DB REALTY 2023-24 Annual Report Analysis

Wed, 11 Sep

DB REALTY 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.

DB REALTY Income Statement Analysis

• Operating income during the year fell 98.8% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 13.3% in FY24 as against 16.4% in FY23.
• Depreciation charges decreased by 65.2% and finance costs decreased by 79.9% YoY, respectively.
• Other income grew by 713.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 12.9% in FY23 to 9186.9% in FY24.

DB REALTY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,982	87	-98.8%
Other income	Rs m	1,090	8,865	713.2%
Total Revenues	Rs m	8,073	8,953	10.9%
Gross profit	Rs m	-1,147	-12	NA
Depreciation	Rs m	4	1	-65.2%
Interest	Rs m	544	109	-79.9%
Profit before tax	Rs m	-605	8,743	NA
Tax	Rs m	295	728	146.9%
Profit after tax	Rs m	-900	8,016	NA
Gross profit margin	%	-16.4	-13.3
Effective tax rate	%	-48.7	8.3
Net profit margin	%	-12.9	9,186.9

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DB REALTY Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 6 billion as compared to Rs 28 billion in FY23, thereby witnessing an decrease of -78.7%.
• Long-term debt down at Rs 591 million as compared to Rs 13 billion during FY23, a fall of 95.3%.
• Current assets fell 26% and stood at Rs 28 billion, while fixed assets rose 36% and stood at Rs 36 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 64 billion as against Rs 83 billion during FY23, thereby witnessing a fall of 23%.

DB REALTY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	18,789	57,474	205.9
Current Liabilities	Rs m	28,042	5,985	-78.7
Long-term Debt	Rs m	12,622	591	-95.3
Total Liabilities	Rs m	82,953	63,908	-23.0
Current assets	Rs m	38,284	28,297	-26.1
Fixed Assets	Rs m	26,164	35,610	36.1
Total Assets	Rs m	82,953	63,908	-23.0

DB REALTY Cash Flow Statement Analysis

• DB REALTY's cash flow from operating activities (CFO) during FY24 stood at Rs -146 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 76.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 10 billion, an improvement of 1,880% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 7 billion from the Rs -515 million net cash flows seen during FY23.

DB REALTY 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	963	-146	-
Cash Flow from Investing Activities	Rs m	-1,996	-3,529	-
Cash Flow from Financing Activities	Rs m	517	10,238	1,880.2%
Net Cash Flow	Rs m	-515	6,563	-

Current Valuations for DB REALTY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.9, an improvement from the EPS of Rs -2.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 195.5, stands at 7.9 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 1,205.0 times.
• The company's price to cash flow (P/CF) ratio stood at 11.7 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	19.8	0.2
TTM Earnings per share	Rs	-2.6	14.9
Diluted earnings per share	Rs	-1.7	14.9
Price to Cash Flow	x	-38.7	11.7
TTM P/E ratio	x	-29.3	7.9
Price / Book Value ratio	x	1.8	1.6
Market Cap	Rs m	33,728	93,540
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DB REALTY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.7x 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 improved and stood at 81.1x during FY24, from -0.1x 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 13.9% during FY24, from -4.8% 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 15.2% during FY24, from -0.2% 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 improved and stood at 12.7% during FY24, from -0.4% 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	4.7
Debtors’ Days	Days	358	0
Interest coverage	x	-0.1	81.1
Debt to equity ratio	x	0.7	0.0
Return on assets	%	-0.4	12.7
Return on equity	%	-4.8	13.9
Return on capital employed	%	-0.2	15.2

To see how DB REALTY has performed over the last 5 years, please visit here.

DB REALTY Share Price Performance

Over the last one year, DB REALTY share price has moved up from Rs 160.6 to Rs 195.5, registering a gain of Rs 34.9 or around 21.7%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,087.0 (down 0.3%). Over the last one year it has moved up from 4,774.4 to 8,087.0, a gain of 3,313 points (up 69.4%).

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for DB REALTY and quarterly results for DB REALTY)