DALMIA BHARAT 2022-23 Annual Report Analysis

Sun, 11 Jun

DALMIA BHARAT 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.

DALMIA BHARAT Income Statement Analysis

• Operating income during the year rose 20.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.0% in FY23 as against 21.0% in FY22.
• Depreciation charges increased by 5.7% and finance costs increased by 15.8% YoY, respectively.
• Other income declined by 26.6% YoY.
• Net profit for the year grew by 29.4% YoY.
• Net profit margins during the year grew from 7.4% in FY22 to 8.0% in FY23.

DALMIA BHARAT Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	112,860	135,400	20.0%
Other income	Rs m	2,140	1,570	-26.6%
Total Revenues	Rs m	115,000	136,970	19.1%
Gross profit	Rs m	23,750	27,070	14.0%
Depreciation	Rs m	12,350	13,050	5.7%
Interest	Rs m	2,020	2,340	15.8%
Profit before tax	Rs m	11,520	13,250	15.0%
Tax	Rs m	3,150	2,420	-23.2%
Profit after tax	Rs m	8,370	10,830	29.4%
Gross profit margin	%	21.0	20.0
Effective tax rate	%	27.3	18.3
Net profit margin	%	7.4	8.0

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DALMIA BHARAT Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 45 billion as compared to Rs 47 billion in FY22, thereby witnessing an decrease of -4.4%.
• Long-term debt stood at Rs 32 billion as compared to Rs 19 billion during FY22, a growth of 67.0%.
• Current assets fell 12% and stood at Rs 65 billion, while fixed assets rose 6% and stood at Rs 182 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 255 billion as against Rs 247 billion during FY22, thereby witnessing a growth of 3%.

DALMIA BHARAT Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	160,400	156,160	-2.6
Current Liabilities	Rs m	46,660	44,600	-4.4
Long-term Debt	Rs m	19,220	32,100	67.0
Total Liabilities	Rs m	246,680	255,190	3.4
Current assets	Rs m	73,570	64,600	-12.2
Fixed Assets	Rs m	171,560	181,690	5.9
Total Assets	Rs m	246,680	255,190	3.4

DALMIA BHARAT Cash Flow Statement Analysis

• DALMIA BHARAT's cash flow from operating activities (CFO) during FY23 stood at Rs 23 billion, an improvement of 16.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -23 billion, an improvement of 123.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 118% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 940 million from the Rs -550 million net cash flows seen during FY22.

DALMIA BHARAT 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	19,320	22,520	16.6%
Cash Flow from Investing Activities	Rs m	-10,430	-23,260	-
Cash Flow from Financing Activities	Rs m	-9,420	1,680	-
Net Cash Flow	Rs m	-550	940	-

Current Valuations for DALMIA BHARAT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 57.8, an improvement from the EPS of Rs 44.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,095.3, stands at 74.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 12.6 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	602.0	722.2
TTM Earnings per share	Rs	44.6	57.8
Diluted earnings per share	Rs	44.6	57.8
Price to Cash Flow	x	13.5	12.6
TTM P/E ratio	x	33.7	74.3
Price / Book Value ratio	x	2.2	1.9
Market Cap	Rs m	358,711	300,119
Dividends per share (Unadj.)	Rs	9.0	9.0

Ratio Analysis for DALMIA BHARAT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY23, from 1.6x 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 6.7x during FY23, from 6.7x 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 improved and stood at 6.9% during FY23, from 5.2% 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 8.3% during FY23, from 7.5% 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 improved and stood at 5.2% during FY23, from 4.2% 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	1.6	1.4
Debtors’ Days	Days	2	2
Interest coverage	x	6.7	6.7
Debt to equity ratio	x	0.1	0.2
Return on assets	%	4.2	5.2
Return on equity	%	5.2	6.9
Return on capital employed	%	7.5	8.3

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 up from Rs 1,288.7 to Rs 2,095.3, registering a gain of Rs 806.6 or around 62.6%.

Overall, the S&P BSE SENSEX is up 14.1% over the year.

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