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DEVYANI INTERNATIONAL 2022-23 Annual Report Analysis

Tue, 13 Jun

DEVYANI INTERNATIONAL 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.

DEVYANI INTERNATIONAL Income Statement Analysis

• Operating income during the year rose 43.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 41.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.2% in FY23 as against 21.6% in FY22.
• Depreciation charges increased by 25.9% and finance costs increased by 16.0% YoY, respectively.
• Other income grew by 52.0% YoY.
• Net profit for the year grew by 69.2% YoY.
• Net profit margins during the year grew from 7.4% in FY22 to 8.8% in FY23.

DEVYANI INTERNATIONAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	20,840	29,977	43.8%
Other income	Rs m	232	353	52.0%
Total Revenues	Rs m	21,072	30,330	43.9%
Gross profit	Rs m	4,500	6,347	41.1%
Depreciation	Rs m	2,213	2,788	25.9%
Interest	Rs m	1,287	1,493	16.0%
Profit before tax	Rs m	1,231	2,419	96.5%
Tax	Rs m	-320	-206	NA
Profit after tax	Rs m	1,551	2,625	69.2%
Gross profit margin	%	21.6	21.2
Effective tax rate	%	-26.0	-8.5
Net profit margin	%	7.4	8.8

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DEVYANI INTERNATIONAL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 4 billion in FY22, thereby witnessing an increase of 27.4%.
• Long-term debt down at Rs 767 million as compared to Rs 1 billion during FY22, a fall of 28.6%.
• Current assets fell 8% and stood at Rs 3 billion, while fixed assets rose 37% and stood at Rs 26 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 29 billion as against Rs 22 billion during FY22, thereby witnessing a growth of 31%.

DEVYANI INTERNATIONAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,819	9,538	39.9
Current Liabilities	Rs m	4,202	5,355	27.4
Long-term Debt	Rs m	1,074	767	-28.6
Total Liabilities	Rs m	22,143	28,922	30.6
Current assets	Rs m	3,361	3,099	-7.8
Fixed Assets	Rs m	18,782	25,823	37.5
Total Assets	Rs m	22,143	28,922	30.6

DEVYANI INTERNATIONAL Cash Flow Statement Analysis

• DEVYANI INTERNATIONAL's cash flow from operating activities (CFO) during FY23 stood at Rs 6 billion, an improvement of 41.4% 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 -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 51 million from the Rs 175 million net cash flows seen during FY22.

DEVYANI INTERNATIONAL 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	4,506	6,370	41.4%
Cash Flow from Investing Activities	Rs m	-3,753	-3,497	-
Cash Flow from Financing Activities	Rs m	-584	-2,827	-
Net Cash Flow	Rs m	175	51	-70.6%

Current Valuations for DEVYANI INTERNATIONAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.2, an improvement from the EPS of Rs 1.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 183.0, stands at 84.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 23.1 times, while the price to sales ratio stands at 7.4 times.
• The company's price to cash flow (P/CF) ratio stood at 38.9 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	17.3	24.9
TTM Earnings per share	Rs	1.3	2.2
Diluted earnings per share	Rs	1.3	2.2
Price to Cash Flow	x	56.1	38.9
TTM P/E ratio	x	136.2	84.0
Price / Book Value ratio	x	27.1	22.0
Market Cap	Rs m	184,690	210,296
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DEVYANI INTERNATIONAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY23, from 0.8x 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 2.6x during FY23, from 2.0x 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 improved and stood at 27.5% during FY23, from 22.7% 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 improved and stood at 38.0% during FY23, from 31.9% 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 improved and stood at 14.2% during FY23, from 12.8% 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	0.8	0.6
Debtors’ Days	Days	4	4
Interest coverage	x	2.0	2.6
Debt to equity ratio	x	0.2	0.1
Return on assets	%	12.8	14.2
Return on equity	%	22.7	27.5
Return on capital employed	%	31.9	38.0

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

DEVYANI INTERNATIONAL Share Price Performance

Over the last one year, DEVYANI INTERNATIONAL share price has moved up from Rs 156.3 to Rs 183.0, registering a gain of Rs 26.7 or around 17.1%.

Overall, the S&P BSE SENSEX is up 14.0% over the year.

(To know more, check out historical annual results for DEVYANI INTERNATIONAL and quarterly results for DEVYANI INTERNATIONAL)