DAVANGERE SUGAR 2023-24 Annual Report Analysis

Mon, 7 Oct

DAVANGERE SUGAR 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.

DAVANGERE SUGAR Income Statement Analysis

• Operating income during the year fell 22.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 18.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.9% in FY24 as against 19.9% in FY23.
• Depreciation charges increased by 3.3% and finance costs decreased by 6.5% YoY, respectively.
• Other income grew by 906.3% YoY.
• Net profit for the year declined by 7.4% YoY.
• Net profit margins during the year grew from 4.7% in FY23 to 5.7% in FY24.

DAVANGERE SUGAR Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,799	2,165	-22.7%
Other income	Rs m	6	64	906.3%
Total Revenues	Rs m	2,806	2,230	-20.5%
Gross profit	Rs m	558	453	-18.7%
Depreciation	Rs m	116	120	3.3%
Interest	Rs m	271	254	-6.5%
Profit before tax	Rs m	177	145	-18.3%
Tax	Rs m	45	22	-50.4%
Profit after tax	Rs m	132	122	-7.4%
Gross profit margin	%	19.9	20.9
Effective tax rate	%	25.2	15.3
Net profit margin	%	4.7	5.7

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DAVANGERE SUGAR Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 29.4%.
• Long-term debt down at Rs 685 million as compared to Rs 949 million during FY23, a fall of 27.8%.
• Current assets rose 25% and stood at Rs 3 billion, while fixed assets rose 7% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 14%.

DAVANGERE SUGAR Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,120	3,400	9.0
Current Liabilities	Rs m	1,735	2,246	29.4
Long-term Debt	Rs m	949	685	-27.8
Total Liabilities	Rs m	5,967	6,817	14.2
Current assets	Rs m	2,389	2,983	24.8
Fixed Assets	Rs m	3,578	3,834	7.2
Total Assets	Rs m	5,967	6,817	14.2

DAVANGERE SUGAR Cash Flow Statement Analysis

• DAVANGERE SUGAR's cash flow from operating activities (CFO) during FY24 stood at Rs 25 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -229 million, an improvement of 13.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 192 million, an improvement of 130% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -13 million from the Rs -33 million net cash flows seen during FY23.

DAVANGERE SUGAR 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	807	25	-96.9%
Cash Flow from Investing Activities	Rs m	-201	-229	-
Cash Flow from Financing Activities	Rs m	-639	192	-
Net Cash Flow	Rs m	-33	-13	-

Current Valuations for DAVANGERE SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.3, an decline from the EPS of Rs 1.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6.6, stands at 51.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 3.3 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	29.8	23.0
TTM Earnings per share	Rs	1.4	1.3
Diluted earnings per share	Rs	0.1	0.1
Price to Cash Flow	x	21.9	3.3
TTM P/E ratio	x	41.1	51.6
Price / Book Value ratio	x	1.6	0.2
Market Cap	Rs m	4,935	796
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DAVANGERE SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY24, from 1.4x 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 1.6x during FY24, from 1.7x 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 3.6% during FY24, from 4.2% 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 9.7% during FY24, from 11.0% 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 5.5% during FY24, from 6.8% 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	1.4	1.3
Debtors’ Days	Days	278	311
Interest coverage	x	1.7	1.6
Debt to equity ratio	x	0.3	0.2
Return on assets	%	6.8	5.5
Return on equity	%	4.2	3.6
Return on capital employed	%	11.0	9.7

To see how DAVANGERE SUGAR has performed over the last 5 years, please visit here.

DAVANGERE SUGAR Share Price Performance

Over the last one year, DAVANGERE SUGAR share price has moved down from Rs 10.2 to Rs 6.6, registering a loss of Rs 3.6 or around 35.0%.

Overall, the S&P BSE SENSEX is up 23.5% over the year.

(To know more, check out historical annual results for DAVANGERE SUGAR and quarterly results for DAVANGERE SUGAR)