DODLA DAIRY 2022-23 Annual Report Analysis

Fri, 16 Jun

DODLA DAIRY 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.

DODLA DAIRY Income Statement Analysis

• Operating income during the year rose 15.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 28.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.8% in FY23 as against 9.4% in FY22.
• Depreciation charges increased by 10.1% and finance costs decreased by 73.8% YoY, respectively.
• Other income grew by 65.2% YoY.
• Net profit for the year declined by 28.5% YoY.
• Net profit margins during the year declined from 5.9% in FY22 to 3.7% in FY23.

DODLA DAIRY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	22,434	25,841	15.2%
Other income	Rs m	147	243	65.2%
Total Revenues	Rs m	22,581	26,084	15.5%
Gross profit	Rs m	2,106	1,502	-28.7%
Depreciation	Rs m	524	576	10.1%
Interest	Rs m	74	19	-73.8%
Profit before tax	Rs m	1,656	1,149	-30.6%
Tax	Rs m	327	199	-39.1%
Profit after tax	Rs m	1,328	950	-28.5%
Gross profit margin	%	9.4	5.8
Effective tax rate	%	19.8	17.4
Net profit margin	%	5.9	3.7

Revealing Soon: A Potential Huge Investing Opportunity for Investors

DODLA DAIRY 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 1.9%.
• Current assets fell 13% and stood at Rs 4 billion, while fixed assets rose 11% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 11 billion as against Rs 11 billion during FY22, thereby witnessing a growth of 2%.

DODLA DAIRY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,401	8,801	4.8
Current Liabilities	Rs m	1,877	1,913	1.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	10,884	11,137	2.3
Current assets	Rs m	4,031	3,519	-12.7
Fixed Assets	Rs m	6,853	7,618	11.2
Total Assets	Rs m	10,884	11,137	2.3

DODLA DAIRY Cash Flow Statement Analysis

• DODLA DAIRY's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 19.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -33 million, an improvement of 93% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -292 million from the Rs -143 million net cash flows seen during FY22.

DODLA DAIRY 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	1,711	1,399	-18.3%
Cash Flow from Investing Activities	Rs m	-1,383	-1,657	-
Cash Flow from Financing Activities	Rs m	-489	-33	-
Net Cash Flow	Rs m	-143	-292	-

Current Valuations for DODLA DAIRY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.0, an decline from the EPS of Rs 22.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 559.6, stands at 27.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 19.4 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	377.1	434.4
TTM Earnings per share	Rs	22.3	16.0
Diluted earnings per share	Rs	22.3	16.0
Price to Cash Flow	x	14.4	19.4
TTM P/E ratio	x	20.1	27.2
Price / Book Value ratio	x	3.7	3.4
Market Cap	Rs m	31,442	29,598
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DODLA DAIRY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY23, from 2.1x 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 60.0x during FY23, from 23.2x 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 10.8% during FY23, from 15.8% 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 13.3% during FY23, from 20.6% 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 8.7% during FY23, from 12.9% 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	2.1	1.8
Debtors’ Days	Days	1	1
Interest coverage	x	23.2	60.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.9	8.7
Return on equity	%	15.8	10.8
Return on capital employed	%	20.6	13.3

To see how DODLA DAIRY has performed over the last 5 years, please visit here.

DODLA DAIRY Share Price Performance

Over the last one year, DODLA DAIRY share price has moved up from Rs 478.6 to Rs 559.6, registering a gain of Rs 81.0 or around 16.9%.

Overall, the S&P BSE SENSEX is up 19.4% over the year.

(To know more, check out historical annual results for DODLA DAIRY and quarterly results for DODLA DAIRY)