DOLAT INV. 2020-21 Annual Report Analysis

Wed, 31 Mar

DOLAT INV. 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.

DOLAT INV. Income Statement Analysis

• Operating income during the year rose 69.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 77.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 78.0% in FY21 as against 74.4% in FY20.
• Depreciation charges increased by 1500.0% and finance costs increased by 56.6% YoY, respectively.
• Other income grew by 1283.0% YoY.
• Net profit for the year grew by 106.1% YoY.
• Net profit margins during the year grew from 45.7% in FY20 to 55.5% in FY21.

DOLAT INV. Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	1,563	2,650	69.6%
Other income	Rs m	15	203	1,283.0%
Total Revenues	Rs m	1,577	2,854	80.9%
Gross profit	Rs m	1,163	2,067	77.8%
Depreciation	Rs m	0	3	1,500.0%
Interest	Rs m	162	254	56.6%
Profit before tax	Rs m	1,015	2,013	98.3%
Tax	Rs m	302	543	80.1%
Profit after tax	Rs m	713	1,470	106.1%
Gross profit margin	%	74.4	78.0
Effective tax rate	%	29.7	27.0
Net profit margin	%	45.7	55.5

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DOLAT INV. Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 1 billion as compared to Rs 332 million in FY20, thereby witnessing an increase of 301.1%.
• Current assets fell 33% and stood at Rs 1 billion, while fixed assets rose 549% and stood at Rs 4 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 5 billion as against Rs 3 billion during FY20, thereby witnessing a growth of 98%.

DOLAT INV. Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,196	3,637	65.6
Current Liabilities	Rs m	332	1,332	301.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,520	5,000	98.4
Current assets	Rs m	1,950	1,303	-33.2
Fixed Assets	Rs m	570	3,696	548.8
Total Assets	Rs m	2,520	5,000	98.4

DOLAT INV. Cash Flow Statement Analysis

• DOLAT INV.'s cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 20.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -4 billion, an improvement of 520.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -30 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -2 billion from the Rs 960 million net cash flows seen during FY20.

DOLAT INV. 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	1,567	1,884	20.2%
Cash Flow from Investing Activities	Rs m	-584	-3,628	-
Cash Flow from Financing Activities	Rs m	-22	-30	-
Net Cash Flow	Rs m	960	-1,774	-

Current Valuations for DOLAT INV.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.4, an improvement from the EPS of Rs 4.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 70.0, stands at 8.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 4.6 times.
• The company's price to cash flow (P/CF) ratio stood at 6.4 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	8.9	15.1
TTM Earnings per share	Rs	4.1	8.4
Diluted earnings per share	Rs	4.1	8.4
Price to Cash Flow	x	8.6	6.4
TTM P/E ratio	x	8.6	8.4
Price / Book Value ratio	x	4.5	2.6
Market Cap	Rs m	9,808	9,412
Dividends per share (Unadj.)	Rs	0.1	0.2

Ratio Analysis for DOLAT INV.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY21, from 5.9x 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 improved and stood at 8.9x during FY21, from 7.3x 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 improved and stood at 40.4% during FY21, from 32.5% 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 improved and stood at 62.3% during FY21, from 53.6% 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 34.5% during FY21, from 34.7% 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	5.9	1.0
Debtors’ Days	Days	0	0
Interest coverage	x	7.3	8.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	34.7	34.5
Return on equity	%	32.5	40.4
Return on capital employed	%	53.6	62.3

To see how DOLAT INV. has performed over the last 5 years, please visit here.

DOLAT INV. Share Price Performance

Over the last one year, DOLAT INV. share price has moved up from Rs 35.1 to Rs 70.0, registering a gain of Rs 35.0 or around 99.7%.

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

(To know more, check out historical annual results for DOLAT INV. and quarterly results for DOLAT INV.)

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