DIXON TECHNOLOGIES 2022-23 Annual Report Analysis

Thu, 21 Sep

DIXON TECHNOLOGIES has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

DIXON TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 14.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 34.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.2% in FY23 as against 3.6% in FY22.
• Depreciation charges increased by 36.5% and finance costs increased by 29.7% YoY, respectively.
• Other income grew by 47.2% YoY.
• Net profit for the year grew by 34.0% YoY.
• Net profit margins during the year grew from 1.8% in FY22 to 2.1% in FY23.

DIXON TECHNOLOGIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	106,971	121,920	14.0%
Other income	Rs m	38	56	47.2%
Total Revenues	Rs m	107,009	121,976	14.0%
Gross profit	Rs m	3,843	5,179	34.8%
Depreciation	Rs m	840	1,146	36.5%
Interest	Rs m	494	641	29.7%
Profit before tax	Rs m	2,547	3,448	35.4%
Tax	Rs m	644	897	39.3%
Profit after tax	Rs m	1,903	2,551	34.0%
Gross profit margin	%	3.6	4.2
Effective tax rate	%	25.3	26.0
Net profit margin	%	1.8	2.1

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DIXON TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 29 billion as compared to Rs 27 billion in FY22, thereby witnessing an increase of 7.5%.
• Long-term debt down at Rs 1 billion as compared to Rs 3 billion during FY22, a fall of 51.2%.
• Current assets fell 0% and stood at Rs 31 billion, while fixed assets rose 36% and stood at Rs 15 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 47 billion as against Rs 43 billion during FY22, thereby witnessing a growth of 9%.

DIXON TECHNOLOGIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	9,858	12,681	28.6
Current Liabilities	Rs m	27,359	29,410	7.5
Long-term Debt	Rs m	2,973	1,452	-51.2
Total Liabilities	Rs m	42,772	46,794	9.4
Current assets	Rs m	31,470	31,393	-0.2
Fixed Assets	Rs m	11,302	15,402	36.3
Total Assets	Rs m	42,772	46,794	9.4

DIXON TECHNOLOGIES Cash Flow Statement Analysis

• DIXON TECHNOLOGIES's cash flow from operating activities (CFO) during FY23 stood at Rs 7 billion, an improvement of 166.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 406 million from the Rs 1 billion net cash flows seen during FY22.

DIXON TECHNOLOGIES Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	2,728	7,258	166.1%
Cash Flow from Investing Activities	Rs m	-4,645	-3,556	-
Cash Flow from Financing Activities	Rs m	3,043	-3,296	-
Net Cash Flow	Rs m	1,126	406	-64.0%

Current Valuations for DIXON TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 42.8, an improvement from the EPS of Rs 32.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,844.0, stands at 106.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 22.8 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 58.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	1,802.7	2,047.0
TTM Earnings per share	Rs	32.1	42.8
Diluted earnings per share	Rs	32.0	42.8
Price to Cash Flow	x	93.6	58.3
TTM P/E ratio	x	134.9	106.0
Price / Book Value ratio	x	29.1	17.0
Market Cap	Rs m	286,621	215,717
Dividends per share (Unadj.)	Rs	2.0	3.0

Ratio Analysis for DIXON TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY23, from 1.2x during FY22. 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 6.4x during FY23, from 6.2x during FY22. 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 20.1% during FY23, from 19.3% during FY23. 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 28.9% during FY23, from 23.7% during FY22. 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 improved and stood at 6.8% during FY23, from 5.6% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.2	1.1
Debtors’ Days	Days	463	514
Interest coverage	x	6.2	6.4
Debt to equity ratio	x	0.3	0.1
Return on assets	%	5.6	6.8
Return on equity	%	19.3	20.1
Return on capital employed	%	23.7	28.9

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 4,490.1 to Rs 4,844.0, registering a gain of Rs 353.9 or around 7.9%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 46,338.0 (down 0.4%). Over the last one year it has moved up from 42,799.5 to 46,338.0, a gain of 3,538 points (up 8.3%).

Overall, the S&P BSE SENSEX is up 11.0% over the year.

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