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DRC SYSTEMS 2021-22 Annual Report Analysis
Thu, 16 Jun

DRC SYSTEMS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

DRC SYSTEMS Income Statement Analysis

  • Operating income during the year fell 5.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 48.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.7% in FY22 as against 7.4% in FY21.
  • Depreciation charges decreased by 40.3% and finance costs increased by 35.7% YoY, respectively.
  • Other income grew by 169.1% YoY.
  • Net profit for the year declined by 246.8% YoY.
  • Net profit margins during the year grew from 2.3% in FY21 to 3.6% in FY22.

DRC SYSTEMS Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 206 195 -5.3%
Other income Rs m 1 3 169.1%
Total Revenues Rs m 207 198 -4.3%
Gross profit Rs m 15 23 48.4%
Depreciation Rs m 22 13 -40.3%
Interest Rs m 1 1 35.7%
Profit before tax Rs m -6 12 -297.4%
Tax Rs m -1 5 -479.7%
Profit after tax Rs m -5 7 -246.8%
Gross profit margin % 7.4 11.7
Effective tax rate % 21.7 41.8
Net profit margin % -2.3 3.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

DRC SYSTEMS Balance Sheet Analysis

  • The company's current liabilities during FY22 down at Rs 20 million as compared to Rs 84 million in FY21, thereby witnessing an decrease of -75.8%.
  • Long-term debt stood at Rs 152 million as compared to Rs 0 million during FY21, a fall of 0.0%.
  • Current assets fell 32% and stood at Rs 73 million, while fixed assets rose 415% and stood at Rs 174 million in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 247 million as against Rs 140 million during FY21, thereby witnessing a growth of 76%.

DRC SYSTEMS Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 57 64 12.2
 
Current Liabilities Rs m 84 20 -75.8
Long-term Debt Rs m 0 152 0.0
Total Liabilities Rs m 140 247 76.1
 
Current assets Rs m 106 73 -31.7
Fixed Assets Rs m 34 174 415.2
Total Assets Rs m 140 247 76.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



DRC SYSTEMS Cash Flow Statement Analysis

  • DRC SYSTEMS's cash flow from operating activities (CFO) during FY22 stood at Rs -11 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -152 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs 151 million, an improvement of 29,100% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -12 million from the Rs 8 million net cash flows seen during FY21.

DRC SYSTEMS Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 8 -11 -
Cash Flow from Investing Activities Rs m 0 -152 -
Cash Flow from Financing Activities Rs m -1 151 -
Net Cash Flow Rs m 8 -12 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for DRC SYSTEMS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.2, an improvement from the EPS of Rs -0.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 46.2, stands at 253.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 27.9 times, while the price to sales ratio stands at 9.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 451.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 5.3 5.0
TTM Earnings per share Rs -0.1 0.2
Diluted earnings per share Rs -0.1 0.2
Price to Cash Flow x 621.3 451.5
TTM P/E ratio x -2,247.8 253.3
Price / Book Value ratio x 138.0 142.9
Market Cap Rs m 7,872 9,141
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for DRC SYSTEMS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.6x during FY22, from 1.3x during FY21. 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 16.9x during FY22, from -9.9x during FY21. 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 11.0% during FY22, from -8.4% during FY22. 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 6.0% during FY22, from -9.8% during FY21. 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 3.2% during FY22, from -3.0% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 1.3 3.6
Debtors’ Days Days 1,439 1,120
Interest coverage x -9.9 16.9
Debt to equity ratio x 0.0 2.4
Return on assets % -3.0 3.2
Return on equity % -8.4 11.0
Return on capital employed % -9.8 6.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how DRC SYSTEMS has performed over the last 5 years, please visit here.

DRC SYSTEMS Share Price Performance

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(To know more, check out historical annual results for DRC SYSTEMS and quarterly results for DRC SYSTEMS)

Annual Report FAQs

What is the current share price of DRC SYSTEMS?

DRC SYSTEMS currently trades at Rs 20.4 per share. You can check out the latest share price performance of DRC SYSTEMS here...

What was the revenue of DRC SYSTEMS in FY22? How does it compare to earlier years?

The revenues of DRC SYSTEMS stood at Rs 198 m in FY22, which was down -4.3% compared to Rs 207 m reported in FY21.

DRC SYSTEMS' revenue has grown from Rs 123 m in FY18 to Rs 198 m in FY22.

Over the past 5 years, the revenue of DRC SYSTEMS has grown at a CAGR of 12.8%.

What was the net profit of DRC SYSTEMS in FY22? How does it compare to earlier years?

The net profit of DRC SYSTEMS stood at Rs 7 m in FY22, which was down -246.8% compared to Rs -5 m reported in FY21.

This compares to a net profit of Rs 0 m in FY20 and a net profit of Rs 0 m in FY19.

Over the past 5 years, DRC SYSTEMS net profit has grown at a CAGR of 22.2%.

What does the cash flow statement of DRC SYSTEMS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of DRC SYSTEMS reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs -11 m as compared to Rs 8 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -152 m as compared to Rs 0 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs 151 m as compared to Rs -1 m in FY21.

Here's the cash flow statement of DRC SYSTEMS for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations6-19-28-11
From Investments19000-152
From Financial Activity00-1-1151
Net Cashflow26-19-38-12

What does the Key Ratio analysis of DRC SYSTEMS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of DRC SYSTEMS reveals:

  • Operating profit margins witnessed a fall and down at 11.7% in FY22 as against 7.4% in FY21.
  • Net profit margins grew from 2.3% in FY21 to 3.6% in FY22.
  • Debt to Equity ratio for FY22 stood at 2.4 as compared to 0.0 in FY21.

Here's the ratio/financial analysis of DRC SYSTEMS for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)-17.53.6-3.07.411.7
Net Profit Margin (%)3.30.00.1-2.33.6
Debt to Equity Ratio (x)0.00.00.00.02.4

 

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