DISA INDIA 2022-23 Annual Report Analysis

Fri, 21 Jul

DISA INDIA 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.

DISA INDIA Income Statement Analysis

• Operating income during the year rose 2.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 24.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.3% in FY23 as against 18.0% in FY22.
• Depreciation charges increased by 23.6% and finance costs decreased by 19.2% YoY, respectively.
• Other income grew by 2.4% YoY.
• Net profit for the year declined by 22.9% YoY.
• Net profit margins during the year declined from 15.1% in FY22 to 11.4% in FY23.

DISA INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,561	2,619	2.3%
Other income	Rs m	103	105	2.4%
Total Revenues	Rs m	2,664	2,724	2.3%
Gross profit	Rs m	460	348	-24.3%
Depreciation	Rs m	37	45	23.6%
Interest	Rs m	8	6	-19.2%
Profit before tax	Rs m	519	402	-22.5%
Tax	Rs m	133	105	-21.3%
Profit after tax	Rs m	386	298	-22.9%
Gross profit margin	%	18.0	13.3
Effective tax rate	%	25.6	26.0
Net profit margin	%	15.1	11.4

5 PM TODAY: Golden Buying Window to Ride India's Potentially Decade-Long $10 Trillion Bull Run...

DISA INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 22.6%.
• Current assets rose 11% and stood at Rs 4 billion, while fixed assets fell 32% and stood at Rs 705 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 1%.

DISA INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,060	2,194	6.5
Current Liabilities	Rs m	1,730	2,121	22.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,406	4,447	0.9
Current assets	Rs m	3,366	3,743	11.2
Fixed Assets	Rs m	1,040	705	-32.2
Total Assets	Rs m	4,406	4,447	0.9

DISA INDIA Cash Flow Statement Analysis

• DISA INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 389 million, an improvement of 118.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 41 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -393 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 38 million from the Rs -52 million net cash flows seen during FY22.

DISA INDIA 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	178	389	118.6%
Cash Flow from Investing Activities	Rs m	-189	41	-
Cash Flow from Financing Activities	Rs m	-42	-393	-
Net Cash Flow	Rs m	-52	38	-

Current Valuations for DISA INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 205.3, an decline from the EPS of Rs 266.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 11,397.3, stands at 55.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.6 times, while the price to sales ratio stands at 6.3 times.
• The company's price to cash flow (P/CF) ratio stood at 30.0 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	1,766.0	1,806.2
TTM Earnings per share	Rs	266.1	205.3
Diluted earnings per share	Rs	265.4	204.7
Price to Cash Flow	x	21.5	30.0
TTM P/E ratio	x	23.5	55.7
Price / Book Value ratio	x	4.3	4.7
Market Cap	Rs m	8,943	10,285
Dividends per share (Unadj.)	Rs	160.0	110.0

Ratio Analysis for DISA INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY23, from 1.9x 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 64.9x during FY23, from 67.5x 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 13.6% during FY23, from 18.7% 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 18.6% during FY23, from 25.6% 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 6.8% during FY23, from 8.9% 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	1.9	1.8
Debtors’ Days	Days	52	64
Interest coverage	x	67.5	64.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.9	6.8
Return on equity	%	18.7	13.6
Return on capital employed	%	25.6	18.6

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 6,939.9 to Rs 11,397.3, registering a gain of Rs 4,457.4 or around 64.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 42,401.9 (up 1.7%). Over the last one year it has moved up from 29,013.8 to 42,401.9, a gain of 13,388 points (up 46.1%).

Overall, the S&P BSE SENSEX is up 20.4% over the year.

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