DYNEMIC PRODUCTS 2020-21 Annual Report Analysis

Wed, 31 Mar

DYNEMIC PRODUCTS 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.

DYNEMIC PRODUCTS Income Statement Analysis

• Operating income during the year rose 12.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.1% in FY21 as against 19.9% in FY20.
• Depreciation charges increased by 0.9% and finance costs increased by 44.9% YoY, respectively.
• Other income declined by 33.0% YoY.
• Net profit for the year grew by 18.0% YoY.
• Net profit margins during the year grew from 13.2% in FY20 to 13.9% in FY21.

DYNEMIC PRODUCTS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	1,823	2,056	12.8%
Other income	Rs m	9	6	-33.0%
Total Revenues	Rs m	1,832	2,062	12.6%
Gross profit	Rs m	362	434	19.9%
Depreciation	Rs m	34	34	0.9%
Interest	Rs m	16	23	44.9%
Profit before tax	Rs m	321	383	19.2%
Tax	Rs m	80	98	22.7%
Profit after tax	Rs m	241	285	18.0%
Gross profit margin	%	19.9	21.1
Effective tax rate	%	24.9	25.6
Net profit margin	%	13.2	13.9

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DYNEMIC PRODUCTS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 942 million as compared to Rs 367 million in FY20, thereby witnessing an increase of 156.6%.
• Long-term debt stood at Rs 966 million as compared to Rs 820 million during FY20, a growth of 17.9%.
• Current assets fell 17% and stood at Rs 1 billion, while fixed assets rose 106% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 4 billion as against Rs 3 billion during FY20, thereby witnessing a growth of 40%.

DYNEMIC PRODUCTS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	1,280	1,563	22.2
Current Liabilities	Rs m	367	942	156.6
Long-term Debt	Rs m	820	966	17.9
Total Liabilities	Rs m	2,508	3,511	40.0
Current assets	Rs m	1,350	1,125	-16.6
Fixed Assets	Rs m	1,158	2,386	106.1
Total Assets	Rs m	2,508	3,511	40.0

DYNEMIC PRODUCTS Cash Flow Statement Analysis

• DYNEMIC PRODUCTS's cash flow from operating activities (CFO) during FY21 stood at Rs 481 million, an improvement of 625.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -988 million, an improvement of 37.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 494 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -2 million from the Rs 8 million net cash flows seen during FY20.

DYNEMIC PRODUCTS 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	66	481	625.2%
Cash Flow from Investing Activities	Rs m	-718	-988	-
Cash Flow from Financing Activities	Rs m	641	494	-23.0%
Net Cash Flow	Rs m	8	-2	-

Current Valuations for DYNEMIC PRODUCTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.2, an improvement from the EPS of Rs 21.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 521.5, stands at 21.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 11.5 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	160.9	181.5
TTM Earnings per share	Rs	21.3	25.2
Diluted earnings per share	Rs	20.3	24.0
Price to Cash Flow	x	5.0	11.5
TTM P/E ratio	x	5.7	21.8
Price / Book Value ratio	x	1.2	2.3
Market Cap	Rs m	1,495	3,662
Dividends per share (Unadj.)	Rs	1.5	0.0

Ratio Analysis for DYNEMIC PRODUCTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY21, from 3.7x 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 deteriorated and stood at 17.8x during FY21, from 21.4x 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 declined and down at 18.2% during FY21, from 18.9% 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 declined and down at 16.0% during FY21, from 16.1% 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 declined and down at 8.8% during FY21, from 10.3% 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	3.7	1.2
Debtors’ Days	Days	639	734
Interest coverage	x	21.4	17.8
Debt to equity ratio	x	0.6	0.6
Return on assets	%	10.3	8.8
Return on equity	%	18.9	18.2
Return on capital employed	%	16.1	16.0

To see how DYNEMIC PRODUCTS has performed over the last 5 years, please visit here.

DYNEMIC PRODUCTS Share Price Performance

Over the last one year, DYNEMIC PRODUCTS share price has moved up from Rs 114.8 to Rs 521.5, registering a gain of Rs 406.7 or around 354.2%.

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

(To know more, check out historical annual results for DYNEMIC PRODUCTS and quarterly results for DYNEMIC PRODUCTS)