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DANISH POWER LTD. 2023-24 Annual Report Analysis

Wed, 6 Nov

DANISH POWER LTD. 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.

DANISH POWER LTD. Income Statement Analysis

• Operating income during the year rose 76.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 245.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.8% in FY24 as against 8.6% in FY23.
• Depreciation charges increased by 89.1% and finance costs increased by 3.5% YoY, respectively.
• Other income grew by 201.5% YoY.
• Net profit for the year grew by 344.2% YoY.
• Net profit margins during the year grew from 4.5% in FY23 to 11.5% in FY24.

DANISH POWER LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,887	3,325	76.2%
Other income	Rs m	7	22	201.5%
Total Revenues	Rs m	1,894	3,347	76.7%
Gross profit	Rs m	162	558	245.0%
Depreciation	Rs m	18	33	89.1%
Interest	Rs m	34	35	3.5%
Profit before tax	Rs m	117	511	335.7%
Tax	Rs m	32	131	312.7%
Profit after tax	Rs m	86	381	344.2%
Gross profit margin	%	8.6	16.8
Effective tax rate	%	27.0	25.6
Net profit margin	%	4.5	11.5

For Investors: Our Big Prediction

DANISH POWER LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 694 million as compared to Rs 520 million in FY23, thereby witnessing an increase of 33.4%.
• Long-term debt down at Rs 67 million as compared to Rs 110 million during FY23, a fall of 39.2%.
• Current assets rose 61% and stood at Rs 1 billion, while fixed assets rose 16% and stood at Rs 363 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 1 billion during FY23, thereby witnessing a growth of 48%.

DANISH POWER LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	441	821	86.4
Current Liabilities	Rs m	520	694	33.4
Long-term Debt	Rs m	110	67	-39.2
Total Liabilities	Rs m	1,081	1,598	47.8
Current assets	Rs m	767	1,234	61.0
Fixed Assets	Rs m	315	363	15.5
Total Assets	Rs m	1,081	1,598	47.8

DANISH POWER LTD. Cash Flow Statement Analysis

• DANISH POWER LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 263 million, an improvement of 56.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -180 million, an improvement of 62.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -78 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 4 million from the Rs 0 million net cash flows seen during FY23.

DANISH POWER LTD. 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	168	263	56.3%
Cash Flow from Investing Activities	Rs m	-111	-180	-
Cash Flow from Financing Activities	Rs m	-57	-78	-
Net Cash Flow	Rs m	0	4	-

Current Valuations for DANISH POWER LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 236.5, an improvement from the EPS of Rs 53.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 801.9, stands at 41.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 19.2 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 38.1 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	1,172.1	2,065.1
TTM Earnings per share	Rs	53.2	236.5
Diluted earnings per share	Rs	4.4	19.3
Price to Cash Flow	x	0.0	38.1
TTM P/E ratio	x	0.0	41.5
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	15,790
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DANISH POWER LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY24, from 1.5x 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 15.5x during FY24, from 4.4x 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 improved and stood at 46.4% during FY24, from 19.5% 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 improved and stood at 61.6% during FY24, from 27.5% 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 improved and stood at 26.0% during FY24, from 11.1% 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	1.5	1.8
Debtors’ Days	Days	516	465
Interest coverage	x	4.4	15.5
Debt to equity ratio	x	0.2	0.1
Return on assets	%	11.1	26.0
Return on equity	%	19.5	46.4
Return on capital employed	%	27.5	61.6

To see how DANISH POWER LTD. has performed over the last 5 years, please visit here.

DANISH POWER LTD. Share Price Performance

Over the last one year, DANISH POWER LTD. 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 1.1% over the year.

(To know more, check out historical annual results for DANISH POWER LTD. and quarterly results for DANISH POWER LTD.)