DAI-ICHI KAR 2023-24 Annual Report Analysis

Wed, 14 Aug

DAI-ICHI KAR 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.

DAI-ICHI KAR Income Statement Analysis

• Operating income during the year fell 28.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.4% in FY24 as against 14.2% in FY23.
• Depreciation charges increased by 24.1% and finance costs increased by 0.7% YoY, respectively.
• Other income declined by 41.3% YoY.
• Net profit for the year declined by 27.0% YoY.
• Net profit margins during the year grew from 10.0% in FY23 to 10.3% in FY24.

DAI-ICHI KAR Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,839	1,316	-28.5%
Other income	Rs m	64	38	-41.3%
Total Revenues	Rs m	1,904	1,354	-28.9%
Gross profit	Rs m	262	269	2.8%
Depreciation	Rs m	74	92	24.1%
Interest	Rs m	30	31	0.7%
Profit before tax	Rs m	221	184	-16.9%
Tax	Rs m	36	49	34.1%
Profit after tax	Rs m	185	135	-27.0%
Gross profit margin	%	14.2	20.4
Effective tax rate	%	16.5	26.6
Net profit margin	%	10.0	10.3

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DAI-ICHI KAR Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 387 million as compared to Rs 577 million in FY23, thereby witnessing an decrease of -33.0%.
• Long-term debt down at Rs 13 million as compared to Rs 173 million during FY23, a fall of 92.2%.
• Current assets fell 23% and stood at Rs 530 million, while fixed assets fell 3% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a fall of 9%.

DAI-ICHI KAR Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,699	1,808	6.4
Current Liabilities	Rs m	577	387	-33.0
Long-term Debt	Rs m	173	13	-92.2
Total Liabilities	Rs m	2,408	2,202	-8.6
Current assets	Rs m	685	530	-22.6
Fixed Assets	Rs m	1,723	1,672	-3.0
Total Assets	Rs m	2,408	2,202	-8.6

DAI-ICHI KAR Cash Flow Statement Analysis

• DAI-ICHI KAR's cash flow from operating activities (CFO) during FY24 stood at Rs 101 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 159 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -253 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 6 million from the Rs 39 million net cash flows seen during FY23.

DAI-ICHI KAR 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	232	101	-56.6%
Cash Flow from Investing Activities	Rs m	-326	159	-
Cash Flow from Financing Activities	Rs m	135	-253	-
Net Cash Flow	Rs m	39	6	-85.3%

Current Valuations for DAI-ICHI KAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.1, an decline from the EPS of Rs 24.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 650.0, stands at 30.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 14.8 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	246.9	176.6
TTM Earnings per share	Rs	24.8	18.1
Diluted earnings per share	Rs	24.8	18.1
Price to Cash Flow	x	10.4	14.8
TTM P/E ratio	x	14.6	30.0
Price / Book Value ratio	x	1.5	1.9
Market Cap	Rs m	2,619	3,359
Dividends per share (Unadj.)	Rs	4.0	2.0

Ratio Analysis for DAI-ICHI KAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY24, from 1.2x 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 deteriorated and stood at 7.0x during FY24, from 8.3x 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 7.5% during FY24, from 10.9% 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 11.8% during FY24, from 13.4% 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 7.5% during FY24, from 8.9% 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	1.2	1.4
Debtors’ Days	Days	530	623
Interest coverage	x	8.3	7.0
Debt to equity ratio	x	0.1	0.0
Return on assets	%	8.9	7.5
Return on equity	%	10.9	7.5
Return on capital employed	%	13.4	11.8

To see how DAI-ICHI KAR has performed over the last 5 years, please visit here.

DAI-ICHI KAR Share Price Performance

Over the last one year, DAI-ICHI KAR share price has moved up from Rs 362.3 to Rs 650.0, registering a gain of Rs 287.8 or around 79.4%.

Overall, the S&P BSE SENSEX is up 20.9% over the year.

(To know more, check out historical annual results for DAI-ICHI KAR and quarterly results for DAI-ICHI KAR)