DP WIRES 2022-23 Annual Report Analysis

Tue, 27 Feb

DP WIRES 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.

DP WIRES Income Statement Analysis

• Operating income during the year rose 98.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 34.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.5% in FY23 as against 6.6% in FY22.
• Depreciation charges increased by 40.4% and finance costs decreased by 5.3% YoY, respectively.
• Other income grew by 119.2% YoY.
• Net profit for the year grew by 41.2% YoY.
• Net profit margins during the year declined from 4.7% in FY22 to 3.4% in FY23.

DP WIRES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,132	12,153	98.2%
Other income	Rs m	27	60	119.2%
Total Revenues	Rs m	6,160	12,213	98.3%
Gross profit	Rs m	407	548	34.8%
Depreciation	Rs m	25	35	40.4%
Interest	Rs m	21	20	-5.3%
Profit before tax	Rs m	388	553	42.6%
Tax	Rs m	98	143	46.7%
Profit after tax	Rs m	291	410	41.2%
Gross profit margin	%	6.6	4.5
Effective tax rate	%	25.1	25.9
Net profit margin	%	4.7	3.4

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DP WIRES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 589 million as compared to Rs 414 million in FY22, thereby witnessing an increase of 42.1%.
• Long-term debt down at Rs 7 million as compared to Rs 21 million during FY22, a fall of 64.6%.
• Current assets rose 31% and stood at Rs 2 billion, while fixed assets rose 15% and stood at Rs 340 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 28%.

DP WIRES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,518	1,915	26.1
Current Liabilities	Rs m	414	589	42.1
Long-term Debt	Rs m	21	7	-64.6
Total Liabilities	Rs m	1,959	2,513	28.3
Current assets	Rs m	1,663	2,173	30.7
Fixed Assets	Rs m	296	340	14.9
Total Assets	Rs m	1,959	2,513	28.3

DP WIRES Cash Flow Statement Analysis

• DP WIRES's cash flow from operating activities (CFO) during FY23 stood at Rs 455 million, an improvement of 915.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -61 million, an improvement of 26.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -148 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 247 million from the Rs 26 million net cash flows seen during FY22.

DP WIRES 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	45	455	915.7%
Cash Flow from Investing Activities	Rs m	-48	-61	-
Cash Flow from Financing Activities	Rs m	29	-148	-
Net Cash Flow	Rs m	26	247	844.3%

Current Valuations for DP WIRES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 30.2, an improvement from the EPS of Rs 21.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 0.0, stands at 0.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.0 times, while the price to sales ratio stands at 0.0 times.
• The company's price to cash flow (P/CF) ratio stood at 0.0 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	451.9	895.6
TTM Earnings per share	Rs	21.4	30.2
Diluted earnings per share	Rs	18.7	26.5
Price to Cash Flow	x	0.0	0.0
TTM P/E ratio	x	0.0	0.0
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	0
Dividends per share (Unadj.)	Rs	1.0	1.2

Ratio Analysis for DP WIRES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.7x during FY23, from 4.0x 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 28.5x during FY23, from 19.3x 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 21.4% during FY23, from 19.1% 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 29.8% during FY23, from 26.6% 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 17.1% during FY23, from 15.9% 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	4.0	3.7
Debtors’ Days	Days	523	261
Interest coverage	x	19.3	28.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.9	17.1
Return on equity	%	19.1	21.4
Return on capital employed	%	26.6	29.8

To see how DP WIRES has performed over the last 5 years, please visit here.

DP WIRES Share Price Performance

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(To know more, check out historical annual results for DP WIRES and quarterly results for DP WIRES)