DELTA CORP 2023-24 Annual Report Analysis

Wed, 31 Jul

DELTA CORP has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

DELTA CORP Income Statement Analysis

• Operating income during the year fell 4.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 38.5% in FY24 as against 37.9% in FY23.
• Depreciation charges increased by 8.7% and finance costs decreased by 5.3% YoY, respectively.
• Other income grew by 22.7% YoY.
• Net profit for the year declined by 6.7% YoY.
• Net profit margins during the year declined from 27.2% in FY23 to 26.4% in FY24.

DELTA CORP Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,645	9,253	-4.1%
Other income	Rs m	464	569	22.7%
Total Revenues	Rs m	10,109	9,822	-2.8%
Gross profit	Rs m	3,659	3,562	-2.7%
Depreciation	Rs m	587	638	8.7%
Interest	Rs m	244	231	-5.3%
Profit before tax	Rs m	3,293	3,262	-0.9%
Tax	Rs m	670	816	21.8%
Profit after tax	Rs m	2,623	2,447	-6.7%
Gross profit margin	%	37.9	38.5
Effective tax rate	%	20.3	25.0
Net profit margin	%	27.2	26.4

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DELTA CORP Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 36.7%.
• Current assets fell 8% and stood at Rs 10 billion, while fixed assets rose 31% and stood at Rs 19 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 29 billion as against Rs 25 billion during FY23, thereby witnessing a growth of 15%.

DELTA CORP Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	21,779	24,839	14.0
Current Liabilities	Rs m	2,391	3,268	36.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	25,496	29,259	14.8
Current assets	Rs m	10,646	9,800	-7.9
Fixed Assets	Rs m	14,851	19,459	31.0
Total Assets	Rs m	25,496	29,259	14.8

DELTA CORP Cash Flow Statement Analysis

• DELTA CORP's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 10.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 51.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -540 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 24 million from the Rs 284 million net cash flows seen during FY23.

DELTA CORP Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	1,540	1,703	10.5%
Cash Flow from Investing Activities	Rs m	-730	-1,106	-
Cash Flow from Financing Activities	Rs m	-521	-540	-
Net Cash Flow	Rs m	284	24	-91.5%

Current Valuations for DELTA CORP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.1, an decline from the EPS of Rs 9.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 136.9, stands at 18.6 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 4.0 times.
• The company's price to cash flow (P/CF) ratio stood at 16.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	36.0	34.6
TTM Earnings per share	Rs	9.8	9.1
Diluted earnings per share	Rs	9.8	9.1
Price to Cash Flow	x	15.1	16.1
TTM P/E ratio	x	18.5	18.6
Price / Book Value ratio	x	3.1	2.0
Market Cap	Rs m	67,113	49,531
Dividends per share (Unadj.)	Rs	1.3	1.3

Ratio Analysis for DELTA CORP

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.0x during FY24, from 4.5x during FY23. 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 15.1x during FY24, from 14.5x during FY23. 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 9.8% during FY24, from 12.0% during FY24. 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 14.1% during FY24, from 16.2% during FY23. 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 9.2% during FY24, from 11.2% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	4.5	3.0
Debtors’ Days	Days	0	0
Interest coverage	x	14.5	15.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.2	9.2
Return on equity	%	12.0	9.8
Return on capital employed	%	16.2	14.1

To see how DELTA CORP has performed over the last 5 years, please visit here.

DELTA CORP Share Price Performance

Over the last one year, DELTA CORP share price has moved down from Rs 200.3 to Rs 136.9, registering a loss of Rs 63.4 or around 31.7%.

Overall, the S&P BSE SENSEX is up 22.8% over the year.

(To know more, check out historical annual results for DELTA CORP and quarterly results for DELTA CORP)