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DRONE DESTINATION 2022-23 Annual Report Analysis

Mon, 24 Jul

DRONE DESTINATION 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.

DRONE DESTINATION Income Statement Analysis

• Operating income during the year rose 370.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1095.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 38.9% in FY23 as against 15.3% in FY22.
• Depreciation charges increased by 1063.2% and finance costs increased by 956.3% YoY, respectively.
• Other income declined by 28.6% YoY.
• Net profit for the year grew by 1079.7% YoY.
• Net profit margins during the year grew from 8.1% in FY22 to 20.2% in FY23.

DRONE DESTINATION Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	26	121	370.6%
Other income	Rs m	0	0	-28.6%
Total Revenues	Rs m	26	121	369.6%
Gross profit	Rs m	4	47	1,095.2%
Depreciation	Rs m	1	12	1,063.2%
Interest	Rs m	0	2	956.3%
Profit before tax	Rs m	3	33	1,087.4%
Tax	Rs m	1	9	1,127.1%
Profit after tax	Rs m	2	24	1,079.7%
Gross profit margin	%	15.3	38.9
Effective tax rate	%	25.2	26.0
Net profit margin	%	8.1	20.2

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DRONE DESTINATION Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 49 million as compared to Rs 11 million in FY22, thereby witnessing an increase of 366.8%.
• Long-term debt down at Rs 10 million as compared to Rs 15 million during FY22, a fall of 30.5%.
• Current assets rose 809% and stood at Rs 182 million, while fixed assets rose 624% and stood at Rs 54 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 236 million as against Rs 27 million during FY22, thereby witnessing a growth of 759%.

DRONE DESTINATION Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2	176	7,474.6
Current Liabilities	Rs m	11	49	366.8
Long-term Debt	Rs m	15	10	-30.5
Total Liabilities	Rs m	27	236	758.6
Current assets	Rs m	20	182	808.6
Fixed Assets	Rs m	7	54	623.6
Total Assets	Rs m	27	236	758.6

DRONE DESTINATION Cash Flow Statement Analysis

• DRONE DESTINATION's cash flow from operating activities (CFO) during FY23 stood at Rs 8 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -58 million, an improvement of 945.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 149 million, an improvement of 1,468% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 99 million from the Rs 3 million net cash flows seen during FY22.

DRONE DESTINATION 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	8	-
Cash Flow from Investing Activities	Rs m	-6	-58	-
Cash Flow from Financing Activities	Rs m	10	149	1,467.7%
Net Cash Flow	Rs m	3	99	3,026.6%

Current Valuations for DRONE DESTINATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.9, an decline from the EPS of Rs 18.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 97.0, stands at 96.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.4 times, while the price to sales ratio stands at 4.0 times.
• The company's price to cash flow (P/CF) ratio stood at 64.1 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	233.2	24.1
TTM Earnings per share	Rs	18.8	4.9
Diluted earnings per share	Rs	0.1	1.0
Price to Cash Flow	x	0.0	64.1
TTM P/E ratio	x	0.0	96.5
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	2,357
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DRONE DESTINATION

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.7x 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 improved and stood at 20.5x during FY23, from 18.4x 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 13.9% during FY23, from 89.4% 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 18.6% during FY23, from 17.1% 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 11.1% during FY23, from 8.1% 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	3.7
Debtors’ Days	Days	36,364	201,637
Interest coverage	x	18.4	20.5
Debt to equity ratio	x	6.4	0.1
Return on assets	%	8.1	11.1
Return on equity	%	89.4	13.9
Return on capital employed	%	17.1	18.6

To see how DRONE DESTINATION has performed over the last 5 years, please visit here.

DRONE DESTINATION Share Price Performance

Over the last one year, DRONE DESTINATION share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is up 0.1% over the year.

(To know more, check out historical annual results for DRONE DESTINATION and quarterly results for DRONE DESTINATION)