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DHANUKA AGRITECH 2022-23 Annual Report Analysis

Wed, 19 Jul

DHANUKA AGRITECH 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.

DHANUKA AGRITECH Income Statement Analysis

• Operating income during the year rose 15.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.4% in FY23 as against 17.8% in FY22.
• Depreciation charges increased by 8.2% and finance costs decreased by 5.4% YoY, respectively.
• Other income grew by 33.3% YoY.
• Net profit for the year grew by 11.8% YoY.
• Net profit margins during the year declined from 14.1% in FY22 to 13.7% in FY23.

DHANUKA AGRITECH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,778	17,002	15.1%
Other income	Rs m	336	448	33.3%
Total Revenues	Rs m	15,114	17,450	15.5%
Gross profit	Rs m	2,637	2,788	5.7%
Depreciation	Rs m	163	176	8.2%
Interest	Rs m	34	33	-5.4%
Profit before tax	Rs m	2,776	3,027	9.1%
Tax	Rs m	687	692	0.8%
Profit after tax	Rs m	2,089	2,335	11.8%
Gross profit margin	%	17.8	16.4
Effective tax rate	%	24.7	22.9
Net profit margin	%	14.1	13.7

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DHANUKA AGRITECH Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -2.1%.
• Current assets fell 6% and stood at Rs 9 billion, while fixed assets rose 42% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 14 billion as against Rs 13 billion during FY22, thereby witnessing a growth of 7%.

DHANUKA AGRITECH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	9,604	10,613	10.5
Current Liabilities	Rs m	3,044	2,979	-2.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	13,122	14,053	7.1
Current assets	Rs m	9,547	8,962	-6.1
Fixed Assets	Rs m	3,575	5,091	42.4
Total Assets	Rs m	13,122	14,053	7.1

DHANUKA AGRITECH Cash Flow Statement Analysis

• DHANUKA AGRITECH's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 30.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 26 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 20 million from the Rs 9 million net cash flows seen during FY22.

DHANUKA AGRITECH 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	1,043	1,362	30.6%
Cash Flow from Investing Activities	Rs m	-426	26	-
Cash Flow from Financing Activities	Rs m	-608	-1,368	-
Net Cash Flow	Rs m	9	20	129.4%

Current Valuations for DHANUKA AGRITECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 51.2, an improvement from the EPS of Rs 44.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 772.0, stands at 15.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 12.8 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	317.3	373.0
TTM Earnings per share	Rs	44.8	51.2
Diluted earnings per share	Rs	45.8	51.2
Price to Cash Flow	x	14.5	12.8
TTM P/E ratio	x	15.6	15.1
Price / Book Value ratio	x	4.1	3.0
Market Cap	Rs m	39,320	32,072
Dividends per share (Unadj.)	Rs	14.0	2.0

Ratio Analysis for DHANUKA AGRITECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.0x during FY23, from 3.1x 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 improved and stood at 94.1x during FY23, from 81.8x 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 22.0% during FY23, from 21.8% 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 28.8% during FY23, from 29.3% 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 16.8% during FY23, from 16.2% 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	3.1	3.0
Debtors’ Days	Days	698	728
Interest coverage	x	81.8	94.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.2	16.8
Return on equity	%	21.8	22.0
Return on capital employed	%	29.3	28.8

To see how DHANUKA AGRITECH has performed over the last 5 years, please visit here.

DHANUKA AGRITECH Share Price Performance

Over the last one year, DHANUKA AGRITECH share price has moved up from Rs 700.6 to Rs 772.0, registering a gain of Rs 71.5 or around 10.2%.

Overall, the S&P BSE SENSEX is up 22.7% over the year.

(To know more, check out historical annual results for DHANUKA AGRITECH and quarterly results for DHANUKA AGRITECH)