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DIXON TECHNOLOGIES 2020-21 Annual Report Analysis
Wed, 31 Mar

DIXON TECHNOLOGIES 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.

DIXON TECHNOLOGIES Income Statement Analysis

  • Operating income during the year rose 46.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 28.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.5% in FY21 as against 5.2% in FY20.
  • Depreciation charges increased by 19.7% and finance costs decreased by 17.0% YoY, respectively.
  • Other income declined by 69.7% YoY.
  • Net profit for the year grew by 32.6% YoY.
  • Net profit margins during the year declined from 2.7% in FY20 to 2.5% in FY21.

DIXON TECHNOLOGIES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 44,001 64,482 46.5%
Other income Rs m 52 16 -69.7%
Total Revenues Rs m 44,053 64,497 46.4%
Gross profit Rs m 2,275 2,919 28.3%
Depreciation Rs m 365 437 19.7%
Interest Rs m 394 327 -17.0%
Profit before tax Rs m 1,568 2,170 38.4%
Tax Rs m 363 572 57.8%
Profit after tax Rs m 1,205 1,598 32.6%
Gross profit margin % 5.2 4.5
Effective tax rate % 23.1 26.4
Net profit margin % 2.7 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

DIXON TECHNOLOGIES Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 19 billion as compared to Rs 10 billion in FY20, thereby witnessing an increase of 80.9%.
  • Long-term debt stood at Rs 800 million as compared to Rs 110 million during FY20, a growth of 625.7%.
  • Current assets rose 76% and stood at Rs 22 billion, while fixed assets rose 45% and stood at Rs 7 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 28 billion as against Rs 17 billion during FY20, thereby witnessing a growth of 68%.

DIXON TECHNOLOGIES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 5,371 7,286 35.7
 
Current Liabilities Rs m 10,340 18,707 80.9
Long-term Debt Rs m 110 800 625.7
Total Liabilities Rs m 16,970 28,457 67.7
 
Current assets Rs m 12,462 21,911 75.8
Fixed Assets Rs m 4,508 6,546 45.2
Total Assets Rs m 16,970 28,457 67.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



DIXON TECHNOLOGIES Cash Flow Statement Analysis

  • DIXON TECHNOLOGIES's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion, an improvement of 167.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 635 million, an improvement of 211% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -318 million from the Rs 812 million net cash flows seen during FY20.

DIXON TECHNOLOGIES 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 2,373 1,701 -28.3%
Cash Flow from Investing Activities Rs m -993 -2,654 -
Cash Flow from Financing Activities Rs m -574 635 -
Net Cash Flow Rs m 812 -318 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for DIXON TECHNOLOGIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.3, an decline from the EPS of Rs 104.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 3,670.0, stands at 136.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 29.9 times, while the price to sales ratio stands at 3.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 357.5 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 3,803.0 1,100.9
TTM Earnings per share Rs 104.1 27.3
Diluted earnings per share Rs 20.3 26.9
Price to Cash Flow x 135.1 357.5
TTM P/E ratio x 176.1 136.3
Price / Book Value ratio x 7.2 99.9
Market Cap Rs m 38,933 727,562
Dividends per share (Unadj.) Rs 0.8 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for DIXON TECHNOLOGIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY21, from 1.2x 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 7.6x during FY21, from 5.0x 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 21.9% during FY21, from 22.4% 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 30.9% during FY21, from 35.8% 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 6.8% during FY21, from 9.4% 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 1.2 1.2
Debtors’ Days Days 427 616
Interest coverage x 5.0 7.6
Debt to equity ratio x 0.0 0.1
Return on assets % 9.4 6.8
Return on equity % 22.4 21.9
Return on capital employed % 35.8 30.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how DIXON TECHNOLOGIES has performed over the last 5 years, please visit here.

DIXON TECHNOLOGIES Share Price Performance

Over the last one year, DIXON TECHNOLOGIES share price has moved up from Rs 3,575.7 to Rs 3,670.0, registering a gain of Rs 94.4 or around 2.6%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 32,825.9 (up 0.8%). Over the last one year it has moved up from 19,363.0 to 32,825.9, a gain of 13,463 points (up 69.5%).

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

(To know more, check out historical annual results for DIXON TECHNOLOGIES and quarterly results for DIXON TECHNOLOGIES)

Annual Report FAQs

What is the current share price of DIXON TECHNOLOGIES?

DIXON TECHNOLOGIES currently trades at Rs 7,480.9 per share. You can check out the latest share price performance of DIXON TECHNOLOGIES here...

What was the revenue of DIXON TECHNOLOGIES in FY21? How does it compare to earlier years?

The revenues of DIXON TECHNOLOGIES stood at Rs 64,497 m in FY21, which was up 46.4% compared to Rs 44,053 m reported in FY20.

DIXON TECHNOLOGIES' revenue has grown from Rs 24,167 m in FY17 to Rs 64,497 m in FY21.

Over the past 5 years, the revenue of DIXON TECHNOLOGIES has grown at a CAGR of 27.8%.

What was the net profit of DIXON TECHNOLOGIES in FY21? How does it compare to earlier years?

The net profit of DIXON TECHNOLOGIES stood at Rs 1,598 m in FY21, which was up 32.6% compared to Rs 1,205 m reported in FY20.

This compares to a net profit of Rs 634 m in FY19 and a net profit of Rs 609 m in FY18.

Over the past 5 years, DIXON TECHNOLOGIES net profit has grown at a CAGR of 35.4%.

What does the cash flow statement of DIXON TECHNOLOGIES reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of DIXON TECHNOLOGIES reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 1,701 m as compared to Rs 2,373 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -2,654 m as compared to Rs -993 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs 635 m as compared to Rs -574 m in FY20.

Here's the cash flow statement of DIXON TECHNOLOGIES for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations529679-312,3731,701
From Investments-434-997-638-993-2,654
From Financial Activity-84418686-574635
Net Cashflow1010018812-318

What does the Key Ratio analysis of DIXON TECHNOLOGIES reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of DIXON TECHNOLOGIES reveals:

  • Operating profit margins witnessed a fall and stood at 4.5% in FY21 as against 5.2% in FY20.
  • Net profit margins declined from 2.7% in FY20 to 2.5% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.1 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of DIXON TECHNOLOGIES for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)3.84.04.65.24.5
Net Profit Margin (%)2.02.22.12.72.5
Debt to Equity Ratio (x)0.10.00.00.00.1

Read: Latest Annual Report Analysis of DIXON TECHNOLOGIES

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