DREDGING CORP 2022-23 Annual Report Analysis

Thu, 21 Sep

DREDGING CORP 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.

DREDGING CORP Income Statement Analysis

• Operating income during the year rose 45.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 30.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.0% in FY23 as against 16.8% in FY22.
• Depreciation charges increased by 13.0% and finance costs increased by 136.1% YoY, respectively.
• Other income grew by 32.1% YoY.
• Net profit for the year grew by 251.8% YoY.
• Net profit margins during the year grew from 0.4% in FY22 to 1.1% in FY23.

DREDGING CORP Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	8,010	11,648	45.4%
Other income	Rs m	24	32	32.1%
Total Revenues	Rs m	8,035	11,680	45.4%
Gross profit	Rs m	1,346	1,750	30.0%
Depreciation	Rs m	1,202	1,358	13.0%
Interest	Rs m	121	286	136.1%
Profit before tax	Rs m	48	138	190.0%
Tax	Rs m	12	13	6.2%
Profit after tax	Rs m	36	126	251.8%
Gross profit margin	%	16.8	15.0
Effective tax rate	%	25.2	9.2
Net profit margin	%	0.4	1.1

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DREDGING CORP Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 8 billion in FY22, thereby witnessing an increase of 5.5%.
• Long-term debt stood at Rs 1 billion as compared to Rs 693 million during FY22, a growth of 62.7%.
• Current assets rose 9% and stood at Rs 8 billion, while fixed assets rose 2% and stood at Rs 16 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 24 billion as against Rs 23 billion during FY22, thereby witnessing a growth of 4%.

DREDGING CORP Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	14,074	14,226	1.1
Current Liabilities	Rs m	8,027	8,471	5.5
Long-term Debt	Rs m	693	1,127	62.7
Total Liabilities	Rs m	23,086	24,096	4.4
Current assets	Rs m	6,980	7,624	9.2
Fixed Assets	Rs m	16,103	16,469	2.3
Total Assets	Rs m	23,086	24,096	4.4

DREDGING CORP Cash Flow Statement Analysis

• DREDGING CORP's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 89.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -376 million, an improvement of 76% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -658 million from the Rs -426 million net cash flows seen during FY22.

DREDGING CORP 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	2,047	1,400	-31.6%
Cash Flow from Investing Activities	Rs m	-886	-1,682	-
Cash Flow from Financing Activities	Rs m	-1,587	-376	-
Net Cash Flow	Rs m	-426	-658	-

Current Valuations for DREDGING CORP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.5, 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 457.2, stands at 29.5 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 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 6.6 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	286.1	416.0
TTM Earnings per share	Rs	1.3	4.5
Diluted earnings per share	Rs	1.3	4.5
Price to Cash Flow	x	7.1	6.6
TTM P/E ratio	x	258.3	29.5
Price / Book Value ratio	x	0.8	0.7
Market Cap	Rs m	10,794	9,860
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DREDGING CORP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY23, from 0.9x 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 1.5x during FY23, from 1.4x 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 improved and stood at 0.9% during FY23, from 0.3% 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 2.8% during FY23, from 1.1% 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 1.7% during FY23, from 0.7% 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	0.9	0.9
Debtors’ Days	Days	956	1,064
Interest coverage	x	1.4	1.5
Debt to equity ratio	x	0.0	0.1
Return on assets	%	0.7	1.7
Return on equity	%	0.3	0.9
Return on capital employed	%	1.1	2.8

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

DREDGING CORP Share Price Performance

Over the last one year, DREDGING CORP share price has moved up from Rs 311.2 to Rs 457.2, registering a gain of Rs 146.1 or around 46.9%.

Overall, the S&P BSE SENSEX is up 10.9% over the year.

(To know more, check out historical annual results for DREDGING CORP and quarterly results for DREDGING CORP)