DCM NOUVELLE 2022-23 Annual Report Analysis

Wed, 22 Nov

DCM NOUVELLE has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

DCM NOUVELLE Income Statement Analysis

• Operating income during the year fell 4.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 83.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.3% in FY23 as against 19.2% in FY22.
• Depreciation charges decreased by 19.0% and finance costs increased by 0.7% YoY, respectively.
• Other income declined by 29.9% YoY.
• Net profit for the year declined by 90.5% YoY.
• Net profit margins during the year declined from 13.5% in FY22 to 1.3% in FY23.

DCM NOUVELLE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,093	8,644	-4.9%
Other income	Rs m	83	58	-29.9%
Total Revenues	Rs m	9,176	8,702	-5.2%
Gross profit	Rs m	1,744	286	-83.6%
Depreciation	Rs m	124	100	-19.0%
Interest	Rs m	62	62	0.7%
Profit before tax	Rs m	1,641	182	-88.9%
Tax	Rs m	415	66	-84.2%
Profit after tax	Rs m	1,226	117	-90.5%
Gross profit margin	%	19.2	3.3
Effective tax rate	%	25.3	36.0
Net profit margin	%	13.5	1.3

Don't Miss: Key Information for Long-term Investors

DCM NOUVELLE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 30.4%.
• Long-term debt stood at Rs 975 million as compared to Rs 286 million during FY22, a growth of 241.5%.
• Current assets rose 0% and stood at Rs 3 billion, while fixed assets rose 49% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 6 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 19%.

DCM NOUVELLE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,065	3,189	4.1
Current Liabilities	Rs m	1,634	2,131	30.4
Long-term Debt	Rs m	286	975	241.5
Total Liabilities	Rs m	5,433	6,474	19.2
Current assets	Rs m	3,331	3,338	0.2
Fixed Assets	Rs m	2,102	3,136	49.2
Total Assets	Rs m	5,433	6,474	19.2

DCM NOUVELLE Cash Flow Statement Analysis

• DCM NOUVELLE's cash flow from operating activities (CFO) during FY23 stood at Rs 476 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 122.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion, an improvement of 721% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 8 million from the Rs 41 million net cash flows seen during FY22.

DCM NOUVELLE Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	873	476	-45.4%
Cash Flow from Investing Activities	Rs m	-668	-1,486	-
Cash Flow from Financing Activities	Rs m	-164	1,017	-
Net Cash Flow	Rs m	41	8	-80.5%

Current Valuations for DCM NOUVELLE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.2, an decline from the EPS of Rs 65.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 186.5, stands at -43.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 18.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	486.8	462.7
TTM Earnings per share	Rs	65.6	6.2
Diluted earnings per share	Rs	65.6	6.2
Price to Cash Flow	x	3.2	18.0
TTM P/E ratio	x	3.6	-43.3
Price / Book Value ratio	x	1.4	1.2
Market Cap	Rs m	4,317	3,898
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DCM NOUVELLE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 2.0x during FY22. 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 3.9x during FY23, from 27.6x during FY22. 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 3.7% during FY23, from 40.0% during FY23. 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 5.9% during FY23, from 50.8% during FY22. 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 2.8% during FY23, from 23.7% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	2.0	1.6
Debtors’ Days	Days	331	249
Interest coverage	x	27.6	3.9
Debt to equity ratio	x	0.1	0.3
Return on assets	%	23.7	2.8
Return on equity	%	40.0	3.7
Return on capital employed	%	50.8	5.9

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

DCM NOUVELLE Share Price Performance

Over the last one year, DCM NOUVELLE share price has moved up from Rs 150.8 to Rs 186.5, registering a gain of Rs 35.7 or around 23.6%.

Overall, the S&P BSE SENSEX is up 8.0% over the year.

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