DCM SHR.IND 2023-24 Annual Report Analysis

Wed, 10 Jul

DCM SHR.IND 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 SHR.IND Income Statement Analysis

• Operating income during the year fell 11.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 57.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.8% in FY24 as against 6.1% in FY23.
• Depreciation charges increased by 8.4% and finance costs increased by 6.6% YoY, respectively.
• Other income grew by 28.8% YoY.
• Net profit for the year grew by 91.8% YoY.
• Net profit margins during the year grew from 2.6% in FY23 to 5.5% in FY24.

DCM SHR.IND Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	23,509	20,829	-11.4%
Other income	Rs m	175	226	28.8%
Total Revenues	Rs m	23,684	21,055	-11.1%
Gross profit	Rs m	1,429	2,247	57.3%
Depreciation	Rs m	359	389	8.4%
Interest	Rs m	335	358	6.6%
Profit before tax	Rs m	910	1,726	89.8%
Tax	Rs m	308	572	85.7%
Profit after tax	Rs m	602	1,154	91.8%
Gross profit margin	%	6.1	10.8
Effective tax rate	%	33.9	33.1
Net profit margin	%	2.6	5.5

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DCM SHR.IND Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 12 billion as compared to Rs 10 billion in FY23, thereby witnessing an increase of 15.5%.
• Long-term debt down at Rs 355 million as compared to Rs 733 million during FY23, a fall of 51.5%.
• Current assets rose 19% and stood at Rs 15 billion, while fixed assets rose 2% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 22 billion as against Rs 20 billion during FY23, thereby witnessing a growth of 13%.

DCM SHR.IND Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,167	8,154	13.8
Current Liabilities	Rs m	10,296	11,890	15.5
Long-term Debt	Rs m	733	355	-51.5
Total Liabilities	Rs m	19,511	21,989	12.7
Current assets	Rs m	12,207	14,560	19.3
Fixed Assets	Rs m	7,300	7,427	1.7
Total Assets	Rs m	19,511	21,989	12.7

DCM SHR.IND Cash Flow Statement Analysis

• DCM SHR.IND's cash flow from operating activities (CFO) during FY24 stood at Rs 766 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -433 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -224 million, an improvement of 78% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 110 million from the Rs -6 million net cash flows seen during FY23.

DCM SHR.IND 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	1,686	766	-54.5%
Cash Flow from Investing Activities	Rs m	-679	-433	-
Cash Flow from Financing Activities	Rs m	-1,013	-224	-
Net Cash Flow	Rs m	-6	110	-

Current Valuations for DCM SHR.IND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.3, an improvement from the EPS of Rs 6.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 217.2, stands at 16.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 8.1 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	270.3	239.4
TTM Earnings per share	Rs	6.9	13.3
Diluted earnings per share	Rs	6.9	13.3
Price to Cash Flow	x	5.6	8.1
TTM P/E ratio	x	9.0	16.4
Price / Book Value ratio	x	1.1	1.5
Market Cap	Rs m	8,034	12,527
Dividends per share (Unadj.)	Rs	1.0	2.0

Ratio Analysis for DCM SHR.IND

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x 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 improved and stood at 5.8x during FY24, from 3.7x 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 improved and stood at 14.2% during FY24, from 8.4% 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 24.5% during FY24, from 15.8% 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 6.9% during FY24, from 4.8% 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	1.2	1.2
Debtors’ Days	Days	376	483
Interest coverage	x	3.7	5.8
Debt to equity ratio	x	0.1	0.0
Return on assets	%	4.8	6.9
Return on equity	%	8.4	14.2
Return on capital employed	%	15.8	24.5

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

DCM SHR.IND Share Price Performance

Over the last one year, DCM SHR.IND share price has moved up from Rs 79.8 to Rs 217.2, registering a gain of Rs 137.4 or around 172.1%.

Overall, the S&P BSE SENSEX is up 22.3% over the year.

(To know more, check out historical annual results for DCM SHR.IND and quarterly results for DCM SHR.IND)