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DREAMFOLKS SERVICES 2022-23 Annual Report Analysis

Thu, 17 Aug

DREAMFOLKS SERVICES 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.

DREAMFOLKS SERVICES Income Statement Analysis

• Operating income during the year rose 173.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 338.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.8% in FY23 as against 8.0% in FY22.
• Depreciation charges increased by 64.3% and finance costs decreased by 12.3% YoY, respectively.
• Other income grew by 121.1% YoY.
• Net profit for the year grew by 346.3% YoY.
• Net profit margins during the year grew from 5.8% in FY22 to 9.4% in FY23.

DREAMFOLKS SERVICES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,825	7,733	173.7%
Other income	Rs m	15	33	121.1%
Total Revenues	Rs m	2,840	7,765	173.4%
Gross profit	Rs m	226	989	338.1%
Depreciation	Rs m	21	35	64.3%
Interest	Rs m	15	13	-12.3%
Profit before tax	Rs m	205	974	375.8%
Tax	Rs m	42	249	489.7%
Profit after tax	Rs m	163	725	346.3%
Gross profit margin	%	8.0	12.8
Effective tax rate	%	20.6	25.6
Net profit margin	%	5.8	9.4

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DREAMFOLKS SERVICES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 822 million in FY22, thereby witnessing an increase of 121.8%.
• Long-term debt down at Rs 9 million as compared to Rs 10 million during FY22, a fall of 13.6%.
• Current assets rose 147% and stood at Rs 3 billion, while fixed assets fell 53% and stood at Rs 186 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 101%.

DREAMFOLKS SERVICES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	809	1,531	89.2
Current Liabilities	Rs m	822	1,822	121.8
Long-term Debt	Rs m	10	9	-13.6
Total Liabilities	Rs m	1,722	3,463	101.1
Current assets	Rs m	1,328	3,278	146.9
Fixed Assets	Rs m	395	186	-53.0
Total Assets	Rs m	1,722	3,463	101.1

DREAMFOLKS SERVICES Cash Flow Statement Analysis

• DREAMFOLKS SERVICES's cash flow from operating activities (CFO) during FY23 stood at Rs 496 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -302 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -21 million, an improvement of 33% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 179 million from the Rs -89 million net cash flows seen during FY22.

DREAMFOLKS SERVICES 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	-117	496	-
Cash Flow from Investing Activities	Rs m	59	-302	-
Cash Flow from Financing Activities	Rs m	-31	-21	-
Net Cash Flow	Rs m	-89	179	-

Current Valuations for DREAMFOLKS SERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.9, an improvement from the EPS of Rs 3.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 511.7, stands at 37.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 17.7 times, while the price to sales ratio stands at 3.5 times.
• The company's price to cash flow (P/CF) ratio stood at 30.9 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	54.1	148.0
TTM Earnings per share	Rs	3.1	13.9
Diluted earnings per share	Rs	3.1	13.7
Price to Cash Flow	x	0.0	30.9
TTM P/E ratio	x	0.0	37.7
Price / Book Value ratio	x	0.0	15.3
Market Cap	Rs m	0	23,465
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DREAMFOLKS SERVICES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY23, from 1.6x 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 76.8x during FY23, from 15.0x 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 improved and stood at 47.4% during FY23, from 20.1% 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 64.1% during FY23, from 26.8% 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 21.3% during FY23, from 10.3% 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	1.6	1.8
Debtors’ Days	Days	117	95
Interest coverage	x	15.0	76.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.3	21.3
Return on equity	%	20.1	47.4
Return on capital employed	%	26.8	64.1

To see how DREAMFOLKS SERVICES has performed over the last 5 years, please visit here.

DREAMFOLKS SERVICES Share Price Performance

Over the last one year, DREAMFOLKS SERVICES share price has moved up from Rs 0.0 to Rs 511.7, registering a gain of Rs 511.7 or around 0.0%.

Overall, the S&P BSE SENSEX is up 8.9% over the year.

(To know more, check out historical annual results for DREAMFOLKS SERVICES and quarterly results for DREAMFOLKS SERVICES)