DONEAR IND. 2022-23 Annual Report Analysis

Mon, 9 Oct

DONEAR IND. 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.

DONEAR IND. Income Statement Analysis

• Operating income during the year rose 45.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 55.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.1% in FY23 as against 8.5% in FY22.
• Depreciation charges increased by 0.4% and finance costs increased by 40.4% YoY, respectively.
• Other income declined by 0.5% YoY.
• Net profit for the year grew by 59.1% YoY.
• Net profit margins during the year grew from 4.0% in FY22 to 4.4% in FY23.

DONEAR IND. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,695	8,257	45.0%
Other income	Rs m	123	122	-0.5%
Total Revenues	Rs m	5,817	8,379	44.0%
Gross profit	Rs m	486	755	55.4%
Depreciation	Rs m	92	93	0.4%
Interest	Rs m	213	299	40.4%
Profit before tax	Rs m	304	486	60.0%
Tax	Rs m	76	123	62.6%
Profit after tax	Rs m	228	362	59.1%
Gross profit margin	%	8.5	9.1
Effective tax rate	%	25.0	25.4
Net profit margin	%	4.0	4.4

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DONEAR IND. Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 4 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -2.8%.
• Long-term debt stood at Rs 226 million as compared to Rs 145 million during FY22, a growth of 55.3%.
• Current assets rose 7% and stood at Rs 6 billion, while fixed assets rose 7% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 7 billion as against Rs 6 billion during FY22, thereby witnessing a growth of 7%.

DONEAR IND. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,359	1,711	25.9
Current Liabilities	Rs m	4,447	4,323	-2.8
Long-term Debt	Rs m	145	226	55.3
Total Liabilities	Rs m	6,072	6,512	7.2
Current assets	Rs m	5,128	5,504	7.3
Fixed Assets	Rs m	944	1,008	6.8
Total Assets	Rs m	6,072	6,512	7.2

DONEAR IND. Cash Flow Statement Analysis

• DONEAR IND.'s cash flow from operating activities (CFO) during FY23 stood at Rs 40 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -128 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 122 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 34 million from the Rs -2 million net cash flows seen during FY22.

DONEAR IND. 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	-244	40	-
Cash Flow from Investing Activities	Rs m	-249	-128	-
Cash Flow from Financing Activities	Rs m	491	122	-75.2%
Net Cash Flow	Rs m	-2	34	-

Current Valuations for DONEAR IND.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.0, an improvement from the EPS of Rs 4.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 103.6, stands at 14.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 0.7 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	109.5	158.8
TTM Earnings per share	Rs	4.4	7.0
Diluted earnings per share	Rs	4.4	7.0
Price to Cash Flow	x	8.6	9.3
TTM P/E ratio	x	12.1	14.8
Price / Book Value ratio	x	1.9	2.5
Market Cap	Rs m	2,646	4,233
Dividends per share (Unadj.)	Rs	0.2	0.2

Ratio Analysis for DONEAR IND.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x 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 2.6x during FY23, from 2.4x 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 21.2% during FY23, from 16.8% 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 improved and stood at 40.5% during FY23, from 34.3% 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 10.2% during FY23, from 7.3% 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	1.3
Debtors’ Days	Days	835	700
Interest coverage	x	2.4	2.6
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.3	10.2
Return on equity	%	16.8	21.2
Return on capital employed	%	34.3	40.5

To see how DONEAR IND. has performed over the last 5 years, please visit here.

DONEAR IND. Share Price Performance

Over the last one year, DONEAR IND. share price has moved up from Rs 57.4 to Rs 103.6, registering a gain of Rs 46.3 or around 80.6%.

Overall, the S&P BSE SENSEX is up 12.6% over the year.

(To know more, check out historical annual results for DONEAR IND. and quarterly results for DONEAR IND.)