DOLLAR INDUSTRIES 2020-21 Annual Report Analysis

Wed, 31 Mar

DOLLAR INDUSTRIES has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

DOLLAR INDUSTRIES Income Statement Analysis

• Operating income during the year rose 7.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.3% in FY21 as against 10.9% in FY20.
• Depreciation charges increased by 8.9% and finance costs decreased by 44.4% YoY, respectively.
• Other income declined by 26.1% YoY.
• Net profit for the year grew by 46.8% YoY.
• Net profit margins during the year grew from 6.1% in FY20 to 8.4% in FY21.

DOLLAR INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	9,671	10,370	7.2%
Other income	Rs m	47	35	-26.1%
Total Revenues	Rs m	9,718	10,404	7.1%
Gross profit	Rs m	1,057	1,384	31.0%
Depreciation	Rs m	142	155	8.9%
Interest	Rs m	164	91	-44.4%
Profit before tax	Rs m	798	1,173	47.0%
Tax	Rs m	203	300	47.7%
Profit after tax	Rs m	595	873	46.8%
Gross profit margin	%	10.9	13.3
Effective tax rate	%	25.5	25.6
Net profit margin	%	6.1	8.4

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DOLLAR INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 3 billion as compared to Rs 3 billion in FY20, thereby witnessing an decrease of -16.6%.
• Long-term debt down at Rs 23 million as compared to Rs 33 million during FY20, a fall of 30.3%.
• Current assets rose 1% and stood at Rs 7 billion, while fixed assets rose 15% and stood at Rs 1 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 9 billion as against Rs 8 billion during FY20, thereby witnessing a growth of 3%.

DOLLAR INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,608	5,368	16.5
Current Liabilities	Rs m	3,490	2,910	-16.6
Long-term Debt	Rs m	33	23	-30.3
Total Liabilities	Rs m	8,399	8,660	3.1
Current assets	Rs m	7,150	7,227	1.1
Fixed Assets	Rs m	1,249	1,434	14.8
Total Assets	Rs m	8,399	8,660	3.1

DOLLAR INDUSTRIES Cash Flow Statement Analysis

• DOLLAR INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion, an improvement of 150.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -219 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 11 million from the Rs -148 million net cash flows seen during FY20.

DOLLAR INDUSTRIES Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	529	1,324	150.5%
Cash Flow from Investing Activities	Rs m	-251	-219	-
Cash Flow from Financing Activities	Rs m	-426	-1,094	-
Net Cash Flow	Rs m	-148	11	-

Current Valuations for DOLLAR INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.4, an improvement from the EPS of Rs 10.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 228.6, stands at 14.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 10.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	170.5	182.8
TTM Earnings per share	Rs	10.5	15.4
Diluted earnings per share	Rs	10.5	15.4
Price to Cash Flow	x	8.5	10.5
TTM P/E ratio	x	10.6	14.9
Price / Book Value ratio	x	2.5	2.0
Market Cap	Rs m	11,315	10,831
Dividends per share (Unadj.)	Rs	1.7	2.4

Ratio Analysis for DOLLAR INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY21, from 2.0x during FY20. 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 13.9x during FY21, from 5.9x during FY20. 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 16.3% during FY21, from 12.9% during FY21. 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 23.5% during FY21, from 20.7% during FY20. 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 11.1% during FY21, from 9.0% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	2.0	2.5
Debtors’ Days	Days	1,359	1,165
Interest coverage	x	5.9	13.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.0	11.1
Return on equity	%	12.9	16.3
Return on capital employed	%	20.7	23.5

To see how DOLLAR INDUSTRIES has performed over the last 5 years, please visit here.

DOLLAR INDUSTRIES Share Price Performance

Over the last one year, DOLLAR INDUSTRIES share price has moved up from Rs 110.6 to Rs 228.6, registering a gain of Rs 118.0 or around 106.7%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for DOLLAR INDUSTRIES and quarterly results for DOLLAR INDUSTRIES)

Read: Latest Annual Report Analysis of DOLLAR INDUSTRIES