DOLLAR INDUSTRIES 2022-23 Annual Report Analysis

Mon, 17 Jul

DOLLAR INDUSTRIES 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.

DOLLAR INDUSTRIES Income Statement Analysis

• Operating income during the year rose 3.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 57.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.7% in FY23 as against 16.3% in FY22.
• Depreciation charges increased by 6.4% and finance costs increased by 44.8% YoY, respectively.
• Other income declined by 27.3% YoY.
• Net profit for the year declined by 64.3% YoY.
• Net profit margins during the year declined from 11.0% in FY22 to 3.8% in FY23.

DOLLAR INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	13,425	13,938	3.8%
Other income	Rs m	65	47	-27.3%
Total Revenues	Rs m	13,491	13,986	3.7%
Gross profit	Rs m	2,187	936	-57.2%
Depreciation	Rs m	166	176	6.4%
Interest	Rs m	104	151	44.8%
Profit before tax	Rs m	1,983	656	-66.9%
Tax	Rs m	512	132	-74.2%
Profit after tax	Rs m	1,471	524	-64.3%
Gross profit margin	%	16.3	6.7
Effective tax rate	%	25.8	20.1
Net profit margin	%	11.0	3.8

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DOLLAR INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -17.7%.
• Long-term debt down at Rs 1 million as compared to Rs 7 million during FY22, a fall of 79.4%.
• Current assets fell 9% and stood at Rs 9 billion, while fixed assets rose 12% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 11 billion as against Rs 12 billion during FY22, thereby witnessing a fall of 5%.

DOLLAR INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,710	7,072	5.4
Current Liabilities	Rs m	4,205	3,462	-17.7
Long-term Debt	Rs m	7	1	-79.4
Total Liabilities	Rs m	11,530	10,908	-5.4
Current assets	Rs m	9,419	8,551	-9.2
Fixed Assets	Rs m	2,111	2,357	11.7
Total Assets	Rs m	11,530	10,908	-5.4

DOLLAR INDUSTRIES Cash Flow Statement Analysis

• DOLLAR INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 39,419.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -576 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -785 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 0 million from the Rs -68 million net cash flows seen during FY22.

DOLLAR INDUSTRIES 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	3	1,359	39,419.2%
Cash Flow from Investing Activities	Rs m	-619	-576	-
Cash Flow from Financing Activities	Rs m	547	-785	-
Net Cash Flow	Rs m	-68	0	-

Current Valuations for DOLLAR INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.2, an decline from the EPS of Rs 25.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 371.0, stands at 36.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 37.6 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	236.7	245.7
TTM Earnings per share	Rs	25.9	9.2
Diluted earnings per share	Rs	25.9	9.2
Price to Cash Flow	x	19.1	37.6
TTM P/E ratio	x	20.9	36.3
Price / Book Value ratio	x	3.8	3.7
Market Cap	Rs m	25,301	26,323
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for DOLLAR INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY23, from 2.2x 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 deteriorated and stood at 5.4x during FY23, from 20.0x 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 7.4% during FY23, from 21.9% 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 11.4% during FY23, from 31.1% 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 6.2% during FY23, from 13.7% 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	2.2	2.5
Debtors’ Days	Days	1,093	1,122
Interest coverage	x	20.0	5.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.7	6.2
Return on equity	%	21.9	7.4
Return on capital employed	%	31.1	11.4

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 down from Rs 414.2 to Rs 371.0, registering a loss of Rs 43.2 or around 10.4%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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