DCM SHRIRAM 2023-24 Annual Report Analysis

Tue, 18 Jun

DCM SHRIRAM 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.

DCM SHRIRAM Income Statement Analysis

• Operating income during the year fell 5.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 36.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.5% in FY24 as against 14.1% in FY23.
• Depreciation charges increased by 16.4% and finance costs increased by 65.8% YoY, respectively.
• Other income declined by 42.5% YoY.
• Net profit for the year declined by 50.9% YoY.
• Net profit margins during the year declined from 8.3% in FY23 to 4.3% in FY24.

DCM SHRIRAM Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	110,145	104,137	-5.5%
Other income	Rs m	1,756	1,009	-42.5%
Total Revenues	Rs m	111,900	105,146	-6.0%
Gross profit	Rs m	15,505	9,883	-36.3%
Depreciation	Rs m	2,602	3,029	16.4%
Interest	Rs m	528	876	65.8%
Profit before tax	Rs m	14,131	6,987	-50.6%
Tax	Rs m	5,023	2,516	-49.9%
Profit after tax	Rs m	9,108	4,471	-50.9%
Gross profit margin	%	14.1	9.5
Effective tax rate	%	35.5	36.0
Net profit margin	%	8.3	4.3

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DCM SHRIRAM Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 46 billion as compared to Rs 42 billion in FY23, thereby witnessing an increase of 9.4%.
• Long-term debt stood at Rs 14 billion as compared to Rs 12 billion during FY23, a growth of 20.0%.
• Current assets fell 1% and stood at Rs 63 billion, while fixed assets rose 18% and stood at Rs 71 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 134 billion as against Rs 124 billion during FY23, thereby witnessing a growth of 8%.

DCM SHRIRAM Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	61,938	65,221	5.3
Current Liabilities	Rs m	42,442	46,450	9.4
Long-term Debt	Rs m	11,537	13,845	20.0
Total Liabilities	Rs m	124,146	134,344	8.2
Current assets	Rs m	63,802	63,471	-0.5
Fixed Assets	Rs m	60,110	70,730	17.7
Total Assets	Rs m	124,146	134,344	8.2

DCM SHRIRAM Cash Flow Statement Analysis

• DCM SHRIRAM's cash flow from operating activities (CFO) during FY24 stood at Rs 8 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -11 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 172% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 billion from the Rs -5 billion net cash flows seen during FY23.

DCM SHRIRAM 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	12,963	7,938	-38.8%
Cash Flow from Investing Activities	Rs m	-15,426	-10,701	-
Cash Flow from Financing Activities	Rs m	-2,352	1,694	-
Net Cash Flow	Rs m	-4,816	-1,069	-

Current Valuations for DCM SHRIRAM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.7, an decline from the EPS of Rs 58.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 998.0, stands at 34.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 20.0 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	706.3	667.8
TTM Earnings per share	Rs	58.4	28.7
Diluted earnings per share	Rs	58.4	28.7
Price to Cash Flow	x	10.0	20.0
TTM P/E ratio	x	12.8	34.8
Price / Book Value ratio	x	2.5	2.3
Market Cap	Rs m	155,467	149,966
Dividends per share (Unadj.)	Rs	14.0	6.6

Ratio Analysis for DCM SHRIRAM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x 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 deteriorated and stood at 9.0x during FY24, from 27.8x 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 6.9% during FY24, from 14.7% 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 9.9% during FY24, from 20.0% 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 4.0% during FY24, from 7.8% 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	1.5	1.4
Debtors’ Days	Days	3	2
Interest coverage	x	27.8	9.0
Debt to equity ratio	x	0.2	0.2
Return on assets	%	7.8	4.0
Return on equity	%	14.7	6.9
Return on capital employed	%	20.0	9.9

To see how DCM SHRIRAM has performed over the last 5 years, please visit here.

DCM SHRIRAM Share Price Performance

Over the last one year, DCM SHRIRAM share price has moved up from Rs 859.1 to Rs 998.0, registering a gain of Rs 138.9 or around 16.2%.

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

(To know more, check out historical annual results for DCM SHRIRAM and quarterly results for DCM SHRIRAM)