DWARIKESH SUGAR 2022-23 Annual Report Analysis

Wed, 31 May

DWARIKESH SUGAR 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.

DWARIKESH SUGAR Income Statement Analysis

• Operating income during the year rose 6.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 26.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.2% in FY23 as against 14.7% in FY22.
• Depreciation charges increased by 15.1% and finance costs decreased by 18.4% YoY, respectively.
• Other income grew by 334.1% YoY.
• Net profit for the year declined by 32.5% YoY.
• Net profit margins during the year declined from 7.8% in FY22 to 5.0% in FY23.

DWARIKESH SUGAR Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	19,787	21,030	6.3%
Other income	Rs m	32	140	334.1%
Total Revenues	Rs m	19,819	21,170	6.8%
Gross profit	Rs m	2,907	2,145	-26.2%
Depreciation	Rs m	436	502	15.1%
Interest	Rs m	317	258	-18.4%
Profit before tax	Rs m	2,187	1,525	-30.3%
Tax	Rs m	635	477	-24.8%
Profit after tax	Rs m	1,552	1,048	-32.5%
Gross profit margin	%	14.7	10.2
Effective tax rate	%	29.0	31.3
Net profit margin	%	7.8	5.0

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DWARIKESH SUGAR Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 6 billion in FY22, thereby witnessing an decrease of -42.0%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY22, a growth of 6.6%.
• Current assets fell 19% and stood at Rs 7 billion, while fixed assets fell 1% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 14 billion as against Rs 16 billion during FY22, thereby witnessing a fall of 12%.

DWARIKESH SUGAR Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,733	7,398	9.9
Current Liabilities	Rs m	5,529	3,209	-42.0
Long-term Debt	Rs m	2,009	2,142	6.6
Total Liabilities	Rs m	15,520	13,734	-11.5
Current assets	Rs m	8,782	7,084	-19.3
Fixed Assets	Rs m	6,738	6,650	-1.3
Total Assets	Rs m	15,520	13,734	-11.5

DWARIKESH SUGAR Cash Flow Statement Analysis

• DWARIKESH SUGAR's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -915 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 4 million from the Rs 1 million net cash flows seen during FY22.

DWARIKESH SUGAR 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	3,386	3,139	-7.3%
Cash Flow from Investing Activities	Rs m	-1,977	-915	-
Cash Flow from Financing Activities	Rs m	-1,408	-2,219	-
Net Cash Flow	Rs m	1	4	417.9%

Current Valuations for DWARIKESH SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.6, an decline from the EPS of Rs 8.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 89.1, stands at 16.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 13.9 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	105.1	111.7
TTM Earnings per share	Rs	8.2	5.6
Diluted earnings per share	Rs	8.2	5.6
Price to Cash Flow	x	11.9	13.9
TTM P/E ratio	x	15.2	16.0
Price / Book Value ratio	x	2.4	2.9
Market Cap	Rs m	15,874	21,509
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for DWARIKESH SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x 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 deteriorated and stood at 6.9x during FY23, from 7.9x 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 declined and down at 14.2% during FY23, from 23.1% 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 declined and down at 18.7% during FY23, from 28.6% 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 declined and down at 9.5% during FY23, from 12.0% 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	2.2
Debtors’ Days	Days	64	124
Interest coverage	x	7.9	6.9
Debt to equity ratio	x	0.3	0.3
Return on assets	%	12.0	9.5
Return on equity	%	23.1	14.2
Return on capital employed	%	28.6	18.7

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 down from Rs 109.9 to Rs 89.1, registering a loss of Rs 20.8 or around 18.9%.

Overall, the S&P BSE SENSEX is up 15.6% over the year.

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