DIXON TECHNOLOGIES 2021-22 Annual Report Analysis

Thu, 4 Aug

DIXON TECHNOLOGIES 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.

DIXON TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 65.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.6% in FY22 as against 4.5% in FY21.
• Depreciation charges increased by 92.0% and finance costs increased by 51.0% YoY, respectively.
• Other income grew by 141.1% YoY.
• Net profit for the year grew by 19.1% YoY.
• Net profit margins during the year declined from 2.5% in FY21 to 1.8% in FY22.

DIXON TECHNOLOGIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	64,482	106,971	65.9%
Other income	Rs m	16	38	141.1%
Total Revenues	Rs m	64,498	107,009	65.9%
Gross profit	Rs m	2,919	3,843	31.7%
Depreciation	Rs m	437	840	92.0%
Interest	Rs m	327	494	51.0%
Profit before tax	Rs m	2,170	2,548	17.4%
Tax	Rs m	572	644	12.5%
Profit after tax	Rs m	1,598	1,904	19.1%
Gross profit margin	%	4.5	3.6
Effective tax rate	%	26.4	25.3
Net profit margin	%	2.5	1.8

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DIXON TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 27 billion as compared to Rs 19 billion in FY21, thereby witnessing an increase of 46.2%.
• Long-term debt stood at Rs 3 billion as compared to Rs 800 million during FY21, a growth of 271.8%.
• Current assets rose 44% and stood at Rs 31 billion, while fixed assets rose 73% and stood at Rs 11 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 43 billion as against Rs 28 billion during FY21, thereby witnessing a growth of 50%.

DIXON TECHNOLOGIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	7,286	9,858	35.3
Current Liabilities	Rs m	18,708	27,359	46.2
Long-term Debt	Rs m	800	2,973	271.8
Total Liabilities	Rs m	28,457	42,772	50.3
Current assets	Rs m	21,911	31,470	43.6
Fixed Assets	Rs m	6,546	11,302	72.7
Total Assets	Rs m	28,457	42,772	50.3

DIXON TECHNOLOGIES Cash Flow Statement Analysis

• DIXON TECHNOLOGIES's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion, an improvement of 60.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -5 billion, an improvement of 75.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 3 billion, an improvement of 379% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 1 billion from the Rs -318 million net cash flows seen during FY21.

DIXON TECHNOLOGIES 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	1,701	2,727	60.3%
Cash Flow from Investing Activities	Rs m	-2,654	-4,645	-
Cash Flow from Financing Activities	Rs m	635	3,043	379.5%
Net Cash Flow	Rs m	-318	1,126	-

Current Valuations for DIXON TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.1, an improvement from the EPS of Rs 27.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,831.0, stands at 104.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 23.1 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 104.5 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	1,100.9	1,802.7
TTM Earnings per share	Rs	27.3	32.1
Diluted earnings per share	Rs	26.9	32.1
Price to Cash Flow	x	107.0	104.5
TTM P/E ratio	x	136.3	104.4
Price / Book Value ratio	x	99.9	29.1
Market Cap	Rs m	727,562	286,621
Dividends per share (Unadj.)	Rs	1.0	2.0

Ratio Analysis for DIXON TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY22, from 1.2x 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 6.2x during FY22, from 7.6x 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 19.3% during FY22, from 21.9% 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 23.7% during FY22, from 30.9% 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 5.6% during FY22, from 6.8% 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	1.2	1.2
Debtors’ Days	Days	616	463
Interest coverage	x	7.6	6.2
Debt to equity ratio	x	0.1	0.3
Return on assets	%	6.8	5.6
Return on equity	%	21.9	19.3
Return on capital employed	%	30.9	23.7

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 down from Rs 4,234.8 to Rs 3,831.0, registering a loss of Rs 403.8 or around 9.5%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 40,448.7 (up 0.7%). Over the last one year it has moved up from 36,660.0 to 40,448.7, a gain of 3,789 points (up 10.3%).

Overall, the S&P BSE SENSEX is up 10.0% over the year.

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

Read: Latest Annual Report Analysis of DIXON TECHNOLOGIES