DISA INDIA 2021-22 Annual Report Analysis

Tue, 26 Jul

DISA INDIA 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.

DISA INDIA Income Statement Analysis

• Operating income during the year rose 38.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 68.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.0% in FY22 as against 14.8% in FY21.
• Depreciation charges decreased by 9.7% and finance costs increased by 100.0% YoY, respectively.
• Other income grew by 9.6% YoY.
• Net profit for the year grew by 59.8% YoY.
• Net profit margins during the year grew from 13.0% in FY21 to 15.1% in FY22.

DISA INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,851	2,561	38.4%
Other income	Rs m	94	103	9.6%
Total Revenues	Rs m	1,944	2,664	37.0%
Gross profit	Rs m	274	460	68.0%
Depreciation	Rs m	40	37	-9.7%
Interest	Rs m	4	8	100.0%
Profit before tax	Rs m	324	519	60.4%
Tax	Rs m	82	133	62.1%
Profit after tax	Rs m	242	386	59.8%
Gross profit margin	%	14.8	18.0
Effective tax rate	%	25.3	25.6
Net profit margin	%	13.0	15.1

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DISA INDIA Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 2 billion as compared to Rs 2 billion in FY21, thereby witnessing an increase of 34.5%.
• Current assets rose 22% and stood at Rs 4 billion, while fixed assets rose 2% and stood at Rs 415 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 4 billion as against Rs 4 billion during FY21, thereby witnessing a growth of 20%.

DISA INDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,905	2,060	8.1
Current Liabilities	Rs m	1,728	2,324	34.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,677	4,406	19.8
Current assets	Rs m	3,271	3,991	22.0
Fixed Assets	Rs m	406	415	2.1
Total Assets	Rs m	3,677	4,406	19.8

DISA INDIA Cash Flow Statement Analysis

• DISA INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 178 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -189 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -42 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -52 million from the Rs -65 million net cash flows seen during FY21.

DISA INDIA 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	681	178	-73.8%
Cash Flow from Investing Activities	Rs m	-775	-189	-
Cash Flow from Financing Activities	Rs m	30	-42	-
Net Cash Flow	Rs m	-65	-52	-

Current Valuations for DISA INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 266.1, an improvement from the EPS of Rs 166.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 7,025.6, stands at 26.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.0 times, while the price to sales ratio stands at 4.0 times.
• The company's price to cash flow (P/CF) ratio stood at 21.2 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	1,276.3	1,766.0
TTM Earnings per share	Rs	166.6	266.1
Diluted earnings per share	Rs	166.1	265.4
Price to Cash Flow	x	24.2	21.2
TTM P/E ratio	x	28.2	26.5
Price / Book Value ratio	x	3.1	4.3
Market Cap	Rs m	5,896	8,943
Dividends per share (Unadj.)	Rs	10.0	160.0

Ratio Analysis for DISA INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY22, from 1.9x 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 67.5x during FY22, from 83.9x 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 improved and stood at 18.7% during FY22, from 12.7% 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 improved and stood at 25.6% during FY22, from 17.2% 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 improved and stood at 8.9% during FY22, from 6.7% 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	1.9	1.7
Debtors’ Days	Days	40	52
Interest coverage	x	83.9	67.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.7	8.9
Return on equity	%	12.7	18.7
Return on capital employed	%	17.2	25.6

To see how DISA INDIA has performed over the last 5 years, please visit here.

DISA INDIA Share Price Performance

Over the last one year, DISA INDIA share price has moved up from Rs 5,582.4 to Rs 7,025.6, registering a gain of Rs 1,443.2 or around 25.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 28,859.6 (down 1.0%). Over the last one year it has moved up from 23,735.6 to 28,859.6, a gain of 5,124 points (up 21.6%).

Overall, the S&P BSE SENSEX is up 5.2% over the year.

(To know more, check out historical annual results for DISA INDIA and quarterly results for DISA INDIA)

Read: Latest Annual Report Analysis of DISA INDIA