DWARIKESH SUGAR 2020-21 Annual Report Analysis

Wed, 31 Mar

DWARIKESH SUGAR has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

DWARIKESH SUGAR Income Statement Analysis

• Operating income during the year rose 37.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 47.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.9% in FY21 as against 10.2% in FY20.
• Depreciation charges increased by 10.9% and finance costs increased by 44.3% YoY, respectively.
• Other income grew by 31.4% YoY.
• Net profit for the year grew by 24.6% YoY.
• Net profit margins during the year declined from 5.5% in FY20 to 5.0% in FY21.

DWARIKESH SUGAR Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	13,361	18,388	37.6%
Other income	Rs m	54	71	31.4%
Total Revenues	Rs m	13,415	18,459	37.6%
Gross profit	Rs m	1,361	2,013	47.9%
Depreciation	Rs m	369	409	10.9%
Interest	Rs m	330	477	44.3%
Profit before tax	Rs m	716	1,198	67.4%
Tax	Rs m	-19	283	-1,603.4%
Profit after tax	Rs m	735	915	24.6%
Gross profit margin	%	10.2	10.9
Effective tax rate	%	-2.6	23.6
Net profit margin	%	5.5	5.0

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DWARIKESH SUGAR Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 7 billion as compared to Rs 9 billion in FY20, thereby witnessing an decrease of -22.5%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY20, a fall of 24.1%.
• Current assets fell 10% and stood at Rs 10 billion, while fixed assets fell 4% and stood at Rs 5 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 15 billion as against Rs 17 billion during FY20, thereby witnessing a fall of 8%.

DWARIKESH SUGAR Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,837	5,789	19.7
Current Liabilities	Rs m	9,179	7,109	-22.5
Long-term Debt	Rs m	1,932	1,468	-24.1
Total Liabilities	Rs m	16,521	15,147	-8.3
Current assets	Rs m	11,098	9,968	-10.2
Fixed Assets	Rs m	5,422	5,179	-4.5
Total Assets	Rs m	16,521	15,147	-8.3

DWARIKESH SUGAR Cash Flow Statement Analysis

• DWARIKESH SUGAR's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 2,516.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -176 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -18 million from the Rs 14 million net cash flows seen during FY20.

DWARIKESH SUGAR Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	113	2,956	2,516.2%
Cash Flow from Investing Activities	Rs m	-1,114	-176	-
Cash Flow from Financing Activities	Rs m	1,015	-2,798	-
Net Cash Flow	Rs m	14	-18	-

Current Valuations for DWARIKESH SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.9, an improvement from the EPS of Rs 3.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 30.8, stands at 6.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 3.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	71.0	97.7
TTM Earnings per share	Rs	3.9	4.9
Diluted earnings per share	Rs	3.9	4.9
Price to Cash Flow	x	2.8	3.9
TTM P/E ratio	x	4.2	6.3
Price / Book Value ratio	x	1.1	0.9
Market Cap	Rs m	5,211	5,197
Dividends per share (Unadj.)	Rs	0.0	1.3

Ratio Analysis for DWARIKESH SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY21, from 1.2x during FY20. 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 3.5x during FY21, from 3.2x during FY20. 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 15.8% during FY21, from 15.2% during FY21. 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 23.1% during FY21, from 15.5% during FY20. 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 9.2% during FY21, from 6.4% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.2	1.4
Debtors’ Days	Days	268	135
Interest coverage	x	3.2	3.5
Debt to equity ratio	x	0.4	0.3
Return on assets	%	6.4	9.2
Return on equity	%	15.2	15.8
Return on capital employed	%	15.5	23.1

To see how DWARIKESH SUGAR has performed over the last 5 years, please visit here.

DWARIKESH SUGAR Share Price Performance

Over the last one year, DWARIKESH SUGAR share price has moved up from Rs 16.5 to Rs 30.8, registering a gain of Rs 14.3 or around 86.7%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for DWARIKESH SUGAR and quarterly results for DWARIKESH SUGAR)

Read: Latest Annual Report Analysis of DWARIKESH SUGAR