DHUNSERI TEA 2021-22 Annual Report Analysis

Sat, 20 Aug

DHUNSERI TEA 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.

DHUNSERI TEA Income Statement Analysis

• Operating income during the year fell 7.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 32.5% in FY22 as against 12.6% in FY21.
• Depreciation charges decreased by 1.1% and finance costs decreased by 23.2% YoY, respectively.
• Other income grew by 152.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 8.2% in FY21 to 27.0% in FY22.

DHUNSERI TEA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	3,767	3,490	-7.4%
Other income	Rs m	221	557	152.1%
Total Revenues	Rs m	3,988	4,047	1.5%
Gross profit	Rs m	477	-1,133	NA
Depreciation	Rs m	196	194	-1.1%
Interest	Rs m	94	72	-23.2%
Profit before tax	Rs m	407	-842	NA
Tax	Rs m	100	100	0.5%
Profit after tax	Rs m	307	-942	NA
Gross profit margin	%	12.6	-32.5
Effective tax rate	%	24.5	-11.9
Net profit margin	%	8.2	-27.0

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DHUNSERI TEA Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 1 billion as compared to Rs 1 billion in FY21, thereby witnessing an increase of 32.9%.
• Long-term debt down at Rs 247 million as compared to Rs 298 million during FY21, a fall of 17.0%.
• Current assets rose 16% and stood at Rs 3 billion, while fixed assets fell 13% and stood at Rs 8 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 10 billion as against Rs 11 billion during FY21, thereby witnessing a fall of 7%.

DHUNSERI TEA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	8,546	7,485	-12.4
Current Liabilities	Rs m	1,101	1,462	32.9
Long-term Debt	Rs m	298	247	-17.0
Total Liabilities	Rs m	11,220	10,428	-7.1
Current assets	Rs m	2,295	2,672	16.4
Fixed Assets	Rs m	8,925	7,756	-13.1
Total Assets	Rs m	11,220	10,428	-7.1

DHUNSERI TEA Cash Flow Statement Analysis

• DHUNSERI TEA's cash flow from operating activities (CFO) during FY22 stood at Rs 332 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -363 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 46 million, an improvement of 108% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 15 million from the Rs -50 million net cash flows seen during FY21.

DHUNSERI TEA 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	461	332	-28.1%
Cash Flow from Investing Activities	Rs m	37	-363	-
Cash Flow from Financing Activities	Rs m	-548	46	-
Net Cash Flow	Rs m	-50	15	-

Current Valuations for DHUNSERI TEA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -89.7, an decline from the EPS of Rs 43.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 209.0, stands at -1.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at -5.8 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	537.4	332.1
TTM Earnings per share	Rs	43.8	-89.7
Diluted earnings per share	Rs	29.2	-89.7
Price to Cash Flow	x	5.4	-5.8
TTM P/E ratio	x	6.9	-1.7
Price / Book Value ratio	x	0.2	0.6
Market Cap	Rs m	1,465	4,337
Dividends per share (Unadj.)	Rs	5.0	4.0

Ratio Analysis for DHUNSERI TEA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY22, from 2.1x 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 deteriorated and stood at -10.7x during FY22, from 5.3x 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 declined and down at -12.6% during FY22, from 3.6% 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 declined and down at -10.0% during FY22, from 5.7% 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 declined and down at -8.3% during FY22, from 3.6% 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	2.1	1.8
Debtors’ Days	Days	196	200
Interest coverage	x	5.3	-10.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.6	-8.3
Return on equity	%	3.6	-12.6
Return on capital employed	%	5.7	-10.0

To see how DHUNSERI TEA has performed over the last 5 years, please visit here.

DHUNSERI TEA Share Price Performance

Over the last one year, DHUNSERI TEA share price has moved down from Rs 292.7 to Rs 209.0, registering a loss of Rs 83.7 or around 28.6%.

Overall, the S&P BSE SENSEX is up 7.2% over the year.

(To know more, check out historical annual results for DHUNSERI TEA and quarterly results for DHUNSERI TEA)

Read: Latest Annual Report Analysis of DHUNSERI TEA