DALMIA BHARAT SUG. 2022-23 Annual Report Analysis

Mon, 24 Jul

DALMIA BHARAT SUG. 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.

DALMIA BHARAT SUG. Income Statement Analysis

• Operating income during the year rose 7.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.4% in FY23 as against 14.1% in FY22.
• Depreciation charges increased by 28.0% and finance costs increased by 8.2% YoY, respectively.
• Other income declined by 11.9% YoY.
• Net profit for the year declined by 16.5% YoY.
• Net profit margins during the year declined from 9.9% in FY22 to 7.6% in FY23.

DALMIA BHARAT SUG. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	30,183	32,521	7.7%
Other income	Rs m	858	756	-11.9%
Total Revenues	Rs m	31,040	33,277	7.2%
Gross profit	Rs m	4,259	4,365	2.5%
Depreciation	Rs m	947	1,213	28.0%
Interest	Rs m	348	377	8.2%
Profit before tax	Rs m	3,821	3,532	-7.6%
Tax	Rs m	848	1,049	23.7%
Profit after tax	Rs m	2,973	2,483	-16.5%
Gross profit margin	%	14.1	13.4
Effective tax rate	%	22.2	29.7
Net profit margin	%	9.9	7.6

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DALMIA BHARAT SUG. Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 5 billion as compared to Rs 9 billion in FY22, thereby witnessing an decrease of -44.1%.
• Long-term debt down at Rs 3 billion as compared to Rs 3 billion during FY22, a fall of 3.4%.
• Current assets fell 27% and stood at Rs 14 billion, while fixed assets rose 26% and stood at Rs 27 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 41 billion as against Rs 40 billion during FY22, thereby witnessing a growth of 1%.

DALMIA BHARAT SUG. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	23,591	27,050	14.7
Current Liabilities	Rs m	9,184	5,134	-44.1
Long-term Debt	Rs m	3,372	3,257	-3.4
Total Liabilities	Rs m	40,319	40,791	1.2
Current assets	Rs m	19,082	14,001	-26.6
Fixed Assets	Rs m	21,237	26,790	26.1
Total Assets	Rs m	40,319	40,791	1.2

DALMIA BHARAT SUG. Cash Flow Statement Analysis

• DALMIA BHARAT SUG.'s cash flow from operating activities (CFO) during FY23 stood at Rs 6 billion, an improvement of 2.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -288 million from the Rs 233 million net cash flows seen during FY22.

DALMIA BHARAT SUG. 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	5,673	5,829	2.7%
Cash Flow from Investing Activities	Rs m	-3,269	-1,922	-
Cash Flow from Financing Activities	Rs m	-2,171	-4,195	-
Net Cash Flow	Rs m	233	-288	-

Current Valuations for DALMIA BHARAT SUG.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 30.7, an decline from the EPS of Rs 36.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 390.0, stands at 13.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 9.3 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	372.9	401.8
TTM Earnings per share	Rs	36.7	30.7
Diluted earnings per share	Rs	36.7	30.7
Price to Cash Flow	x	9.9	9.3
TTM P/E ratio	x	13.1	13.0
Price / Book Value ratio	x	1.2	1.3
Market Cap	Rs m	29,138	34,430
Dividends per share (Unadj.)	Rs	4.0	4.0

Ratio Analysis for DALMIA BHARAT SUG.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x during FY23, from 2.1x 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 deteriorated and stood at 10.4x during FY23, from 12.0x 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 declined and down at 9.2% during FY23, from 12.6% 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 declined and down at 12.9% during FY23, from 15.5% 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 declined and down at 7.0% during FY23, from 8.2% 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	2.1	2.7
Debtors’ Days	Days	2	2
Interest coverage	x	12.0	10.4
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.2	7.0
Return on equity	%	12.6	9.2
Return on capital employed	%	15.5	12.9

To see how DALMIA BHARAT SUG. has performed over the last 5 years, please visit here.

DALMIA BHARAT SUG. Share Price Performance

Over the last one year, DALMIA BHARAT SUG. share price has moved up from Rs 368.9 to Rs 390.0, registering a gain of Rs 21.2 or around 5.7%.

Overall, the S&P BSE SENSEX is up 19.8% over the year.

(To know more, check out historical annual results for DALMIA BHARAT SUG. and quarterly results for DALMIA BHARAT SUG.)