YoY.
  • Net profit for the year grew by 11.7% YoY.
  • Net profit margins during the year declined from 33.5% in FY21 to 22.5% in FY22.

DEEP INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 1,937 3,216 66.0%
Other income Rs m 66 46 -29.2%
Total Revenues Rs m 2,003 3,263 62.9%
Gross profit Rs m 803 1,148 42.8%
Depreciation Rs m 876 239 -72.7%
Interest Rs m 94 48 -49.1%
Profit before tax Rs m -101 907 NA
Tax Rs m -749 183 NA
Profit after tax Rs m 648 724 11.7%
Gross profit margin % 41.5 35.7
Effective tax rate % 744.4 20.2
Net profit margin % 33.5 22.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

DEEP INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY22 down at Rs 696 million as compared to Rs 716 million in FY21, thereby witnessing an decrease of -2.8%.
  • Long-term debt stood at Rs 113 million as compared to Rs 85 million during FY21, a growth of 33.4%.
  • Current assets rose 27% and stood at Rs 3 billion, while fixed assets rose 2% and stood at Rs 9 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 13 billion as against Rs 12 billion during FY21, thereby witnessing a growth of 7%.

DEEP INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 10,617 11,300 6.4
 
Current Liabilities Rs m 716 696 -2.8
Long-term Debt Rs m 85 113 33.4
Total Liabilities Rs m 11,729 12,604 7.5
 
Current assets Rs m 2,504 3,171 26.6
Fixed Assets Rs m 9,225 9,433 2.3
Total Assets Rs m 11,729 12,604 7.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



DEEP INDUSTRIES Cash Flow Statement Analysis

  • DEEP INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs 546 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -760 million, an improvement of 577.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs 140 million, an improvement of 126% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -74 million from the Rs 159 million net cash flows seen during FY21.

DEEP INDUSTRIES 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 809 546 -32.4%
Cash Flow from Investing Activities Rs m -112 -760 -
Cash Flow from Financing Activities Rs m -538 140 -
Net Cash Flow Rs m 159 -74 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for DEEP INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.6, an improvement from the EPS of Rs 20.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 310.7, stands at 13.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 3.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.6 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 60.5 100.5
TTM Earnings per share Rs 20.3 22.6
Diluted earnings per share Rs 20.3 22.6
Price to Cash Flow x 0.0 4.6
TTM P/E ratio x 0.0 13.2
Price / Book Value ratio x 0.0 0.4
Market Cap Rs m 0 4,478
Dividends per share (Unadj.) Rs 0.0 3.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for DEEP INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 4.6x during FY22, from 3.5x 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 20.0x during FY22, from -0.1x 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 6.4% during FY22, from 6.1% 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 8.4% during FY22, from -0.1% 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 6.1% 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 3.5 4.6
Debtors’ Days Days 2,405 1,537
Interest coverage x -0.1 20.0
Debt to equity ratio x 0.0 0.0
Return on assets % 6.3 6.1
Return on equity % 6.1 6.4
Return on capital employed % -0.1 8.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

DEEP INDUSTRIES Share Price Performance

Over the last one year, DEEP INDUSTRIES share price has moved up from Rs 161.5 to Rs 310.7, registering a gain of Rs 149.2 or around 92.4%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 18,674.6 (down 0.8%). Over the last one year it has moved down from 18,899.0 to 18,674.6, a loss of 224 points (down 1.2%).

Overall, the S&P BSE SENSEX is down 1.9% over the year.

(To know more, check out historical annual results for DEEP INDUSTRIES and quarterly results for DEEP INDUSTRIES)

Annual Report FAQs

What is the current share price of DEEP INDUSTRIES?

DEEP INDUSTRIES currently trades at Rs 307.6 per share. You can check out the latest share price performance of DEEP INDUSTRIES here...

What was the revenue of DEEP INDUSTRIES in FY22? How does it compare to earlier years?

The revenues of DEEP INDUSTRIES stood at Rs 3,263 m in FY22, which was up 62.9% compared to Rs 2,003 m reported in FY21.

DEEP INDUSTRIES' revenue has grown from Rs 3,172 m in FY18 to Rs 3,263 m in FY22.

Over the past 5 years, the revenue of DEEP INDUSTRIES has grown at a CAGR of 0.7%.

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

The net profit of DEEP INDUSTRIES stood at Rs 724 m in FY22, which was up 11.7% compared to Rs 648 m reported in FY21.

This compares to a net profit of Rs 311 m in FY20 and a net profit of Rs 136 m in FY19.

Over the past 5 years, DEEP INDUSTRIES net profit has grown at a CAGR of 145.4%.

What does the cash flow statement of DEEP INDUSTRIES 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 DEEP INDUSTRIES reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 546 m as compared to Rs 809 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -760 m as compared to Rs -112 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs 140 m as compared to Rs -538 m in FY21.

Here's the cash flow statement of DEEP INDUSTRIES for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations2,001919470809546
From Investments-636777-590-112-760
From Financial Activity-1,179-1,92440-538140
Net Cashflow185-228-80159-74

What does the Key Ratio analysis of DEEP INDUSTRIES 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 DEEP INDUSTRIES reveals:

  • Operating profit margins witnessed a fall and stood at 35.7% in FY22 as against 41.5% in FY21.
  • Net profit margins declined from 33.5% in FY21 to 22.5% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

Here's the ratio/financial analysis of DEEP INDUSTRIES for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)51.948.047.941.535.7
Net Profit Margin (%)0.64.311.933.522.5
Debt to Equity Ratio (x)70.43.81.50.00.0

Read: Latest Annual Report Analysis of DEEP INDUSTRIES

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