DYNAMATIC TECH 2022-23 Annual Report Analysis

Wed, 28 Feb

DYNAMATIC TECH 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.

DYNAMATIC TECH Income Statement Analysis

• Operating income during the year rose 5.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.0% in FY23 as against 13.7% in FY22.
• Depreciation charges decreased by 8.3% and finance costs increased by 9.7% YoY, respectively.
• Other income grew by 18.7% YoY.
• Net profit for the year grew by 33.5% YoY.
• Net profit margins during the year grew from 2.6% in FY22 to 3.3% in FY23.

DYNAMATIC TECH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	12,534	13,158	5.0%
Other income	Rs m	82	98	18.7%
Total Revenues	Rs m	12,616	13,255	5.1%
Gross profit	Rs m	1,721	1,837	6.8%
Depreciation	Rs m	768	704	-8.3%
Interest	Rs m	619	679	9.7%
Profit before tax	Rs m	416	552	32.7%
Tax	Rs m	96	124	30.0%
Profit after tax	Rs m	321	428	33.5%
Gross profit margin	%	13.7	14.0
Effective tax rate	%	23.0	22.5
Net profit margin	%	2.6	3.3

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DYNAMATIC TECH Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 33.7%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY22, a fall of 24.5%.
• Current assets rose 35% and stood at Rs 9 billion, while fixed assets rose 7% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 17 billion as against Rs 14 billion during FY22, thereby witnessing a growth of 20%.

DYNAMATIC TECH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,814	5,420	42.1
Current Liabilities	Rs m	5,635	7,534	33.7
Long-term Debt	Rs m	2,985	2,253	-24.5
Total Liabilities	Rs m	13,865	16,688	20.4
Current assets	Rs m	6,590	8,885	34.8
Fixed Assets	Rs m	7,275	7,803	7.3
Total Assets	Rs m	13,865	16,688	20.4

DYNAMATIC TECH Cash Flow Statement Analysis

• DYNAMATIC TECH's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 22.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -830 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 723 million, an improvement of 153% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 billion from the Rs -208 million net cash flows seen during FY22.

DYNAMATIC TECH 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	1,073	1,310	22.1%
Cash Flow from Investing Activities	Rs m	94	-830	-
Cash Flow from Financing Activities	Rs m	-1,370	723	-
Net Cash Flow	Rs m	-208	1,206	-

Current Valuations for DYNAMATIC TECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 63.0, an improvement from the EPS of Rs 50.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,756.7, stands at 43.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 13.8 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	1,976.9	1,937.8
TTM Earnings per share	Rs	50.6	63.0
Diluted earnings per share	Rs	47.2	63.0
Price to Cash Flow	x	13.3	13.8
TTM P/E ratio	x	45.2	43.8
Price / Book Value ratio	x	3.6	2.9
Market Cap	Rs m	13,910	15,634
Dividends per share (Unadj.)	Rs	0.0	10.0

Ratio Analysis for DYNAMATIC TECH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY23, from 1.2x 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 1.8x during FY23, from 1.7x 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 7.9% during FY23, from 8.4% 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 16.0% during FY23, from 15.2% 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 6.6% during FY23, from 6.8% 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	1.2	1.2
Debtors’ Days	Days	613	715
Interest coverage	x	1.7	1.8
Debt to equity ratio	x	0.8	0.4
Return on assets	%	6.8	6.6
Return on equity	%	8.4	7.9
Return on capital employed	%	15.2	16.0

To see how DYNAMATIC TECH has performed over the last 5 years, please visit here.

DYNAMATIC TECH Share Price Performance

Over the last one year, DYNAMATIC TECH share price has moved up from Rs 2,136.1 to Rs 2,756.7, registering a gain of Rs 620.6 or around 29.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 34,369.7 (up 1.2%). Over the last one year it has moved up from 27,506.0 to 34,369.7, a gain of 6,864 points (up 25.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for DYNAMATIC TECH and quarterly results for DYNAMATIC TECH)