DHANVARSHA FINVEST 2020-21 Annual Report Analysis

Wed, 31 Mar

DHANVARSHA FINVEST has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

DHANVARSHA FINVEST Income Statement Analysis

• Operating income during the year rose 55.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 26.5% in FY21 as against 39.4% in FY20.
• Depreciation charges increased by 161.0% and finance costs increased by 150.9% YoY, respectively.
• Other income grew by 139.9% YoY.
• Net profit for the year declined by 68.0% YoY.
• Net profit margins during the year declined from 21.3% in FY20 to 4.4% in FY21.

DHANVARSHA FINVEST Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	191	296	55.0%
Other income	Rs m	2	5	139.9%
Total Revenues	Rs m	193	301	55.8%
Gross profit	Rs m	75	78	4.1%
Depreciation	Rs m	5	13	161.0%
Interest	Rs m	17	42	150.9%
Profit before tax	Rs m	55	28	-49.8%
Tax	Rs m	15	15	-0.1%
Profit after tax	Rs m	41	13	-68.0%
Gross profit margin	%	39.4	26.5
Effective tax rate	%	26.7	53.2
Net profit margin	%	21.3	4.4

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DHANVARSHA FINVEST Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 808 million as compared to Rs 182 million in FY20, thereby witnessing an increase of 344.7%.
• Long-term debt stood at Rs 60 million as compared to Rs 0 million during FY20, a fall of 0.0%.
• Current assets rose 286% and stood at Rs 2 billion, while fixed assets rose 245% and stood at Rs 228 million in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 2 billion as against Rs 497 million during FY20, thereby witnessing a growth of 281%.

DHANVARSHA FINVEST Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	287	922	221.2
Current Liabilities	Rs m	182	808	344.7
Long-term Debt	Rs m	0	60	0.0
Total Liabilities	Rs m	497	1,893	280.9
Current assets	Rs m	431	1,665	286.5
Fixed Assets	Rs m	66	228	244.8
Total Assets	Rs m	497	1,893	280.9

DHANVARSHA FINVEST Cash Flow Statement Analysis

• DHANVARSHA FINVEST's cash flow from operating activities (CFO) during FY21 stood at Rs -804 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -344 million, an improvement of 827.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 1 billion, an improvement of 1,381% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 305 million from the Rs -19 million net cash flows seen during FY20.

DHANVARSHA FINVEST Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	131	-804	-
Cash Flow from Investing Activities	Rs m	-37	-344	-
Cash Flow from Financing Activities	Rs m	-113	1,453	-
Net Cash Flow	Rs m	-19	305	-

Current Valuations for DHANVARSHA FINVEST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.9, an decline from the EPS of Rs 3.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 482.1, stands at 3,963.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 55.9 times, while the price to sales ratio stands at 24.9 times.
• The company's price to cash flow (P/CF) ratio stood at 170.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	14.1	19.4
TTM Earnings per share	Rs	3.0	0.9
Diluted earnings per share	Rs	0.4	0.1
Price to Cash Flow	x	143.8	170.4
TTM P/E ratio	x	151.5	3,963.6
Price / Book Value ratio	x	3.4	4.8
Market Cap	Rs m	983	4,381
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DHANVARSHA FINVEST

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY21, from 2.4x during FY20. 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 deteriorated and stood at 1.7x during FY21, from 4.3x during FY20. 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 1.4% during FY21, from 14.1% during FY21. 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 7.1% during FY21, from 25.2% during FY20. 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 2.9% during FY21, from 11.6% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	2.4	2.1
Debtors’ Days	Days	226	736
Interest coverage	x	4.3	1.7
Debt to equity ratio	x	0.0	0.1
Return on assets	%	11.6	2.9
Return on equity	%	14.1	1.4
Return on capital employed	%	25.2	7.1

To see how DHANVARSHA FINVEST has performed over the last 5 years, please visit here.

DHANVARSHA FINVEST Share Price Performance

Over the last one year, DHANVARSHA FINVEST share price has moved up from Rs 61.2 to Rs 482.1, registering a gain of Rs 420.9 or around 687.7%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for DHANVARSHA FINVEST and quarterly results for DHANVARSHA FINVEST)

Read: Latest Annual Report Analysis of DHANVARSHA FINVEST