DEEPAK NITRITE 2022-23 Annual Report Analysis

Mon, 17 Jul

DEEPAK NITRITE 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.

DEEPAK NITRITE Income Statement Analysis

• Operating income during the year rose 17.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 19.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.2% in FY23 as against 23.4% in FY22.
• Depreciation charges decreased by 6.4% and finance costs decreased by 26.6% YoY, respectively.
• Other income declined by 11.4% YoY.
• Net profit for the year declined by 20.1% YoY.
• Net profit margins during the year declined from 15.7% in FY22 to 10.7% in FY23.

DEEPAK NITRITE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	68,022	79,721	17.2%
Other income	Rs m	537	476	-11.4%
Total Revenues	Rs m	68,559	80,196	17.0%
Gross profit	Rs m	15,948	12,913	-19.0%
Depreciation	Rs m	1,777	1,663	-6.4%
Interest	Rs m	364	267	-26.6%
Profit before tax	Rs m	14,345	11,459	-20.1%
Tax	Rs m	3,678	2,939	-20.1%
Profit after tax	Rs m	10,666	8,520	-20.1%
Gross profit margin	%	23.4	16.2
Effective tax rate	%	25.6	25.6
Net profit margin	%	15.7	10.7

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DEEPAK NITRITE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 7 billion in FY22, thereby witnessing an increase of 6.3%.
• Long-term debt down at Rs 430 million as compared to Rs 2 billion during FY22, a fall of 77.1%.
• Current assets rose 20% and stood at Rs 27 billion, while fixed assets rose 11% and stood at Rs 24 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 51 billion as against Rs 44 billion during FY22, thereby witnessing a growth of 16%.

DEEPAK NITRITE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	33,384	40,900	22.5
Current Liabilities	Rs m	7,469	7,938	6.3
Long-term Debt	Rs m	1,875	430	-77.1
Total Liabilities	Rs m	44,305	51,286	15.8
Current assets	Rs m	22,834	27,391	20.0
Fixed Assets	Rs m	21,457	23,895	11.4
Total Assets	Rs m	44,305	51,286	15.8

DEEPAK NITRITE Cash Flow Statement Analysis

• DEEPAK NITRITE's cash flow from operating activities (CFO) during FY23 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -4 billion, an improvement of 7% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 148 million from the Rs 140 million net cash flows seen during FY22.

DEEPAK NITRITE 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	8,238	6,499	-21.1%
Cash Flow from Investing Activities	Rs m	-4,241	-2,761	-
Cash Flow from Financing Activities	Rs m	-3,858	-3,591	-
Net Cash Flow	Rs m	140	148	5.9%

Current Valuations for DEEPAK NITRITE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 62.5, an decline from the EPS of Rs 78.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,989.1, stands at 31.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.6 times, while the price to sales ratio stands at 3.4 times.
• The company's price to cash flow (P/CF) ratio stood at 27.3 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	498.7	584.5
TTM Earnings per share	Rs	78.2	62.5
Diluted earnings per share	Rs	78.2	62.5
Price to Cash Flow	x	24.6	27.3
TTM P/E ratio	x	28.7	31.8
Price / Book Value ratio	x	9.3	6.8
Market Cap	Rs m	310,635	277,703
Dividends per share (Unadj.)	Rs	7.0	7.5

Ratio Analysis for DEEPAK NITRITE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.5x during FY23, from 3.1x 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 43.9x during FY23, from 40.4x 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 20.8% during FY23, from 32.0% 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 28.4% during FY23, from 41.7% 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 17.1% during FY23, from 24.9% 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	3.1	3.5
Debtors’ Days	Days	6	6
Interest coverage	x	40.4	43.9
Debt to equity ratio	x	0.1	0.0
Return on assets	%	24.9	17.1
Return on equity	%	32.0	20.8
Return on capital employed	%	41.7	28.4

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

DEEPAK NITRITE Share Price Performance

Over the last one year, DEEPAK NITRITE share price has moved up from Rs 1,751.3 to Rs 1,989.1, registering a gain of Rs 237.8 or around 13.6%.

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

(To know more, check out historical annual results for DEEPAK NITRITE and quarterly results for DEEPAK NITRITE)