DHUNSERI VENTURES 2021-22 Annual Report Analysis

Tue, 15 Nov

DHUNSERI VENTURES 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.

DHUNSERI VENTURES Income Statement Analysis

• Operating income during the year rose 45.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 43.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 23.8% in FY22 as against 60.8% in FY21.
• Depreciation charges decreased by 10.9% and finance costs increased by 12.7% YoY, respectively.
• Other income grew by 22.5% YoY.
• Net profit for the year declined by 87.2% YoY.
• Net profit margins during the year declined from 49.5% in FY21 to 4.4% in FY22.

DHUNSERI VENTURES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,818	2,639	45.1%
Other income	Rs m	550	673	22.5%
Total Revenues	Rs m	2,368	3,312	39.9%
Gross profit	Rs m	1,106	629	-43.2%
Depreciation	Rs m	255	227	-10.9%
Interest	Rs m	48	54	12.7%
Profit before tax	Rs m	1,352	1,020	-24.6%
Tax	Rs m	451	904	100.3%
Profit after tax	Rs m	901	116	-87.2%
Gross profit margin	%	60.8	23.8
Effective tax rate	%	33.4	88.7
Net profit margin	%	49.5	4.4

Revealing on April 30: Are You Ready for the Upcoming Election Surprise?

DHUNSERI VENTURES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 1 billion as compared to Rs 636 million in FY21, thereby witnessing an increase of 124.1%.
• Long-term debt stood at Rs 517 million as compared to Rs 427 million during FY21, a growth of 21.1%.
• Current assets rose 43% and stood at Rs 5 billion, while fixed assets rose 29% and stood at Rs 20 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 25 billion as against Rs 19 billion during FY21, thereby witnessing a growth of 32%.

DHUNSERI VENTURES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	16,042	20,621	28.5
Current Liabilities	Rs m	636	1,425	124.1
Long-term Debt	Rs m	427	517	21.1
Total Liabilities	Rs m	19,226	25,313	31.7
Current assets	Rs m	3,578	5,124	43.2
Fixed Assets	Rs m	15,649	20,189	29.0
Total Assets	Rs m	19,226	25,313	31.7

DHUNSERI VENTURES Cash Flow Statement Analysis

• DHUNSERI VENTURES's cash flow from operating activities (CFO) during FY22 stood at Rs -260 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 133 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 73 million, an improvement of 113% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -53 million from the Rs 100 million net cash flows seen during FY21.

DHUNSERI VENTURES 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	305	-260	-
Cash Flow from Investing Activities	Rs m	352	133	-62.4%
Cash Flow from Financing Activities	Rs m	-556	73	-
Net Cash Flow	Rs m	100	-53	-

Current Valuations for DHUNSERI VENTURES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.3, an decline from the EPS of Rs 25.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 258.9, stands at -7.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 3.4 times.
• The company's price to cash flow (P/CF) ratio stood at 22.4 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	51.9	75.4
TTM Earnings per share	Rs	25.7	3.3
Diluted earnings per share	Rs	25.7	3.3
Price to Cash Flow	x	3.0	22.4
TTM P/E ratio	x	3.8	-7.9
Price / Book Value ratio	x	0.2	0.4
Market Cap	Rs m	2,716	7,693
Dividends per share (Unadj.)	Rs	2.5	4.0

Ratio Analysis for DHUNSERI VENTURES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.6x during FY22, from 5.6x 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 deteriorated and stood at 19.8x during FY22, from 29.1x 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 declined and down at 0.6% during FY22, from 5.6% 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 declined and down at 5.1% during FY22, from 8.5% 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 0.7% during FY22, from 4.9% 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	5.6	3.6
Debtors’ Days	Days	2	2
Interest coverage	x	29.1	19.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.9	0.7
Return on equity	%	5.6	0.6
Return on capital employed	%	8.5	5.1

To see how DHUNSERI VENTURES has performed over the last 5 years, please visit here.

DHUNSERI VENTURES Share Price Performance

Over the last one year, DHUNSERI VENTURES share price has moved down from Rs 258.9 to Rs 258.9, registering a loss of Rs 0.1 or around 0.0%.

Overall, the S&P BSE SENSEX is up 2.9% over the year.

(To know more, check out historical annual results for DHUNSERI VENTURES and quarterly results for DHUNSERI VENTURES)

Read: Latest Annual Report Analysis of DHUNSERI VENTURES