DALMIA BHARAT 2021-22 Annual Report Analysis

Tue, 14 Jun

DALMIA BHARAT 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.

DALMIA BHARAT Income Statement Analysis

• Operating income during the year rose 11.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 13.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.0% in FY22 as against 27.0% in FY21.
• Depreciation charges decreased by 1.1% and finance costs decreased by 36.5% YoY, respectively.
• Other income grew by 4.9% YoY.
• Net profit for the year declined by 2.2% YoY.
• Net profit margins during the year declined from 11.7% in FY21 to 10.3% in FY22.

DALMIA BHARAT Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	101,100	112,860	11.6%
Other income	Rs m	2,040	2,140	4.9%
Total Revenues	Rs m	103,140	115,000	11.5%
Gross profit	Rs m	27,280	23,700	-13.1%
Depreciation	Rs m	12,500	12,360	-1.1%
Interest	Rs m	3,180	2,020	-36.5%
Profit before tax	Rs m	13,640	11,460	-16.0%
Tax	Rs m	1,780	-140	-107.9%
Profit after tax	Rs m	11,860	11,600	-2.2%
Gross profit margin	%	27.0	21.0
Effective tax rate	%	13.0	-1.2
Net profit margin	%	11.7	10.3

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DALMIA BHARAT Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 48 billion as compared to Rs 48 billion in FY21, thereby witnessing an decrease of -1.0%.
• Long-term debt down at Rs 19 billion as compared to Rs 21 billion during FY21, a fall of 8.0%.
• Current assets rose 24% and stood at Rs 75 billion, while fixed assets rose 7% and stood at Rs 170 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 245 billion as against Rs 219 billion during FY21, thereby witnessing a growth of 12%.

DALMIA BHARAT Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	128,040	156,660	22.4
Current Liabilities	Rs m	48,230	47,760	-1.0
Long-term Debt	Rs m	20,890	19,220	-8.0
Total Liabilities	Rs m	218,860	244,720	11.8
Current assets	Rs m	60,600	75,120	24.0
Fixed Assets	Rs m	158,260	169,600	7.2
Total Assets	Rs m	218,860	244,720	11.8

DALMIA BHARAT Cash Flow Statement Analysis

• DALMIA BHARAT's cash flow from operating activities (CFO) during FY22 stood at Rs 19 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -10 billion, an improvement of 248.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -9 billion, an improvement of 72% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -550 million from the Rs -710 million net cash flows seen during FY21.

DALMIA BHARAT 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	36,040	19,370	-46.3%
Cash Flow from Investing Activities	Rs m	-3,010	-10,480	-
Cash Flow from Financing Activities	Rs m	-33,750	-9,420	-
Net Cash Flow	Rs m	-710	-550	-

Current Valuations for DALMIA BHARAT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 61.9, an decline from the EPS of Rs 63.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,282.5, stands at 20.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 15.0 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	540.3	602.3
TTM Earnings per share	Rs	63.4	61.9
Diluted earnings per share	Rs	63.3	61.9
Price to Cash Flow	x	12.2	15.0
TTM P/E ratio	x	24.0	20.7
Price / Book Value ratio	x	1.5	2.3
Market Cap	Rs m	197,184	358,497
Dividends per share (Unadj.)	Rs	1.3	9.0

Ratio Analysis for DALMIA BHARAT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY22, from 1.3x 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 improved and stood at 6.7x during FY22, from 5.3x 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 declined and down at 7.4% during FY22, from 9.3% 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 declined and down at 7.7% during FY22, from 11.3% 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 declined and down at 5.6% during FY22, from 6.9% 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	1.3	1.6
Debtors’ Days	Days	2	2
Interest coverage	x	5.3	6.7
Debt to equity ratio	x	0.2	0.1
Return on assets	%	6.9	5.6
Return on equity	%	9.3	7.4
Return on capital employed	%	11.3	7.7

To see how DALMIA BHARAT has performed over the last 5 years, please visit here.

DALMIA BHARAT Share Price Performance

Over the last one year, DALMIA BHARAT share price has moved down from Rs 1,801.4 to Rs 1,282.5, registering a loss of Rs 518.9 or around 28.8%.

Overall, the S&P BSE SENSEX is up 0.9% over the year.

(To know more, check out historical annual results for DALMIA BHARAT and quarterly results for DALMIA BHARAT)

Read: Latest Annual Report Analysis of DALMIA BHARAT